Owned and Operated Podcast
Episode: Double Your Profit Day #1 - Choose Profit Over Revenue
Release Date: August 1, 2025
Hosts: John Wilson and Jack Carr
Website: www.ownedandoperated.com

Introduction to the Double Your Profit Series

In the inaugural episode of the Double Your Profit series, hosts John Wilson and Jack Carr set the stage for a transformative 30-day journey aimed at helping home service business owners double their profits. This episode, titled "Choose Profit Over Revenue," emphasizes the critical distinction between revenue and profit, advocating for a strategic focus on profitability as the cornerstone of a sustainable and scalable business.

Key Themes and Discussions

1. The Primacy of Profit Over Revenue

The episode opens with a compelling declaration:

"The number one rule when building a business that lasts is building a profitable business." ([00:00])

Jack Carr elaborates on the common misconception among business owners who often prioritize revenue because it's a more visible and easily measurable metric. He highlights that while generating large revenue figures can create an impressive facade, profit is the true indicator of a business's health and its capacity for long-term growth and investment.

2. Understanding Revenue vs. Profit

Carr explains the fundamental difference between revenue and profit:

"Revenue is the big splashy number that's going to attract a lot of attention. Like if I said, hey, I made $2 million this month, that's going to be an attractive. But the reality is that was my revenue, not my profit." ([00:00])

He emphasizes that profit represents the residual income after all expenses are deducted from revenue. This residual is what enables businesses to reinvest in growth, pay employees adequately, and ultimately enhance the company's valuation, especially if a sale is contemplated in the future.

3. The Impact of Profit on Business and Team

Carr passionately defends the focus on profit, addressing common pushbacks:

"Yeah, 100%. That is why I woke up. That is why I put my house at risk. ... you've changed hundreds of people's lives ... When you build a profitable business, you're able to pay people what they want, what they dream of making." ([00:00])

He articulates that profit isn't solely for the owner's benefit but is pivotal for the entire team's well-being. A profitable business can offer competitive salaries, benefits, and opportunities for employees, thereby fostering a motivated and loyal workforce.

4. Strategies to Enhance Profit

The hosts delve into two primary strategies to boost profit:

• Raising Revenue: Exploring avenues to increase sales without proportionally increasing costs.

• Killing Costs: Identifying and eliminating unnecessary expenses to improve the bottom line.

Carr notes the importance of controlling costs as they are largely within the business owner's control, unlike revenue, which can be influenced by external market factors.

5. Transparency and Team Alignment

A significant portion of the discussion centers on financial transparency within the organization. Carr shares their approach to demystifying the Profit and Loss (P&L) statements for the entire team:

"We've started really working on explaining our cost structure as openly as we can. ... Our payroll's $850,000 a month. Here's how much we spent on materials..." ([00:00])

By openly sharing financial metrics, the team gains a clear understanding of where the money goes and the rationale behind profit-focused decisions. This transparency fosters a culture where every team member feels invested in the company's financial health and growth.

6. Aligning Compensation with Profit Goals

To reinforce the importance of profit, compensation structures are aligned with profitability metrics. This ensures that employees are not only aware of the company's financial goals but are also incentivized to contribute to them:

"We're aligning compensation to that because it is the ultimate goal." ([00:00])

7. Continuous Improvement and Profit Maximization

Carr underscores the necessity of relentless pursuit of profit improvement:

"My last take on profit is always improve it. And every single percentage point matters." ([00:00])

Implementing systems to detect and rectify leaks in the P&L, such as unauthorized expenses or ineffective marketing spend, is crucial. Attention to detail in every aspect of the business operations ensures that no potential profit is left unrealized.

Notable Quotes with Timestamps

• On Profit vs. Revenue:

  "The number one rule when building a business that lasts is building a profitable business." ([00:00])

• On Transparency:

  "If you say we made $400,000 net last month... we're investing into new vehicles, we're investing into more marketing..." ([00:00])

• On Continuous Improvement:

  "Every single percentage point matters. ... We do this relentlessly because every single point counts." ([00:00])

Insights and Actionable Advice

• Prioritize Profitability: Shift the business mindset from chasing high revenue numbers to ensuring sustainable profit margins.

• Control Costs: Identify areas where expenses can be reduced without compromising the quality of service or employee satisfaction.

• Enhance Financial Transparency: Regularly share detailed financial information with the team to foster a collective commitment to profitability.

• Align Incentives: Structure compensation and bonuses in a way that directly ties employee rewards to the company’s profit performance.

• Implement Robust Systems: Develop and utilize systems that monitor financial health in real-time, allowing for swift action against potential profit leaks.

Conclusion and What's Next

The first episode of the Double Your Profit series successfully lays the foundation for a month-long deep dive into profitability strategies. By choosing profit over revenue, business owners can build more resilient and valuable companies. The hosts tease that the upcoming 29 episodes will continue to provide tactical exercises and in-depth discussions on raising revenue and reducing costs, equipping listeners with the tools needed to achieve substantial profit growth.

For more insights and actionable advice, tune in weekly to Owned and Operated every Tuesday, and explore additional resources at www.ownedandoperated.com.