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#18 The $10M Growth Trap Most Contractors Fall Into

#18 The $10M Growth Trap Most Contractors Fall Into

In this week’s issue of The Path Less Traveled, we explore two patterns I’ve seen repeatedly in the trades. First, why the best service companies aren’t flashy—they simply execute the fundamentals better than everyone else. Second, why many contractors stall at $5–10M in revenue, and what separates the businesses that break through from the ones that plateau.

Christopher Hoffmann
March 05, 2026 • Estimated Reading Time: 11 minutes

In Today’s Newsletter

The thing about boring companies...
“Things you should do…
Founding Sponsors
When (and why) growth stalls
Favorite Tweets from the past week

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What’s on my mind?

The Most Successful Service Companies Are Boring

Entrepreneurs love big ideas.

New marketing channels.
New technology platforms (especially if “AI” is in the name).
New service lines.
New growth strategies.

But after spending time with some of the best home service companies in the country, I’ve noticed something surprising:

The best companies are usually… pretty boring.

They don’t win because they discovered a secret, unique strategy.

They win because they execute the basics better than everyone else.

And they do it every single day.

The 5 “Boring” Things That Actually Win

1. They answer the phone

This sounds obvious, but it’s amazing how often companies miss calls.

In 2025, it can cost $50–$100 just to make the phone ring.

Every missed call isn’t just a missed opportunity…it’s wasted marketing spend.

Great companies fight for every call.

2. They dispatch the right tech to the right job

Dispatching is one of the most underrated drivers of performance.

The right technician at the right home leads to:

higher customer satisfaction
better options given to the customer
higher revenue per call

Small dispatch decisions compound across hundreds of calls each week.

3. They deliver a consistent in-home experience

Most homeowners can’t judge technical quality.

But they absolutely judge the experience.

Did the technician communicate clearly?
Did they provide options?
Did the homeowner feel confident in the recommendation?

The best companies train their teams to deliver the same experience on every call.

4. They train constantly

Training is inconvenient.

It takes technicians out of the field.
It requires preparation and discipline.

But the best companies train anyway.

They understand that skills compound—and the companies that invest in training eventually separate from the pack.

5. They know their scoreboard

Winning companies track the numbers that matter.

Daily call counts.
Booking rates.
Average tickets.
Lead conversion.

Numbers tell the truth.

Final Thought

If your business isn’t performing the way you want, the answer is rarely a brand-new strategy.

More often than not, the solution is simply executing the basics better than everyone else.

It may not be exciting.

But in home services, boring execution is what wins.

Renderings of the exterior refresh on our new facility in STL

To my wife’s dismay, I just got back the two white tail deer that I harvested last Fall…

Our farm is a magical place, full of some pretty incredible sunsets.

Nexstar Board finishing up strategic planning at the start of 2026… bright future ahead.

Super cool to see our brand moving around the STLCitySC soccer stadium

Things you should…

1. Thank the Person Who Handles the Most Chaos in Your Business
Every company has one. They rarely get enough credit.

2. Write Down the 3 Numbers That Actually Matter This Week
Clarity beats complexity in small business.

3. Ask a New Hire What Confused Them Most in Week One
Your onboarding process is showing.

Can you do me a favor?

To help me create the best content for you, can you answer this quick (4 question) survey? I promise it won’t take more than 30 seconds :)

The Path Less Traveled - Founding Sponsors

Founding Sponsors… that WE USE in our companies.

When I wanted to launch The Path Less Traveled, I didn’t just want to take any sponsor who would write a check.

On the contrary - I continue to turn down a ton of sponsor inquiries because of one reality: I want my sponsorships to be authentic, and be companies that I work with AND believe in.

Software: ServiceTitan - THE leading software platform for residential and commercial service providers; to be blunt - there is no alternative for scaled enterprise platforms - and that is why it is incredibly rare to find any company over $100M who is NOT using ServiceTitan.

