MARVIN JOLES
IN THE MIX
Why Some Contractors Stay Small
MARVIN JOLES
( And Others Scale)
T here is nothing wrong with running a small business. I have had two“ jumps” in scaling since starting Wis-Coat and have no desire for another. It just doesn’ t fit my lifestyle or wants, so we operate it in the mindset and goals of increasing efficiency, to free up time for myself and the people who work here, and to enjoy more of what makes us happy. Not all my friends in the asphalt industry are like that, in fact very few. Most desire to scale and grow and keep doing that. I have had the pleasure of being“ in” on their journeys and watching to build from behind the scenes. The actual truth is, some contractors want to build an empire, and some want to build peace of mind. Some of the happiest contractors I know operate a truck, a trailer, and a small crew. They make a great living, spend time with their families, and have built businesses that support the lifestyle they want. The problem in any of our asphalt entrepreneurial journeys isn’ t being small. The problem is being stuck. Over the years, I’ ve met contractors all over North America through industry events, podcasts, jobsite visits, and my own experiences in the asphalt maintenance business. One pattern continues to show up: some contractors intentionally stay small, while others desperately want to grow but can’ t seem to break through to the next level. The difference often has very little to do with equipment, market size, or competition. It usually comes down to mindset and systems. In this article I’ m going to identify the major observations I have seen over the years, in my own business and others.
1. The Owner Is the Bottleneck One of the biggest reasons contractors remain stuck is because the owner insists on doing everything. Sometimes because they have to, and other times because they think nobody else can do it“ right”. They answer every phone call. They create every estimate. They schedule every job. They run every crew. They solve every problem. At first, that’ s necessary. Most companies start that way, but eventually, the business reaches a point where growth becomes impossible because every decision still runs through one person. When the owner becomes the bottleneck, the business can only grow as fast as that individual can work. Scaling requires letting go of tasks that someone else can perform at 80-90 % of your level. That can be uncomfortable, but it is necessary. It is a tough pill to swallow, but if they can do it at a high percentage of completion( 80 % +), that frees up 100 % of your availability from that task or job, to focus on where you really need to.
2. Buying Equipment Doesn’ t Automatically Create Growth Many contractors believe the next piece of equipment will solve their problems. A larger spray rig. A brand new crack sealing machine. Another truck. A new paver. Equipment absolutely has its place. Modern equipment can improve efficiency, increase production, and reduce labor demands, but equipment does not fix operational issues. If a contractor struggles with estimating, scheduling, hiring, customer communication, or sales, adding more equipment often just creates bigger and more expensive problems. Successful growth typically occurs when demand creates the need for equipment— not when equipment is purchased in hopes that demand will magically appear. I have watched decent businesses, with a good foundation, flounder because they thought if they buy a certain machine for a Specific type of repair or job, they will own the market … then the market says,“ nah, we prefer the older, cheaper, way” and they find themselves in a heavy loan, that sends them into the red. When it was supposed to be a money maker.
3. Systems Beat Hustle Most entrepreneurs are good at hustling. That is how I built Wis- Coat early and how many others built their businesses, and it still works for companies starting out. The challenge is that hustle does not scale. Systems do. The contractors who continue growing usually build repeatable processes for estimating, scheduling, production, customer communication, invoicing, and follow-up. Their businesses become less dependent on memory and more dependent on documented processes. When a new employee joins the team, there is a system to follow. When the owner takes a day off, the business continues operating. This was forced onto me, when I started doing more with Blacktop Banter and now with In The Mix. In order for us to keep our numbers up and sustain our level, I HAD TO FIG- URE THIS OUT. When opportunities arise, the company can absorb additional work because the foundation is already in place. Hustle might get a business started. Systems help it grow.
4. Hiring Too Late Many contractors wait too long to hire. This is likely my largest weak point as a business owner.
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