When people talk about business success, they focus on making money—marketing, sales, product development, strategic planning, and capitalizing on trends. But making money is only half the battle.
The real question is: Do you know how to keep it?
Many businesses fail not because they aren’t bringing in revenue but because they mismanage risk and take on challenges they aren't prepared for. Especially in construction and other project-based industries, the wrong decision can turn a profitable company into a financial disaster.
At Brave Fixers, we’ve seen it all firsthand. Under my leadership, my company has encountered and overcome each of the challenges I’m about to share—more than once.
If you want to avoid the mistakes that bankrupt businesses, keep reading.
1. Scaling Too Fast: The Hidden Dangers of Large Projects
It’s tempting. A client calls with a huge project, something bigger than you’ve ever done before, and the payout looks life-changing. Should you take it?
Here’s the reality: The monetary value of a job is directly tied to its complexity.
A 10% mistake on a $1,000 job is no big deal. A 10% mistake on a $500,000 job? That’s $50,000 down the drain—possibly more than your company can afford.
When businesses take on projects that are too large, too soon, they enter a world of unknown unknowns—problems they can’t anticipate because they have no prior experience.
How to Scale Safely
Increase project size by no more than 50% over your previous largest project.
Consider large projects as education expenses—don’t expect huge profits upfront.
Know when to turn down a job that has too many unknowns.
2. Expanding to New Areas Without a Strategy
Many businesses assume that moving into a new geographic area is an easy way to grow. But every new location comes with hidden risks:
Different regulations and permitting
Local labor challenges (union vs. non-union, skill shortages, etc.)
Ecological differences (soil conditions for construction, weather challenges, etc.)
Market expectations (what works in one city might not work in another)
We’ve successfully expanded our service area while maintaining profitability, but only by taking a methodical approach.
How to Expand Smartly
Test new markets with one project at a time, at a manageable size.
Limit other risk exposures while expanding.
Consider a regional office only after proving profitability in the new area.
3. Offering New Services Without Mastery
Every business needs a specialty—a certain product, at a certain price, in a certain domain.
Too many businesses jump into new services without realizing they are essentially starting a new business each time.
The problem? There’s no reliable way to estimate how much time, training, and investment it takes to become proficient.
And here’s the kicker: Most businesses try offering new services when they’re struggling, hoping it will fix their revenue problems. This is a recipe for disaster.
How to Offer New Services the Right Way
Slow down—don’t rush into new offerings without proper planning.
Write a mini business plan for the new service.
Expect to lose money at first—don’t add services when cash flow is tight.
Consider partnering with experts rather than reinventing the wheel.
4. Underestimating the Impact of Personnel Changes
Your key employees don’t just do a job—they hold institutional knowledge, relationships, and workflows together.
If you lose a key person (or even add one), your company’s entire dynamic shifts.
It’s like breaking in a new pair of boots—it takes time for things to fit right again. And sometimes, the most valuable employees are the ones you least expect—like inactive owners who still influence the company culture.
How to Handle Personnel Changes Effectively
Document everything with Standard Operating Procedures (SOPs).
Develop a succession plan for key roles.
Limit other risks when going through staff transitions.
Even with these precautions, there will always be an adjustment period when key personnel leave or new employees join.
5. Managerial Immaturity: The Silent Killer of Growing Businesses
This is the #1 reason why companies fail while their competitors thrive.
Many entrepreneurs start with hustle, grit, and talent, but as their business grows, the strategies that worked in the early days start to break down.
If your company is growing at more than 15% per year, you need to be developing your management and administrative systems just as fast.
How to Recognize Managerial Immaturity
You’re still making all the decisions instead of delegating.
Employees are stressed or overwhelmed by extra work.
There’s no standard process for handling projects.
Long-term employees are complaining or leaving.
Performance is dropping despite revenue growth.
How to Develop Strong Management
Evolve your management style as the company grows.
Establish clear systems and expectations for employees.
Allow your team to make mistakes and learn—you can’t do everything.
Final Takeaways: The Key to Sustainable Business Growth
Growing a business is about managing uncertainty without introducing existential risk.
The first three traps—scaling too fast, expanding to new locations, and offering new services—often happen because business owners get greedy. The last two—personnel changes and poor management—happen when leaders don’t recognize the true complexity of running a business.
By approaching growth strategically and responsibly, you’ll not only survive—you’ll thrive.
Further Reading & Resources
If you want to dive deeper into business strategy and risk management, check out these books:
📚 The Lean Startup – Eric Ries
📚 Managing the Profitable Construction Business – Thomas C. Schleifer, Kenneth T. Sullivan, John M. Murdough
📚 Blue Ocean Strategy – W. Chan Kim and Renée Mauborgne
What’s Your Experience?
Have you encountered any of these business traps? Drop a comment below and share your story.
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