I Compared Painting Businesses at 4 Stages (When Growth Pays Off)

Send us Fan Mail When does growth pay off in a Painting Business? Daniel Honan, CPA, and Cody Hall break down the 4 stages of a painting business and what to focus on with your money at each one. In the startup stage ($0–$350K), pricing with production rates and a 50% gross profit target on residential repaints is what gets you to the next level, along with staying compliant on taxes and knowing when to consider an S corp. In the build stage ($350K–$1M), they cover hiring your first admin and production manager, what to pay each one, and when to start tax planning and getting help with your numbers. In the swamp ($1M–$3M), they get into how to pay a salesperson and why you need to track the GP to CAC ratio by marketing channel, and Daniel shares client data on profit at each stage. In the sellable asset stage ($3M+), they talk about removing key man risk, knowing what your business is worth, diversifying your net worth, and setting up a revocable living trust. Know Your Numbers & Save Big in Taxes, Daniel Honan, CPA Every episode is made for painting business owners. Follow the show so the next one downloads automatically. FREE BOOK FOR PAINTING CONTRACTORS Free, just cover shipping. Get your copy here: profitablepaintercpa.com/book WANT DANIEL TO LOOK AT YOUR NUMBERS? Join 529+ painting contractors who know exactly where their money goes, keep more of what they earn, and scale without tax surprises. Book a free Profit Checkup here: profitablepaintercpa.com/vsl Prefer video? Watch this episode on YouTube What We Discuss: 01:35 The 4 stages of a Painting Business 03:11 Startup ($0–$350K): Daniel's first year 06:57 Production rate estimating 08:00 Markup: pricing for 50% gross profit 10:00 Staying compliant and the S corp election 11:35 Build ($350K–$1M): hiring an admin 13:34 Hiring and paying a production manager 16:34 Tax planning and help with your numbers 20:52 The swamp ($1M–$3M) 22:49 Profit by stage from our client data 25:33 Paying a salesperson 26:00 Gross profit and the GP to CAC ratio 29:52 Sellable asset ($3M+) and key man risk 32:45 Business value and diversifying 35:57 Estate planning: revocable living trusts Profitable Painter CPA – accounting and financial strategy for painting contractors. Visit us profitablepaintercpa.com This episode was originally recorded as a video for YouTube. If you hear me say things like “in this video” or reference visuals, don’t worry — the content still works perfectly in audio form. And if you ever want to watch the video version, you can find it on the  Profitable Painter YouTube channel. https://www.youtube.com/@BookkeepingForPainters For being a loyal listener, I want to send you a copy of my new book Profitable Painter. Inside, I’ll show you the exact frameworks that have helped painting businesses save big on taxes, increase profits, and scale with confidence Head over to profitablepaintercpa.com/book and grab your copy today. Don’t wait — this is my gift to you for being part of the Profitable Painter community.