3 Steps to Build a 6-Figure Business You Don't Have to Micromanage, with Skelly Build

Name: 3 Steps to Build a 6-Figure Business You Don't Have to Micromanage, with Skelly Build
Uploaded: 2026-02-13T00:48:26.000Z
Duration: 1 h 36 min 5 s

Addressing Key Issues in Construction

Main Challenges Identified

The company aims to tackle three primary issues in construction: project duration, cost transparency, and communication among all stakeholders.

Emphasizes the importance of accountability across the entire team, including external partners and subcontractors.

Company Philosophy

The company is relatively new (established 10 years ago), allowing for a fresh perspective without being bound by traditional methods.

Advocates for a shift from a "how am I going to do this?" mindset to "who can help me do this?" to foster collaboration and effective hiring.

Origins of Skelly Build

Personal Background

The founder's nickname "Skelly" comes from middle school sports, reflecting personal history tied to the company's identity.

Diana, the founder's wife, previously worked in construction and sought to create a better work environment after facing promotion challenges.

Business Development

Diana initiated Skelly Build around 2016/2017, managing various roles initially before realizing the need for more structured support as projects grew.

The founder became involved due to financial management needs as project complexity increased; he recognized that larger jobs require careful oversight.

Growth Through Process Implementation

Adapting During Challenges

The company spent significant time developing processes before COVID impacted the industry; they faced material shortages and price increases during this period.

Role Specialization

Acknowledges that successful growth stems from defining roles within the company—Diana as technician and the founder as operator—allowing for efficient training systems.

Establishing Standard Operating Procedures (SOP)

Timeline of SOP Development

Initial versions of SOP were created by late 2018 when they began hiring additional staff like project managers and salespeople.

Importance of Project Management

Project management was identified as a critical first role due to its complexity; parallels drawn between event planning and construction highlight organizational skills needed.

Understanding Project Management Growth

The Importance of Structured Processes

A structured timeline is crucial for managing various tasks in project management, ensuring consistency across jobs.

Key questions must be addressed during the planning phase, including financial details and specifics from designers, especially when handling renovations like kitchens or bathrooms.

Organic Growth of Team Roles

As project managers (PMs) improved their skills, it allowed sales personnel to increase sales, leading to the hiring of additional PMs and a materials person as needed.

Subcontracting labor was implemented from the beginning to avoid overextending team members into multiple roles that could dilute effectiveness.

Challenges with In-House Labor

Many in construction hesitate to hire subcontractors due to a desire for complete control over profits; however, this can lead to operational inefficiencies.

Maintaining full-time staff requires sufficient leads; otherwise, subcontracting is recommended to manage costs effectively.

Managing Client Communications

Effective communication strategies are essential for addressing client concerns proactively and minimizing disruptions caused by unexpected inquiries.

Anticipating client questions helps streamline communication and reduces stress on both clients and project teams.

Specialized Teams Enhance Efficiency

The company employs specialized teams for different functions—materials management, pre-construction sales, PM duties—to improve overall communication and efficiency.

This structure allows for better tracking of expectations, timelines, costs, and potential issues while providing solutions ahead of time.

Transitioning to Superintendent Model

Shifting from a PM model where visits were infrequent to a superintendent model with daily site presence has reduced project timelines by 20%.

Having someone on-site consistently addresses issues promptly and improves client satisfaction through immediate responses to queries.

Value Proposition in Construction Management

Clients often recognize the value of having dedicated supervision on-site as it leads to faster completion times and cost savings despite higher upfront costs.

Construction Challenges and Solutions

The Role of Authority in Construction Inspections

Inspectors often fail projects without proper guidance; having someone present to answer questions can lead to successful inspections.

Bank representatives may lack construction knowledge, leading to misunderstandings during draw requests, which can jeopardize project funding.

A recent incident highlighted the importance of communication when a realtor almost failed a construction draw due to a misunderstanding about the project's status.

Addressing Key Issues in Construction

The main issues identified in construction are timelines, costs, and communication. These were pivotal in shaping the company's approach.

