Every business owner eventually hits a point where something isn’t working. Maybe gross revenue is too low. Maybe profit margins are shrinking. Or maybe net profit just isn’t where it should be. It’s easy to identify the problem—but fixing it requires a more strategic approach.
One of the most overlooked strategies for improving profitability is simple: take the right work.
Why Taking the Right Work Matters
Many business owners focus on increasing sales or cutting costs when financial performance is weak. While both are important, the type of work you accept in the first place often has the biggest impact on your bottom line.
If you consistently take on the wrong projects—too small, too far away, too complex, or outside your expertise—you risk burning resources on jobs that drain your time and reduce profitability. Worse, they may prevent you from taking on better, more profitable opportunities.
Define Your Scope of Work
The first step is to clearly define what “the right work” looks like for your business. Write it down.
For example, imagine you’re a residential construction company. You might decide your ideal projects are between $100,000 and $400,000, located in the Los Angeles area, and based on a time-and-materials contract model. That becomes your target scope.
With that clarity, your marketing efforts, proposals, and outreach can focus on attracting exactly those types of jobs. That doesn’t mean you won’t occasionally accept work outside your scope—but it does mean you’ll be intentional about what you pursue.
When to Turn Down Business
Turning down work can feel counterintuitive—especially if you’re trying to grow. But sometimes, saying no is the smartest move you can make.
If a project falls outside your defined scope, ask yourself:
- Will this job tie up resources that could be better used elsewhere?
- Does it offer strong enough margins to justify the extra effort?
- Could it prevent you from accepting a more profitable project in the near future?
By analyzing your current cash flow, revenue model, and workload, you’ll know when it makes sense to decline a project. The key is protecting your capacity for the right opportunities—the ones that align with your strengths and maximize profit.
When business numbers are underperforming, it’s tempting to think the solution is simply “more work.” But not all work is created equal. By taking the right work—and being disciplined enough to define, pursue, and prioritize it—you’ll strengthen margins, reduce wasted effort, and create a more sustainable path to profitability.
In other words, the projects you don’t take may be just as important as the ones you do.
For personalized guidance, please schedule a consultation appointment with a Principal at Bernstein Financial Services to help you determine your optimal planning strategies.
The information provided in this blog post is for general informational purposes only and is not intended as legal advice. Every business and financial situation is unique, and the strategies discussed may not be applicable to your specific circumstances.