When starting or growing your construction business, one of the biggest questions you’ll face is: what size projects should I pursue? This might seem like a simple decision, but the answer has a lot to do with your vision for the company, your resources, and how you want to balance growth with stability.
Let’s break this down.
Start With Your Resources
Before diving into any project, take stock of what you have at your disposal. Ask yourself:
- What’s my current cash flow? Do you have the financial backing to fund the project until payments start rolling in? Many construction projects require significant upfront investment for materials, equipment, and labor.
- What equipment do I own or can easily rent? Your existing machinery will determine the scope of work you can handle. For example, if you don’t own excavation equipment, tackling a large grading project may not be feasible without significant rentals.
- What’s the skill level of my crew? Be realistic about what your team can accomplish. If you’re new to construction or have a small crew, consider sticking to projects that fit within your team’s expertise to avoid being overwhelmed.
Define Your Vision
It’s not just about what you can do today—it’s about where you want to go. Take a moment to imagine the future of your company. Are you aiming to stay small, running one or two crews, or do you see yourself scaling up to manage multiple large-scale projects simultaneously?
Here’s how your vision influences the size of projects you pursue:
- Small and steady: If you prefer a tight-knit team and manageable workloads, you’ll likely stick to smaller projects. Many contractors find satisfaction and success by running one or two crews and working on residential projects or small commercial builds.
- Growth-oriented: If you dream of growing into a larger operation, you’ll need to plan for projects that stretch your limits—but not so far that you put the company at risk. Start with mid-sized projects and reinvest your profits to grow your team, equipment, and capacity.
Grow Within Your Means
Growth is exciting, but it has to be sustainable. When you’re just starting, avoid biting off more than you can chew. Here’s a step-by-step approach:
- Pick projects you can fund. Cash flow is king in construction. Choose projects that won’t leave you cash-strapped or scrambling to pay your crew while waiting for client payments.
- Reinvest in your business. Instead of pocketing all your profits as bonuses, consider reinvesting in new equipment or training for your team. This sets you up for bigger and better opportunities down the road.
- Take calculated risks. It’s okay to push your limits, but be strategic. Take on a project slightly larger than your comfort zone, but make sure it’s still achievable with the right planning and resources.
Don’t Be Afraid to Ask for Help
Sometimes, your vision may require resources or expertise beyond what you can currently provide. That’s when it’s time to bring in reinforcements. Whether it’s finding a mentor, forming partnerships, or hiring experienced project managers, don’t hesitate to lean on others to help you achieve your goals.
For example, if you’re looking to scale up but don’t have the management experience to handle multiple crews, consider hiring someone with that expertise. Likewise, reaching out to potential investors or even trusted colleagues can open doors to opportunities you couldn’t access alone.
Set Clear Goals
Ultimately, deciding what size projects to pursue comes down to your goals. Do you want to:
- Build a small, reliable company that’s profitable year after year?
- Grow into a regional or national contractor, managing multi-million-dollar projects?
Neither path is better than the other. What matters is that you have a clear vision and strategy to get there. Without direction, you risk overextending yourself or losing focus on what really matters to you and your team.
The size of projects you pursue isn’t just about money—it’s about aligning with your resources, goals, and vision for the future. Start with what you can handle today, reinvest wisely, and always keep your long-term goals in mind. Whether you’re aiming for a small, stable operation or dreaming of large-scale growth, careful planning and smart decisions will pave the way for success.
And remember: growth doesn’t have to happen overnight. Take it one project at a time, and let your ambition guide the way—but never let it outpace your ability to deliver quality work.