---
title: 10 Sign’s You’re Playing The Game of Contractor Roulette
description: If you have been playing Contractor Roulette with your finances here is a simple three-step plan to help you end your gambling habit
image: https://www.shawnmccadden.com/hs-fs/file-275732046-jpg/images/roulette_wheel-wr.jpg
---

[![the design builders blog](https://www.shawnmccadden.com/hs-fs/file-1968953853-jpg/images/ShawnMccadden-DBblog-header.jpg "the design builders blog")](https://www.shawnmccadden.com/)

[![Subscribe to the Design/Builders Blog](https://no-cache.hubspot.com/cta/default/81069/62868785-47fb-4751-8ade-e9392edbbdd1.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/62868785-47fb-4751-8ade-e9392edbbdd1)

# The Design Builder's Blog

## [10 Sign’s You’re Playing The Game of Contractor Roulette](https://www.shawnmccadden.com/the-design-builders-blog/bid/94671/10-Sign-s-You-re-Playing-The-Game-of-Contractor-Roulette)

Posted by [Shawn McCadden](https://www.shawnmccadden.com/the-design-builders-blog/author/shawn-mccadden) on Thu, Aug 29,2013 @ 06:00 AM

- [Tweet](https://twitter.com/share)

## **10 Sign’s You’re Playing The Game of Contractor Roulette**

**![Contractor Roulette wheel](https://www.shawnmccadden.com/hs-fs/file-275732046-jpg/images/roulette_wheel-wr.jpg?width=115&height=173&name=roulette_wheel-wr.jpg)**

 

**Most contractors are great craftsman but terrible at accounting and financial management.**   Most can build a house from the ground up without any plans but have **no clue how to identify and create the financial reports they need** to know whether they are making or losing money. 

Building or remodeling a house without any idea of whether you are making money or not, and if you will be able to pay all the bills as they come due, is like **spinning a roulette wheel at the casino**.   You put money down, spin the wheel and **hope to make money.**  Problem is that you have no idea or control over where the wheel will stop.   **If you run out of money the casino is happy to let someone else step in, lay down some money and do the spinning.** 

**Like most gamblers, contractors always brag when they win,** but never want to talk about it when they lose.

 

### **Contractor Roulette Is Not A Good Gamble**

If it sounds like I'm describing you and your business **you are playing what I call *"Contractor Roulette".***   Sure, once in a while you may win, and even win big.  **But remember the odds are with the casino. **  How about you?  Have you been spinning and winning or has the “casino” been winning and encouraging you to keep playing?

  

### **My list of 10 signs you’re spinning the “Contractor Roulette Wheel”******

> > 1. You lose sleep at night worrying about money.
> > 2. You have no idea what markup to use.
> > 3. You think margin and markup are interchangeable terms.
> > 4. You never know if you will have enough money to pay your bills until they're paid.  **Again**
> > 5. You guess at project payment schedule amounts and when they're due.  As a result you constantly suffer from cash flow challenges.
> > 6. ![financial mistakes contractors make](https://www.shawnmccadden.com/hs-fs/file-275738156-jpg/images/worried_contractor-wr.jpg?width=222&height=148&name=worried_contractor-wr.jpg)When a prospect asks you if you will match someone else’s price for the same job you figure if the other guy can do it for that price so can you, so you say yes.
> > 7. You are always putting the whip to your production employees to beat the labor allowance in your estimate because you need to make up for dropping the price of the job just so you could sell it.  **Again.**
> > 8. Even though you got price quotes for the materials before you sold the job, after you take the job you either bid the materials out to a get a lower price or beat your vendors up to sell them to you for less than they already quoted you.  **Again.**
> > 9. You do little or no marketing so you have to try to sell to everyone who contacts you, even if you have a feeling they will try to beat you out of any profit.  **Again.**
> > 10. You need to sell a job this weekend and get a deposit just so you will have enough money to meet last week’s payroll.  **Again.**

 

### **Strive to become a Big 50 Remodeler**

**![Big 50 class of 2013](https://www.shawnmccadden.com/hs-fs/file-275042363-jpg/images/big_50_class_of_2013-wr.jpg?width=234&height=156&name=big_50_class_of_2013-wr.jpg)If you believe in the idea of relative success**, where you convince yourself you are doing pretty well if you **compare your results to other contractors who are doing far worse than you**, then maybe you can be happy staying where you are regarding financial management at your business.  On the other hand, **if you want to measure your success against truly successful contractors**, perhaps use [**Remodeling Magazine’s Big 50 list**](http://www.remodeling.hw.net/facts-and-figures/the-big50/) as your reference.  To qualify for that list you need to be making a decent net profit.

