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Smart Growth

September 12, 2018

If you have an interest in growing your construction business.  Here are several options for smart growth:

A – Train somebody

B – Finding already trained workers

C – Steal somebody

D – Outsource

E – Scale down on number of projects

 

There are lots of reasons to try to grow & expand your construction business.

Maybe you are attempting to expand to take advantage of a trending upswing in the building market.

Possibly you are wanting to scale your business so that you can spend more time operating the business side of your business and in turn having skilled workers that you can rely on to leave alone on your jobsites.

No matter your reasoning or why you are needing to grow your construction business, there is currently a shortage in skilled labor to fill the needs on current construction jobsites.

There are various reasons on local and national levels for this shortage, but the bottom line is that there is a shortage.

Below is an outline of a handful of ideas that could be implemented to expand your business when the need arises.

A – Train Somebody

If you have long term aspirations for your business, then this can be a very useful tool to have in your toolbelt.

If you have the patience to teach & train and your projects are in such a manner as to not be needing immediate top notch impact, then adding less experienced workers and training them over time can be very fitting for your company.

There is a direct correlation between being able & willing to train less experienced workers and the culture and makeup of your company.

If your company is set up with the long term in mind, culture is such that workers will be allowed to grow and gain experience, as well as have the ability to make and learn from their mistakes, then this option would be a good fit.

When implementing this option, hiring new workers based on character, attitude and work ethic is an essential necessity.

B – Finding already trained workers

To borrow the words of Shawn Van Dyke, “this idea is like a unicorn, it just doesn’t exist”

Next.

C – Steal somebody

At first glance, this option was a deterrent to me personally.

However, after further thought and insight by others, it can be a viable option.

Ignore the word “steal”, and place focus on recruitment.  Consider how a Major League Baseball team or NFL football team goes about their business of bringing in new players from other teams.

They recruit them and attempt to make an offer that makes them willing to join their side.  Recruiting skilled workers from other construction companies can be done in a way that is very professional and at the end of the day, beneficial to both companies that are involved.

By remaining upfront and honest with all parties involved, the end result can be a win-win for all parties involved.

By recruiting already skilled workers to your company, you can speed up the impact on your sites and more quickly move towards expanding & growing your business.

D – Outsource

Depending upon the actual needs of your business, outsourcing skilled workers to subcontractors and other vendors can be a viable option.

If your area already has a solid subcontractor base in place then they can help to speed up the impact of immediate assistance to your projects.

The downside to subcontracting work out is that you can possibly have less control over the project and even the quality of the product.

At the beginning stages of subcontracting out work within a project you are also relying upon many unknowns that only time and building a relationship with your subcontractors can alleviate.

However, once those relationships are established and each side gets a feel for working with one another then subcontracting can be very beneficial to the long-term growth of your business.

Over time and after establishing a good working relationship, you can get subcontractors to do their best to work within the parameters of your project schedule and focus on the quality that you would like to see.

An ability to read people and trust your gut instincts are key on the upfront stages of hiring subcontractors.

 

E – Scale down on number of projects

This thought and application can be hard.

It is hard to say no.

Most of us in the construction industry do what we do day in and day out because we enjoy serving others with our skills & talents as well as enjoying the thrill of the process that we get to go through on a daily basis.

It is really hard to say no.

You may ask yourself

“If I say no to this opportunity, what if my phone doesn’t ring again for another month”

“What if there are delays on my current jobs and I have nowhere to put my guys while waiting”

or you may think

“The extra money would be great”

“I like to win so I definitely can’t let my competitor have this one”

It is really really hard to say no.

But sometimes NO is the best word that you can use.  Saying NO to that “opportunity” can mean less stress, more focus and profitability on other projects, and more time with family.

So, while you may not technically be growing with this option.

You are protecting yourself from overextension, additional stress, and all of the downfalls that come from those things.  In turn, you are allowing yourself room for future growth when solid opportunities present themselves.

 

Punch List tip of the day

Knowing your business numbers is key to guiding you in how to approach a decision to growth within your business.

No how matter the option you choose to pursue to help you to grow (or scale down), you have to know your numbers and how that growth choice will affect the health of your business.  Be smart.

 

Punch list tip of the day #2

If training someone is your choice, then don’t be afraid to think outside the box on this.  If training for the long term is a viable option for you, don’t be afraid to start with the younger generation.  Over time, not only will you have a trained worker, you’ll also have a loyal one.

If you currently have solid options within your organization, be sure to take care of them and treat them right.  Foster loyalty in your crew and reap the long term rewards.

Filed Under: Blog, Business Tagged With: Jonathan Walters

About Jonathan Walters

As a teenager being asked by my parents what I wanted to do for a living when I became an adult, I responded that I wanted to be a contractor one day. Their response was to go get a job and become the best that I could be at that craft. I started out in the construction industry during high school in southwest Florida, working the weekends, school breaks and summers. As a 17-year- old general laborer, my first responsibility was to pick up trash, lumber and cinder blocks as well as grab a broom and sweep out houses that were under construction. I continued on that path and eventually was able to move into learning more of the skilled trades that go into building houses. Except for one year of college football at Jacksonville University in Florida, I was able to work mostly full time as a carpenter and attend construction management classes at the University of Southern Mississippi.

Being afforded the opportunity to obtain both the hands on experience in the field as well as the knowledge gleaned from a classroom setting has benefited me greatly as I have progressed in this industry. Having worked for small business construction companies in southwest Florida, south Mississippi and Houston, Texas has exposed me to a wide range of construction & renovation type projects in the custom residential and small commercial arenas. Not only has that experience been in different types of construction but having been almost completely in small business settings has allowed me to be able to wear many different hats within the management & business sides of those companies. That has given me a broad range of experiences and has allowed me to be in the midst of both positive and negative decisions that have affected the overall health of the companies that I have served. These are all experiences and knowledge that I hope can be passed on to others and be of benefit to those reading here.

I currently reside in south Mississippi with my beautiful wife and serve as a Project Manager & Estimator for a custom home builder & remodeler.

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