Do you know what it actually costs to operate your contracting business for one hour?

See what needs your attention in your contracting business: https://bit.ly/BuildABusinessWorthHaving_cto

Do you know what it actually costs to operate your contracting business for one hour?

Most contractors know what they charge customers. They know what they pay their employees. But they don't know what one billable hour actually costs their business.

And that difference could be costing them thousands of dollars in profit.

In this episode, Tom Reber breaks down how to calculate your true hourly operating cost so you can stop guessing and start understanding what your contracting business needs to produce.

Using an example with four field employees, Tom walks through how to calculate realistic billable hours, allocate company overhead, and account for the true cost of field labor.

The result? A business paying an employee $30 an hour could actually be spending $92 per billable hour before making a single dollar in profit.

Understanding this number doesn't tell you what to charge. It tells you what your business actually costs to operate so you can make better decisions about your jobs, your crews, and your profitability.

In this episode:

Why paid hours and billable hours aren't the same thingHow to calculate your team's realistic annual billable capacityHow overhead and labor burden determine your true hourly operating costWhy a $30-per-hour employee could cost your business $92 per billable hourThe difference between operating cost and what you should charge customersHow wasted time and inaccurate estimates affect your profitability

Chapters:

00:00 — What does one billable hour actually cost your business?