https://www.foundationacs.com/Hey Profit Hackers, Jeremy Lott here — Chief Visionary of Foundation Accounting and Consulting. In this episode of *The Contractors Profit Hack Show*, we continue our deep dive into budgeting. I share a story about a family prank war and tie it to Stephen Covey’s lesson about picking up the stick — every action has consequences. From there, I break down **direct vs. indirect costs**, how to allocate materials, labor, and overhead, and how to reverse engineer your revenue to reach your profit goals. If you want to take control of your budget and focus on **profit over revenue**, this episode will give you a clear framework to follow. ⏱️ Timestamps: 00:00 – Intro to The Contractors Profit Hack Show 00:40 – Continuing the budget conversation 01:15 – Story: Daughter’s prank war & Covey’s stick lesson 03:10 – How consequences in business mirror costs 04:20 – Direct costs explained (materials, labor, subcontractors, permits, dump fees) 07:10 – Indirect costs/overhead explained (gas, recurring expenses, insurance) 09:00 – Allocating percentages of revenue to costs (30% labor, 30% materials, 10% overhead) 11:30 – Breaking down overhead: specific vs non-specific recurring costs 13:50 – Putting it all together in a monthly budget 16:20 – Example revenue allocation and final budget calculation 18:40 – Key takeaway: focus on net profit, track costs carefully
