Scaling your business: Growth beyond the numbers

RCS Influencer Melissa Chapman reminds business owners to keep the details in mind as they grow. 

Most roofing contractors I work with want to grow. The question I often ask is, what does growth actually look like for you?

More revenue is usually part of the answer. But I've seen contractors increase sales while their profitability, employee retention and quality of life suffer. That's why I believe it's important to get specific about what you're trying to accomplish and how you'll know you're making progress.

Start with goals that make a difference.

Some of the most effective long-term goals I've seen contractors pursue include building a leadership team that can manage daily operations, improving profitability, developing a reliable workforce and reducing the company's dependence on the owner.

Those goals take time, which is why I like working in 90-day increments. For example, if your long-term goal is to develop stronger field leadership, a 90-day priority might be training foremen to lead production meetings, communicate job expectations and resolve routine issues independently.

If profitability is the priority, focus on improving estimating accuracy, reviewing job costs consistently or reducing callbacks. Set a measurable target, assign someone responsibility and review progress regularly.

One mistake I see contractors make is trying to improve too many things at once. Choosing two or three meaningful priorities each quarter gives your team a better chance of making real progress.

The key is connecting what you're doing this quarter to where you want the business to be in three to five years.

Make your people part of your competitive advantage.

Ask roofing contractors what sets them apart and you'll often hear quality, service and experience. Those are important, but they're also what customers expect. The real differentiator is how consistently your company delivers.

A well-trained crew that communicates professionally, protects the customer's property and handles unexpected challenges effectively creates a very different experience from one that simply installs a good roof.

That consistency comes from investing in both technical skills and leadership development. When employees understand expectations, take ownership of their work and know how to make good decisions, customers notice.

Think about your foremen, for example. They're often the face of your company during a project. Their ability to communicate with customers, coordinate crews and address problems directly influences how people perceive your business. Yet many foremen are promoted because they're excellent roofers, with little preparation for managing people.

Developing those skills can improve productivity, reduce unnecessary escalations and strengthen customer relationships. Over time, that consistency becomes part of your reputation and gives customers a reason to choose your company beyond price.

Measure more than the top line.

Revenue and job volume tell you how much work you're bringing in. I encourage contractors to pay equal attention to what happens after the sale.

Look at gross profit by job, labor productivity, callbacks, employee turnover and customer referrals. Track whether projects are completed on schedule and whether your managers are taking on greater responsibility.

You don't need dozens of metrics. Start with a handful that reflect your company's priorities and review them consistently. More importantly, use what you're learning to make decisions.

For example, if revenue is growing but gross margins are shrinking, investigate estimating, labor efficiency or project execution before pursuing more volume. If employee turnover is increasing, examine leadership practices, communication and opportunities for development.

One particularly revealing measure is how often the owner has to step in to keep things moving.

If revenue is increasing but every decision still comes through you, the business may be growing faster than its ability to support that growth.

Ultimately, scaling is about building capacity.

Capacity in your people, your processes and your leadership.

The contractors who do this well are intentional about their goals, invest in what makes their companies different and measure progress in ways that go well beyond how much work they sell.

And perhaps the most valuable question to revisit regularly is this: Is the business becoming stronger as it gets bigger?