I Finally Understand My Business

Jason Medlin

Aug 17

4 min read

Black-and-white photo representing business clarity and understanding

"For the first time in twelve years, I actually understand my business."

That's what David told me about six months into our engagement. He owns a commercial cleaning company with 35 employees, does about $2.5 million a year in revenue, and had been running the business since 2014.

Twelve years. And he'd never felt like he truly understood his numbers until recently.

Where He Started

David wasn't flying blind. He had a bookkeeper who'd been with him for years. The books were clean. He got a P&L and balance sheet every month. His tax preparer filed everything on time.

On paper, he had everything in place.

But when it came to actually using that information, he was stuck. He had questions he couldn't answer:

→ Why did some months feel tight even when revenue was up?

→ Which contracts were actually making him money?

→ Could he afford to buy another van?

→ What would happen if he lost his biggest client?

→ How much should he be paying himself?

He'd look at the reports, see that revenue was growing and expenses were covered, and then close the file. The numbers didn't tell him what to do next.

What Changed

When David and I started working together, the first thing we did was dig into profitability by contract.

He had about 40 active contracts. Some were large office buildings, some were small retail spaces, some were one-time deep cleans. He assumed his biggest contracts were his most profitable. That made sense, right? More revenue, more profit.

It wasn't that simple.

When we allocated labor costs, supply costs, and drive time to each contract, a different picture emerged. His biggest contract by revenue was actually one of his least profitable. The building was far from his other locations, required a dedicated crew, and had scope that had crept over the years without a price adjustment.

Meanwhile, a cluster of smaller contracts in one part of town were quietly his best performers. Same crew could hit three buildings in one night. Low travel time. Simple scope. High margin.

"I've been chasing the wrong work for years," David said.

Looking Forward

The next step was building a cash flow forecast.

David had never seen his cash flow laid out month by month into the future. He knew when payroll hit and when big invoices came due, but he'd never connected all the pieces into one view.

When we built it out, he could see exactly why some months felt tight. January and February were slow for new contracts, but payroll stayed constant. He was essentially funding two months of labor costs from reserves every year without realizing it.

We also mapped out what the van purchase would look like. The cash hit would create a tight window in month three, but by month five he'd be back to comfortable. Knowing that in advance changed everything. He wasn't guessing anymore.

The Shift

Over the following months, David made a series of decisions he'd been putting off.

He raised prices on the underperforming contracts. Two clients left. He was fine with that. The ones who stayed were now profitable.

He bought the van in month four, timed to his cash flow forecast.

He set his own salary based on market rate and profit targets instead of just taking what was left over.

He started pursuing more contracts in the high-margin part of town, with a clear understanding of what made them profitable.

"I used to make decisions based on gut feel," David told me. "Now I actually know. It's a completely different way to run a business."

What the Work Looks Like

David and I meet twice a month. We review the numbers, look at the forecast, and talk through whatever decisions are on his plate. Some months it's a pricing question. Some months it's hiring. Some months it's just checking in on how the plan is tracking.

The bookkeeper still handles the bookkeeping. The tax preparer still handles taxes. Nothing changed about those relationships.

What changed is that David now has someone who takes the data they produce and helps him use it. Someone who asks "what does this mean?" and "what should we do about it?"

That's the piece he was missing for twelve years.

Ready to Understand Your Business?

If David's story sounds familiar — if you have reports but no clarity, data but no direction — you're not alone. Most business owners hit this point eventually.

At Bottomline Capital, we help business owners finally understand their numbers and use them to make better decisions. Monthly reviews, cash flow forecasting, profitability analysis, and strategic conversations that turn data into action.

Book a free consultation and let's see where you are.

https://www.bottomlinecapitalllc.com/book-online