You Are The Captain! Lessons Learned from Talking Numbers with John Pajak
In a recent episode of Kid Contractor podcast, I had the pleasure of chatting with my good friend John Pajak, the numbers guru behind the Profits with Pajak podcast.
John and I covered a lot of ground when it comes to truly understanding your business numbers. It's a topic that gets thrown around a lot, but as John pointed out, "knowing your numbers" means so much more than just pricing your services. It's about tracking key performance indicators, understanding your cost of customer acquisition, and projecting the lifetime value of each client.
One of the biggest takeaways for me was the importance of not cutting corners, even on the small stuff. I shared a recent experience where I trimmed the "fat" on a couple of minor line items for a large project, only to end up losing money on those very items due to callbacks and unexpected costs. John reinforced that every dollar matters, and you have to be willing to build in that buffer to account for the unknowns.
Another valuable lesson was the necessity of separating business and personal finances. John mentioned how he keeps everything meticulously organized, with different bank accounts for different expense categories. This not only provides clarity but also protects the integrity of your financials—crucial if you ever decide to sell your company down the road.
Overall, my conversation with John was a powerful reminder that mastering the numbers side of your business is an ongoing process. It's not enough to just "know your numbers"—you have to continuously track, analyze, and adjust your approach based on the realities of your unique operation.
As green industry entrepreneurs, we can't afford to let emotion or gut feelings guide our pricing and budgeting decisions. John's expertise and no-nonsense approach is a valuable resource for any contractor looking to take their financial management to the next level.
I'm grateful to have John in my corner, and I know our listeners will find a ton of value in applying his principles to their own businesses. Here's to making data-driven decisions and growing profitably in the year ahead!
