Clark Turner and James McConnell explore the crucial transition phase when growing a contracting business from $500K to $2M in annual revenue, identifying key system changes and mindset shifts required for sustainable growth.
• First major transition: creating documented systems and processes to duplicate yourself
• Basic understanding of QuickBooks and proper financial categorization becomes essential at this stage
• Your product shifts from physical work to the customer experience and project management
• Marketing should only be accelerated after you've built efficient systems that can convert leads
• Weekly one-on-one meetings with employees create space for process improvement suggestions
• First hires typically include a project manager and part-time bookkeeping help ($200-300/month)
• Most contractors try to spend on marketing before having systems in place to handle new business
• Process documentation is crucial before making your first hire to ensure consistency
Check out prostruct360.com and hit "contact us" if you'd like to talk about growing your contracting business. Next week's episode: what makes a good PM versus a great PM.
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