If your budgeting strategy feels like it’s holding your business back instead of moving it forward, you’re not alone. In this forward-thinking article, Hunt Demarest challenges the way shop owners traditionally approach planning—and why it may be limiting growth. This article was originally published on Ratchet+Wrench.com and offers a smarter framework for setting targets in 2026.

Instead of focusing on cutting costs like in personal finance, Demarest explains why successful shop management comes down to three core drivers: sales, gross profit, and overhead. He highlights how many owners fall into the trap of treating expenses as the only controllable factor—when in reality, increasing revenue and efficiency has a far greater impact on profitability.

Through practical examples, he shows why small cost-cutting decisions can sometimes do more harm than good, especially when they affect team performance and output. More importantly, he reframes budgeting as a tool for setting expectations—not restricting smart investments that can drive growth.

If you’re planning for the year ahead and want a more strategic, results-driven approach to your numbers, this is a must-read.

👉 Read more on Ratchet+Wrench to rethink how you set targets and build a more profitable 2026.