Making smarter growth decisions before scaling.
|
This week’s mastermind covered five practical questions around leadership, profit sharing, service mix, and scaling from solo operator to multi-crew.
Wisdom compounds when humility comes first
Strong decision-making starts with humility. The willingness to admit you do not know everything is what creates space for learning. Reading books, listening to podcasts, and seeking outside perspectives are not productivity hacks. They are signals that you are open to growth.
Owners who continually improve are not chasing perfect answers. They are consistently seeking better ones. That posture, over time, compounds into better judgment and clearer leadership.
Profit sharing only works after profitability exists
Designing profit sharing too early often does more harm than good. When a location is small, especially under 100 customers, distributable cash frequently does not exist for a year or more. Promising payouts before profitability creates false expectations and can erode trust.
Early on, incentives should align with growth and execution, not profit distribution. Profit sharing becomes powerful later, once the business is stable, cash flow is predictable, and leadership roles are clearly defined. Build the foundation first. Share the upside once there is actually upside to share.
Recurring versus one-time work is a strategic choice, not a ratio
There is no universally healthy percentage between recurring maintenance and one-time projects. The right mix depends entirely on what you are trying to optimize for.
If the goal is owner freedom and long-term stability, recurring work should be prioritized until capacity is full. Once capacity is reached, raising prices can close the margin gap that often exists between maintenance and project work.
If the goal is faster growth and you plan to stay operational, one-time projects can be a powerful seasonal accelerator. The key is intentional scheduling. Use budgeted hours and calendar visibility to shift focus throughout the year rather than reacting to demand.
Capacity should be reached before complexity is added
For solo operators looking to grow, the first move is usually people, not trucks. Adding a second person to one truck can nearly double output without significant capital investment. The priority is hitting capacity with the assets you already have.
Once capacity is maxed out, real options appear. At that point, you can choose to raise prices and maximize profit or invest in additional trucks to pursue faster growth. Making those decisions before capacity is reached often leads to unnecessary stress and lower margins.
Structure should follow scale, not ambition
Splitting divisions or hiring dedicated sales roles only makes sense once revenue supports the added overhead. At lower volumes, combining operations is often more profitable and easier to manage.
Product-based businesses, such as mower sales, eventually need separation from service operations because sales, admin, and execution look fundamentally different. That separation should happen when each side can support leadership, not when the idea simply feels organized.
Growth creates complexity. The goal is to introduce structure only when the business is ready to absorb it.