On July 9th, 2025, Cilio hosted a focused training session titled “Managing by the Numbers”, led by Gary Cohen of Certified Contractors Network (CCN). The session was designed specifically for home installation business owners looking to take control of their operations and drive real profit.
The training breaks down the key reasons why many home improvement companies struggle and what separates the few that succeed. With real-world strategies and simple steps, it showed how managing the numbers can help installers reduce stress, improve margins, and grow confidently.
Below is a recap of the most important takeaways for busy pros who may have missed it.
Why Most Home Installation Businesses Fall Short
Let’s start with the truth:
- 50% of home improvement companies fail in the first 5 years.
- 30% break-even year after year, barely making ends meet.
- 15% earn a small 1–5% net profit—just enough to keep going.
- Only 5% reach a strong 10%+ net profit, and even fewer are building real wealth.
The harsh reality is that many home improvement companies don’t survive the long haul.
This typically happens because of poor planning, weak processes, or ignoring the data that actually tells the truth. Without accurate numbers to guide your decisions, you risk flying blind and eventually burning out.
Reactive vs. Proactive: Which One Are You?
Many contractors spend their days putting out fires. Job site issues, crew delays, missed appointments, and frustrated customers all demand constant attention. But running a business like this is reactive, and reactive leadership rarely scales.
- Be proactive, not reactive.
- Build systems that solve problems before they happen.
- Use accurate financials and KPIs to guide your decisions—not gut feelings.
- Run your business based on data, not just your checking account balance.
You Need a Plan, Not Just a Busy Schedule
A solid business doesn’t just set goals. It builds detailed plans.
- Create a written business plan every year, not in their head, on paper.
- Build that plan each fall (October–November), ready for the next year.
- Include every department: sales, marketing, production, HR, operations, and financials.
- Track against that plan all year to adjust and improve.
No plan = no direction = no sustainable growth.
Take an Honest Look at Your Business
It starts with self-awareness:
- What’s going well right now?
- Where are you falling short?
- What parts of your business need real attention?
Once you’re clear on that, you can define what success looks like:
- Want to grow from $5M to $8M?
- Want to enter new zip codes or markets?
- Want to increase margins without burning out your team?
Then, calculate what it will take to get there. Time, money, or structural change. Everything has a cost. Once you understand it, you can decide how to move forward with confidence.
Think Like a Coach, Not Just a Contractor
Your business isn’t just an installation company. It’s a training company that happens to install things.
Great teams don’t win by chance. They win because they practice consistently, review their performance, and work with coaches.
Here’s how to build a winning crew:
- Train regularly—not just once and forget.
- Coach your staff, don’t just manage them.
- Focus on continuous learning and improvement.
- Don’t see yourself as “just” a contractor. Become a training company that happens to install roofs, windows, solar, or fences.
Top teams win because they practice with purpose. So should yours.
The Winning Formula: 8-Step Success Cycle
High-performing businesses operate in a cycle of constant, small improvements. This cycle touches every part of the company:
- Marketing – Improve how you’re found and what you’re offering.
- Lead Handling – Boost contact rates, set rates, and follow-up consistency.
- Sales – Increase demo rates, close rates, and job size.
- Pre-Production – Prepare jobs right to prevent mid-project chaos.
- Production – Execute efficiently with clean handoffs and high quality.
- Post-Production – Gather customer feedback and tighten processes.
- Financial Review – Track performance and adjust early.
- Root Cause Solutions – Fix problems at their source, not just the surface.
Then loop back to step one and repeat. Rinse, improve, repeat.
The Metrics That Actually Matter
Most contractors look at top-line sales or gross revenue. But those can be misleading.
Here’s what you really need to track:
Marketing Metrics
- Leads by source – Which ad campaigns are working?
- Leads by zip code – Where should you double down or pull back?
- Cost per lead – Are you getting the most value from your marketing spend?
Sales Metrics
- Demo rate – Are you showing your offer to enough leads? (This might be your #1 metric!)
- Close rate – Are your reps converting issued leads into signed jobs?
- Finance rate – At least 50% of your jobs should offer or use financing.
- Average job size – Especially compare financed vs. non-financed.
- Cancellation rate – Are signed jobs falling through?
Production Metrics
- Crew margin per day – Which crews are most profitable?
- First-pass yield – Are jobs done right the first time?
- Throughput vs. goal – Are you billing what you aimed for?
Financial Metrics
- Monthly P&L by the 10th – So you can fix things fast.
- Accrual-based accounting – Gives a true financial picture.
- Cash flow forecast – Don’t wait till you’re low on cash to check.
- Job costing – Know your margins per job and product line.
- Accounts receivable – Collect quickly to keep cash moving.
Customer Metrics
- Satisfaction surveys – From first call to final walkthrough.
- Referral & review tracking – Happy clients = free marketing.
Financing Is Not Optional—It’s a Growth Driver
Too many contractors avoid financing. But if your jobs are over $5,000—and most are—financing isn’t just helpful, it’s essential.
When you lead with financing in your sales process:
- Customers say “yes” more often
- Job sizes increase
- Objections shrink
- You stand out from competitors
Aim for at least 50% of jobs to be financed. It’s a win for your customers and your bottom line.
Share the Numbers with Your Team
If your team doesn’t know the numbers, how can they help you improve them?
Transparency isn’t risky—it’s powerful. Most employees already assume the business is making more than it is. When you open up your KPIs and goals, you align your team and create shared ownership of the results.
Consider a simple dashboard or one-page scorecard to show progress across sales, marketing, production, and financial performance. Use it to celebrate wins, uncover bottlenecks, and steer the company together.
From Tradesperson to Business Leader
One of the most important mindset shifts?
- Stop thinking like a tradesperson.
- Start acting like a business owner.
Work on the business—not just in it. That’s what separates the companies that struggle from the ones that thrive.
Ready to Take the Next Step?
Want help tracking your KPIs or automating key workflows? Let’s talk. Cilio is here to help you scale using technology with clarity and confidence. Schedule a quick call or demo with us!
