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THANKS GUYS.

| Posted in Business on July 9, 2005 09:14am

Hello everyone,

I’ve been frequenting breaktime for over a year, but I’ve only posted a few times so you guys probably don’t really know me.

This post may be difficult to pull off without coming across as needing everyone’s attention, but I really value the various opinions available here, so I’m going to go for it.

I started my business as a GC in March of this year.  Things started well with building a custom second home for a local heart surgeon.  That job is going great, it’s a little way out of town so it’s like stepping out of reality every time I go there. I just finished an awesome wrap around porch with log posts, and exposed timber rafters (I even got to do a couple of fancy Japanese scarf joints I’ve been wanting to try for quite a while). Sorry I’m getting off the subject.  So, after being in business for a month or so I got a referral for another house in a really nice part of town.  I put a few weeks into the bid (in my spare time, which means all minutes of the day not dedicated to sleep).  After submitting a bid for about 515K and some minor, not too unpleasant haggling with the homeowner, I got a signed contract and am scheduled to break ground in about two weeks.  As a side note, this home will be entirely subbed out, except for a two story log and timberframe front entry I designed and will build myself. I also have a couple of small(1-2 week) jobs that already have contracts signed and are scheduled, and a 24 by 40 attached garage scheduled to break ground in a couple weeks which will also be entirely subbed out.

Now here’s my problem, I can handle everything on my plate right now, but I just got a call from some people who I designed and built a huge deck for a couple of years ago(as an employee for someone else).  They want me to give their house a minor facelift probably in the 50-65k range.  I told them that I honestly did not have the time in the foreseeable future, so they asked me to think about it and get back to them.  The kicker is that this guy is the CEO of the largest native corporation in Alaska, he makes serious money, he was in the paper last year because he received a 3 million dollar bonus.  These would be the kind of people I would like to build a house for someday.  I guess all this is leading to the bottom line… employees AHHH! I am very afraid I will lose my life as I know it the minute I hire full time dependant employees, but at the same time I feel that it is inevitable.  On the other hand I wonder if I would actually be less efficient with a bunch of employees to babysit. I have a few sort of transient guys right now who are OK, but they are not going to last and I don’t fret over keeping them going.

I guess all this boils down me trying to find the balance between producing the consist quality that is absolutely essential, and finding time and resources to do all the work that comes my way.  I hate to see great clients walk away because I don’t have time for them. 

I know you guys have probably all gone through similar “troubles” so I would really appreciate any words of wisdom.  I sincerely apologize for the length of this post.

Josh

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Replies

  1. kostello | Jul 09, 2005 12:15pm | #1

    i don't do anything anywhere near as big as building whole houses.
    but working on mu own does mean that I can only do so much.

    i've started to pick and choose the projects that i want to do rather than just do everything that is offered me.

    for the other stuff i recommend a reliable sub or associate.

    i've tried the whole employing people thing but i'm not organised enough :o)

    good luck. it's really difficult to turn work down i know.

    on the other hand i have had people wait 6-8 months for me to come and do stuff. so maybe they are prepared to wait?

    hope some of this helps?!

  2. piko | Jul 09, 2005 06:47pm | #2

    I'm part envious, part fearful:

    enviuos that you are going to work in the higher income bracket, nervous because I've had the Ltd Co, and it took more time than I ever imagined. I'd rather be swinging a hammer than pushing a pen.

    If you are as good as you want to be, then your customers will wait. If you hire on people that aren't as good as you, then you'll lose that  clientel. It's good to be wanted by many, it's hard to keep them happy waiting. And it's harder to recoup if lousy employees screw up your rep.

    Yes, many of us dream of that 'one big job' where we are able to cruise around in a new truck talking on the cellphone, but is that job satisfaction...remember 'gain the whole world and lose one's soul'

    ciao for niao

  3. Piffin | Jul 10, 2005 02:33am | #3

    The worst thing that can happen to any company is to grow too big, too fast. Things can get out of control, quality can drop off the edge of the cliff without you even being aware of it, and while you think the money is piling up, the angry customers are mounting a revolt or planning a lawsuit.

    In the last month, I have turned down two houses to build opportunities. and don't mind at all.

