How To Best Answer Your Own Question – “How Much Can I Make?”
Paul DelFino
I like to keep things simple stupid! After nearly 50 years in finance, I remain in awe of how accountants and lawyers seem to work to complicate matters rather than make them easy. Don’t get me wrong, good GAAP accounting disciplines are essential and appropriate when reporting to the IRS. But – sometimes you just need answers for yourself and let’s face it, adjusted net profit calculations on a year-end income statement, prepared by your accountant, does not look or feel like what happened to you in the prior year or it may not allow you to predict cash flow requirements for the next quarter.
After decades interfacing with businesspeople considering entering the concrete lifting and leveling business, unquestionably the #1 question I have been asked is “how much can I make?” I hate that question! It is dangerous and unfair for anyone to predict profitability without a solid business plan to review and with no knowledge of the: capital available, the market, the competition, and the aggressiveness of the owner. In response I like to say, “let me help you calculate the potential yourself by answering a few simple questions.”
My KISS PROFITABILITY CALCULATOR begins with the premise that the best way to look at a small contracting business is by day. It also assumes most people starting out focus on residential applications. What do I need to do each day and for how many days. Short term goals make things happen and every day you will know if you contributed to exceeding a plan or falling behind. Let’s start by answering some questions.
How Many Days Will You Work In A Year: Does your environment allow you to work all year or does weather force you to shut down for the winter months due to frost? Do you plan to work weekends or Holidays? How many weeks of vacation do you need or want? Will you work in the rain? Assuming you work in a climate that gives you a full year I like using a 200 working day year.
How Many Jobs Do You Plan To Do per Day – If you assume the average residential job uses 1 cubic yard of expanding polyurethane material and knowing the barrel set your carrying in your trailer or van is over 9 cubic yards your capacity is 9. A survey of others in the business may allow you to conclude that, ASSUMING YOU CAN GET THE WORK, many and most do 4-6 jobs per day by ganging jobs in a small circle to minimize driving time.
What Can You Expect to Earn on Each Job – This questing requires knowledge of the local competitive environment and vary greatly by market irrespective of whether you charge by square ft. or by material usage. The most conservative number I would consider is $1200 per job. (Again, this varies and should in most cases be much higher.)
Material Cost Per Day – Cost can vary with the market but todays cost is $2.30 per pound so if you did 4 residential jobs in a day you can estimate your costs at $920.
Do You Plan to Work Alone – Labor is expensive. Because the process is easy and there is no clean up residential polyurethane concrete lifting can be done by an owner operator alone. But – if you want help – what would your daily cost be for unskilled labor?
Fuel – Depending on the size of the service area you choose to cover and your ability to gang jobs in close proximity this number will vary.
Administrative – Irrespective of how frugal you are there are always administrative expense in a small business. Things like; software licenses, phone, accounting, etc add up. At minimum I would allow for $100 per day.
Marketing – The average small business spends 5% of its revenue on marketing. So, a simple calculation off of your daily revenue gives you $194 dollars per day. Remember; every referral is a free lead and allows you to reduce this expense.
Factoring The Cost of The Equipment – If you were to finance your equipment with a dollar buyout lease a polyurethane trailer package would cost you approximately $90 dollars a day.
When you push all those numbers into a calculator it looks like this (2025).
Metric | Polyurethane Trailer |
Jobs Per Day | 4 |
Avg Sales/Job | $1,200 (100 lbs. at $12/lb) |
Total Revenue/Day | $4,800 |
Material Cost/Day | $920 ($2.30/lb) |
Gross/Day | $3,880 |
Other Expenses | |
Labor | N/A |
Fuel | $50 |
Administrative | $100 |
Marketing (5%) | $194 |
Net/Day | $3,536 |
Equipment Cost/Day | $90 |
Net Net/Day | $3,446 |
Net Net/Hour | $430 |
Net Net/Year | $689,200 |
REMEMBER – THERE ARE TONS OF ASSUMPTIONS IN THESE 2025 NUMBERS.
IS IT A PROMISE? – “NO!”
IS IT ACCURATE FOR YOU? – PROBABLY NOT!
SO – CONSIDER PUTTING IN YOUR OWN NUMBERS AND ANSWER THE #1 QUESTION FOR YOURSELF!
Paul DelFino is a principal of the consulting firm Opportunity Inc. For over two decades he has assisted entrepreneurs in growing their businesses, responding to economic downturns and merger and acquisition activity. He has consulted with HMI and RaiseRite for nearly two decades. His publications include “Avoiding Skewed Entrepreneurial Strategies” available from all on line booksellers.