Trades business are inherently difficult to scale. Competition from within can be as fierce as external threats. The capital requirements to start up a service business is usually minimal, further tempting your key people to start their own gig. So how do some of these businesses scale and others do not? Why are some companies endlessly fragmenting into competing factions over the same basket of work and resources? Culture is super important, and you set this. Investing in the careers of your people, creating pathways to better pay, better lifestyle and more inclusion is an antidote to the problem.
But how can you practically invest in the careers of your people? Let's face it, running a business is hard and at some point, it's nice to win yourself right? The good news is, if you're thinking about how you can help move their lives forward, you're automatically moving your life forward. People are less likely to leave for greener grass if there is a risk that they might not continue to move up the ladder "over there". Understanding the core principles of scaling your trades business starts with recognizing that your people are your greatest asset and biggest flight risk. The most successful trade businesses create clear advancement tracks with specific skills training, certifications, and leadership development opportunities. When employees see a tangible path from apprentice to journeyman to supervisor to project manager, they're more likely to invest their future in your company rather than striking out on their own. Consider implementing profit-sharing programs or equity options for key team members – this transforms them from employees into partners who actively contribute to growth.
Trades service business owners should think about delegating decision making to everyone in the company, expose some of the financials and build a team of those that are happy when the business makes money. The easiest way to determine who is really on the team is to increase transparency and see who engages, and who complains. Working with those who engage will be easy and rewarding. You will realize, years from now, that you have built a serious business and not competition.