Behind the Scenes of a Startup, Quarter 3

I launched a new business on January 1st, 2023. Here’s how the third quarter went.

I’m chronicling a new business startup, Trinity Builder Solutions, and I’d love for you to join me on the journey. (Click here to read from the beginning…) I’ll be providing quarterly (originally monthly) updates, and this is an update for quarter three. Want to receive these updates in your email? Here you go!

The theme for quarter 3 was “upgrade,” and we did so on three fronts in a big way.

We upgraded our team via a resignation, and I’m pleased to say what I initially saw as a setback turned into TBS’s most significant “win” to date.

We upgraded our systems, getting 1% better each day. When we stubbed our toe in Q3, we immediately identified, discussed, and solved the issue.

And we upgraded our office space, from improved storage and organization to a small break room under construction as I write.

I appreciate that these updates force me to look at the quarter as a whole instead of each week or day. When you’re in the slog of starting a new business, it’s easy to get lost in the weeds and not see the progress. Well, we’ve made progress, folks!

Here are the details:

Wins from the Quarter

• Our biggest win for the quarter was undoubtedly the addition of Veronica to the TBS team. She was one of two stellar final candidates, making it one of the most challenging hiring decisions I’ve made in many years. You know how I know this was a big win? Many of the wins that follow are a direct result of her efforts!

• We were awarded our 2nd large-scale multi-family project: 150 apartment unit countertops in San Jose. We can’t wait to get this project going in 2024.

• We submitted a record number of bids in Q3, more than doubling our previous quarterly high. (Now, to get more of them awarded…)

• The bid results we received on many previous bids indicate our pricing is right where it should be. This is beneficial information, as when you’re starting a business that relies (initially) on a low-bid-wins strategy for securing work, you’re shooting in the dark. It appears we’re very close to the target.

What Worked Last Quarter?

• Veronica jumped in and helped us add more systems and processes. For example, we now have a pre-template checklist we’ll review with general contractors and homeowners before arrival for templating. This will avoid arriving on site for a project not yet ready for us to template.

• Our reputation must be growing, as a competitor in a related industry approached us about wanting to sell. We’re investigating this opportunity as I write.

What did not Work Last Quarter?

• As my friend Tim likes to say, we got “Lucyed” by a GC. (As in Lucy, from Peanuts.) We received a call from a GC with a massive project ready for 300+ countertops starting the next month. We worked our tales off to secure pricing, produce an estimate, visit the job site, etc. Then… crickets. I found out a few weeks later they ended up going with another contractor who was 4% less. I felt foolish, as we had already started planning for this job to take place (based on indications that “Lucy” was giving us along the way.) Lesson learned!

• Since starting my company in 2010, we’ve only ever lost money on one project. I can vividly remember that project to this day. Well, we have two now, thanks to two broken slabs of very high-end Cambria quartz. Mistakes were made. But we learned!

What do we Need to Keep Doing?

• In Q4, we’ll continue to improve our office workspace, making it more organized and professional. The environment in which we work affects the quality of our work product. I want our team to feel taken care of, valued, and deserving of an enjoyable environment in which to do their best work.

What Needs to Improve?

• What’s becoming increasingly evident as the months go by is the incredibly long duration between when a large-scale, multi-unit project is awarded and when they are ready for countertops. What I thought was 9 or so months is turning out to be closer to 18. So, in Q4, we must expand our bid opportunities into “quick hit” projects ready to start within the coming few months. This means more small commercial and custom residential projects and, thus, growing relationships with those GCs and homeowners.

Financial Goal Tracker as of 09/30/23

Value of Proposals Generated YTD: $10,511,455

Value of Projects Awarded YTD: $693,201

Award Rate: 6.6%

Revenue Goal for 2023: $2,225,000

Revenue YTD: $192,759

Percentage of goal: 8.7% (That’s still not much!)

Books of Note: I recently referred Objective Troy by Scott Shane to a friend. It’s a non-fiction deep dive into the use of drones in the assassination of Anwar al-Awlaki, a former American imam turned terrorist leader, during the Obama administration. What fascinated me the most was the debate about whether such actions are “moral” and whether they comply with the Geneva Convention. The author does a great job speaking to both sides of the debate.

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