30 tips in 30 minutes

1. 30 tips in 30 minutes The fast track to profit

2. 1. Negotiate like a pro • Avoid: Wanting something too much Not seeing your strengths Getting hung on one issue Seeing only one option Adopting a win/lose mentality Going on too long Thinking short term Believing your counterpart holds all the cards Accepting firm positions

3. 2. Profession or business? • The difference? • Profession: You are the brand • Profession: Nothing to sell at the end of it • Business: Your company is the brand • Business: Less personal income but something to sell

4. 3. Systemize • ProBuilt experience • $½ million business to a $3 million business • Job descriptions: eg: site super, sales person, foreman etc. • Org chart • Policies and procedures

5. 4. Start another business • The Pozzebon family • Other ideas: • Duct cleaning • Moving • Door and window installs • Floor finishing • Register separately • Keep separate books • Make it a high margin business • Provides consistency

6. 5. Know your company culture • Impossible to be objective about your company • Do exit surveys • Ask others • What does your culture say? • “everything is a mess!” • “We always find the lose/lose.” • “We can do that!” • “I have an idea!”

7. 6. Have a signature value • Have proprietary: • Design • Installation • Behaviour • Your signature becomes your brand • Increases margin

8. 7. Get margin • Where does your margin come from? Marshall McCarroll, Dale Construction, Toronto: “You can buy a KIA for $20,000 or a Mercedes for $114,000. They both have four wheels and can drive you from A to B. So why would anyone buy a Mercedes over a KIA? Because some people set great store in quality.” Fact: you will not bridge that gap with bricks and mortar. Margin is in: Cleanliness, timeliness, signature style, reputation, everything else.

9. 8. Teach your client • An educated client is a safe client • No surprises • You’ll get a cooperative approach • Lower their expectations

10. 9. When you Network • Have plenty of business cards • Know your elevator speech • Have canned questions to start conversations • Have your exits in place • Make eye contact • Smile • Ask questions • Ask for a card • Follow up • Get out

11. 10. See the future • Contractor Global Warming: • As the heat in the industry rises, islands end up under water • Remodelers Advantage • Renovantage

12. 11. A great new market • Aging in place • The cutting edge is now

13. 12. Stay dialed in • Better be on the bus than get hit by it. • Follow building permit stats • Listen to peers • Know the demographics of your market • Talk to your materials suppliers

14. 13. Hang on to your best guys • Learn how to fire • Learn how to hire • Hire for character • Litwiller cleans house

15. 14. Attach this to your contracts • Residential Construction Performance Guidelines • Goes to quality, not code issues • Eg: Where a tread meets a riser: “Gaps between adjoining parts that are designed to meet flush shall not exceed 1/8 inch in width.” • builderbooks.com • Becomes the arbitrator between you and client

16. 15. Go to home shows • And when you do: • Don’t sit down • Follow up • Have a goal for your needs • Budget for everything • Staff • Setup and breakdown • Opportunity costs • Booth construction and rental • Ancillary fees

17. 16. Do Forensics • Helps to clean up problems in accounting • Provides deep knowledge to inform estimating • Provides reassurance that you are on the right track (or not) • Set up healthy competition between site supers • Gets staff focused on cost cutting strategies • Record and classify results from forensics

18. 17. Reject a client • No bad client is worth it • Interview your client when they are interviewing you: • Have they got the money? • Have they got a budget? • Knowledgeable or teachable? • Realistic? Fire at least one client a year.

19. 18. Know your three best friends • Net Profit • How much money your business is putting in your pocket • Operating Cash Flow • What you need to run a business • You might have profit, but if you have no cash, you can’t fill the tank. • Return on Assets • Does running your business make you more than a GIC? A mutual fund? These three measure must be in balance

20. 19. Make perfectly flat door frames • String from top right to bottom left • String from bottom right to top left • Tap the bottom corners back and forth till the strings touch

21. 20. Use checklists • For something • For everything

22. 21. have A PUBLIC RELATIONS STRATEGY • Radio • Local hardware store or lumber yard • Newsletter to your customer base • Awards • Charities • Do it for your past and present clients as much as for your future clients

23. 22. Consider the cost side • Once a year, renegotiate with: • Retail dealers • Employees • Subtrades • Trucks • Equipment • Get creative (The Reno Coach toilet) • Can you partner with other renovators on the buy side?

24. 23. Get political • The answer to the cash economy • Work for rich people only • Sell fear • Do a bit of cash work yourself • Cooperate with the cash economy • Get political • Who is the voice of the industry here? • What can you do?

25. 24. Create your business on paper • Almost all you do when you succeed is backwards to what you are doing now. • It’s like visnualization

26. 25. Attack your warranty work Know what it costs you Leaking is low hanging fruit

27. 26. Show up • Put yourself in the 10 percent

28. 27. Use electronic time tracking • Eg: Exactime time tracking • Truck tracking

29. 28. Pay yourself first • Start there and build your business from here, not the other way around

30. 29. Learn conflict resolution • Listen • Acknowledge emotions without taking sides • Use and encourage positive language • Aim for S.M.A.R.T. solutions: • Specific • Measurable • Achievable • Realistic • Timed

31. 30. Read Canadian Contractor