 

 

### **There is hope!**

![Financial advice for contractors](https://www.shawnmccadden.com/hs-fs/file-276243377-jpg/images/gambler-wr.jpg?width=163&height=245&name=gambler-wr.jpg)**If you have been playing Contractor Roulette here is a simple three-step plan to help you end your gambling habit:**

 

> > 1. **Admit you have a gambling problem and commit to do something about it.**
> > 2. **Get the professional help you need to help you stop gambling and eliminate the causes of your gambling addiction.**
> > 3. **Find someone you can trust to hold you accountable to doing what it will take to make the switch.**

 

 

### **Related articles:**

**[The Five Biggest Financial Related Mistakes Contractors Make](https://www.shawnmccadden.com/the-design-builders-blog/bid/88271/The-Five-Biggest-Financial-Mistakes-Contractors-Make)**

**[Remodelers: I Bet You Don’t Know Your True Burdened Labor Costs](https://www.shawnmccadden.com/the-design-builders-blog/bid/78584/Remodelers-I-Bet-You-Don-t-Know-Your-True-Burdened-Labor-Costs)**

**[Five Ways To Think Like A Business For Business Owners](https://www.shawnmccadden.com/the-design-builders-blog/bid/89592/Five-Ways-To-Think-Like-A-Business-For-Construction-Business-Owners)**

 

 Topics: [Business Financials](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-financials), [Pop Quizes](https://www.shawnmccadden.com/the-design-builders-blog/topic/pop-quizes), [Success Strategies](https://www.shawnmccadden.com/the-design-builders-blog/topic/success-strategies), [Financial Related Topics](https://www.shawnmccadden.com/the-design-builders-blog/topic/financial-related-topics), [Earning More Money](https://www.shawnmccadden.com/the-design-builders-blog/topic/earning-more-money), [Sage Advice](https://www.shawnmccadden.com/the-design-builders-blog/topic/sage-advice), [Self Quizes](https://www.shawnmccadden.com/the-design-builders-blog/topic/self-quizes)

### Subscribe by Email

[![please donate](https://no-cache.hubspot.com/cta/default/81069/d6888f7b-f488-4356-88b4-14128c5aab4b.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/d6888f7b-f488-4356-88b4-14128c5aab4b)

[![cogs worksheet tool free download](https://no-cache.hubspot.com/cta/default/81069/7baf34b1-cad0-4bdf-84eb-b21dd6da4973.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/7baf34b1-cad0-4bdf-84eb-b21dd6da4973)

[![MA CSL Classes](https://no-cache.hubspot.com/cta/default/81069/663d3a42-f898-41b6-850d-dd6c96899668.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/663d3a42-f898-41b6-850d-dd6c96899668)

### Are You Documenting Your Crew's  Compliance With The RRP Rule? 

[![download free RRP checklist](https://no-cache.hubspot.com/cta/default/81069/dd6aace9-6cb0-4ad2-a55a-09846d7f5b5e.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/dd6aace9-6cb0-4ad2-a55a-09846d7f5b5e)  

### Frustrated With Your Current Method Of Estimating Projects? 

 [![free excel estimating template](https://no-cache.hubspot.com/cta/default/81069/14387bf1-ade4-4b88-9c17-1b56a85bab52.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/14387bf1-ade4-4b88-9c17-1b56a85bab52)

## Not Sure Of Your True Labor Costs?

 [![New Call-to-action](https://no-cache.hubspot.com/cta/default/81069/390dc019-2e22-41cc-8b47-eeb259f25bf3.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/390dc019-2e22-41cc-8b47-eeb259f25bf3)

