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What are you doing to handle work loads?

4K views 20 replies 16 participants last post by  TG Deck 
#1 · (Edited)
How do you handle growth?

- take a number and wait?
- focus on 2-3 jobs at time do them well and you'll get them when you'll get to them? Of course there is managing of expectations which is not neglected.
- hire more employees to handle which adds stress when you factor tools training rework getting it or getting rid off?
- How do yo step up from a 2 teams that can handle 2-3. Unless you're using sub's I only see diminishing return. Hope you all know how this works?
- 90+% of construction companies fail in the 6-9 employee base. 9+ warrants 3 + million in sales and boat load of infrastructure and overhead.

How have some of you done it lived it and succeeded in it or not.

Thank you all in advance for your time.
Yanni
City Decks.
 
#5 ·
I'm currently at 8 employees. When I was at 4, we were getting so far behind I was losing customers.

In order to grow, I put into place systems. I gave guys more responsibility and raises. I brought in good guys from other companies who have contacted me about a job in the past.

Typically my day starts at 5:30. At 6am I am in my office preparing for the NEXT day and what needs to happen. The guys start on the job at 7. By 8am I usually swing by, after I make sure they don't need anything extra. Rest of my day usually consists of appointments and phone calls.

Usually there is a crew of guys roofing and one siding then subs doing windows, gutters, etc.

I've found if people wait longer than a month, they get really impatient.
 
#6 ·
I am trying to figure this one out. I like being a one man shop. However, already in January I have three jobs getting ready to go at the same time in the next couple of weeks. All of them are two to three week jobs. Add in the small repairs and property maintenance stuff and it can get a bit overwhelming for one guy.

That being said, I too live in a small town. Most folks hire me, for me. I also enjoy doing the work, though I have come to realize that I can only do so much work and it is hard to grow much past a certain point alone. How many 12-14 hour 7 day weeks can a guy put in. I did that last Summer and it nearly burned me out. I am just now feeling like working again.

As an aside to this thread, how did you guys who are at the next level do it. How did you let existing customers know that you would be sending a crew instead of yourself.

I have customers whom I have done work for, for years and years. I am not sure how you smoothly transition your customers over to that model.

This year I am staying small as I have a lot of personal projects that need attending to and don't have time to deal with growing pains, but next year I may make a permanent move up.
 
#7 ·
I think the more important question is why do you want growth. Got to tie in to larger goals. If theyre there, great. If its just growth for the sake of growth it might not be particularly fulfilling. Especially if you spend less time with your family in the process.

I just talked to a guy last week. He runs three companies. Got sales between them up to 3 million last year. He lost 150k. Trying to get to 10 million eventually but for now he thinks he will be more profitable at 2.3 to 2.5 million. He runs painting, disaster relief and roofing. If I had to deal with the bs that would go with that wgores nest I dont think any amount of money would be worth it.
 
#8 ·
I've had to learn to say no and be selective with what jobs I take. I turn down or simply don't pursue 2/3 of what comes my way. I am a one man show but hoping to grow into a 3-5 man company.

I'm overly cautious when it comes to adding employees. I like the thought of having everything ready for them before heading down that road.

Something that gets me in trouble is not giving a quote right away after someone contacts me. Example, someone calls about a bathroom. I say I won't be able to get to it for 3 months. They say, ok, put us on your list. I get there and see the people are not prepared to pay what is going to cost for me to do it. Now they waited 3 months for me and are still at square one.
 
#9 ·
Spencer, always call leads back immediately and schedule their site visit within a week of contact. You should go out and get a journey level hand immediately to allow this to happen. Someone who can keep the job manned while you take care of business.
 
#10 ·
The "people hire me for me" argument works as you grow. People hire me for me too. But they also know that part of me is my outstanding crews and my persistent oversight.

In the end people want to work with people they trust. They dont expect you to be self preforming all the work. There is an hvac guy here who plugs his commercial. His bit is, "you can trust my company, because you can trust me" I like that..
 
#11 ·
That slogan at the end is great.

People will still hire you because they trust you. If they trust you, it means they're going to trust the guys you hire. Every appointment I let people know I don't have much time to be on the job anymore but I will always stop by at least once a day. I've never had anyone tell me that they don't understand why that is.

Also, there are people who didn't hire you because of you. This is never really discussed. I'm sure I lost jobs because of me when if it was someone else from the company, they may have hired us.
 
#13 ·
If your employees can deliver the same quality that you would deliver yourself then you shouldn't have a problem just being the boss/manager of the projects. Your lead guys need to be able to speak intelligently and problem solve without you. Ohiohomedoctor is 100% correct, customers are hiring you and your crews are an extension of you. You need to be visible on the sites though, make sure everyone knows that you have seen the entire project through but don't need to be there 24/7.

My partner has done the grow to fast and have to much overhead thing and had to shut it down. Got to big to manage it all by himself and it went down the crapper. We have 15-18 guys in our business when we are in prime work season, he handles the field and I handle the bidding and business end and it works well. He doesn't need to be on every job all day but on all jobs at least some everyday. Your customers need to know that. They also need to know they can get a hold of you whenever they need to. We get a ton of repeat business because our customers can call myself or partner and get an immediate response to there issues. It goes a long way!

