How can a handyman measure profitability beyond just 'money in the bank'?

Q: How can a handyman measure profitability beyond just 'money in the bank'?

Direct answer: Know if you're actually profitable by tracking job-level gross profit and comparing it to your monthly overhead. Practical steps Track gross profit: Labor + materials vs what you billed on each job. Subtract overhead: Compare gross profit to monthly fixed costs to see true net. Watch trend lines: Profitability is a pattern, not a single good week. Next step: Pick your last 10 jobs and calculate gross profit for each—then average it.

Question

Accepted Answer

Direct answer: Know if you're actually profitable by tracking job-level gross profit and comparing it to your monthly overhead.

Practical steps

Track gross profit: Labor + materials vs what you billed on each job.
Subtract overhead: Compare gross profit to monthly fixed costs to see true net.
Watch trend lines: Profitability is a pattern, not a single good week.

Next step: Pick your last 10 jobs and calculate gross profit for each—then average it.