    I tell folks, " I would love to build this for you, but I can not get to it until XX/XX/XX. I hope you can wait for me, but iof not, I understand that you need to get it done if it means findoing someone else. I want to wait uintil I can give it enough attention to be sure that it is done right"

    Leaving the decision in their hands like that with good will means that even if they don't wait for you on htis job, they will be ready to come back to you at some later date, or will recommend you to friends as a thoroughly professional person.

    Pssst - there are lots more "richest man in town" types all over the place.

     

     

    Welcome to the
    Taunton University of
    Knowledge FHB Campus at Breaktime.
     where ...
    Excellence is its own reward!

    1. cliffy | Jul 10, 2005 07:35am | #6

      Right on. 

      Have a good day

      Cliffy

    2. timkline | Jul 19, 2005 12:50am | #7

      do you fly solo  ?

      when you tell the customer, I understand if you need to hire someone else, and they ask "Who should we call  ? "

      do you recommend another guy ?

       carpenter in transition

      1. Piffin | Jul 19, 2005 04:16am | #8

        Right now, I have four men. Can't keep up with the demand. I could hire more and take on al potential customers, but I am a specialty renovationist. The quality and personal touch would be gone, along with my pride in the work I do.
        That means I can afford to wait for and select the right customers, instead of taking any job offered to me.One of those I turned down asked me right out who they should call. As I openned my mouth to give out two names, I suddenly realized that they are both gone into semi-retirement.Couldn't handle the stress anymore. There are plenty of opther builders around, but not that I'd recommend them
         

         

        Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!

        1. junkhound | Jul 19, 2005 07:36am | #9

          Almost never reply to this type post as it is mostly way out of my area of experise per the original post and also as a reply to post. (Junkhound's only area of expertise is doing it on the cheap!)

          FWIW. 

          Son runs own internet arts business, he learned real early to TRY to price yourself out of the market.  When his incalls exceeded his capability, he refered clients to yournger associates, with himself as the contractor. He started paying referals $50 an hours, now is up to $70, he collect more than that obviously. You may try doing to doing similar?

          edit FWIW 2:  Son says not learned to early, learned too late.

          Ault Deutch:  Too soon old, too late schmartz!!

          Edited 7/19/2005 12:40 am ET by JUNKHOUND

          1. Piffin | Jul 20, 2005 03:02am | #10

            I imagine there are fields of endeavour where this would be a grand idea, but to me, it feels too much like selling my word. if i recommend someone, it is specifically because I believe they will do well for the custonmer, and my experience tells me that these guys will return the same respect.Thanks for the suggestion though. I am having to seek easier ways of making a living the older I get. Selling my knowledge is one. 

             

            Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!

  4. Yogi | Jul 10, 2005 04:55am | #4

    Put a dollar amount on your peace of mind, because that's all you have to gain vs what you stand to lose- 

  5. Sundstrom | Jul 10, 2005 06:47am | #5

    Thanks for the feedback.  I guess Pippins advise about turning down work makes sense, even though its hard to do.  One side note, is it even practical to aspire to a forty hour week someday?

  6. JerBear | Jul 20, 2005 03:51am | #11

    Before you let the job go, why not confront this big wig with the truth? Hey, the guy is a business man, he very well might understand your dilemma so what have you got to lose? Tell him that your main concern is about letting go of the quality. The truth can be very disarming and work in your favor.

    This very thing happened to a co. that I worked for. These two young guys were great for the first few years but they made too much money too fast, and they were a little out of control. They thought the world was their oyster till the road got a little rough and reality set in one winter when the $$ got tight and they came down hard on us older very experienced foremen and guess what? Bye bye...we all left. Now they can't get good quality help to save their lives. I hated to see it because they really had a good thing going. They're still around, but the quality isn't.

    A real secret to success as a GC is to find the high quality subs to work for you and treat them like kings. Be conservative, and like you said quality is #1. If you build it right, the work will be there.

    1. Sundstrom | Jul 20, 2005 08:22am | #12

      Hey Jer,

       Thanks for your response, I thought this post was dead, I did'nt get much feedback on it unfortunately.  I like your suggestion of finding really quality subs, the only question I have about that is what would that cost.  If I could find some top notch carpenters who have thier own business and would take on my jobs that would be a real stress reliever, but by the time I paid them and tacked on my percentage my rates would be eighty bucks an hour.  I would love to have a great crew but I'm just afraid of that commitment, I feel like I have to be personally involved in every aspect of every job but if I get big how is that possible?  Well I guess these are the struggles everybody goes through. 

      Anyway thanks for the response.

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