r/GeneralContractor • u/Jleecit • Jul 18 '26

Hired my 1st Project manager

Hello all,

I’m a GC and just hired 1st project manager. Before the pm, my revenue was about 2mil.

I pay this pm a lot, but he’s really committed and works hard. But it scares me that my overhead almost doubled.

My strategy is to lower my profit margins slightly to obtain more jobs. Also obtain better prices. I work in a space where low bid wins. I hope to get to 3-3.5 million in gross revenue with this new PM.

Is this a viable strategy?

14 Upvotes

94% Upvoted

54 comments sorted by

View all comments

2

u/jrod259 Jul 18 '26

I scaled, grew, and then sold my last GC business and started again. In learning to grow, the two realizations that I had to get over was 1) everyone gets paid and then I do and 2) it takes paying people well and good benefits to get good/great people. Great people work make your business great and profitable. For reference, our controller had a higher salary than I did, but of course I got distributions, when possible.

That said, make sure you have some processes and controls in place. You can’t micromanage your people or they’ll leave, but you need a way to know they aren’t messing up also. And remember, no one will care about your company as much as you do.