Phase One – Forming

River rafting can be fun and exciting if you plan ahead and know where and when you are going to get in the river and get out of it.  It is even more fun if you have some supplies, a map and even a guide; someone who has experienced it and can tell you what to expect.

Most of the time getting into the river is easy.  I like to pick a spot where the river is moving slowly and lazily along because it usually means it is deep and wide with a sandy bottom.  This is known as the “Honeymoon Phase” because everything is going great, everyone is happy and has lots of energy!

Being a contractor can be fun and exciting if you plan ahead and know where and when you are going to get in business and get out of it.  It is even more fun if you have some resources, a business plan and a guide; someone who has experienced it and can tell you what to expect.

Phase Two – Storming

After a short while and a few turns the river bottom is littered with BOULDERS, LOGS and LOW HANGING BRANCHES.  Here the river gets narrow and shallow which means the raft has entered the rapids where the water gets loud and dangerous because the same amount of water is moving through a smaller space than it was upstream. 

At this point you, the contractor have hired one or more employees and you are fresh out of riends and relatives who needed to have a few things done.  The early jobs were build a deck or remodel a kitchen and bath, which was done for a really low price since you were just starting out and they convinced you that did not have any “Overhead” so you could pass the savings on to them.

Now you discover the BOULDERS labor, material, permits and subcontractors that all want to get paid as soon as you bring them to the project. You bump into a few LOGS; the licenses, bond, insurance, taxes. The LOW HANGING BRANCHES slap you in the face as your reality check bounched along with bank fees, fines penalties, credit card interest, loan fees, tools, equipment, fuel, and other goodies. 

Very few contractors make it out of phase two, the rapids, because they get caught in an endless struggle with cash flow using the deposit on the next job to pay the bills on the previous job.  As a result they are continually fighting the BOULDERS, LOGS and LOW HANGING BRANCHES.  In a way they are gambling

with their future and the current needs of thier loved ones that depend upon them to provide for their food, clothing and shelter.

 Phase Three – Norming

Eventually the raft makes it through the rapids and back into where the river is moving slowly and lazily along because it usually means it a another spot where it is deep and wide with a sandy bottom. It is time to get out of the river and head home.

A few contractors claw and scratch thier way out of the rapids by shrinking their companies down and taking on jobs they can do by themselves or with very little outside help.  They are “Dog and Pickup Truck Contractors” or “Salt of The Earth Contractors”.  Good solid people and if you look in their eyes you will see the passion and desire to build a business that they can take pride in is still there. The problem is they just do not know to do it.

Phase Four – Performing

Some folks enjoy river rafting so much they decide to become guides and with education, practice, dedication and skill they rise to the level of peak performers.

A contractor that has been through the first three phases is a good candidate for developing their own personal Strategic Management Systemthat will help them build and maintain a construction business that generates a reliable income.

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