How Simple Numbers Changed the Way I Lead

A remodeler transitioning from field work to office management discovered that focusing solely on revenue masked profitability problems until tracking simple project-level metrics revealed the true financial picture. Paying attention to basic numbers like material costs and trade partner bids against estimates transformed how he managed the business and made decisions.

Like many remodelers, I was overly focused on revenue when I moved into the office after 15 years as a lead carpenter. I understood how to use the project estimate as a guide for running the project. I could tell you whether our trade partners were staying within their bids, if our material costs…

This story was originally published by JLC Online.