### Find what you are looking for - Search by topic

- [203K Loan Info (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/203k-loan-info)
- [Advantages of Design/Build (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/advantages-of-designbuild)
- [Aging In Place (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/aging-in-place)
- [Allowances (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/allowances)
- [Books for Contractors (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/books-for-contractors)
- [Breaking $1Million (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/breaking-1million)
- [Building Relationships (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/building-relationships)
- [Business Considerations (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-considerations)
- [Business Financials (30)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-financials)
- [Business Growth (43)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-growth)
- [Business Management (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-management)
- [Business Planning (42)](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-planning)
- [Careers in Construction (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/careers-in-construction)
- [Cash Flow (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/cash-flow)
- [Contractor Training (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/contractor-training)
- [Contracts (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/contracts)
- [Craftsmanship (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/craftsmanship)
- [Creating Referrals (16)](https://www.shawnmccadden.com/the-design-builders-blog/topic/creating-referrals)
- [Culture (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/culture)
- [Customer Relations (38)](https://www.shawnmccadden.com/the-design-builders-blog/topic/customer-relations)
- [Defining Design/Build (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/defining-designbuild)
- [Definitions (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/definitions)
- [Design Options (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/design-options)
- [Design Trends (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/design-trends)
- [Design/Build Process (7)](https://www.shawnmccadden.com/the-design-builders-blog/topic/designbuild-process)
- [Dietz Lawsuit Related (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/dietz-lawsuit-related)
- [Differentiating your Business (68)](https://www.shawnmccadden.com/the-design-builders-blog/topic/differentiating-your-business)
- [Earning More Money (33)](https://www.shawnmccadden.com/the-design-builders-blog/topic/earning-more-money)
- [Effects of the RRP Rule (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/effects-of-the-rrp-rule)
- [Employee Advancement (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/employee-advancement)
- [Employee Relations (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/employee-relations)
- [Enforcement and Inspections (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/enforcement-and-inspections)
- [EPA Announcements (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-announcements)
- [EPA RRP Lead Rules (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-rrp-lead-rules)
- [EPA RRP Rule Updates (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/epa-rrp-rule-updates)
- [Estimating (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/estimating)
- [Estimating Considerations (24)](https://www.shawnmccadden.com/the-design-builders-blog/topic/estimating-considerations)
- [Financial Related Topics (41)](https://www.shawnmccadden.com/the-design-builders-blog/topic/financial-related-topics)
- [Free Stuff (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/free-stuff)
- [Fun Stuff (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/fun-stuff)
- [Future of the Remodeling Industry (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/future-of-the-remodeling-industry)
- [Generation Y (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/generation-y)
- [Government Regulations (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/government-regulations)
- [Green Considerations (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/green-considerations)
- [Guest Blogs (72)](https://www.shawnmccadden.com/the-design-builders-blog/topic/guest-blogs)
- [Hiring and Firing (18)](https://www.shawnmccadden.com/the-design-builders-blog/topic/hiring-and-firing)
- [How You Do Business (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/how-you-do-business)
- [Insurance Considerations (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/insurance-considerations)
- [Job Costing Considerations (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/job-costing-considerations)
- [Keeping More Money (13)](https://www.shawnmccadden.com/the-design-builders-blog/topic/keeping-more-money)
- [Labor Costs (9)](https://www.shawnmccadden.com/the-design-builders-blog/topic/labor-costs)
- [LBM Dealer Topics (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-dealer-topics)
- [LBM Related Topics (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-related-topics)
- [Lead Carpenter System (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-carpenter-system)
- [Lead Generation (16)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-generation)
- [Lead Test Kits and Testing (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/lead-test-kits-and-testing)
- [Leadership (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/leadership)
- [Legal Considerations (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/legal-considerations)
- [Legal Related (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/legal-related)
- [Letters to send to Politicians (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/letters-to-send-to-politicians)
- [MA CSL Related (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/ma-csl-related)
- [MA HIC Regulations (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/ma-hic-regulations)
