It is not always easy to expand a construction business. With each successive project and increasing team size, it is inevitable that a construction business owner must make decisions that not only impact the bottom line, but quality, culture, and trust as well. The story of Mulvey Custom Contracting, from a one-man operation as a carpenter to a disciplined and scalable operation, is a valuable case study for construction business owners.
It was started in 2003 by a carpenter named Matt Mulvey, and it was based on craftsmanship and pride in work. The reason that most contractors start a business is because they are good at what they do, and this was certainly true for Matt. As the work picked up, he was doing everything: working, employees, paperwork, and trying to keep track of finances. This was a successful strategy at first, but as the business began to grow, it was apparent that it was not a strategy for long-term success.
If you’d like to hear directly from Matt Mulvey and Jessica Selzer and dive deeper into their experience, you can watch the full interview here:
Sustainable Growth Requires Delegation and Clear Roles
One of the most important lessons to be taken from Mulvey Custom Contracting’s growth experience is the importance of putting the right people in the right roles. In 2018, during one of the company’s key periods of growth, Mulvey Custom Contracting partnered with Blue Collar Back Office to provide support in the area of bookkeeping and financial compliance. This has allowed Matt to take a step back from the day-to-day administrative side of the business and focus on the leadership side.
As the business has continued to grow and evolve, the level of financial support has continued to grow from the basic level of bookkeeping to advisory and financial review processes. Bringing in the right level of operational leadership has also further reinforced this approach. With the right systems in place, the business has been able to eliminate bottlenecks and provide the space necessary to continue to grow the business. Rather than trying to do everything himself, Matt has been able to focus on what he does best.
Transparency and communication are key in building trust and getting repeat business
Another significant thing that one learns from the article is that being transparent is a source of competitive advantage. Mulvey Custom Contracting has a morning meeting every day of the week to review the projects’ progress. The meeting is also aimed at addressing issues before they become costly mistakes.
The transparency is also extended to the clients by providing daily project updates, photo documentation, and weekly on-site meetings. The company is not afraid of having difficult conversations. The transparency and communication help in building trust and getting repeat business. Surprises abound in the industry.
Financial Clarity Facilitates Proactive and Confident Decision Making
With the complexity of the projects increasing, it became very clear that the financials of the business needed to be understood in real-time. It was no longer necessary to complete the project before assessing the profitability of the business.
With the introduction of the “Work-in-Progress” reporting system, Mulvey Custom Contracting was able to understand the costs, billing, and profit before the project was complete. It facilitated the business in identifying the issues and making the necessary corrections. It also facilitated the business in planning with confidence. It meant the business was predictable, and predictability is one of the most valuable assets any business, especially a construction business, can possess.
Today, Mulvey Custom Contracting is a thriving business. It is not just about growing the business. It is not just about growing the business at all costs. It is about making the business better. It is about making the business more efficient. It is about making the business better in the quality and transparency it has always maintained. It is about making sure you are surrounded with the right people and the right technology. It is about making sure you have the financial clarity. It is about making sure you are doing the right things and building a business with sustainable growth.
Are your numbers working for you or against you?
Want better visibility in your finances, stronger cash flow, and financial systems that work for you instead of against you? That’s exactly what Blue Collar Back Office can do for you as a construction business owner: turn your financial data into informed decisions that drive growth in your business.
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