I once worked with an owner who couldn’t figure out why his bank account was always empty, even after his busiest month on record. The trucks were running, jobs were booked, and yet the money still wasn’t there. We figured it out, and the answer was simple. He hadn’t learned how to manage costs, and Sneaky Leaky had been helping himself to the profit. Every overlooked subscription, wasted part, and untracked expense was draining his hard work away. I want you to understand that you don’t need to overhaul your whole business to stop this cycle. A few practical steps can tighten the leaks and keep more of your money where it belongs—working for you.
Shift Your Focus to Profit, Not Revenue Size
Many owners believe that more sales automatically means more profit, but that’s not always true. More trucks, more jobs, and more employees don’t guarantee financial success if your expenses grow just as fast. When you manage costs with intention, you discover that profit is really what keeps your business healthy. Profit is what pays your bills, supports your family, and fuels your future. Sneaky Leaky shows up when owners chase revenue growth without tracking expenses, so make profit the main measure of success.
Audit Every Expense
If you want to manage costs effectively, start with a full review of your numbers. Go through your profit and loss statement line by line, and don’t forget to check your credit card charges. Ask yourself: does this expense help me get a customer or keep a customer? If the answer is no, it’s time to cut or renegotiate. Even small cuts make a big difference, because those little expenses add up fast, like employees charging snacks on the company card!
Focus on Cost of Goods Sold
When you focus on how to manage costs, often the place to start is your cost of goods sold COGS. That’s things like materials, tools, or subcontracted labor. You can negotiate better pricing with suppliers, ask for loyalty discounts, and don’t accept every price increase at face value. Next, keep an eye out for waste within your company, whether it’s sloppy installs, poor training, or parts collecting dust in storage. Each of these profit leaks is money out the door that could have stayed in your account. Managing your COGS with discipline is one of the fastest ways to protect your profit.
Tighten Up Overhead
Overhead expenses like rent, utilities, and subscriptions can quietly creep up if you don’t manage costs in this area. Cancel unused software and ask vendors for discounts—you’d be surprised what they’ll offer for long-term loyalty. Consider outsourcing administrative tasks instead of hiring full-time staff with benefits. Encourage your team to suggest cost-saving ideas and reward them when they find ways to cut waste. These small adjustments add up and keep overhead from draining your hard-earned cash.
Don’t Forget Taxes
For most home service owners, taxes are one of the largest expenses. When you manage costs, don’t overlook this area. Work with a tax professional to make sure you’re taking every legal deduction available. Sneaky Leaky loves when owners ignore tax planning, because that’s when he can take a big bite out of your bottom line.
Play the Long Game
The purpose of learning how to manage costs isn’t just about trimming today’s bills—it’s about creating long-term financial freedom. Profit is the domino that makes everything else possible, such as paying your team well, taking time off, and investing in growth. Small, consistent improvements in how you handle costs compound over time. Don’t try to cost-slash your way to success. Instead, build habits that improve margins step by step, and you’ll see the transformation in your business.
You can book a profit impact call with me where I can save you a minimum of 50K as we go over 12 main areas of your business!
