Builders go bust in a boom

Rapid growth is a wonderful thing – it is vindication of all your work to date. Your customers like your product, they are signing up and now you can grow as you planned, and make a profit too.

Here’s the thing – this is the part where you lose direct control of quality.

Builders go bust in a boom for a very simple reason – extra costs.

They no longer have the time to carefully select and train their employees, so they are trusting on the existing knowledge and skill of new employees.

• They don’t have necessary processes in place to cover the change in control.
• The owner’s may become the bottleneck on time critical decisions.
• They don’t count on the loss in productivity resulting from the extra process.
• They don’t count on the costs of going back and fixing up work – at their own time and expense.

Have you gained some of your new business through lower price? If so, then you may have to rethink your margins for the uncertainties of rapid growth.