I started an exterior maintenance company with a lawn mower and $200. Within six months, we went from mowing lawns to pressure washing, window cleaning, gutter cleaning, roof moss removal — the works. We were a five-star company. Every customer who dealt with me personally walked away happy. I didn't take payment until they were satisfied.
Then we started saying yes to everything else.
How It Started
My business partner at the time had a different approach to marketing than I did. I was focused — exterior maintenance, door-to-door, one neighborhood at a time. His approach was essentially to spam the whole city. Not concentrated marketing. Just: "We do everything. Call us."
And people did call. They loved seeing our name everywhere. But the calls weren't for window washing or gutter cleaning anymore. It was: "Can you renovate my kitchen? Can you redo my roof? Can you install a window?"
And we said yes. Every single time.
I started calling up contractors. "Hey, I have a window job. Can you do it?" We became a labor hub overnight. The thinking was simple: get the job, find a contractor, get it done. Easy money.
It was not easy money.
The Math That Broke Us
Here's what happens when you subcontract work outside your expertise. For every five to ten jobs that went right, one would go wrong. And that one wrong job could go terribly wrong.
We were taking 10 to 30 percent margins on these subcontracted projects. That sounds reasonable until a contractor doesn't show up, or does shoddy work, or gets backlogged for two weeks on what was supposed to be a three-day job.
Because I had so much pride in my company's reputation, I wasn't going to let a customer sit with a half-finished kitchen. I'd pay out of pocket to get it redone correctly. One bad renovation could cost me thousands — and that one job would literally cancel out my entire week of profitable exterior maintenance projects.
I had a customer once — a priest, nicest family you'd ever meet — and we had to redo the same wall four times because I trusted the wrong person to handle it. Every redo came out of my pocket.
The Subcontractor Problem
The real issue wasn't the concept of subcontracting. It was that I had no way to guarantee quality on work I didn't personally understand.
With exterior maintenance, I knew exactly what a clean gutter looked like. I knew what a pressure-washed driveway should look like when it's done. I could walk around with a client and they'd be thrilled every time because the results are immediate and visible.
With a kitchen renovation? I'm relying on someone else's skill, someone else's timeline, someone else's standards. And when you're young and hungry, you tend to hire other young and hungry people who say "Yeah, I can do that" whether they actually can or not.
I did my due diligence — checked insurance, checked references. But due diligence doesn't fix a bad drywall job at 9 PM when the client is calling you asking what happened.
What I Should Have Done
The exterior maintenance side of the business was bringing in 80 percent of our income. It was high revenue, highly profitable, same-day completion, and customers were always happy. That was the business.
Everything else was a distraction disguised as growth.
If I could go back, I would have told my business partner: "We're not a labor hub. We're not general contractors. We clean the outside of people's houses and we're really good at it. That's it."
Instead, I tried to be everything to everyone. And it nearly buried us.
The Lesson for Every Service Business Owner
Growth isn't saying yes to more things. Growth is saying yes to the right things and getting better at them.
If you're an HVAC company and a customer asks if you can do plumbing, the temptation is to say yes and figure it out later. But every time you step outside your core competency, you're gambling your reputation on someone else's work.
Your five-star reviews, your repeat customers, your referral network — all of that is built on the work you do well. One bad subcontracted job doesn't just cost you money. It costs you the trust you spent months building.
Stay in your lane. Get really good at your lane. Expand only when you can maintain the same standard of quality in the new service that you have in your core service.
I learned that lesson the expensive way. You don't have to.
Sources
References & Further Reading
- Why Small Businesses Fail: Top Reasons for Startup Failure — Research on how overexpansion and lack of focus are leading causes of small business failure
- SBA: Manage Your Business Growth — Small Business Administration guidance on sustainable business growth strategies