Right-sizing, why did I not have this in my vocabulary before ’07?  Makes sense. We are constructors of buildings and handle the civil management of projects, but the bottom line is that we are service providers. Just like architects, engineers, lawyers, bankers or accountants, all service providers of different sorts.

We need to be adjusting( or at least thinking about) our overhead and other needs such as office space and selling space, if you are retailer, routinely. Constantly thinking about expanding or contracting to “right-size”.

The last three years everybody has been downsizing in the “right size” process but going the other way is equally profitable. In the last 2 months, we have hired two more office team members. Getting ready slowly as the economy heals.

Seems our retail customers are working smarter and as are our office building customers. Getting more out of less.  Some of the retailers are combining the Internet and their stores more effectively. Someone orders on the Internet and it is shipped from a store. Someone does not like their order from the Internet, they returned to the store. The stores provides a retail environment and a distribution center. Be more efficient and right sizing, a double win for the company  and a win for the customer.

Maybe I can be more disciplined in the future:

  • I promise to watch our G&A more closely which is profit spent on something else
  • I am going to try to be quicker with the decision, than I have in the past, to upsize or downsize (a common problem among contractors)

We see many good opportunities in what we have learned. What are your thoughts?

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Merrill Stewart is Founder and President of the Stewart Perry Company, a commercial building contractor based in Birmingham, Ala. Contact him via email
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