(Note: This is the seventh article in a series of articles written specifically for remodelers who want to successfully break past doing $1M/year in installed sales. Click here to see a list of all the articles in the series that have been published.)
As a remodeling business seeks to grow past the $1million a year threshold things can very difficult for most business owners. Taking the jump can even be fatal for the business. I call it the “Take-Off Stage” because either the business takes off successfully, or it doesn’t.
The typical challenges most owners experience during this transition include having the right skills to make the jump successfully and getting it done quickly enough. The growth has to happen quickly enough so the increased volume produces the gross profit needed to cover the additional related overhead expenses required to first make the jump and to sustain it.
At the doorstep of approximately $1M remodelers must make a decision
Will they remain contractors or will they become construction business owners?
Either is a good choice, but being a construction business owner is much more involved. It can also be much more profitable.
In January this year Mark Paskell from the Contractor Coaching Partnership and I will be offering a Construction Business Owner Education and Peer Group Program created specifically for remodeling business owners looking for help making the $1M jump. We purposely decided to target this volume demographic of contractors. It’s the best time to introduce the structural and behavioral changes the business and the owner will both need to make.
Growing past the $1M mark without putting significant changes into place is a huge risk
The reason most small businesses fail is not because they are not profitable, but rather because they grow faster than the business can successfully implement the systems needed to manage that growth.
Want help making the $1M Jump?
If you what help here is what I am setting up to help you. Over the next two weeks or so I will be publishing blog topics specifically written to help remodelers who want to grow past $1Million a year. In the next article I will share the typical characteristics of the Take-Off Stage. After that article I will share some important considerations for the business owner and a list of goals the business and the owner should consider committing to and working on to get ready for the growth.
Then, following those articles I will post a series of articles. Each article will specifically discuss one of the seven business systems I have identified as critical to the successful and profitable growth of a remodeling business. Again each one will be written for the purpose of helping remodelers with what they will need to consider and put in place to help them break $1M profitably.
The list of systems to be discussed will include:
If you haven’t already done so subscribe to my blog so you won’t miss a single article.