Jacob Godar is an expert at scaling contractor-based businesses and the founder of GROW Comm, a private coaching group for contractors. Each week, he shares experiences, lends advice, and teaches strategies to help you achieve your next level in your life, relationships, and business.
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Jacob Godar is an expert at scaling contractor-based businesses and the founder of GROW Comm, a private coaching group for contractors. Each week, he shares experiences, lends advice, and teaches strategies to help you achieve your next level in your life, relationships, and business.
Episode 185: Knowing Your Numbers To Escape The Debt Spiral
GROW by Design
16 minutes
7 months ago
Episode 185: Knowing Your Numbers To Escape The Debt Spiral
In this episode, I break down why knowing your numbers is absolutely critical to business success. I've learned through growing my landscaping company that setting a detailed budget isn't just about tracking expenses—it's about calculating exactly what we need to charge per hour to cover all overhead, equipment costs, and still generate profit. I compare business budgeting to calorie counting because staying under budget consistently leads to financial health, just like staying under your calorie count leads to weight loss.I share my personal experiences with both sides of the financial spectrum—being cash-rich and being heavily leveraged with debt—and why understanding your numbers gives you the confidence to make growth decisions. I explain how we calculate our hourly rates by dividing total operating costs by billable hours, then adding our target profit margin. This approach has allowed us to reinvest profits rather than rely too heavily on debt, though I'm honest about times I've felt the pressure of a "debt spiral" when taking big opportunities.Most importantly, I emphasize that perfect numbers don't exist when you're starting out—you have to make your best estimate and then adjust as you learn. Knowing your numbers isn't about perfection; it's about having the clarity to make decisions, manage stress, and guide your business toward consistent profitability.
GROW by Design
Jacob Godar is an expert at scaling contractor-based businesses and the founder of GROW Comm, a private coaching group for contractors. Each week, he shares experiences, lends advice, and teaches strategies to help you achieve your next level in your life, relationships, and business.