Small Business, Big Advice: Nesbitt Construction Inc.

Michael Nesbitt, Nesbitt Construction Inc.
Title: President
Years in Position: 4
Founded: 1977

Bill Nesbitt founded Nesbitt Construction Inc. 44 years ago. His son, Michael, grew up on job sites, working construction gigs over the summer, and eventually moved into the role of president of the commercial remodeling and construction firm. Since taking the reins in 2017, Michael Nesbitt has been putting his finance background to work optimizing the 17-person company’s cash flow while upholding the family name.

Five questions with Nesbitt:

What are ways you and your team have demonstrated small-business grit?
It’s taking care of each other within the company, especially during this COVID era. We knew we had to slow down and change our operations, so we didn’t have multiple subcontractors intermingling on projects. I contacted all of the clients and told them what our plan was to keep our employees safe, keep our subcontractors safe and keep their employees safe. I told them projects had to slow down because we couldn’t stack workers, and I told them we have to buy more (personal protective equipment) and have superintendents on the job longer. But I told them it’s not about my bottom line and I am not coming back to them with those costs.

What’s your No. 1 survival tip?
Wu-Tang Clan has a song called “C.R.E.A.M.” – cash rules everything around me. When you think about that from a small-business standpoint, if you don’t know where your cash flow is, then you don’t know when you can actually afford to take risks. My office manager/CFO has always been keeping an eye on that, and I try to make sure I fully understand the financials and how they integrate into our day-to-day decision-making.

What’s the one trend your company has bucked?
The general contractors have moved more toward the construction management model, which to the everyday person might not mean much. But they’re getting away from self-performing some of the trade. Now, that definitely has its place, but we can perform the tasks ourselves. It’s something that’s gained us an advantage on some jobs.

What’s the one thing that will propel you forward in the next year?
It’s rebuilding those personal relationships. Zoom calls, conference calls, working from home, it’s been great that we’re able to do business that way, but there’s something about meeting someone and shaking their hand that is a totally different experience. I think that COVID made us all realize how much of the human experience we all share in and how much we are social creatures.

What challenges are unique to running a second-generation family business?
One of the things I always joke about is that the line between boss and father was always really blurry. Sometimes, you’d have disagreements, but you’d get to the point that you’re not arguing about what you initially thought you were arguing about. That and taking time to step away and be father and son – that’s proven to be harder to do.

Also, living up to the company name is always a weight on my shoulders. I think that goes for any family business that your parents have built and you take on. At the same time, it’s trying in your own way to move the company forward.