Residential Developers

BHR

I'm looking for a bit of expansion in my small company but do have grave concerns on the ramifications involved. Right now I have two employees that work real hard for me and my trust level is very high with them. We mostly do restorations on turn of the century homes and of course other homes. But I am at the point now where I feel the need to be able to grow - even just a bit more.

Here in Brantford new home construction is steady - off the top of my head there is roughly 9 developers in varied sizes.. So here I am thinking that perhaps this maybe the chance to do a bit more and also be able to afford to hire another two workers (at least). The thing is I have no idea how these developers operate.

I would be looking at doing tile work if I did happen to 'get in' But the concern is "is it worth it". Do they command what the rate per sqft etc. Do they take till Tarpit Tuesday to pay. Do they enjoy making trades jump through hoops?

Generally I need some advice on the pros and cons regarding making a move like this and a bit of common knowledge on the best approach to take when entering into a venture such as this.

I appreciate any wisdom offered.

Nor Cal Sparky

BHR;

I understand where you are at. Alot of it denpends on the kind of person you are. Do you have managment skills or are you just a good worker who needs some help. Getting into larger work is the easy part. Developers and General contractors are always looking for a new sucker who will do the work for half the price as everybody else because he is so hungry. THe larger you get the more problems there are. Dont get me wrong I'm not against getting big I'm just telling you that until you get to the point where your company runs its self then there are alot of pains in growing. Think of it like going to the beach. When you are standing on the shore you cant get hurt by the waves, that is what it is like to be a small owner operated contractor. When you are behond the waves you probably wont get hurt either because all you have to know is how to swim, that is what it is like to be a large contractor. When you are getting killed by the waves gasping for air and trying to anticipate when the next wave will hit you well that is what it is like to be a medium sized contractor. And you cant go from the beach to behond the breakers you have to get through the waves. The most succesful contractors I know are either small or large it's the ones in the middle who get killed.

BHR

Thanks Nor Cal

That's the thing - I do have good management skills and my business is going quite well. I have steady work and make decent money but like any other business person I always try to be a forward thinker.

I'm certainly no sucker. When I started in business for myself I did tile work as a peffered ins. contractor but found old homes to be my niche'

I keep hearing conflicting stories about working in new home construction with developers so this is why I am reaching out to hopefully get some insight on this (to see if it is worth doing). I know a lot of things but I am ignorant when it comes to this form of the business.

BHR

If a tree falls in the forest will anybody hear it