Dreaming of owning a huge company and getting to that point can be two different stories. Growing a company can be stressful and a lot of work. Growth can also generate a whole new set of problems that most business owners don’t want to deal with.
That is what happened to Shelton Plumbing, profiled in this issue. Company founder John Shelton started his operation and quickly grew it up to 20 employees. Then he discovered he didn’t enjoy working in that dynamic and scaled down to just himself.
Now, he and his son, Josh, who owns the company, are looking at expanding again. They’ve already added services and are exploring new ways to advertise.
How do you know when the time is right to kick the business into a higher gear? Here are some indicators:
- New regulations create opportunities. With Pennsylvania mandating reductions in inflow and infiltration into sewers to limit wet-weather flows to wastewater treatment plants, Josh Shelton decided it was time to add pipe lining.
- You can no longer fulfill customer needs in a timely manner. If customers are going to your competitor because you are “too busy,” then the time has come to do something.
- You’re losing the competitive battle. If competitors are expanding and taking business from you because of it, you should at least evaluate an expansion of your own.
One company that has expanded successfully is Jim Dandy Sewer and Plumbing in Seattle. Owner Scott Spencer, highlighted in the Industry Insider feature, purchased his operation in 2012. Since then, he has added four more plumbing companies to his roster and has a letter of intent to buy a fifth.
Spencer’s employee base has grown to 150, and in addition to plumbing and drain cleaning services, his companies provide HVAC, excavation, pipe bursting, relining, CCTV and hydroexcavation.
One of the first things Spencer does when expanding is to look at equipment purchases. What does the current operation already have and what does it need to succeed.
“Equipment is not typically foremost in the mind of people in terms of continuing the business,” Spencer says. “When we purchase equipment we do it to expand and to provide for employee opportunity. So this is obviously a major component of every decision we make.”
HOW DO YOU MAKE YOUR DECISIONS
Have you expanded your plumbing operation or are you considering doing so? How do you decide the time is right? I’d like to hear your thoughts on this. You can email me at editor@plumbermag.com or 800/257-7222.
Enjoy this issue!
