Lately I’ve been doing a lot of speaking and teaching for the building construction industry and one of the most common questions I get at schools, trade shows, and in e-mails is, “How do I figure my profit percentage?” Or (including the hidden meaning), “How do I know I’m getting enough profit?” Well, of course, that’s a loaded question, and depending on particulars, my answer may vary, but it’s always based on the same premise:
Your profit should be enough to cover the cost of doing business, as well as provide additional funds for growing your company.