Growth nearly broke Victor's Roofing. Profit saved it.

By The Coffee Shops. 

Growth without profit is just a bigger headache. 

Most contractors dream about doubling their revenue. For Victor Smolyanov, achieving that goal nearly came at the expense of his business, his team and his personal life. 

Speaking during a session at ServiceTitan's 2026 Pantheon conference, the founder of Victor's Roofing shared how a year of explosive growth taught him one of the most important lessons in business: revenue means very little without profit. "On the outside, we were a success," Victor told attendees. "But when you looked at the numbers, we were not even making decent money." 

The year everything looked successful 

In 2019, Victor's Roofing set an ambitious goal: double its business. The company was doing roughly $10 million in annual revenue and wanted to reach $20 million. The team pushed hard to make it happen. 

Victor said he was leaving home at 5 a.m. and often not returning until 10 p.m. Team members were stretched thin. Everyone was working harder than ever. By the end of the year, the company had installed more than 2,400 roofs and generated nearly $19 million in revenue. From the outside, it looked like a tremendous success. The reality was something different. 

Despite the record sales volume, the company finished the year with a bottom-line profit of just 3.5%, or approximately $700,000. "We made $700,000 on installing $19 million worth of business," Victor said. 

The experience left him frustrated. As a husband and father, he felt he was failing at home. As a leader, he saw a team that was exhausted. And despite all the effort, the financial reward simply wasn't there. 

A conference conversation changed everything 

A few weeks later, while attending an industry conference in Florida, Victor experienced what he described as a business-changing moment. A speaker named Bob Quillen, owner of Quillen Bros. Windows, shared his company's numbers openly with attendees. Quillen's company generated about $6 million in revenue and roughly $1.5 million in profit. That revelation stopped Victor in his tracks. "That guy did a third of the work that we did and made double the money," he said. 

The realization forced him to rethink everything he believed about growth. For years, he had measured success primarily by volume. More roofs. More jobs. More revenue. What he hadn't focused on enough was profitability. "I felt stupid," Victor admitted. "I'm an idiot. I'm not running my business correctly." 

The power of raising prices 

Returning home, Victor and his leadership team began reworking the business. They focused on delivering a better customer experience, improving operations and creating more value rather than competing primarily on price. Most importantly, they raised prices. 

For many contractors, that can feel like a risky move. Victor acknowledged that he was once afraid to charge more because he believed it would make the company less competitive. 

But the results proved otherwise. In 2020, company revenue actually declined from $19 million to $16 million. Profit, however, told a completely different story. The business generated approximately $3.2 million in bottom-line profit. In just one year, Victor's Roofing increased profit by more than four times while doing less total work. That profitability became the foundation for future growth. "It gave us the growth and the money that made everything else possible," Victor said. 

The additional resources allowed the company to hire better talent, improve customer service, strengthen employee benefits and create a healthier work-life balance for team members. Eventually, the company grew to 12 locations across three states, employing more than 300 people. 

Stop letting competitors set your prices 

One of Victor's strongest messages for contractors centered on pricing strategy. He challenged attendees to think carefully about how they establish pricing. "Do your competitors determine what you charge?" he asked.  

Too many roofing companies, he argued, price their services based on what competitors are charging rather than based on the value they provide and the financial needs of their business. That approach often creates a race to the bottom. "If competing on price is the only thing, it's a quick way to go out of business," Victor said. 

Instead, he encouraged contractors to build businesses capable of supporting great employees, superior customer experiences and long-term growth. Those things require healthy margins. "You can't charge that price unless you have the value," he said. "You also can't charge that price if you have a poor production team." 

Growth starts with margin 

Throughout the session, audience members repeatedly asked questions about scaling. Victor's answer was consistent: before worrying about expansion, hiring or market growth, contractors should understand their margins. 

"If you're making a bad pancake, why make more bad pancakes?" he said. For contractors hoping to scale, he recommended reviewing recently completed jobs and comparing estimated margins to actual results. 

Growth without profitability, he warned, simply creates bigger problems. "Process without margin makes you more efficiently broke," Victor said. 

A lesson every contractor can use 

The most memorable takeaway from Victor's story wasn't about roofing, private equity or opening new markets. It was about redefining what success looks like. 

For years, revenue was the scoreboard. More sales meant a better business. Today, he sees things differently. 

A company that grows profitably can invest in people, systems and customer experience. A company that chases revenue alone risks burning out its team while creating very little value. 

For contractors looking to scale, Victor offered a simple challenge: Don't focus only on how much work you're doing. Focus on whether the work you're doing is actually worth it. 

Learn how ServiceTitan can help you understand your numbers and where you can improve, make changes and become more profitable.