The road to a $1m Net Profit Trade Business.
The maths is simple, the road is not, but it is totally achievable.
Most trade businesses can get to $2m turnover with a strong, energetic founder doing what they do well.
A $2m business can run at 25-40% Gross Profit depending on the market segment.
Net profit can be 15-20% if overheads are kept lean and the business stays in its swim lane – that’s $300k-$400k net profit.
If you can build that business, you can build 2 more next to it.
But….you’ll need systems. Simple (but not easy) systems.
You have the playbook for the model, but to build the next $4 million in revenue, you need to replace yourself in the current business and reskill.
You’re no longer a tradesman; you’re now a business builder.
$6-$7m turnover, 15-20% net profit can be done. (I see it regularly)
What stops people from going from $2m to $7m?
1. Not replacing themselves
2. Getting distracted
3. Patience
Helping business owners do this gets me out of bed every morning – there is a clear path to a $1m Profit Trade Business, but it takes time, patience, hard work, and a belief in yourself.
Most trade business owners I know have belief and hard work, but may struggle with patience.