Should I vertically integrate

[Isaac Magee]

I’m in the process of flipping my second house and I’ve been thinking that the next logical progression was for me to start my own construction company. My first hire would be an experienced contractor to handle the basics (demo, framing, sheet-rock, flooring, etc.) and sub out the specialties (roofing, electrical, plumbing, foundation, HVAC, etc.).

What do you think?

[Dutch Langley]

I have owned or managed a number of businesses over the decades.  I have learned that you either have to stay small or go really big.  The in between is very tough.  To expand requires a lot of fixed or continual costs that don't get covered until you reach a certain volume.  There is also the daily hassle of dealing with the maintenance and growth of a business.  There is also the impact of economic turns that can impact a larger business (we went through the 2008 deal..prior to that doing 300 inspections per month...then the crash...that was a lot of fun.)  

The bigger thing to consider in my opinion and what I have learned with 4 decades of working now under my belt....is follow whatever your passion is.  What do you love to do that you are really good at?  Spent years in the corporate banking world...did not love that.   I spent years as a professional speaker and trainer....loved it!  Have spent years renovating....didn't love the whole managing and stressing about employees, vehicles, buildings, traveling, massive number of clients/schedules.  Now my hubby and I just flip...so we get to do what we love without all that other stuff...and at the end of the day make more money and have a great quality of life.  No customers, no huge overhead, no one calling me at 10 at night or 6 in the morning, no alarm clocks, vacation when we want....that was our direction...finally.  And we get to follow our passion. Yay!