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Revenue goals are great.... But don't set yourself up for failure.

Writer: Alicia BAlicia B

Updated: Nov 27, 2024


I'm back friends! Here's your first Sunday Sips in a loooong time. If you're new here, welcome to my sunday challenge newsletter to challenge your business to 📈.


The Better Way: Goals that Drive Efficiency, Profit, and Growth


As business owners, especially in construction, it's tempting to think that setting a big revenue goal is the key to success. After all, revenue is what keeps the lights on, right? But what if I told you that focusing only on a revenue target can actually set you up for failure? It might sound counterintuitive, but I've seen it firsthand, both in my business and in others.


Let me tell you a little about our journey at @Brex Enterprises and why setting just a revenue goal ended up hurting us more than helping us.





Our Story: Scaling Inefficiencies at Brex


When we first started Brex Enterprises, we had one big goal: to grow our revenue as fast as possible. We worked hard to chase bigger and bigger projects, thinking that if we hit that magic number, everything else would fall into place. But as the revenue grew, something else happened that we didn’t expect: our margins got smaller and smaller.


The truth is, focusing just on revenue meant we scaled inefficiencies right along with it. We took on work without ensuring it was profitable or that we had the systems in place to handle the increase. We didn’t take the time to evaluate whether we had the right people or processes to make sure the work was done efficiently. The harder we worked, the more problems we faced.


Our costs spiraled out of control because we hadn’t set specific goals around profitability, team efficiency, or project selection. We were hustling, but not in a smart way. And all that hustle didn’t lead to better results—it just led to more stress.


In hindsight, it became clear that we were working harder, not smarter. We had built a business, but we had also built inefficiencies into it. Chasing revenue for revenue’s sake was a mistake. And it’s a mistake I see many contractors make.


Why Focusing on Revenue Alone is a Trap


Here’s why setting just a revenue goal is dangerous:


It Ignores Profitability: Revenue without profit is just vanity. You can bring in millions, but if your margins are razor-thin, you’ll constantly be fighting to keep your head above water.

You Can’t Manage What You Don’t Measure: If you’re only looking at top-line revenue, you’re missing key insights about where your business is bleeding money or operating inefficiently.

It Leads to Burnout: Chasing higher revenue without optimizing your processes will wear you out. You end up running from one fire to the next, with no time to focus on strategy or growth.

It’s Not Sustainable: Over time, you may realize that you’re doing more work for less return, which isn’t sustainable long-term. Growth that eats away at your profits will eventually catch up with you.


The Better Way: Goals that Drive Efficiency, Profit, and Growth


At Brex, we had to take a step back and rethink how we set goals. Instead of chasing revenue alone, we started setting specific goals that aligned with profitability, efficiency, and the types of projects we wanted to do. We asked ourselves questions like:


  • What profit margins do we want on each project?

  • How can we improve our processes to get more done with less waste?

  • Which customers bring in the most profitable work, and how can we win more of that business?


By focusing on these kinds of goals, we were able to work smarter, not harder. Our revenue didn’t just grow—it grew in a healthy, sustainable way that allowed us to breathe a little easier.


 

How You Can Set Goals That Work for You


If you’re only setting a revenue goal for 2025, I want to challenge you to go deeper. Yes, you need to set revenue targets, but you also need to look at:


  • Profit margins: Are you pricing your work correctly? Are you managing costs effectively?

  • Efficiency goals: Are your teams operating at peak efficiency, or are you spending more time and money than necessary to get jobs done?

  • Customer goals: Are you chasing any and every job, or are you focusing on the right customers—the ones who bring in profitable work and align with your company’s strengths?


Here's the fun part - if you've been around a while, you know Brittany Auman and I run a month long workshop PRIMED for Growth. It focuses on all the things you should do yearly to make sure you're ready for growth. We are pulling some of the most critical pieces of PFG and putting them into a FREE live 4 video series - READY for Growth.


At READY for Growth, the first session on 10/31, we’ll be talking about how to set goals that do more than just increase revenue. We’ll focus on helping you build a roadmap that ensures your growth is sustainable and profitable. Don’t make the mistake we did at Brex—grow smarter, not harder.


Here's your challenge for the week:

Hope to see you on 10/31!


Here's to less hard days, constant growth, and a clear path forward. Proud to have you on #TeamLoseNoProfit as we build a business that works smarter to support our goals. Together, we thrive 📈


Alicia Brentzel

Founder, From the Cut








 
 
 

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