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Stesso

Minimize Liability and Operational Overheads

11:20
14:52
19.1K views

At 11:20 in

His MISTAKES cost his Construction company BIG $$$$ pt1

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What happens here

As a business grows and takes on more diverse projects, its exposure to potential liabilities, such as fraudulent lawsuits, discrimination claims, or unexpected project complications, inevitably increases. By strategically reducing the overall volume of large, complex projects and intentionally focusing on less intrusive work (such as exterior projects rather than extensive interior remodels which involve more direct interaction with the client's living space), a business can significantly decrease its risk profile. Additionally, by undertaking fewer long-term projects, the demand for extensive bookkeeping, subcontractor management, and other administrative tasks is reduced, leading to lower operational overheads. Gabe specifically noted that a larger, more visible company becomes a "big giant target," and a deliberate reduction in the scope of work helps mitigate this, also easing the burden on administrative staff like his bookkeeper who then manages less overall transaction volume.

Goal: Decrease business risk and operational costs by carefully selecting project types and reducing overall business size.

Tools and materials

  • Legal Counsel N/A — To understand and mitigate business liabilities
  • Risk Assessment Matrix N/A — For evaluating potential risks associated with different project types

What they say

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call them bull's-eyes Gabe so the bigger a company grows the bigger the bullseye on their back rose and the more guys outside or customers or people's perception they think you're this big giant target for fraudulent lawsuits discrimination lawsuits from contractors that aren't happy or whatever you name it so the less you're actually out there in the world doing that the less liability that you have right I mean are you seeing that at all well yeah I am because part of that eye opening experience around 2016 was when I first met you was I was going through a lawsuit and I was kind of like just like dumbfounded like how in the world could this happen to me like you know but it happens to everybody it doesn't matter if you're good bad or whatever and so what I realized is the reason that reason that happened is because everything got so big and kind of borderline out of control that I had missed some steps with this certain customer and it ended up in a lawsuit and we eventually settled and everything's fine now but at the time it was very scary and it was confusing it's like how did this this wasn't supposed to go down this way and so that's an example of the bullseye getting bigger mm-hmm and not really realizing it and it's like that's that's a consequence what are you gonna do next year are you gonna actually try to shrink your numbers some more yeah I since since then I have I had a couple guys move off the island so I have replaced them with with new guys that are running jobs for me but we constantly are talking about riches are the niches what like why are we sitting and occasionally I'm still doing some of those some of those remodels from the past okay but I've adjusted my numbers so I'm not just moving money for three months from remodeling these houses and condos so if

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