Agentic AI: Netic - Netic has built transformative AI tools that execute end-to-end workflows across speech, text, and data, powering entire functions inside of HB Solutions Group. Elevating the customer experience while reducing friction and cost.

Consumer Financing: GreenSky Home Improvement - helps HB Solutions Group to delight our customers AND grow our business by giving us one of the most powerful tools we can possess: the ability to increase our customers’ buying power.

Final thought: we publish TPLT on/around the 1st and 15th of each month, and we will incorporate a deeper dive into our relationship with each of the partners above on the release on/around the 15th while including this abbreviated section on the release on/around the 1st of each month.

¹ The views and opinions expressed here are owned by The Path Less Traveled and its author and may not reflect the views of GreenSky®

CEO: Growth Mindset

Why Most Trades Businesses Stall at $5–10 Million

Over the years I’ve had the opportunity to spend time with many contractors across the country.

And there’s a pattern I see over and over again.

A company launches.
It grows quickly.
Revenue climbs to $5–10 million.

And then something strange happens.

…Growth stalls.

The phones are still ringing.
The owner is still working hard.

But the business stops growing.

Why This Happens

The issue usually isn’t effort.

It’s that the systems that built the company in the early days stop working as the business grows.

Here are a few of the most common reasons.

1. Everything still runs through the owner

In the early years, this works.

The owner handles:

dispatch decisions
customer complaints
hiring
pricing
problem-solving (to include technical support)

But once a company grows past a certain size, that model breaks.

One person can’t manage every decision in a $10M company.

2. The customer experience becomes inconsistent

In smaller companies, the owner often sets the tone on every job.

As the team grows, every technician begins doing things slightly differently.

Different explanations.
Different pricing conversations.
Different levels of professionalism.

Customers start having very different experiences depending on who shows up.

3. Missed calls quietly kill growth

Most contractors underestimate how much growth is lost at the phone.

Abandoned calls.
Poor booking rates.
Slow follow-up.

When marketing costs are high, every missed opportunity matters.

4. There is no leadership layer

The companies that break through this growth ceiling almost always build leadership roles like:

field managers
dispatch leaders
sales managers
customer experience leaders

Without these roles, the organization struggles to scale.

5. Training becomes optional

When the schedule gets busy, training is often the first thing that disappears.

But the companies that continue to grow are the ones that double down on developing their people.

Skills and leadership development compound over time.

Final Thought

The things that got you to $5 million will not get you to $25 million.

At some point, every successful contractor faces a choice:

Continue running the company the same way…

Or build the systems, leadership, and processes required to scale.

The companies that make that transition are the ones that keep growing.

This Week’s Favorite Tweets

Friends of The Path Less Traveled

Who are the VENDORS that fuel our success?

MARKETING

Choosing a marketing agency that is both (1) competent and (2) CARES about your specific business is hard. Over the last 5 years, I have become great friends with the founder of RYNO Strategic Solutions, Chris Yano, and can say with confidence that his agency is among the few that I would trust with my own brands. If you are searching for a partner, send a note to Jeff Bowab at [email protected] and tell him that I sent you.

PAYROLL & HR

Inova Payroll & HR has been a partner to our companies for over 10 years. They have provided us with a payroll technology platform that has been able to keep pace with the demands of our fast-growing organization (now serving team members across 4 states). Inova’s platform works seamlessly with our CRM, ServiceTitan, and with our accounting back-end, Sage Intacct.

COACHING & TRAINING

If there is one organization - perhaps more than any other - that has fueled our growth over the last 10 years… that organization would be Nexstar Network. I like to say that Nexstar Network has built & refined a “process playbook” that touches on so many facets of our business. Don’t try and re-create the wheel… come and learn from the best. Reach out to my friend Kara Schuster at [email protected] and tell her that I sent you.

#grateful for the “Friends of TPLT” sponsors in this section

Hey…I could use your help connecting with like-minded business leaders:

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