Part 1 - Pay Yourself Right: From Chaos Draws to a Real Owner’s Salary

Contractor Cuts

We break down how contractors can stop mixing wages with profit, set a real project manager salary, and build cash reserves that make growth possible. A simple example shows how to allocate profit to taxes, owner distributions, and retained earnings without starving the business.
• separating labor pay from company profit for solo operators
• setting a fair PM salary while keeping profit in the business
• targeting gross margin ranges by job size and risk
• understanding revenue, gross profit, and overhead as controllables
• avoiding overhead creep as you scale teams and trucks
• simple monthly flow for taxes, distributions, and reserves
• why clean job costing beats generic CPA reports
• action steps to start now and get books ready by January
If you want coaching, go to contractorcuts.com or ProStruct360.com. We have max 30 people coming on this retreat… If you want in, reach out. Let’s have a conversation about it.
Join us January 11–13 in Nashville for the Chart the Course 2026 Planning Retreat. Sign up now and get three free coaching sessions before the event to finish 2025 strong and hit 2026 with a clear game plan. At the retreat, you’ll tackle systems, hiring, marketing, and leadership alongside ambitious contractors, leaving with a blueprint for growth. Spots are limited—visit prostruct360.com to learn more!

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1. Welcome, Coffee, And Setup (00:00:00)

2. Series Focus: Pay Yourself Right (00:00:40)

3. Profit First Preview And Context (00:02:15)

4. Hammer Swinger: Wage vs Company Profit (00:02:45)

5. Pricing Beyond Day Rates And Hidden Work (00:06:05)

6. Markup, Margin, And Scaling Targets (00:08:15)

7. GC Mode: Pay PM Salary And Keep Profit (00:11:15)

8. Three Numbers You Control (00:14:05)

9. Overhead Growth Traps And Service Division Story (00:19:20)

10. Seasonal Planning, Clean Books, And Coaching (00:25:06)

11. Worked Example: 100K Month, Cash Flow Rules (00:28:11)

12. Taxes, HYSA, And Distribution Discipline (00:32:26)

13. Debt Warning: Grow Without The Noose (00:36:16)

14. Action Items For This Week (00:39:06)

15. Retreat Invite And Closing (00:41:11)