Most home service business owners are working hard, bringing in decent revenue, and still wondering where all the money went. I sat down with Jack Tompkins on his Scrappy But Successful podcast to talk about what it really takes to build a small business profit that grows, not just survives.
Jack had me share how I got my start, including the season I was so broke I walked door to door through every business in my little northern Idaho town just to find enough clients to keep the lights on.
That kind of desperate start has a way of teaching you exactly how to watch every dollar, and it shaped everything I now teach my customers about money, taxes, and profit. Sneaky Leaky loves a business owner who’s too busy to look at their numbers, so let’s make sure that’s not you.
What You’ll Learn…
- Why small business profit depend on more than just bringing in more revenue
- How Profit First flips the old revenue minus expenses formula on its head
- What most home service owners get wrong when they try to do tax planning in December
- Why running your business out of one bank account gives Sneaky Leaky an open door
- How small businesses’ profits grow faster when your money has a job and a place to go
- The creative tax strategies most blue-collar owners have never heard of but absolutely qualify for
- Why being wildly profitable is something to be proud of, not quiet about
Key Moments…
[0:45] Why Small Business Profit Starts With Reading Your Numbers
[4:20] The Problem With Running Everything Out Of One Bank Account
[9:10] Tax Planning That Goes Way Beyond Buying A Truck In December
[14:35] Captive Insurance And The Strategies Most Owners Have Never Heard Of
[19:00] How Profit First Turns Small Business Profit Into A System
[24:15] Walking Door To Door And Building A Business From Nothing
[28:50] What Wildly Profitable Really Means And Why You Should Own It
Why Small Business Profit Starts With Reading Your Numbers
Too many home service owners hand over their books and never look at them again, and that’s exactly where small business profit quietly disappears. When you understand what your numbers are actually telling you, you can start pulling the right levers and see real change in what you take home. Most of my customers tell me nobody ever sat them down and walked them through it before we started working together. The light bulb moment is always the same: a little bit of shock and then a whole lot of motivation. Your numbers aren’t there to stress you out; they’re there to show you the way.
The Problem With Running Everything Out Of One Bank Account
Your money has jobs to do, and when everything lives in one account, none of those jobs get done properly. You look at the balance, it looks okay, and then off you go, spending on something that felt fine in the moment. What you didn’t account for was payroll coming up on Friday, the workers’ comp audit, the sales tax due at the end of the month, and about four other things you forgot were on the way. Sneaky Leaky absolutely loves a single account because it’s so easy to spend money that’s already spoken for. Small business profit gets protected the moment you start separating your money into accounts that each have a clear purpose.
Tax Planning That Goes Way Beyond Buying A Truck In December
I hear it all the time, someone tells me their tax strategy is to spend a bunch in December and lower their bill. That’s not a plan, that’s a reaction, and it usually leaves them with payments on equipment they didn’t really need. Real tax planning starts in May, right after tax season, when we sit down and map out strategies that work year after year without the last minute scramble. Things like retirement plans, hiring your kids legitimately in the business, and using the Augusta Rule to rent your home to your business are all tools that build small business profit over time rather than drain it. By October, my clients already have their full tax plan in place, and there’s no drama when December rolls around.
Captive Insurance And The Strategies Most Owners Have Never Heard Of
Some of the best tax strategies out there are the ones the big companies use, and most small home service business owners have no idea they qualify for them. One of my favorites is captive insurance, where a business owner essentially becomes their own insurance company and can file claims for real business losses. I had a customer a couple of years ago who lost their general manager unexpectedly and faced months of lost revenue while scrambling to replace him. Because they had captive insurance in place, they were able to file a claim to offset those costs and get through without it wrecking their small business’s profit. Without that plan, they would have just had to absorb the hit and hope for the best.
How Profit First Turns Small Business Profit Into A System
Profit First works because it takes the emotion out of spending and puts your money to work on purpose. Instead of saying revenue – expenses = profit and hoping something’s left, we flip it: revenue – profit = expenses. You decide upfront how much profit you want, pull that out first, and then figure out how to run your business on what’s left. We start small, sometimes just one or two percent, so it doesn’t shock your cash flow, and over a year or two, you’re fully operating inside a real small business profit system. It’s not complicated; it’s a mindset shift that changes everything about how you see your money.
Walking Door To Door And Building A Business From Nothing
There was a season in my life where I had no networking, no internet, no referral pipeline, just a stack of business cards and the knowledge that we were going to go hungry if I didn’t figure something out fast. I walked into every single business in my town and introduced myself, terrified the whole time because I was so shy back then it was almost painful. That kind of start teaches you to respect every dollar because you know what it costs you to earn it. Small business profit means something different when you remember what it felt like to not have it, and I carry that with me into every conversation I have with my clients. Those early days shaped the way I work and why I care so much about helping others get to the other side.
What Wildly Profitable Really Means And Why You Should Own It
There’s a strange thing that happens when home service business owners start making real money. They get quiet about it, almost embarrassed, as if being profitable is something to apologize for. Being wildly profitable means you can hire the best people, give your customers a genuinely great experience, and invest in your community in ways that matter. My own client experience now, compared to years ago, is completely different, because back then I couldn’t afford to do the fun, thoughtful things I do for my clients today. Don’t let Sneaky Leaky steal what you’ve worked for, and don’t let anyone make you feel like small business profit is something to hide.
About Jack
From founding Pineapple Consulting Firm to presenting in front of crowds, Jack aims to make data attainable, easy, and even fun! He has an absolute blast engaging with the audience and sharing the secrets of how businesses can become more data-driven the easiest way possible.
Connect With Jack Tompkins:
Visit Jack’s Website
Follow Jack on Instagram
Connect with Jack on LinkedIn
Follow Pineapple Consulting Firm on LinkedIn
Follow Jack on Facebook
Follow Jack on YouTube
Diane’s Resources:
15 Profit Leaks Report
📖 Spot the common places where money slips out of a service business and learn the fixes that keep more cash with you. https://profitcoach4you.com/profitleaks
Profit Impact Call
☎️ Get a live review of your numbers so you can see where profit is leaking and walk away with a plan to save thousands. https://taxcoach4you.com/profitimpactcall/
Schedule a free Profit Impact Call with me where we’ll go over 12 main areas of your business together and save you $45k!
