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S2 E84 - The CFO Secrets Behind a More Profitable Contracting Business
Description
In this episode of Beers with Contractors, hosts Will and Terry welcome Shannon Weinstein, a CPA and fractional CFO behind Keep What You Earn, to address contractor financial pitfalls that spark debate online. Shannon explains why many $5–$10M home service businesses feel broke: owners confuse profit with cash flow and rely on bank balances instead of cash-flow projections. She outlines key metrics she’d want before investing, including margin by service line, labor efficiency, accounts receivable collection velocity, marketing spend by lead source, and net cash flow. Shannon describes her coaching approach—telling owners hard truths to cut through ego and fix high-priority leaks—plus guidance on when higher-paid labor can be worth it based on productivity. She recommends maintaining roughly 3–6 months of burn rate (or 8–10 payrolls) in cash reserves, planning distributions and tax savings proactively, and explains stock vs. asset sales and depreciation recapture when exiting.
00:00 Introduction
01:12 Meet Shannon Weinstein
02:56 Shannon’s Contractor Origin Story
04:32 Profit Versus Cash Flow
06:31 Bank Balance Trap
08:10 Investor Metrics That Matter
11:59 Ego Versus Numbers
13:50 Scorekeeper Coach Analogy
16:05 Big League Business Systems
18:20 Labor Pay ROI Setup
19:03 Contractor Marketing Partner
20:27 Hiring Productivity Math
22:56 Cash Reserves Benchmarks
26:20 Cash Flow And Taxes Plan
30:51 Exit Deal Structures
33:12 Asset Versus Stock Sale
36:59 Wrap Up And Disclaimers
Contact Shannon Weinstein at:
Website: https://www.keepwhatyouearn.com/
LinkedIn: https://www.linkedin.com/in/shannonweinstein/
Facebook: https://www.facebook.com/keepwhatyouearn
Youtube: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ
Instagram: https://www.instagram.com/shannonkweinstein/
Keep What You Earn Podcast: https://www.keepwhatyouearn.com/podcast
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