Know the number that keeps the lights on

Your break-even is the amount you must bring in each month just to cover your costs — the line between losing money and making it. Most owners have never worked it out, so every month is a guess. Once you know it, you know exactly what you're aiming at.

Do this

1. Add up your fixed monthly costs — rent, insurance, subscriptions, phone, and your own basic pay.
2. Add the average variable costs for a typical month of work (materials, fuel, and the like).
3. That total is your break-even: earn less and you're behind, earn more and you're ahead.
4. Write it where you'll see it. Now every quote and every slow week has a number to measure against.

Find your break-even in 10 minutes

Add up what it costs just to exist each month:

Rent / space ...................... $600 Insurance ......................... $150 Phone / software / subscriptions .. $120 Your basic pay (to live) .......... $3,000 Typical materials & fuel .......... $800 ---------------------------------------- BREAK-EVEN ........................ $4,670 / month

That's your line. Below it you're losing money; above it you're building something. Divide by your average job to see how many jobs a month you truly need — suddenly your goal is concrete, not a vibe.