- [Managing Allowances (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/managing-allowances)
- [Margin and Markup (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/margin-and-markup)
- [Marketing (27)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing)
- [Marketing Considerations (28)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing-considerations)
- [Marketing Ideas (24)](https://www.shawnmccadden.com/the-design-builders-blog/topic/marketing-ideas)
- [Mentoring/Coaching (20)](https://www.shawnmccadden.com/the-design-builders-blog/topic/mentoringcoaching)
- [New Business Realities (25)](https://www.shawnmccadden.com/the-design-builders-blog/topic/new-business-realities)
- [Opinions from Contractors (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opinions-from-contractors)
- [Opinions from Design/Builders (7)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opinions-from-designbuilders)
- [Opt Out Related (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/opt-out-related)
- [OSHA - EPA Challenges (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/osha-epa-challenges)
- [OSHA Considerations (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/osha-considerations)
- [Paints and Painting (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/paints-and-painting)
- [Personal Protection (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/personal-protection)
- [Plans and Specifications (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/plans-and-specifications)
- [Pop Quizes (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/pop-quizes)
- [Prequalifying (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/prequalifying)
- [Production Considerations (32)](https://www.shawnmccadden.com/the-design-builders-blog/topic/production-considerations)
- [Profit Sharing (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/profit-sharing)
- [Project Meetings (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/project-meetings)
- [Questions from Visitors (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/questions-from-visitors)
- [QuickBooks Related (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/quickbooks-related)
- [Recruting (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/recruting)
- [Remodeler Education (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/remodeler-education)
- [Retirement Planning (12)](https://www.shawnmccadden.com/the-design-builders-blog/topic/retirement-planning)
- [Risk Management (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/risk-management)
- [RRP Related (11)](https://www.shawnmccadden.com/the-design-builders-blog/topic/rrp-related)
- [RRP Training (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/rrp-training)
- [Safety (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/safety)
- [Sage Advice (26)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sage-advice)
- [Sales (17)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sales)
- [Sales Considerations (37)](https://www.shawnmccadden.com/the-design-builders-blog/topic/sales-considerations)
- [Seasonal Opportunities (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/seasonal-opportunities)
- [Self Quizes (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/self-quizes)
- [Selling your Business (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/selling-your-business)
- [Shawn's Predictions (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/shawn39s-predictions)
- [Social Media for Contractors (6)](https://www.shawnmccadden.com/the-design-builders-blog/topic/social-media-for-contractors)
- [Software Related (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/software-related)
- [Starting a Business (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/starting-a-business)
- [Statistics (2)](https://www.shawnmccadden.com/the-design-builders-blog/topic/statistics)
- [Subcontractor Considerations (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/subcontractor-considerations)
- [Success Strategies (77)](https://www.shawnmccadden.com/the-design-builders-blog/topic/success-strategies)
- [Taxes (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/taxes)
- [Team Building (14)](https://www.shawnmccadden.com/the-design-builders-blog/topic/team-building)
- [Technology for Remodelers (10)](https://www.shawnmccadden.com/the-design-builders-blog/topic/technology-for-remodelers)
- [Tools and Supplies (4)](https://www.shawnmccadden.com/the-design-builders-blog/topic/tools-and-supplies)
- [Trade Associations (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/trade-associations)
- [Videos (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/videos)
- [Violation Reports (1)](https://www.shawnmccadden.com/the-design-builders-blog/topic/violation-reports)
- [Web Site Related (15)](https://www.shawnmccadden.com/the-design-builders-blog/topic/web-site-related)
- [Worker Training (19)](https://www.shawnmccadden.com/the-design-builders-blog/topic/worker-training)
- [Workers Compensation (3)](https://www.shawnmccadden.com/the-design-builders-blog/topic/workers-compensation)
- [Working with Design Professionals (8)](https://www.shawnmccadden.com/the-design-builders-blog/topic/working-with-design-professionals)
- [Working with Vendors (5)](https://www.shawnmccadden.com/the-design-builders-blog/topic/working-with-vendors)

[![accounting blogs](http://logos-pictures.s3.amazonaws.com/byn-badge.png)](http://buildyournumbers.com/top-accounting-blogs/)

Take [QuickBooks Classes](http://buildyournumbers.com/) at BuildYourNumbers.com

### Most Popular Posts

### Straight Forward Information and Advice

***"Finally a site where I get the information I have been looking for!!"***

**Allen A. Reed  
Al Reed Builders**

 

***"I always read your blogs Shawn. You pack of ton of great data into a very concise and understandable format"***

**David Supple  
New England Design and Construction**

 

***"Been following you for years Shawn! You've always offered very valuable information and personal reflection related to our industry. Thanks!"***

****Peter Robinson  
Peter A. Robinson Remodeling LLC****

** **