Can you be more profitable doing less projects?
I’m a GC/Builder out of the foothills of NC. Up until recently, for the first couple years of my business, I’ve done remodeling. It’s my background and I’m comfortable doing it, although with all the extra attention needed working inside of occupied homes and existing conditions – Doing 3+ projects at a time like this becomes overwhelming. I mostly sub out most of the work but I have a strong desire to put the bags back on, I’m picky and detailed-oriented, however I feel a lot slips because I cannot attend to each job as much as I would like.
I’m currently building my own house. I have a goal of building high-performance homes in my area and I’ve found, especially in framing, you pretty much have to be on site the whole time to make sure specific details are nailed. I have some interest and will be building at least 2 new custom (semi)high-performance homes next year for clients. Each is between the $500-$800K range
My question is, is there a feasible way to build 1 home at a time and make the profits that I desire to maintain my business goals? We’re structured as a LLC, filing as a S-Corp. I pay myself and my wife(who works in the business) a $50K salary each and I would like a bonus payout each year of somewhere between $50k-$100K after expenses. We have a lowish overhead, with vehichle payment, software and accounting fees, we spend around $1500-$1700 a month in overhead. I do not wish to scale my business in any fashion – I would like to focus on high-performance, high-design, high-quality homes. I know it’s niche but I don’t need a ton of projects and I believe the money and market is here.
I think I could bill for hands on work and project management as well as the builder fee. Things I would take on to control quality would be all flooring(sub out hardwood sanding), tile, paint, interior trim and lighter framing. I’m close with all my trade partners and would assist in floor sanding, plumbing and electric(they all need help anyway) I enjoy working with my hands but I also have a lifestyle goal (early retirement) before my body wears out. I do not enjoy the feeling of running multiple jobs, especially in todays labor climate.
I appreciate any thoughts or insight. Thank you!