Short YouTube clip in which Mike Andes warns small/home-service business owners against taking large commercial contracts that could become >30% of revenue and cautions about underbidding established competitors with greater scale and experience. The advice focuses on long-term business risk from one dominant commercial job and pricing mistakes versus incumbents.
I'm going to double or triple because there's one contract that might be true. Assuming things go well, I highly recommend to not take a commercial job. If it's going to make up more than 30% of your revenue, it could really damage your business for the long term. And if you're going to be the lowest price bidder on a project like this against competitors that have been doing this for 10, 15, 20 years, and they have lots of equipment and trucks and employees, and they've done this a million times and they know they're pricing their numbers, there's a really good chance you could lose your shirt.
