How Fast Is Too Fast?

Journeyman T

I would like to start contracting by working alone and then spend some time with just a helper for a while. However, I eventually would like to grow to the point where I could have my company operate on its own. There is one thing that concerns me though. I don’t want to succumb to the danger of growing too fast. So how fast would you say is too fast?

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CNC

Is a company running "on its own" even possible? sounds like a fairy tale? Ill keep watching this one, hopefully i learn somthing

ewingpainting

Your company is growing to fast when your company is running you and your not running it. Or when you are no longer keeping the fires from sparking to constantly putting out fires. I was part of a huge painting company. We grew to fast and believe me there was a lot of wasted time money and effort. I learned allot though. I am starting my own company now, I constantly tell my guys and family that I will only get as big as I can control it and it not control me. As far as the company running on its own good luck, you have now entered the world of business. Now your not just a contractor but you have to be a lawyer, babysitter, estimator, job costing, ect.

IT NEVER ENDS

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Riverside County Painters

AtlanticWBConst

Basically, that is a relevent question. There is no solid "time-rule" to gauge your business growth on. (Example: 2 years, 3 years, 10 years, etc...)

It's going to be pretty much dependant on you, your business & management skills, your set goals, what you do for work, who your primary customers are, if you have highly skilled employees, that are capable/trustworthy, to work on their own, etc, etc.
These are all part of having a "Business Plan".

Most businesses that start up and are able to run on somewhat of an "automatic pilot"....seem to be usually staffed by family. That seems to be, because they feel more of a responsibilty to stick things out and work hard (Put up with all the crap, that comes up, from time to time, where as others will just -- up and quit on you).

I have seen and experienced, where a company can have a very good key person, lead worker, or great "crew", and then lose them (when they go out on their own). You could spend several years training such a lead person or skilled crew, and lose them the same way = and then you are back to square one, starting all over, training new people.

My company is primarily comprised of myself, my business partner, and our workers. I do not want to grow any larger. I can barely handle what we have now, and keep up with the pace (Too busy = disorganization & Frustration). The hardest part of any growing company's work-load, is the administrative aspects (paper work and proper management). This is where every person (working on their own and growing), seems to get bogged down and falls behind.

When you get too busy, then you will see your service, quality and organizational areas of the business start to break down. I am used to being able to be one step ahead of every project, every bid, every phone call, etc. Right now, I am chasing things. I don't like that at all. I feel that we are at the point where, if we take on more work, things will start to break down. Could my company run without me. Yes, but it would've taken years to train the right person to do what I do, and I am passed that stage. Even, if I had trained that person, they may haved moved on by now.

Every situation, every business, every business owner, is different, however, these are just some of the aspects to think about.

Lastly, alot also revolves around what you offer as a service, and who your clients are. If you have regular clients, with consistent project scopes, then it is easy to train people and crews to service that area of your business. This is where you can take advantage of growth opportunities. Once you have those growth opportunites, that is the time to take on the people that will help you manage those well, and thus, help you to grow in what you are doing. As you grow, do not neglect the organizational aspects of your business. The more business you do, the busier your are, and the more organized you need to be.

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- Build Well -

WarnerConstInc.

Dog chasing tail! That is how I have felt latley.

Mike Finley

I gauge it by 3 things and in this order:

How fast to grow? The signs to put on the brakes are:

#1 Is family being neglected - wife, kids, etc... there will always be work, don't neglect the family. If their are problems developing at home, it's time to change.

#2 Are customers 100% happy? If you start running into customer issues, there are problems, it's time to change.

#3 How am I feeling? Stressed? Crazed? Bigger A-hole than usual? Time for a change.

As long as I can say #1,#2, #3 are good, then full steam ahead.