It’s really really hard to coordinate contractors in short time increments. I did a consulting project with a measurement company (measures sqft of homes) and their model is stressed coordinating and moving around in 1 market at near max utilization. I helped them scale into 2 additional markets and it’s just massive headaches. To the point I was thankful I generally work on software and can operate with way higher margins. 15% margin on 3-$100 services a year. Makes it really really hard to grow business, pay well, make mistakes (you’re always going too and with such a small margin they hurt way more). Happy to talk more in private if it’d be helpful. I am watching them hurt bad right now trying to add market 4/5. They’re at about 750k run rate
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What do you think are the most significant issues re: scaling the model?
It’s really really hard to coordinate contractors in short time increments. I did a consulting project with a measurement company (measures sqft of homes) and their model is stressed coordinating and moving around in 1 market at near max utilization. I helped them scale into 2 additional markets and it’s just massive headaches. To the point I was thankful I generally work on software and can operate with way higher margins. 15% margin on 3-$100 services a year. Makes it really really hard to grow business, pay well, make mistakes (you’re always going too and with such a small margin they hurt way more). Happy to talk more in private if it’d be helpful. I am watching them hurt bad right now trying to add market 4/5. They’re at about 750k run rate
Homee helps address this.
Data integration could end up being a scaling issue because there are so many management softwares and that market is very fragmented.