Know Before You Scale · Handyman Business Academy

Know Before You Scale

As you scale your business beyond yourself, you have to watch things a lot closer in order to avoid some key mistakes that could cost you big time. Here are three MAJOR things to focus on and have dialed in before you start scaling your business.

1. Protect the gross margin.

Inefficiencies as a solo operator really just take away time.. when you have 3-5 vans on the road it starts bleeding money quickly. We target a 65% gross margin for each job (this should be tracked in a job cost template)

2. Cash Flow (HUGE)

This is where payment structure, payroll structure and operational drag need to be super dialed. When jobs drag on and payment isn’t strategically coming in, you can have great revenue and not make payroll all at the same time. (Net 30 terms, payout terms, deposits and collections) all super important to work in your favor

3. Scope Control

Making sure the handoff is super clean and detailed. Whoever estimates the job needs to ensure a 5th grader can read, understand, and perform the task the exact way they would if they’d seen it in person and bid it themselves. This can get sloppy quick.

Hope that helps, those likely will be some of the main things to be cautious of forever no matter how big you get. But when you’re still small simple mistakes can shut you down.

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