As your Green Industry business grows, it can be tempting to jump at the opportunity to take on bigger, more complex jobs. Larger projects often mean higher revenue potential, but they also come with greater risks and responsibilities. Before you commit, it’s essential to evaluate whether your business is truly ready.
Here are the top five considerations to take into account before saying “yes” to that next big job:
1. Cash Flow Readiness Bigger jobs usually require a significant upfront investment. Think large material orders, equipment rentals or purchases, additional labor costs, and potentially subcontractors. These expenses often hit your books before you receive payment from the client—especially with commercial or municipal projects that may operate on 30 or 60-day payment cycles.
Key Questions:
• How much cash do we have in reserve?
• Do we have access to a line of credit or financing option if needed?
• Can we cover payroll and overhead while waiting for payment on this job?
2. Labor Capacity and Skillset Large-scale jobs require not only more people but the right people. You need to consider whether your team has the capacity, experience, and stamina to take on longer timelines, more detailed work, and higher customer expectations. It’s not just about having boots on the ground – it’s about having qualified, dependable crew members who can execute.
If you need to supplement your labor force, now is the time to ask:
• Will we need to hire temporary help or subcontract parts of the job?
• Are our current employees cross-trained and capable of handling larger scope tasks?
• How will this impact existing jobs and ongoing client relationships?
Stretching your team too thin can affect quality, morale, and safety. And with labor shortages across the industry, reliable staffing is more critical than ever.
3. Equipment and Logistics Larger jobs often introduce logistical challenges that smaller projects don’t. Access to the job site, more equipment, material deliveries, waste removal, and even simple things like restroom access can affect how efficiently your team works.
You also need to evaluate whether your current equipment is sufficient:
• Do we have the equipment we need, or will we need to rent or buy?
• Can our existing trucks and trailers handle the scale of this job?
• Is there adequate space on-site for staging materials and equipment?
Rental costs can quickly eat into your margins if not accounted for. Plus, lost time due to equipment issues or poor site logistics adds up faster than many business owners realize.
4. Job Costing Accuracy If you’re not confident in your estimating process, large jobs can become financial quicksand. Every hour and dollar you miss in estimating is magnified. A 5% underestimation on a $20,000 job might be a $1,000 mistake. On a $200,000 job, that’s $10,000—which could wipe out your profit.
Best practices for accurate job costing include:
• Breaking the job into specific phases and assigning labor, materials, and overhead to each
• Using actual historical data to inform your estimates
• Including realistic productivity rates and contingency allowances (typically 5-10%)
If you’re not using job costing software, now might be the time to consider it. The more detailed and accurate your bid, the better your chances of hitting profit targets.
5. Contract Terms and Risk Management Larger jobs come with bigger contracts—and often more legal complexity. These documents can contain clauses that expose you to financial penalties or added responsibilities.
Also, don’t overlook your insurance coverage. Are your current policies adequate for the scale and scope of the work?
Checklist:
• Have the contract reviewed by an attorney
• Confirm insurance and bonding requirements
• Understand all penalties and timelines
• Document everything in writing (change orders, delays, etc.)
Taking on larger jobs can be a smart move for growth—if you’re prepared. Use these five checkpoints as a filter before saying yes. It may mean turning down a few jobs in the short term, but it also means setting your business up for long-term success, not unnecessary stress.
The opportunity for larger contracts comes with responsibility, but also reward. By approaching big jobs with a detailed, methodical plan, you protect your business, your team, and your bottom line.