5 reasons for company failure - Oh and how to avoid them.

Send us Fan MailToday I thought I would talk about the Top 5 Reasons Contracting businesses fail and how you can avoid it. Running a business and it doesn’t matter if it’s HVAC, plumbing, electrical, landscaping, or handyman services, takes more than just technical know-how. You know your trade very well. But it seems like the busier your company gets, either you need to work more leaving family behind, or your profits go down and you make less money.In fact, thousands of businesses, more specifically the trades shut their doors every year, not because the owner couldn’t do the job, but because the business wasn’t built to last.I understand what you are facing. I started in business over 35 years ago and discovered how hard it can be to grow. It was when I hired a business coach for my team to work with did I discover MY need for new frameworks, innovations and systems to grow. Now there are many reasons companies fail but today I’m going to share the top 5 reasons contracting businesses fail — and how you can avoid it.1. No Control Over Cash FlowThe Problem: Many trades business owners operate from what I call “Checkbook Accounting” — if there’s money in the account, I can buy that (tool) or fill in the blank… until that invoice you forgot about comes due. The slow season starts sooner, unexpected expenses, or poor pricing structures create a cash flow crisis. You get the picture.The Fix: Is 2 things Budget. Se up a budget for your company so you know when you have the money to buy that fill in the blank here. Then put in place a proven cash management system like Profit First, which sets money aside for profit, taxes, owner pay, and expenses… etc. every single time you get paid. It gives you clarity and control.✅ Pro Tip: We help our clients use a custom trades version of Profit First inside our “Business Growth Made Easy” membership.2. Winging It Without a Written PlanThe Problem: Most trades business owners never set clear financial or growth goals. Without a plan, you’re just reacting — not leading.The Fix: Create a simple 90-day plan tied to your bigger annual goals. This doesn’t need to be complex. With weekly priorities and monthly reviews, you’ll finally feel momentum.✅ Our members use a one-page planning system we customize together during our first month.3. Working with the Wrong CustomersThe Problem: Too many business owners take any job from anyone — even if the customer is cheap, demanding, or outside your ideal service area.The Fix: Define your ideal client — the ones who value your work, pay on time, and refer others. Then build your marketing to attract more of them and politely say “no” to the rest.✅ One of our HVAC clients increased profit by 40% in 90 days by dropping two nightmare customers and focusing on his top zip code.4. Hiring Helpers, Not a TeamThe Problem: You hire someone to take the pressure off — but they ghost you, show up lateWhen you are ready to move forward with help, here are some ways you can work with us.Schedule your 60 minute serve callGet your 2 minute quiz to see if your business is ready to run without youSupport the channel (coming soon)Topics include: Small business growthService business coaching Business Growth ConsultingTime management for small business ownersLeadership for small businessSmall Business Growth Strategy