For decades, the state of California Contractors License Board insisted new applicants take classes on business. They noted that most new contractors failed not from lack of trade knowledge, but rather lack of business acumen. Today, we see more businessmen becoming contractors, even specialty contractors. As accomplished businessmen, they secure lines of credit, establish proven management structures, merge companies and look to bundle the trades to secure more work. The downside is most people had little to no craft knowledge. Knowing a trade is not reading a book. Most businessmen would say, “I can hire a trade expert.” That belief is flawed. How do you know the guy you just hired is an expert? This also explains why so many of these multi-trade firms struggle when expanding to add a craft to their company portfolio.
I once sat with an accomplished businessman who inherited a large multi-faceted wall and ceiling contracting firm. When he offered to review a technical paper on lath and plaster, I expected to get suggestions on writing style or overall objectives. I was surprised when he focused on technical issues for plastering. He did not lack confidence in his observations. I wondered how he became so confident on the trade. My answer came the following week at a wet wall demonstration for new cement plaster basecoat. His plastering supervisor volunteered to apply cement plaster with a hawk and trowel. I noted that he took the cement plaster from the back of the hawk. I am certain the businessman thought this guy was an expert in plastering. However, his actions proved he was not.