The Hidden Dangers of Business Growth: Oversell and Collapse

Lets dive into a classic trap many in the construction business fall into – biting off more than we can chew, or what many understand to be “The Indigestion Trap.” It’s a bit like piling your plate so high at a buffet that you can’t even get up from your chair. We’ll talk about why this happens so often, what it looks like and, most importantly, how we can avoid it.

The Excitement of Big Projects
Picture this: your business is buzzing along. You’ve got a bunch of projects, repeat clients, and things are going great. Then, suddenly, a huge, exciting high profile project comes your way. Everyone’s thrilled. “Wow! If we land this client, we’ll be the talk of the town!” Sound familiar? But here’s the catch – to make it happen, you might end up overselling what your team can do. This excitement often leads to over-promising and under-delivering. Sure, you get the project, but now what?

The Domino Effect
So here’s what usually happens next. You land that big juicy project, and it feels like you’ve just won the lottery. But now you need more people to handle it. Fast forward, and you’re hiring like a headless chicken. And of course experience is the priority. New faces show up, but there’s no time to educate them on your specific systems and processes; much less your company values. They come with their own ways of doing things, which don’t match how your team usually works. Your customers get confused, especially repeat customers. The hasty hires, are focused on short term outcomes, eroding the valuable relationships you built. This is a proven recipe for losing credibility and reputation.

Recognizing the Cycle
Now, why does this cycle repeat over and over? Because of the lack of discipline. It’s crucial to stick to the plan rather than just taking every opportunity that comes by. For instance, if your annual revenue goal is 200 million dollars, and you reach it early in the year, on paper this should signal pausing on the pursuits, or at least being more selective. But here is where the trip hazard lays: the “trip” is continuing to pile on more work beyond what’s planned; beyond what your processes, systems, and most importantly staff can handle with excellence.

A Simple Solution: Discipline and Planning
Okay, so what’s the trick to avoiding this mess? My tip is to have discipline and a stick-to-the-plan strategy. Rather than grabbing every shiny new project, focus on meeting your original goals. It’s not just about saying yes but figuring out if you have the staff and resources to handle the extra work. It is about knowing what to say no to. It is about developing a system that ensures you can predictably deliver the degree of service that your clients value.

Know your Integration Time Line
Most of your competition is hastily hiring experienced folks and hoping they fit right in, they take a sorta “plug and play” mindset. Assuming that a Project Manager’s responsibilities are exactly the same company to company. But they are not.

The question you need to answer is “how long does it take to fully integrate an experienced hire into our way of doing things”?

Building a System That Works for You
Invest time in creating systems that simplify training and rapidly integrate new employees into your system. It’s way easier to get this part right than to keep pushing your team beyond their limits because you chased after more than you needed. Creating a robust induction system means every new team member starts on the same page, sharing your vision and methods. It’s about building trust and consistency, action by action, project by project.

Bottom Line
Breaking the indigestion cycle and maintaining a successful construction business is totally doable. With a little bit of discipline and smart planning, you can transform your business for the better. So remember, before saying “Yes” to that next big project, pause and think: Is my team ready? Can we truly deliver? Use your resources wisely and continuously improve your onboarding system, and you’ll have a team set to handle whatever comes next.

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