Why Do Most Home Improvement Companies Fail?

remodeling company software for business management and lead trackingAccording to Shawn McCadden’s blog post from yesterday, contractors are losing their companies because their business systems aren’t keeping up with the growth of their business

And we couldn’t possibly agree more with his assessment. 

He states that these businesses needed business management systems in order to grow – and likely wouldn’t have grown without them – but the systems were apparently incapable of scaling (or growing) with the companies as they took on more work. 

Here’s the money quote from Shawn: 

First, if you don’t put efficient business systems in place as a small business your likelihood of failure will be very high even if your business remains small in size.   Also, even with modest growth, unless you put systems in place your business is more likely to fail.  Also consider, without efficient systems, it will be you the business owner who will have to work harder and longer to get things done due to the lack of those systems. 

At improveit! 360, we strongly suggest that remodelers, contractors, and home service pros invest in some sort of business management system – even if it’s not ours – that helps them be more efficient and effective. And we also maintain that whatever system they use has the ability to be: 

  • Upgradable (can be continuously improved and updated by the system vendor)
  • Scalable (can grow with the business) 
  • Mobile (can be accessed from anywhere, on any device)

Without these major factors embedded in their business system, the contractor could be faced with either an additional system purchase as they grow – or be forced to close their doors, like so many have over the past few years.

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