Most people would consider a company jumping from $1.5 million to $3 million in revenue a growing organization. However, when we look beyond gross sales, those numbers don’t necessarily mean it grew. It could even mean the company is less profitable — and ultimately less successful — than it was before. 

Michael Hodgin says planning for, and implementing, tiered advances are a better strategy for deliberate, healthy growth.

In this episode, Michael discusses his tiered increase growth strategy with Victoria and Mark. For healthy growth, he says you have to set and meet certain goals for sales, job costs, systems and performance before taking the next step.

Michael was an owner of a successful remodeling company for over 22 years. He has since left and is the owner of Maestro’s Toolbox, where he works with owners of design-build companies across the country to help them build better companies and, therefore, better lives.

In addition, Michael has been part of the roundtables as an owner, a facilitator for roundtables meetings, and part of the Remodelers Advantage Business Coaching team.

Micheal says that your company’s gross sales should bump up to the next milestone only once your teams have mastered sales, pre-construction, and production systems at their current revenue level. That puts a company in a stronger position to handle the inevitable increase in workload. He talks about how to accomplish healthy, tiered growth for you remodeling company, including:

• The infrastructure milestones to hit
• Taking deliberate steps
• The importance of setting goals 
• Focusing on hitting those goals
• Proving your success 
• Nailing down all your job costs
• Managing slippage
• Building the foundation for growth
• The metrics that tell you that you’re ready for the next step
• Stepping away and delegating
• And more …