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- What's the Secret to Your First $1M in Profit?
What’s up everyone,
Your first $1M in profit can seem like a long way off. But it’s not as far-fetched as it sounds. Check out these resources then keep reading for guidance on reaching $1M sooner rather than later.
💰️ Could a business acquisition be the best path to $1M in profit?
🧑💼 Potential impact of the “Big Beautiful Bill” on small businesses
🏠️ Modernize connects home service pros with ready-to-buy homeowners through leads, calls, and branded programs
A big part of reaching your first million in profit is cut the noise and tighten back end operations—and that includes how you source parts.
SupplyHouse makes it easy, with over 250,000 plumbing, HVAC, and electrical products in stock and ready to ship.
No more waiting around
No more job delays
Get what you need, when you need it
You can also join their free TradeMaster program, which over 100,000 pros already use to get perks like free shipping, free returns, and shared discounts across the team. It’s a simple way to keep more margin on every job.
How do you currently source parts? |
Getting to $1M in EBITDA Takes Brute Force (Then Systems)
Let’s be real: getting to your first million in EBITDA is hard. It’s not polish, it’s not systems, it’s not some secret hack. It’s brute force.
In the early days, I was carrying everything. That meant running lean, reinvesting every dollar, and chasing top-line growth just to stay alive. We had years with 45–48% overhead and maybe 2% net profit.
“None of that money goes into my pocket. It all goes straight into growth initiatives.”
Been there.
But once you cross that first million, something shifts. Suddenly, you can build the systems that actually help you scale profit. Not just revenue.
Here’s the formula I’ve followed:
Get revenue big enough to justify real EBITDA
If you’re doing $5M and showing 20% margins, chances are you’re underinvesting. It looks good short term, but it’s not sustainable. We didn’t hit $1M in EBITDA until we were doing over $20M, because we were in heavy growth mode. I was buying companies, adding staff, expanding facilities. That’s expensive—but necessary.
Tighten office ops and track ROI
Last year, we unlocked a full $1M in EBITDA just by dialing in office operations. We switched CRMs in one department. We cut waste. We leaned hard on automation and overseas support. That margin didn’t come from raising prices—it came from running tighter.
Report fast and make it visible
We track gross margin daily. Break-evens by department. Days to profit. We went open-book with the P&L. Everyone sees the score. That visibility changed the game for us. It turned every team into a profit team.
Once you’ve built the machine, it’s not about pushing harder. It’s about turning the right dials. A new product line, better scheduling, flipping weekends on. That kind of stuff adds six figures in EBITDA when the foundation is right.
But getting to that first million? That’s all guts. The next ones are systems.
More context here…
Supercharge Your Growth with Avoca AI
If you’re on track for your first $1M in profit, you can’t afford to miss any opportunity Especially calls.
Avoca is your 24/7 AI Customer Service Rep that never misses a lead. It:
Picks up every call—day or night—and books jobs directly into ServiceTitan or your CRM
Handles overflow and after-hours so your team can focus on fieldwork
Scores and coaches every CSR call in real-time, turning data into performance
The results speak volumes: clients report a 27% lift in booking rates, 45% payroll savings, and zero missed calls.
I’ve experienced even better results.
You can reach $1M in profit. I’ve given you a start. Now, it’s time to take action.
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👊 John
Disclosure: This newsletter includes sponsored content. However, all opinions expressed are entirely my own.
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