Profit standards for residential contractors vary depending on the type of contractor. In general, the net profit standard for contractors in the upper tier of performance range from 5.8% to as high as 9.6% of sales.
There are two types of cycles. The first is industry related. The second is broader in scope and is economy wide. A small business owner must understand both in order to evaluate and exercise the assets of the business appropriately. For more information read: Economic Cycles.