How to know if you're actually making money
Revenue is vanity. Net profit is sanity. Most owners look at the wrong number.
Top line lies
A shop doing $1.5M with 4% net is in worse shape than a shop doing $800k with 18% net. Revenue alone tells you almost nothing.
Watch gross margin first, then net
Gross margin (revenue minus direct cost of jobs) tells you if your pricing and production are working. Net tells you if your overhead is in line. Both matter, in that order.
Calculate per-job profit, not just monthly
A shop with healthy monthly numbers can still have a third of its jobs losing money. Per-job profitability catches the leaks the monthly P&L hides.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.