Fastest way to grow your company?

[dirtmoving21]

What is the fastest way to get your company doing large commercial projects, starting from a few peices of equipment. Of course your main obstacle would be capital and equipment. My question is, what would be the best plan to do larger projects and become a bigger company the fastest? My plan would be to start small and try to get you a steady amount of work with in a year or two. Then start bidding on larger scale projects, then you would have to have more equipment, so you invest in bigger/more equipment. Then do as many projects as you possibly can a year and then start paying your equipment off and get bigger and bigger. How does that sound to you guys?

 

[Colorado Digger]

Sorry for the bad news. That is the fastest way to go broke that i know of. Bigger projects are not always better anyways. In close to 20 years in business i am just getting to where i have the projects I always dreamed of. I don't know why you would want to be a super big company but that is your business. Most of the companies that made it through the last few years did it by being smart and having a low overhead. Payments will kill you. Good luck.

CD

 

[dirtmoving21]

Im not saying its easier but, in the long run i believe you can make more money being a bigger company. Gotta go big or go home in my perspective.

 

[Colorado Digger]

Good Luck. I have no further comment on this subject.

 

[Greg]

First thing, you have to walk before you can run. Second thing, you have to walk before you can run. The only way there is to go about it is to start on smaller things and work your way up. Commerical work is cut throat when times are good. Now the way it is there are a lot of contractors just barely hanging on, and around here there have been a considerable number of failures of bigger companies too. If you are looking at municipal work getting enough bonding to do larger jobs will be a problem until you grow and are on solid financial ground. As far as private work goes, the project owner is going to be asking what you have done up until that point.

Colorado Digger is right. Growing to quickly is the fastest way to go broke. I have it happen around here more times then not.

 

[TEC]

Probably easier to just head down to the party store and buy a lottery ticket.

Talented, reliable people are the commodity you need to find.

Get the job and rent the equipment, or sub it out. If you bid it properly, you'll still make money.

Tom

Oh yeah, a good lawyer too.

 

[DGODGR]

Obtaining equipment is easy. As TEC has said, having good employess is the key...once you have the work. Keeping them busy is the next hardest thing. IMO the profit margins on the bigger jobs are less. I have always found the competition on public works, and larger commercial projects, is tougher. It also usually requires more overhead. The amount of paper pushing on public works and commercial will require a lot of time. Managing those big jobs, while doing all the other things too can be challenging. TEC is right about the lawyer too. Not so much for lawsuits (hopefully) but for contract review/modification prior to the job. Wait until you see what the commercial contracts look like. Once you have taken the time to do the bid (bigger jobs take longer and are easier to miss things on), and you have bid the lowest, then you will talk about qualifications (assuming no prequalifications just to be a bidder), and then, if you pass those hurdles, you will enter into the contract/insurance negotiations. Which reminds me that you also need a sharp insurance agent too. If this sounds like your cup of tea (some people love to swim with sharks) then go for the big commercial stuff. So far, I have found that I prefer to work with smaller residential contractors, and light commercial. I still have some that I work with on a handshake. I can work for the margins that I prefer, and once you establish the relationship, you both know what to expect, and can better serve the customer and make more money.

 

[Scrub Puller]

Yair . . . Feller I knew up north a few years back had a tandem tipper with a tag hauling his skid, mini-ex, tools, oxy and a welder.

He charged himself out at eighty bucks an hour if he's welding something thats broke, hauling gravel, spreading topsoil with the skid or trenching with the excavator.

Since he owns the gear he's laughing and he reckons it's not worth the hassle to employ an operator . . . just the very opposite of the original posters theory.

Cheers.

 

[mitch504]

Not to be redundant, but everything everybody has told you in this thread is true.

Growing too fast is the fastest way to go broke.

If you get enough good people to do big jobs, you will find yourself working at a loss sometimes to keep them working. If you do this much, you will go broke.

I grew my business slowly for 18 yrs, and then in July 2011, I downsized it greatly. I am happier and making more money. I only take jobs I want, and no longer have to worry about all those employees.

