Episode Transcript
If You’re Like Most People in Construction, You Don’t Know…
Last week we discussed how 96% of construction companies go out of business within the first 10 years. This is a problem if you’re in construction.
As I was discussing last week’s post with a friend, he asked me why I do construction. Why would anyone want to start a construction company with odds like this? This question started me thinking about it.
Why is anyone doing construction if the chance of staying in business is so stacked against them? This question prompted me to reach out to some people in construction and ask them.
Why am I doing construction and how did I get here?
When I was growing up, I knew exactly what I was going to do. I was going to farm with my dad, just like he was farming with his. This was going well until those plans got changed.
When I was in my early thirties my dad died of cancer at fifty. This wasn’t a part of the plan.
At that point we were farming together, he owned some of the equipment and I owned some. The problem was, I couldn’t afford to buy his part so…I got out of farming.
In addition to farming, I had been doing some construction in the winter. I liked doing it, was good at it, so this seemed like the logical thing to do.
The problem was I knew construction…not business.
So, why are others doing construction and how did they get here?
To answer this question, I reached out to some people I know that are in construction and asked them the question…Why are you in construction?
I’ve known Doug Wright, with Wright Floor Leveling, for years and have used their company for a variety of projects over the years. They do foundation repair/replacement, crawl space repair, basement repair, masonry repair, new masonry, and more.
Here’s Doug’s story: he did not plan to go into construction…he planned to play football. Then he was injured in college, and it ended his football plans.
His dad was a stone mason and Doug needed a job, so he went to work for him. As things progressed, he became more entrenched in the business, and the prospects for change became harder and harder.
Not to mention that he wasn’t a fan of change.
So, Doug is doing the construction that he knows and is good at.
Chris Schovan is a painter that hasn’t been in business too long but is great at what he does.
Chris learned to paint as a young man from his grandpa who was a professional painter. His grandfather told him that knowing a trade would always give you something to fall back on.
He was working for a pole barn company and/or in manufacturing when the pandemic hit, and he got laid off. Then someone at church needed some painting done and asked him if he knew any painters. He ended up doing this project which led to other projects and he’s now as busy as he’s ever been.
He likes the freedom of schedule because he doesn’t have to punch a clock.
I use Chris because he provides great customer service and does quality work.
I’ve known Josh Dobbs of Flint Ridge Service and his family for a long time. Josh was a firefighter and planned to be fire chief someday until smalltown politics derailed that dream.
While considering what to do next, he was talking with some guys in real estate and the glass business who told him there was a need for someone to do handyman-type things. So, he started doing some odd jobs. As the demand grew, so did his business. Now he does a variety of construction, excavation, and fencing.
He had never done construction before he started doing odd jobs.
Josh uses the leadership skills he learned in the fire department and the ability to see a need and then figures out how to do it.
Leonard Mumford, of Mumford Contracting, is the owner of a full-service construction company. Leonard and I work together in a variety of different ways.
Leonard was in construction years ago and after going out of business, he swore he would never do construction again. He worked in oil field and sales but was miserable. Then he had the opportunity to do some construction work on the side and was making more money part time.
Then his son convinced him to go back into construction…which he swore he never would.
Now Leonard is doing more construction than ever.
The common thread in all these stories is that none of them grew up dreaming about going into construction…playing football or being a fireman, yes, but not construction.
Not everybody knows what their vocation is going to be. Things happen and we have to shift and make changes. These changes, some big and some small, lead us down paths that we didn’t plan for.
This lack of preparation and planning is why 96% of construction companies don’t make it past the 10-year mark.
Three of these five examples here have made it past that point, but trust me, this doesn’t mean that everything is smooth sailing.
All of them have expressed concerns about the business side of things.
This concern is common and why at Solution Building, we’re working to help construction companies with business tools and training to alleviate some of those concerns.
If you would like some help with your construction company’s struggles schedule a free 30-minute consultation.
