6 Ways to Lose Your Modular Home Production Business as You Grow
As your modular home factory produces 8-15 homes and enters a year that doubles or triples your order flow, what could sink your business in a successful year?
1. Cash Flow
Cash flows are the lifeblood of your business. Modular home factories operate on a revenue model consisting of a series of client payments and creditors. With business growth, more attention is needed on revenue streams. Just because something is promised to you doesn't mean it will materialize on time! Being occupied with numerous new projects can distract your attention.
2. Implementing New Systems
It's unlikely you've had the opportunity to use any fancy operational systems, which essentially means your business is running smoothly and efficiently. Now is the time to introduce these procedures - slow task execution is a thing of the past.
3. Service Failures
High demand creates a buzz, further stimulating demand. On the flip side, meeting this demand in the face of rapid growth is very challenging. With each passing day, it becomes increasingly difficult to find good service technicians who can address warranty issues.
4. Successful Spending
The influx of new orders is directly related to new expenses. Growth requires investments in team and company infrastructure. But don't take this as a sign to spend money recklessly. This isn't the time to buy yourself a new Porsche.
5. Poor Communication
You still need to respond to your clients' texts and calls, request plans, quotes, and changes at the modular factory, direct your employees. Additionally, there are meetings with potential clients and investors, and you also need to allocate time for advertising and marketing.
6. Time to Be the Boss
Many of you entered this business from the "trenches of the construction site" and have been successfully building several new homes every year. Doubling your business turnover means you can no longer "dig with a shovel." Growth means transitioning from daily operations to a managerial role.