Jan 3 2008 2:25PM | Permalink | Email this | Comments (1) |
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Which business is going to be more successful? The one run by a remodeler turned businessman or businessman turned remodeler? I think about this when I look at companies like Legacy Custom Building & Remodeling in Arizona, this month's Corner Office subject, whose president is an accountant by training.

We've got plenty of both in this industry, and it's a question I've tried to get a handle on for years. It really depends on two things: what your definition of success is and the scale of the business in question. If you're talking about a company in the $5 million range or higher, it seems clear to me that the businessman is going to have a better chance of success. The crash-and-burn rate certainly seems to be higher when a craftsman gets "big."

Why is this? Typically, people who got into the field for the joy of hands-on work have a much harder time letting go and delegating, so either the company never grows or it grows to the point where it spins out of control. On the other hand, someone who started the firm as a business is naturally delegating from day one. There are exceptions (Case is an obvious one), but if you look at our Market Leaders list, the majority of the big companies are run by businessmen.  

But then this again raises the question of what's "successful"? Does high volume need to be the ultimate goal for everyone? Certainly not. A $2 or $3 million a year business can be just as personally satisfying for the owner as a $10 million a year business (more so, sometimes). 

At the very least, I think everyone can agree that all successful companies have one thing in common: they're profitable. And for that, one thing is clear. If you don't start out as a businessman or woman, you're going to need to end up as one. Especially in today's climate, you can't just luck your way into profit.