All About Painting: How Painting Contractors Loose Their Shirt

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How Painting Contractors Loose Their Shirt - Page 1/2

Expand nationally:

Most painting contractors fail when they go outside their geographic marketing area. An exception to this is a situation where one customer asks you to work on their property on a national basis. This type of out-of-town marketing succeeds because it is not really an expansion of your business, but rather, expansion with one customer.

Some contractors expand because they think the grass is greener somewhere else. Many simply let their egos get in the way of their good judgment. Expansion outside of your local market is difficult, particularly for a subcontractor. Subs must build a local labour force. My advice is pretty simple: if you are not making money, fix what is wrong with your business and make money in your own market. If you are not making money and plan to relocate as a cure, do so as a tradesman.

For those of you who are making money and are tempted to expand geographically, think of it this way: contracting is a risk —why expand in such a risky way? Consider taking money from the contracting business and diversifying. Hire a good financial planner. If you are bored, find a hobby or use your business skills to help a charity. Don't let your boredom destroy your business.

Build their own house or office:

Most contractors already have a full-time job. While I have written about this in the past, I want to reiterate what a financial disaster this can be. Building your own house or office can be a huge business distraction. We estimate it costs our average customer $100,000 in lost profits. Are you in a position to take such a financial hit? If not, hire someone and let them do it. It will be a much better use of your time. Don't underestimate the impact of having your own crews work on your magnificent dream house. It is difficult to explain to a $12-an-hour guy why you are not made of money when you are building a million-dollar house.

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