Question came from a friend the other day. He said, “Michael, how do you determine whether someone in construction has a business or a hobby?”
The answer is simple.
If you have a well-run business, then you are paying yourself a good salary and are able to spend evenings and weekends with your family. You keep your bills paid, you complete your jobs according to the contract and you finish your jobs on time. You make good money.
If you have a hobby, your wife is working to pay most if not all the household bills. You can’t pay yourself very often because “the company can’t afford it.” You get lots of referrals, but they are all from people who love your low prices. You are tired at the end of the day, so you must be making money, you just don’t know where it is.
Which one sounds like you?
The knowledge and experience Michael Stone gained in his 60+ years in construction has helped thousands of contractors improve their businesses and their lives. He is the author of the books Markup & Profit Revisited, Profitable Sales, and Estimating Construction Profitably, and is available for one-on-one consultations as needed.