[ON SITE] Epi 11: How Outsourcing Administration Cut Overheads From 35% To 8% | Joshua Rosinski
The Builders Ladder: Business Growth Strategies for Residential Construction BusinessesShow Notes
Josh runs Helix Group alongside his brother in northern Sydney. Before applying a formal management structure, the company operated with overheads at 35 percent and paid $9,000 a month for local accounting. The lack of formal processes forced them to absorb a $160,000 basement variation because they failed to secure written approval from the client prior to excavation. Josh also worked for six years without a holiday, constantly answering his phone.
Josh laid off excess in-house staff and hired offshore virtual assistants for estimating and bookkeeping, dropping accounts costs to $800 a month. He established variation approval rules requiring client sign-off before site work continues. By organizing his schedule with a Default Diary, Josh separated site meetings from business development, which helped him secure a 1.1 million dollar cost-plus contract. This structure enabled him to take a two-week unplugged trip to Vietnam while his site foreman managed the active projects.
Links & Resources Helix Group Website: https://www.helix.group/ 🕒 Timestamped Key Point 00:00 Introduction 04:58 Securing a 1.1 million dollar contract through 14 months of negotiation and transitioning it to a cost-plus agreement after lock-up. 14:00 Using an A to Z operations org chart to formalize the roles of site foremen and project managers. 16:10 Installing Alpha flooring to block sound transfer between levels in a split-living residence. 18:57 Mandating written client approval for variations to prevent absorbing costs like a 160,000 dollar basement excavation. 22:15 Outsourcing bookkeeping to the Philippines to drop accounting costs from 9,000 dollars down to 800 dollars a month. 26:42 Blocking out the schedule to take a two-week trip to Vietnam after working six years without a holiday. 35:22 Sending 100 direct messages a week on LinkedIn to schedule coffee meetings with architects and designers. 40:57 Implementing a Default Diary to separate mandatory site meetings from dedicated business development time. https://www.facebook.com/groups/TPBmember: https://www.facebook.com/TheProfessionalBuilder See omnystudio.com/listener for privacy information.
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Narelle and Graham Brown of Pedersen Homes realized they were the primary obstacles to their own company's success. Despite growing to 12 staff members, Graham was still manually erecting site fences and emptying rubbish trailers. Worse, he was taking up to 16 phone calls a day from a single foreman, bleeding site problems into their family dinner time and forcing the couple to take separate holidays just to keep the business running.
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