ABOUT THIS EPISODE
Know your numbers, fix your cash flow, and build a business that works for you. Schedule a call with us.
Most business owners look at the bottom of their income statement, see a profit, and assume the business is doing well. That number ignores one of the biggest costs in the business: invested capital.
In this episode Steve breaks down the difference between accounting profit and economic profit, why invested capital changes the whole picture, and how looking only at the P&L can lead you to reward the wrong things. He also shares what showed up when he mapped economic profit across hundreds of construction companies, and what that means if you're in the majority.
If your bonuses, growth decisions, and KPIs only look at the P&L, this one will change what you measure.
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