“I’ve always believed in a walk-before-you-run approach,” he says. “I remember early on, looking at certain jobs, and realizing, ‘I just can’t do this job; it’s too big.’ I tried to select the jobs I was comfortable doing and I gradually made those jobs larger, and in turn they became more demanding and more complex.”
Since 2003, Merrick Construction’s revenue has grown at a measured 10% to 15% rate. “I never lost ground from one year to another,” Cross says. “I steadily grew each year to this point. Part of the reason I’m not growing as much anymore is that I don’t want to do any more volume than a maximum of $6 million.”
LESSONS LEARNED Cross says he never would have understood what “too big” or “too fast” meant had he not devoured trade magazines and religiously attended trade shows (especially JLC Live!, produced by Hanley Wood, publisher of UPSCALE REMODELING).
“I learned a tremendous amount from the these guys who were speaking because they all had successful companies. And what was great is that I got to learn from their mistakes. I think the only reason I’m at the stage I’m at now is because of those shows.”
One of the most important lessons Cross learned, he says, is the value of good estimating. By thoroughly analyzing estimated versus actuals on every job, Cross says he is able to make better, more-accurate estimates at the start of every new job. Because he pays so much attention to detail, few possibilities aren’t considered before the job begins. That means fewer change orders and midcourse alterations that can upset clients. In other words, Cross disarms potentially troubling situations ahead of time by making sure the question is covered when the job starts.
“If you estimate correctly,” he says, “the demands clients put on you are not demanding. You’ve planned to do the work at the highest level. If you price with the high-end in mind, you’re able to give people high-end work without any trouble.”
If a project does call for change orders, Cross asks clients to sign the order and pay in full before work begins. “We’ve made change orders a non-issue that way,” he says.