Good Luck, and I hope you are not thoroughly disgusted w/ us, we are just giving you the benefit of around 100 yrs experience in this thread already.

 

[JGS Parts]

First thing, you have to walk before you can run. Second thing, you have to walk before you can run. The only way there is to go about it is to start on smaller things and work your way up. Commerical work is cut throat when times are good. Now the way it is there are a lot of contractors just barely hanging on, and around here there have been a considerable number of failures of bigger companies too. If you are looking at municipal work getting enough bonding to do larger jobs will be a problem until you grow and are on solid financial ground. As far as private work goes, the project owner is going to be asking what you have done up until that point.

Colorado Digger is right. Growing to quickly is the fastest way to go broke. I have it happen around here more times then not.

It sounds more like this guy has to crawl first mate dont think he is at the walking stage yet

 

[joispoi]

"Go big or go home"...lol, that's the tired mantra of many men who've walked home with empty pockets and their chins resting on their chests.

Running a big business is an office job. If you want a big business, go to business school.

 

[dirtmonkey]

Running a big business is an office job. If you want a big business, go to business school.

How true ! At least take some classes , accounting , management etc.. Big jobs = big check = big pita= big loss= BIG ULCER ! Btw , payroll taxes suck! :Bangheadointhead:crazy

 

[Greg]

JSG Parts,

This is amazing. For once we agree. You take it one farther with the crawl first. You are right on right here

 

[JGS Parts]

JSG Parts,

This is amazing. For once we agree. You take it one farther with the crawl first. You are right on right here

Wow it is amazing mate i think i will have a beer to that news as something must be wrong haha

 

[Raildudes dad]

Over the past 40 years, I've watched local contractors do the quick growth both ways, with a good bankroll (inherited money) and borrowed money. The guys with inherited money last longer but not one has survived. The small guy with a desire to get ahead that works 80 hours a week and slowly grows with good partners (if he has any) and good employees get there. Another observation, once they get 2nd generations involved (the kids that grew up with good times that didn't or don't have to work 80 hours a week) things start going downhill.

 

[joispoi]

wow it is amazing mate i think i will have a beer to that news as something must be wrong haha

lol

 

[joispoi]

I think the only guys that made fast money in earthmoving were the first guys to come on the scene with the first backhoes and the first hydraulic excavators and before them, the first guys to come on the scene with steam shovels- they were competing against hand shovels, plows and horses!

 

[dirtmoving21]

I own my own company, it is small but I make good money with it. I have been taking business classes for close to a year now. I think you guys are getting the wrong idea, Im not looking to have 80+ pieces of equipment within a short period of time. Im looking to get in to doing bigger jobs and having the jobs pay for my equipment over a period of time. I have done some site work recently and they do come with headache but But that job is finished, i made good money and was extremely busy for a few months. Luckily the area I live in is doing good, it grows every day and more and more companies come here. The company I used to work for is not that big but has 9 quick trip projects and a large shopping center project as well. The owner of that company told me that one of the reasons he got so busy is because he has been advertising a lot, so when a GC comes to town looking for a company to knock out a job he is easy to find and is the first name to come to mind. I hope to become a DECENT size company in the next few years. Maybe do 2-3 larger projects a year and stick with smaller projects as well. So please don't think I am going to buy a bunch of trackhoes and dozers and hope jobs come, I would buy as needed and make sure I can keep it busy...

Thanks,

Victor

 

[Birken Vogt]

I think in the original poster's defense, he is in South Carolina which, if I am not mistaken, is growing kind of like Texas because they are one of the very few business friendly climates in the country right now, so business owners are pulling up roots and moving there and taking their money with them.

 

[dirtmoving21]

Yes, even during this recession we have been "ok" work wise. But one of the keys to getting jobs in my area is advertising your company and making sure it is easy to find your companies name, Because we have a lot of out of state General Contractors that come here as well.

Thanks,

Victor