Bigger is not Necessarily Better
In business, especially within the construction industry, bigger is not necessarily better. We can also sum this up as quality vs quantity.
We are all focused on growing our companies as fast and as big as possible. However, this is a common mistake company’s make in their effort to hit the top of the market, and it has time and time again shown to be a mistake. As we mentioned in a previous newsletter, the need to have a strong foundation and back office is paramount to a company’s success.
A vital add-on to that point is to take the proper steps every time you consider taking your company to the next level. If you are an owner of a company or in a high management position, you know all too well what I’m talking about. We get an opportunity which seems so attractive and we instinctively decide we are taking the leap and going to make an effort to take our company to new heights.
However, before you do this, I urge you to head our elder’s advice and check to see that your grand plans won’t actually be the beginning of an unforeseen downward spiral.
Below are some things you should keep in mind when taking on a bigger project than normal:
- Do you have the necessary resources to take on this project?
- Is your back office and team ready to engage in a project of this size?
- Do you have the funds and capital to handle an unexpected increase of budget should things not go as expected?
- Will taking on a project out of your normal range take away from the mantra which your business has been successful with?
Going after big money is always extremely enticing.
However many times this requires us to put all our eggs in one basket and that is almost always a mistake. If you have been successful with a certain brand of growth it’s normally best to keep to that brand and build off of it. Slow and steady is the way companies get to the top of their field.
Throughout our time as construction brokers, we have seen clients of ours take on jobs out of their comfort range only to get overwhelmed and not be able to produce good results. A small job, done correctly, on time, and within budget gets far better reviews within the industry, than people hearing you took on a monumental project and failed miserably at it. Steady growth is essential to building a well-balanced company.
This is not to say that there isn’t a time to take on a project bigger than you’re used to. But evaluating properly when it’s the right time to make that jump, can be the difference between success and failure.