The company operates as a fixed-price builder, providing clients with clear cost expectations upfront.

Daily communication from superintendents is mandated to keep clients informed about progress and upcoming tasks.

Managing Timelines Effectively

Regular bi-weekly meetings focus on updating project timelines, ensuring all parties are aware of any changes or delays.

Accountability for timeline extensions is crucial; contractors often bear the blame for delays caused by client-driven changes or design modifications.

Utilizing Data for Better Project Management

With experience from 350 jobs in Austin, the company uses historical data to set realistic timelines based on various factors like labor and material types.

Ongoing updates during bi-weekly meetings help maintain transparency regarding project timelines amidst changes.

Importance of Clarity in Cost Communication

Clear communication around costs helps mitigate objections from clients; understanding value is essential for their decision-making process.

Effective timeline management serves as a key communication tool within any business context, emphasizing its universal relevance across industries.

Understanding Accountability and Pre-Construction Processes

Role Clarity and Client Inclusion

Each team member has a defined role that contributes to the organization's goals, emphasizing collaboration with co-workers and clients.

The importance of transparency is highlighted; avoiding confusion ensures accountability among all parties involved in a project.

Differences in Business Models

A comparison is made between previous business models where tasks were siloed (sales, project management, material ordering) versus a collaborative approach.

The company operates on a fixed-price model, making pre-construction processes crucial for aligning budget with design expectations.

Value Engineering During Pre-Construction

Engaging in pre-construction meetings allows the team to provide value engineering advice to ensure designs fit within client budgets.

Clients often invest significantly in design plans that may exceed their budget; thus, the service provided during pre-construction helps avoid wasted resources.

Cost-Benefit Analysis of Pre-Construction Services

Clients are encouraged to see the value in paying for pre-construction services as it can save them substantial amounts on overall project costs.

The process includes updating pricing based on design iterations, ensuring clients are aware of potential costs before signing contracts.

Accountability and Communication

Clear communication about timelines and responsibilities is essential for maintaining accountability among all stakeholders involved in a project.

The company emphasizes ownership at every level—internally and externally—to prevent roadblocks during construction projects.

Continuous Improvement and Adaptation

As a relatively new company without traditional practices, they focus on innovative solutions for timeline management, communication, and pricing strategies.

Iterative updates based on feedback from clients and architects help refine project timelines while keeping everyone informed about changes.

Finding the Right Client Fit

Not all clients recognize the value of comprehensive pre-construction services; identifying those who do is crucial for successful partnerships.

Understanding Business Fit and Mindset

The Importance of Fitting into a Business Model

A successful business requires clients to fit within a defined model, ensuring mutual understanding of value and expectations.

Pre-construction discussions are crucial; if clients don't see the value early on, they may not appreciate it later when costs arise.

Being transparent about pricing is essential; the company positions itself as a quality provider rather than the cheapest option.

Defining Your Business Identity

The company operates digitally with established processes, emphasizing that potential clients must align with their operational style.

Understanding client misconceptions about services is vital for effective communication and service delivery.

Common Mistakes in Business Operations

Many businesses struggle due to a "how" mindset instead of focusing on "who" can assist them in achieving their goals.

Shifting from individual execution to collaboration can significantly enhance business growth by leveraging expertise from others.

Building Effective Teams

Small companies should identify tasks they dislike (finance, operations, sales) and find individuals who excel in those areas to foster growth.

Hiring skilled professionals allows business owners to focus on their strengths while still managing financial responsibilities effectively.

Emphasizing Core Purpose

New business owners need clarity on their core purpose; this helps attract talent who resonate with the company's vision.

When hiring, it's important for candidates to understand the company's mission and direction, ensuring alignment between personal values and organizational goals.

Understanding Team Dynamics and Client Relationships in Construction

The Concept of "Head Trash"

Discussion on the misconceptions regarding expenses in construction, referred to as "head trash," which can hinder business growth.

Emphasis on the potential for profitability by managing multiple jobs effectively, allowing for employee support and fair compensation.

Value of Team Composition

Importance of setting company hourly rates higher than employee wages to ensure profitability even when projects face delays or challenges.

