I have a construction company that does masonry & concrete for high-end custom homes my business partner and I started 11 months ago. We have seen great progress and are completing 3-5 jobs per week at this point. Our gross rev. has reached well over 500k within our first year now and we have been taking very little from the company (salaries) and instead have been reinvesting the money into acquiring materials for larger jobs to turn more profit per job.
Getting new customers now has become much easier, but we are beginning to get to the point that with only 2 people we are struggling to keep up with the project management and estimates. (not getting estimates out due to the massive load of work is missed opportunities to grow). We currently work 12-16 hour days, and may have 12+ jobs starting within a single week (varying in size).
If we want to make more money per job, we must keep reinvesting into purchasing our own materials (instead of allowing our sub-contractors to cover it, which they gain the profit from marking up materials). Due to this, our profits are tied up into new jobs and we have very little money to put towards hiring a project estimator or project manager (or hybrid of both).. But without bringing on more employees, are not able to keep up with the workload I am able to bring in.
I would love some feedback on what possible solutions we could do. (Take in mind, we do not qualify for most loans or lines-of-credit due to the age of the company. Also, I am not experienced in taking alternative loans.. is this smart? What is a reasonable interest rate? etc.) Do we just ride this out over time and slowly grow our bank account till we can hire and take on more work? Or is there something I am not thinking of to keep our growth momentum up?
Thank you for your feedback!
Congrats on the new business and your amazing company growth!
It's super essential for you to hire, at the very least a VA, who can be trained to respond to customer service inquiries, new leads coming in, and provide estimates to new prospects. Now, this doesn't have to be an in-house employee which is going to SAVE you a ton because you won't have to worry about things like unemployment insurance for them, paying a portion of their income taxes, or providing any benefits.
You can get a qualified full-time freelancer to handles these specific tasks for you. I don't know if you have a formal office or if you and your partner work from home offices. But, there's no need for one either because this new team member can do all of this remotely for you.
It will be key to seriously put time into drafting a complete job description, a reasonable salary (no hourly rate), along with their education and experience requirements. You'll want to make sure to make the time for an interviewing process (meaning more than one online interview) above and beyond their resume and references. And, you will need to take the time to contact and converse with their references.
My easiest recommendation regarding the interview process is one interview with one of you as the lead/first point of contact, a second interview with the other partner, and then your top 3 candidates with both of you at the same time. You can also literally do 10-minute laser interviews for the first one in addition to the above, if you like, to get a feel for the person first before committing to a half-hour interview.
Great places to post this position when you're ready are Indeed (for free) and if you're on LinkedIn, on your LinkedIn page, along with your other social media platforms. You don't necessarily have to pay to put the job out there to get an awesome team player.
I hope this has helped, but please feel free to connect with me on LinkedIn. I'm at https://linkedin.com/in/lisa-cutter-marketing-maven. Have a wonderful weekend!