Cash Flow
Profit First
Mike Michalowicz
A simple discipline for cash flow and actually keeping profit.
Recommended for: I Don't Know Which Jobs or Customers Make Money
All Challenges
Money
I Don't Know Which Jobs or Customers Make Money
Review completed jobs so you know where you really earn — and feed it back into estimating.
The Challenge
Review completed jobs so you know where you really earn — and feed it back into estimating.
Why This Happens
- No job costing
- Costs not tracked by job
- No review after jobs
Questions to Ask Yourself
- 1.Do you know gross profit on each job?
- 2.Which customers bring the best margin?
- 3.Are lessons fed back into estimates?
What to Do First
1
Pick your last five jobs.
2
Fill out a Job Profitability Review for each.
3
Note which type of work earned most.
Step-by-Step Solution
- 1
Capture contract amount.
- 2
Capture estimated cost.
- 3
Record actual labor, materials, and other costs.
- 4
Calculate gross profit.
- 5
Compare estimated vs actual.
- 6
Write lessons learned.
- 7
Adjust future estimates.
Three Levels of Solutions
Quick Win
Do this today
Calculate gross profit on your last completed job.
Build the System
Next 30 days
Review every completed job and keep the results.
Long-Term Transformation
Where you're headed
Focus on the work and customers that truly make money.
Lessons From the Pass It On Library
From Profit First
Know where your money really comes from.
Framework: Allocate first: Profit, Owner Pay, Taxes, Operating Expenses.
From Principles
Learn from every completed job.
Framework: Mistake → Lesson → Principle → System
Pass It On Action
Review one completed job this week.
Practical Tool
Job Profitability Review
Fill it in here, then download or print. Your answers stay on your device.
Your Action Plans
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7-Day Action Plan
- Day 1 — Identify the problem: write down exactly how “I Don't Know Which Jobs or Customers Make Money” shows up in your business.
- Day 2 — Review the numbers: gather the facts, figures, and examples connected to this challenge.
- Day 3 — Find the root cause: answer “Do you know gross profit on each job?”
- Day 4 — Choose one change: Pick your last five jobs.
- Day 5 — Assign responsibility: name ONE owner, a deadline, and the expected result.
- Day 6 — Implement: Fill out a Job Profitability Review for each.
- Day 7 — Review what happened: what worked, what didn’t, and what you’ll do next week.
30-Day Action Plan
Week 1 — Diagnose
- Answer: Do you know gross profit on each job?
- Answer: Which customers bring the best margin?
- Answer: Are lessons fed back into estimates?
- Complete the 7-Day Action Plan.
Week 2 — Build
- Review every completed job and keep the results.
- Capture contract amount.
- Capture estimated cost.
- Record actual labor, materials, and other costs.
- Calculate gross profit.
Week 3 — Implement
- Compare estimated vs actual.
- Write lessons learned.
- Adjust future estimates.
- Train the people involved and assign owners.
Week 4 — Measure & Improve
- Compare results to where you started.
- Write one lesson learned.
- Adjust the process.
- Share what you learned with someone in the fellowship.
Biblical Principles
Wisdom for the journey — encouraging stewardship, integrity, and service, never a promise of guaranteed success.
#31 · Integrity
Use honest measurements
Proverbs 11:1
#41 · Money Management
Know the financial condition of your business
Proverbs 27:23–24
#89 · Wisdom
Learn from correction
Proverbs 15:31–32
Related Challenges
Recommended Books
Approved Bookshelf resources related to this challenge.
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