How to Grow a Construction Business Without Losing Your Profit | Small to Medium Business Growth
Note sull'episodio
How do you grow a construction business without destroying your margins, systems and company culture?
In Episode 19 of the Starbuck & Sgt. Podcast, Jimmy Starbuck and Herb Sergeant tackle one of the biggest challenges facing construction contractors: moving from a small business into a medium-sized construction company.
The conversation starts with Jimmy's latest trip to China and some eye-opening factory visits before diving into a listener question from Ted, who runs a 15-person civil construction company and is considering expanding.
Jimmy and Herb break down what construction business owners need to consider before growing, including:
• Why you should figure out WHY you want to grow before figuring out HOW
• The danger of growing revenue while your profit margins fall
• What systems need to be in place before expanding
• Why the right people and company culture are critical to growth
• How to maintain accountability as your construction company gets bigger
• When you need to bring in financial and operational leaders
• Why construction business owners need to learn to delegate and stop micromanaging
• How leadership needs to change as a company moves from small to medium to large
• Why doubling the size of your business can dramatically increase your exposure
• How financial strength, bonding, banking and surety relationships affect growth
• Why the people on your crew can make or break a project
• The importance of maintaining company standards as you scale
Jimmy also gives an update on a major project he recently fought to win, explaining why he believes the right people are the biggest reason a construction project succeeds.
Later in the episode, Jimmy and Herb discuss a question from Joseph, a 30-year-old operator considering starting his own construction business while supporting his wife and two children.
If you're a construction business owner, civil contractor, equipment operator, project manager, superintendent or someone thinking about starting your own construction company, this episode is packed with real-world lessons from two contractors who have made plenty of mistakes—and learned from them.
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