← Back to checklist page ·

DIRT · dirttrades.com

The $1M Checklist for Carpentry Businesses

10 reasons most carpentry shops stall — and one fix for each.

  1. 1
    You're still on the tools instead of running jobs

    A lead carpenter who spends 6 hours a day cutting trim can't also sell, schedule, and manage three crews. Revenue caps at what one skilled pair of hands can finish.

    The fix: Promote your best lead to run field production before you add crew #2. Your job is estimates, client communication, and margin — not every cut list.

  2. 2
    Your estimates don't protect margin

    Gut-feel quotes on remodels and finish work get crushed by scope creep, rework, and drive time you never priced in. Thin jobs at volume still lose money.

    The fix: Build estimating templates with a minimum margin floor on every job type. If trim, framing, or cabinets can't hit your floor, re-scope before you sign.

  3. 3
    Change orders happen — but you don't charge for them

    "While you're here" requests stack up unpaid. At $1M scale, unbilled extras are tens of thousands in donated labor every year.

    The fix: Document every change in writing before extra work starts. Same-day change order with price — no verbal OKs on remodel jobs.

  4. 4
    You're the PM, estimator, and lead carpenter

    One person wearing all three hats is the ceiling. Shops that break $1M have someone owning schedule, subs, and client updates full time.

    The fix: Hire or assign a dedicated PM when you're running 2+ concurrent jobs. They own timeline, subs, and punch lists — you own sales and numbers.

  5. 5
    You price small-shop jobs at $1M overhead

    Pricing built for a solo finish carpenter can't absorb warranty callbacks, admin, scheduling risk, and multi-crew coordination. Revenue grows. Profit doesn't.

    The fix: Rebuild pricing for scale — loaded labor, overhead, warranty reserve, and PM time on every quote. Price like a $1M shop before you run like one.

  6. 6
    Material waste and rework aren't tracked per job

    A bad lumber order, a mis-cut run, or a callback on trim alignment — if you're not tying those costs to the job, your "winner" projects are lying to you.

    The fix: Track materials, rework hours, and callbacks on every job before you invoice. Cut or reprice job types that bleed margin within 90 days.

  7. 7
    Your pipeline is 100% GC referrals

    Referrals from one or two general contractors have a hard ceiling. When their volume dips or they hire in-house, your year disappears.

    The fix: Build direct homeowner and developer relationships alongside GC work. Google, reviews, and repeat clients you own — not rent from someone else's pipeline.

  8. 8
    Happy clients never leave you a Google review

    Homeowners and GCs check reviews before they call. The finish crew with 80 photos and 40 reviews wins the bid before you submit yours.

    The fix: Auto-text a review link within 24 hours of punch-list sign-off. Ask while the job still looks perfect — not three months later.

  9. 9
    You don't know your real $/hr by job type

    Trim might pay. Framing might not. Openings and built-ins might be your cash cow — or your margin killer. Guessing at $800K/year is expensive.

    The fix: Track labor, materials, drive, and callbacks on every job type. Know your real $/hr on trim vs. framing vs. remodel before you quote the next one.

  10. 10
    You brought on subs before the process was written down

    More crews into undefined standards means inconsistent quality, callbacks, and clients who only want you on site. Chaos scales faster than revenue.

    The fix: Document install standards for your top 5 job types before sub #2 starts. Same specs, same punch list, same photo checklist — every crew.