Video Embed
Video Transcript
In this video, we’re going to talk about the four stages of growth for a remodeling company and one of the best strategies to scale to the moon.
There are four major phases when it comes to scaling your remodeling business: phase one, phase two, phase three, and phase four. I’m going to share a strategy I’ve learned from top home service companies doing tens of millions per year, and how they scale their businesses. The same principles apply to remodeling.
If you agree or disagree with anything I share, drop a comment below. I love good conversation.
Phase One: Survival
Phase one is all about getting your name and your work out there. Post pictures on social media, hand out business cards—just get exposure. At this stage, the priority is simply staying in business by keeping revenue coming in.
By the end of this phase, your goal is to have consistent, automated work coming in. That means you’ve figured out how to generate enough leads so you’re never wondering if there will be work tomorrow.
Phase Two: Formulation
In phase two, you start building systems—your sales process, your marketing process, and your operations. Employees know their roles, salespeople know how to sell, office staff know how to book jobs.
This is also where you need to narrow your focus. In survival mode, you may take any job just to keep money coming in. But once you’re formulating, you must stop trying to do everything. If your website says you “specialize” in ten different services, you’re really not specializing in anything.
Pick one type of project—bathrooms, kitchens, basements—and consistently generate leads for that. It’s easier to train your team, create checklists, and refine customer communication when you focus. Communication is critical. Homeowners care just as much about how well you communicate and manage timelines as they do about the finished work.
As you document your processes, you can start delegating: train your laborers, your CSRs, and your salespeople. Think of the business as a circle with different functions. At first you’re doing everything, but over time you give away pieces of the circle until your only role is managing the team—and eventually you can hand that off too.
By the end of phase two, your business should be largely automated: leads flow in, salespeople close, laborers deliver, office staff manage operations, and everything is tracked in your CRM.
Phase Three: Scaling
Scaling means multiplying what already works. If you’re completing five bathroom remodels a month, scaling is about dialing up your marketing and operations so you can handle ten, fifteen, or twenty.
This is also where you hire general managers and project managers. You’re no longer the GM yourself—you’re building a management structure that can handle growth. By the end of phase three, your business not only sustains itself but can grow itself.
Phase Four: Expanding
Expanding means adding new services or new locations. Earlier, I told you not to branch out—until now. Once your core service is running on autopilot, you can add another focus like basements or kitchens, and systemize that the same way.
Some companies expand through services, others through geography. For example, Kitchen Tune-Up focuses only on kitchens, but they scale by opening locations across the country.
Wrap-Up
So the four phases are: Survival, Formulation, Scaling, and Expanding. Most business owners are a mix of all three early phases, and that’s okay. But the first priority is always to get your marketing right for one consistent type of lead. That allows you to say “no” to low-profit, time-draining projects and streamline your business.
Hopefully this helped you identify where you’re at in the process and what to focus on next. Subscribe to the channel, hit the notification bell, and I’ll see you in the next video.