Recognition that a company's value is enhanced by the skills and expertise of its team members, leading to multiplicative benefits rather than subtractive ones.

Consistency in Service Delivery

Highlighting the necessity for uniformity in client experience across different roles within a company, ensuring high service levels regardless of personnel changes.

The significance of clear communication about goals and expectations among team members to avoid inconsistencies that could negatively impact client satisfaction.

Client Relationship Management

Acknowledgment that understanding client needs and strengths is crucial during pre-construction phases; this includes assessing whether clients align with the company's offerings.

Stressing the importance of setting clear expectations with clients to prevent misunderstandings during construction processes.

Trusting Expertise and Process

Advocating for clients' trust in established processes, comparing it to how consumers accept refined products like iPhones without questioning their development stages.

Noting that successful business owners often struggle with relinquishing control due to their past experiences but must learn to trust experts in construction.

Perception of Value in Construction

Clients who view construction as a commodity may seek lower prices over quality; those who recognize value are more likely to engage positively with contractors.

Discussing how losing jobs to cost-focused competitors can lead back to opportunities when clients realize they undervalued quality services.

Understanding the Challenges of Renovation

The Reality of Contractor Estimates

Clients often receive optimistic timelines from contractors, which may not reflect reality. Many opt for cheaper options that lead to longer and more costly projects.

Experienced clients who have undergone renovations understand the value of hiring knowledgeable contractors, as they recognize the potential pitfalls and complications involved in the process.

Building a Strong Operations Team

The speaker reflects on their journey from a small operation to a structured team, emphasizing the importance of documenting processes and training new hires effectively.

A systematic approach was taken to train employees using software tools that were continuously updated based on feedback from staff.

Importance of Material Management

A dedicated materials team plays a crucial role in pre-construction by ensuring materials align with project allowances and managing inventory effectively.

This team accelerates project execution by taking responsibility for material management, allowing project managers (PMs) to focus on subcontractor coordination.

Logistics and Quality Control

Establishing logistics roles is essential for managing material staging and quality control throughout construction projects.

Proper logistics help prevent loss or waste of materials, ensuring that all necessary items are accounted for during different phases of construction.

Sales Team Dynamics

The speaker highlights the significance of having a dedicated sales team rather than relying solely on owners to drive sales efforts.

A consistent sales effort helps maintain a healthy backlog, preventing delays caused by owners being pulled into operational issues instead of focusing on selling.

Pre-construction Responsibilities

Effective pre-construction requires specialized personnel who can handle demanding tasks such as creating estimates and setting realistic expectations for clients.

The discussion emphasizes that successful construction companies need clear delineation between sales responsibilities and operational duties to ensure efficiency.

Understanding Sales and Project Management in Business

The Importance of Experience in Sales Roles

The speaker emphasizes the necessity for salespeople to have prior experience as project managers (PMs) or in related roles, suggesting that this background equips them with essential insights into the business.

New entrants to the industry are typically required to progress through various positions, starting from assistant materials person to PM, before moving into sales. This progression ensures a comprehensive understanding of the business operations.

Direct client interaction requires wisdom and experience; salespeople must anticipate objections and answer questions regarding processes, timelines, and potential issues effectively.

Many employees in material logistics come from design backgrounds, indicating a trend where professionals seek alternative career paths within the same industry.

Strategies for Business Growth

To avoid being overwhelmed by daily operations, business owners should delegate tasks they dislike. Identifying entry-level positions and training individuals on holistic business operations is crucial for long-term success.

Certain critical roles, such as superintendents requiring extensive construction experience (around 30 years), cannot be filled by entry-level hires due to the specialized knowledge needed.

Key Considerations for Small Businesses

Understanding one's "why" is highlighted as a fundamental step for small businesses. Clarity about purpose can significantly impact decision-making and operational efficiency.

The speaker mentions ongoing projects, including a significant new build on Lake Austin expected to be completed soon. This showcases their active engagement in substantial developments within their field.

A recent redesign of a project led to delays but was managed efficiently with only an eight-week resubmission process through city regulations.