Good luck if you try to expand, you never know unless you try. Just keep a good eye on the books, if it's not working don't let pride get in the way of good business decisions and downsize quickly!
 
#14 ·
I had multiple jobs going on for over half of last year and didn't like it one bit. For the next two years I plan on going back to one at a time and "take a number". I'm up front about the wait and haven't had trouble staying busy. I aim to shave 25% off our project completion time over the course of this year.
 
#15 ·
I am taking one job at a time and I plan to be there for the next 1-2 years. I think you need to really maximize the profitability of one crew before you add another. Also, there is a hiccup there because you cannot work in the field and run two-three crews. So, you need to hire two foremen.
 
#17 ·
you get to choose to stay small or grow and grow how big is the key

as metro m&l said a guy is doing 2 + million in business but lost 150k where does that 150k come from and what is the purpose of running a business only to loose 150k even with the idea of future growth and possible profit

here is how I look at things having jumped on the bandwagon of major growth in the past couple years

1) it will all crash again soon, 2018, so get ready to be doing nothing

2) a lead comes in jump on it asap, call back asap, and do a site visit within 48 hrs or less

3) I'm honest, I'm about 2 weeks plus out on a proposal from the initial site visit

4) I did tons of "handyman" work in the past and to keep busy when it was slow, handyman work does not offer the best returns for time invested. I don't do any more handyman work unless it is for a repeat customer, the line "come fix my drywall patch please, don't worry we'll call you when we want to redo the bathroom and kitchen." it's a line of bs

5) raise your rates, don't gouge anyone, but raise them enough to create a good profit, I worked christmas eve and finally returned full time january 26th. I could spend another 3 weeks in sedona if I wanted because my bank account.

6) Learn how to crunch numbers, contracting is many things, but tracking every cost per job is the way to go, it allows you to see what your rates need to be and to see if your really making money, just because you have money in the bank doesn't mean your doing something right

7) I was able to profit anywhere from 8% - 45% per job last year. the lower % was usually on 100k jobs. But in reviewing my numbers for the year and overhead I found out I average 56 hrs a week working. (I knew it was bad) but when you actually see the number it was depressing in a way.

8) growth is good, but have a goal for your growth and a reason. I have my goals and look at taking on a certain types of clients and jobs and I don't deviate from my outline. New house construction, thats nice, but it's not my plan, thats cake walk, full house remodel, that's my type of work

9) don't think about being under bid, I found out through the grapevine that a customer freaked when they saw my numbers for a time crunched lots of unknowns remodel project. so they found someone to do it cheaper, well they got what they wanted, a first class disaster that was suppose to be done today and isn't half way done. The contractor kept saying "drywall is up 30%" "I can't get my plumber in here" I was told drywall would go up 30% jan 1st in october why a contractor thinks its ok to work for 15 or 18 dollars an hr is absurd
 
#19 ·
This is a great post.

I am slowly finding my niche. I have no desire to be big or have a crew of guys an office and big overhead. I stay small, call in a buddy if I need it and keep moving forward.

I too love a full remodel, but am doing a lot of partial remodels these days. I really like that. Right now I am on one, where all I am doing is a few days of demo and then framing in an extended bathroom space. Then I am out of there. Quick, easy and no real hassles.

Sure I hope they will call when they need more work done, but I am fine if not. I have other similar work lined up, so I just keep going in this direction.

Small and simple is my plan.
 
#18 ·
I think you are larger than I am so my advise is probably limited. None the less when I feel I am in a position to hire more employees to cover the work load I figure I am also in a position to increase price as well or instead. My thoughts are if I don't have a lot of time to sell I will sell it to some one who really wants it. They still come in and when they do they are great jobs. There is also a lot of flexibility in how to get them done and still make good money.
 
#20 ·
I have been running one crew for 8 years now moving from one job to another. I have lost few jobs because of it but i just cant find enough reliable help. What way are you guys looking for employees? Craigslist? Friends and family? I had really bad experience with craigslist once. A guy i hired said he fell of the ladder the second day and broke smthg. Tried pursuing my insurance. I know it did not happen and court decided in my favor as well but i lost money for an attorney and it definitely put a bad taste in my mouth hiring people i don't know. There is a lot of people out there who make income screwing guys like us.

Remodeling company in bucks county
Www.allinonerenovationsllc.com
 
#21 ·
Good post and good question.

I think this is a personal management thing.
Where are you now...where do you want to go....what are the goals...have you run the numbers....do you have/will have the people needed...etc.

I ran fast and loose last year and did too many jobs w/close to no profit.
Now have 3 crews I'm trying to keep busy...with the economics better figured out..and with better people.

Most of my jobs are very short term, like 1-4 days, so I'm selling and scheduling like crazy. I took the day of 12/25 off last year...and that's because nothing else was open or moving. My choice...

I'll probably run hard again this year, but try to be much smarter.

What works for you?
 
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