The Contractor's Financial Blueprint

Saturday Newsletter

August 23, 2025

 Read on my website ⏱️ Read Time: 3 minutes 42 seconds

The 7 Numbers Between You and Your First Million

Hey there,

I meet contractors every day. Here's a typical scenario: $15M in revenue. Living paycheck to paycheck.

"How?" I ask.

"I don't know," he says. "The money just... disappears."

After 30 years in banking and reviewing 10,000+ financials, I've discovered something: Most contractors are watching the wrong movie.

They obsess over revenue while their profit bleeds out the back door.

Finance people overcomplicate things, and today I want to change that. You only need to master 7 numbers to become a millionaire contractor. Not 47 spreadsheets. Not an MBA. Just 7 numbers.

Let me show you.

The 7 Numbers That Actually Matter

I always tell my clients to think of their P&L like a sandwich. First the bread, then the meat.

1. Revenue Sources (Top of the P&L Sandwich)

Break your revenue into 1-3 major sources. That's it.

Example: You're a concrete contractor. Maybe 60% residential, 40% commercial. Track these separately. Why? Because one might be making you rich while the other makes you broke.

Set benchmarks. Compare monthly. This is called "variance analysis" - fancy words for "Am I winning or losing?"

2. Net Profit Margin (Bottom of the Sandwich)

Here's where contractors get screwed: Your P&L says $350K profit. After debt and taxes? Maybe $100K if you're lucky.

That's not profit. That's a really expensive job.

My rule: You should make AT LEAST 10% of revenue. For a $10M contractor, that's $1M. But since Uncle Sam and your banker want their cut, target 12-15% net margin.

Anything less? You're better off working for someone else.

3. Labor Costs (The Expensive Meat)

This is where fortunes are made or lost. Every crew, every job, every hour matters.

Track it. Benchmark it. Because a 2% creep in labor costs on $10M revenue? That's $200K gone. Poof.

4. Material Costs (The Other Expensive Meat)

Same story. Different villain. Material costs creeping up 1%? There goes another $100K.

Together, labor and materials determine your...

5. Gross Profit Margin (The Magic Number)

This is where ALL the money hides.

Remember this until you die: Every 1% improvement in GPM goes straight to your bottom line.

• $5M contractor improves 1% = $50K more profit

• $15M contractor improves 1% = $150K more profit

• $30M contractor improves 1% = $300K more profit

I typically find 3-5% improvement for my clients. Do the math. That's life-changing money already flowing through your business.

6. Salary/Overhead (The Boring But Deadly Number)

Office payroll should be 5-7% of revenue. Period.

Don't obsess over copier paper. Have someone audit annually while you focus on the numbers that actually move the needle.

7. Cash Position (The Sleep-At-Night Number)

This one's on your balance sheet. How much cash can you access tomorrow without begging your banker? I'll be doing a deeper dive on the balance sheet in my mid-week email (yes, I send a lot of emails. It's the best way to deliver value to my contractors).

Less than 2 months of overhead? You're one bad job from disaster.

Here's What Changes When You Master These 7

✅ Monthly financial review takes 15 minutes (not 4 hours)

✅ You spot problems before they become disasters

✅ You know EXACTLY where you stand vs. guessing

✅ You make decisions based on data, not hope

✅ You actually keep the money you earn

The best part? Once you dial this in (takes about 90 days), you'll know more about your business than 95% of contractors out there.

That's it. Now you have my blueprint. It took me decades to learn and less than 5 minutes to explain. It doesn't have to be complicated.

Want Me to Show You How?

I'm running a workshop on September 9th at 11am EST, where I'll walk you through:

• My exact 15-minute monthly review process

• How to set benchmarks for YOUR business

• The early warning signs that predict cash crunches

• Why your P&L is lying to you (and how to fix it)

• The questions to ask your bookkeeper that'll make them sweat

For my clients: It's free. My gift to you.

For everyone else: $29 gets you a seat.

Why charge? Because free workshops get 50% no-shows. When you pay, you pay attention, and you are more likely to execute on becoming a millionaire.

BONUS: I'm staying 45 minutes after to answer your specific questions. Bring your P&L if you want real-time feedback.

[GRAB YOUR SPOT HERE - Only 20 Guest Seats Available]

Look, I know your eyes glaze over at financial statements. Mine did too until I learned this system.

But here's what I also know: The contractors who master these 7 numbers don't worry about making payroll. They don't lose sleep over cash flow. They build real wealth while everyone else just builds revenue.

Which one do you want to be?

Because Revenue for Show. Profit for Dough. But knowing your numbers? That's how you GROW.

See you on September 9th,

Patrick Shurney, MBA
Founder, 3P Consulting
📞 443.539.6276
Helping Contractors Become Bankable, Bondable, & Capital-Ready

P.S. - Still think this is too simple? Warren Buffett built $100B focusing on just a few key metrics. Michael Jordan mastered the jump shot, Scottie Scheffler the putt, Miles Davis scales and chord progression. Basic footwork every single day. Masters don't complicate - they perfect the fundamentals.

P.P.S. - Can't make September 9th? I'm doing this workshop exactly once. Lifetime replays are only for clients and paid guests. Your choice: invest 90 minutes now or spend another year wondering where your money went.

_____________

About Me:

As a veteran in financial coaching with over 30 years of corporate banking experience, my mission is to empower trade contractors like you to become numbers confident, optimize cash flow, leverage debt, and pay yourself competitively.

Ready for More?

Here’s how I can help you:

1.     Profit Blueprint Program: Get your finances sorted and build out a 3-year financial roadmap in the next 30 days.

2.     Loan Consulting: Get Bank Ready. With 30+ years of banking experience, I’ll make sure you're ready to approach lenders with a winning loan package.