When the family business grows but margins don’t
Fifth generation, a century of history, and you find out the losses once the job’s done
When the family business grows but margins don’t
Fifth generation, a century of history, and you find out the losses once the job’s done
Does this sound familiar?- Historic business (fifth generation!), timber structures
- Revenue growing, margins falling
- Every quote is a shot in the dark
- You only find out how much you’ve lost once the site’s closed
- You want peace of mind but lie awake thinking about quoting errors
The trap
There’s a type of business that has everything.
History.
Tradition.
Fifth generation.
Clients who come back.
Revenue that grows.
Not as it should.
Not as it could.
Because every quote is target practice blindfolded.
You forecast a price.
You start the job.
And halfway through the site, you realise: wrong.
Materials cost more.
Work hours are double.
Unforeseen issues you hadn’t budgeted for.
Crews slower than expected.
And when you finish?
Not before.
After.
Why it happens
When you grow with an artisan method, it works.
As long as you’re small.
As long as you follow every job yourself.
As long as you quote "by feel" and get it right.
But when you grow:
Jobs become too many.
Crews are numerous.
Sites open at the same time.
And you can no longer follow everything yourself.
So you quote the way you always have.
But the numbers slip away from you.
And you notice it too late.
And your margins are making you pay for it.
The method
Moving from gut feeling to system.- A ruthless analysis (what went wrong)
Take your most recent jobs.
Compare the quote with reality.
Where did you go wrong?
Work hours?
Material costs?
Unforeseen issues?
- An industrial quoting system
No more "by eye" quotes.
Historical database.
Real cost by job type.
Safety coefficient for unforeseen issues.
Software that tracks everything.
- Weekly monitoring (not once the site’s closed)
Every job tracked in real time.
Hours worked.
Materials used.
Budget deviations.
Weekly report: who’s overrunning, where to step in.
Zero surprises at the end of the job.- Delegate production
You shouldn’t be following sites yourself.
Production Manager: manages crews, materials, timelines.
You: strategy, premium clients, innovation.
It acts as an entrepreneur.
- Growth with margins (not without)
Revenue growing without margins = working more to earn the same.
First: fix the system.
Margins come back.
What changes afterwards
You no longer discover the losses at the end of the job.
You see them in real time.
You step in immediately.
You no longer quote "by feel".
But with data.
With a system.
With a guaranteed margin.
And if a job has no margin?
You no longer work fifty hours on operations.
You delegate production.
You free up time.
And above all:
You no longer lie awake thinking about quoting errors.
Because there are no more systematic errors.
The fifth generation doesn’t die from a lack of work.
It dies from a lack of margin.
Otherwise, it dies with you.
Do you recognise yourself in this situation?
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