Snippet Of ScopeFirst Book - Coming Soon
Many investors start with a deal and say something like: “If we can do this for $40,000, the deal works.” Now the contractor is stuck trying to reverse engineer the renovation to fit inside that number. Sometimes the job might actually be $40,000. But sometimes it’s $30,000. And sometimes it’s $60,000. But once the number has been thrown out there, something interesting happens. If the job is truly $30,000, do you think the contractor is going to lower their price after hearing that the investor is willing to spend $40,000? Of course not. The number becomes the target. All of this happens because the process is backwards. Instead of defining the work first and pricing it afterward, people start with the price and try to force the work into that price. That’s not how a real business should operate. A renovation project is a business decision. And business decisions should minimize risk.