Day 4

Module: Foundation & Revenue Model

The Real Problem

Most painting contractors run their business by checking the bank account. If there is money in the account, things are good. If the account is low, they panic and start calling leads. This reactive approach means problems are discovered too late to fix. A scorecard reveals problems while you still have time to act.

Today's Lesson

The Five-Metric Scorecard

Track these five numbers weekly. They tell you everything you need to know about the health of your painting business:

Metric 1: Leads Generated Total new inquiries this week from all sources. A lead is anyone who contacts you for a potential painting project. Track by source: paid ads, referrals, website, walk-ins, outbound outreach.

Metric 2: Estimates Completed Total in-person or virtual estimates delivered this week. The gap between leads and estimates reveals your scheduling effectiveness. If you get 10 leads and complete 4 estimates, your lead-to-estimate conversion is broken.

Metric 3: Contracts Signed Total contracts signed and deposits collected this week. This is your sales close rate. Track the dollar value of contracts signed, not just the count.

Metric 4: Jobs Completed Total jobs finished and invoiced this week. This measures crew productivity. Compare completed jobs against scheduled jobs to identify delivery bottlenecks.

Metric 5: Gross Revenue Collected Total cash received this week from deposits, progress payments, and final invoices. Revenue is vanity. Cash is reality. Track cash collected, not just invoices sent.

Building Your Scorecard

Create a simple spreadsheet with these columns:

Set targets for each metric based on your 90-day goals. At the end of each week, fill in actual numbers and calculate the variance.

Example weekly targets for a $100K/90-day goal:

• Leads: 7
• Estimates: 3.5
• Contracts: 1.4
• Jobs Done: 1.5
• Cash Collected: $7,700

The Traffic Light System

Score each metric using a traffic light system:

• Green: Within 10% of target. No action needed.
• Yellow: 10-25% below target. Investigate and adjust next week.
• Red: More than 25% below target. Immediate intervention required.

If your leads are red, your marketing is failing. If your estimates are red, your scheduling or follow-up is broken. If your contracts are red, your sales process needs work. If your jobs done are red, your crews have a productivity or quality problem. If your cash collected is red, your invoicing or collections process is failing.

Today's Action Items

1. Create your weekly scorecard spreadsheet with the five metrics above.

2. Fill in actual numbers for the past four weeks by reviewing your records.

3. Set specific weekly targets for each metric based on your 90-day revenue goal.

4. Schedule 15 minutes every Monday morning to review last week's scorecard and plan this week's activities.

Key Takeaway

What gets measured gets managed. Contractors who track weekly metrics spot problems early and correct course before a bad week becomes a bad month. Your scorecard is your early warning system.

Tomorrow's Preview

On Day 5, you will analyze your current pricing structure against market rates and identify opportunities for immediate price increases.