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Employment Myths Busted

Tuesday, January 17th, 2012 by victoria

In case you haven’t noticed, a lot of what we used to know even two years ago isn’t necessarily true in today’s changed business climate. How many outdated ideas do you have about the employment world? Read each question in bold to decide if you think it’s true or false before reading the answer below.

  1. Employees always leave managers, not jobs. Wrong. Employees leave jobs even when they like and respect their manager because the fit between their talents, interests and skills isn’t good enough to give them quality of life on the job. In fact, struggling in a job where you spend Sunday night dreading going to work on Monday morning is a dead giveaway of a poor job fit. All jobs have a unique profile of distinct skills, attitudes and behaviors that are required for best performance, just as people have their own unique profile, too. When a person is matched to a job that requires the combination of behaviors, skills and attitudes that come naturally to them, achieving superior performance isn’t a struggle, it’s a challenge they can win.
  2. Our superior performing employees may secretly be waiting for the economy to open up more jobs, so they can find another job with more money and opportunity than we can offer them right now. In the present economy with budgets so tight that raises and incentives have been cut almost across the board, employee surveys show that this is absolutely true. But it doesn’t mean you can’t deepen your superior performers’ bond to your company. Savvy employers are investing in professional development that helps them develop talent from within. By doing this, they help current employees improve their performance now, while preparing them for upcoming leadership roles. People understand that budgets are tight right now, but when they see their company’s willingness to develop their skills, they recognize it as a vote of confidence in their potential and their value to the organization. Nothing says “We’ll give you a raise when we can” like investing in an employee’s career development now.
  3. If my company asks me to take an assessment, it must mean they think I’m not good enough to do my job and they want an excuse to fire me. If you said that nothing could be further from the truth, you’re right. Just as employees are slow to leave a good job right now, employers are realizing that it’s much more cost effective to mine the talent they already have rather than to start from scratch with someone new. Using assessment reports is a strategy that smart companies are using to build bench strength so they are ready when business picks up. If your employer has asked you to take an assessment, congratulations! You’ve been identified as an employee with high potential to become a superior performer or next-generation manager.
  4. Behavioral and values assessments are NOT like personality tests. If you agree with this statement, you’re right. Behavior and values assessments are statistically validated ways to see what a person’s natural style is for communicating on the job, how they like to manage their workflow, how they respond to a changing work environment, and what aspects of the job can make it deeply satisfying beyond the paycheck. Using assessment reports to identify a person’s strengths is a great way to make sure the company is deploying an employee in the right job to play to their strengths and develop more.
  5. Managing other people to achieve peak performance is only possible if you’re a really accomplished, experienced manager with a long track record of success, or a manager with too much time on your hands. If you recognized this thought as so outdated that it’s last millennium, you’re right. In the age of research validated job benchmarks and assessments, it’s possible to pinpoint exactly what a person’s workplace strengths and weaknesses are. Smart companies are using the latest technology, available online, to not only generate an assessment they can review with the employee, but to ‘prescribe’ professional development modules that the employee can use anywhere they have access to the internet. Managers can review performance goals and contribute suggestions online, too, without having to micromanage either performance or professional development.

Contact your Remodelers Advantage for help streamlining performance management and improvement on any budget.

Posted in Administration and Human Resources, Business Management, Employee Retention | No Comments »

PowerTip: The Commitments

Tuesday, January 17th, 2012 by victoria

Paul Winans, Remodelers Advantage Business Coach, shares his thoughts on reflection and moving into the new year with the right mindset.

The New Year has come, once again, and with it a sense of renewal and rebirth.  Boy, if there was ever a year where that is needed, this is it!

We attended a solstice celebration before the turn of the year.  Part of the event was to write down one thing you wished to let go of from the past year and one thing you wished for in the New Year.  I pondered and made my notes.  Just stopping to reflect felt good.  All too often we rush from one activity to the next, never pausing to reflect about anything.  After all, results are what matters, right?

Actually, I think intent matters a lot.  In 2011 so many small business owners were intent on doing what was needed to simply survive.  Many made it, some did not.  Everyone who lived with the challenges learned something.  We sometimes forget to pay attention to what is given us by circumstances.

Many of you have probably seen the movie “The Commitments”.  It is a wonderful story about a barely functional disparate group of Irish musicians who put together a soul band that is quite good.  In fact, the sound track is very good.  But the band cannot stay together, as it has no real leader, and a core sense of purpose to pull the band forward is lacking

It is popular to come up with resolutions for the New Year.  I suggest for this year that you keep any resolutions very simple.  And that you communicate to your people clearly and often what the ones you make for your company are.

Examples might include:

-All phone calls to be returned with 24 hours.

-Email will not be used in place of a phone call, particularly when a difficult issue needs to be addressed.

-All deadlines made will be met.

The above all seem obvious, right?  In my experience many remodeling companies (and their owners) have a difficult time doing the obvious.  We often are guilty of the behaviors that drive us crazy when we seem them in other people.

So stop and take a moment with your people to look back and to look forward.  Then commit to some simple ways of working together and with your clients.  By doing so you and your company can make rocking music (and money!) that will help you be successful in 2012!

If you’re unhappy with the results that you’re achieving with your remodeling business, let Paul Winans or one of the other experienced Remodelers Advantage Business Coaches help.  Our goal is to help you build a business that is strong, consistently profitable and that allows you to have a fulfilling life outside of work. Our clients have seen revenues grow, profits rise, and personal compensation significantly improve. You will see results like this too. Give us a call today at 301-490-5620.

Posted in Business Coaching, Business Management | No Comments »

PowerTips: Resolutions for Better Business Results

Tuesday, January 3rd, 2012 by victoria

Since January is the year for resolutions, I want to get on my soapbox to encourage you to make some important resolutions for your business. Pledge to take these actions and you’ll see productivity, efficiency, and team morale all improve. And when these essential parts of your company improve, profits will follow.

Resolution 1. Create a Plan for Profit! Smart remodelers take the time to create a plan for their business on paper so they can see exactly what they need to sell during the year and at what price. Without this powerful piece of paper, also called a Budget, you’re flying blind.

Resolution 2. Praise more often. Let your valuable team members know that you appreciate their efforts. Everyone wants to get an “atta boy” once in a while and your employees are no different.

Resolution 3. Focus on customer service. This is a key to long term success and will help you rise above competitors who don’t understand how to run professional businesses. People will still pay more for a great experience.Talk to your team about the importance of beating client’s expectations and how each individual on the team can impact this.

Resolution 4. If you’re thinking about hiring this year, hire the best people you can get. Don’t get scared by the higher price tag. Superstars will bring so much productivity to the table that they will quickly earn their keep and more.

Resolution 5. Get the word out! Most remodelers who are succeeding today have increased their marketing budgets from the 1-3% of revenue to 3-5%. Include a healthy marketing allocation in your budget and then track the results. Ask everyone how they found you and then tweak your plan regularly to get the most bang for your buck. If marketing has been on the back burner for years, it’s time to bring it up front and center.

Resolution 6. Make Meetings a priority! Yes, yes, I know that you see your Production Manager every day and talk about projects on the fly but it’s not the same as holding a sit-down meeting during which you eliminate distractions and focus on production issues and opportunities.  Scheduled meetings should be a priority for you and your team.

Happy New Year and I, for one, am expecting 2012 to be a blockbuster!

Cordially,

Victoria signature

For more information on Remodelers Advantage and the array of services they offer to help remodelers build strong, consistently profitable businesses, visit our web site at www.RemodelersAdvantage.com

Posted in Business Coaching, Business Growth, Business Management, Leadership | No Comments »

PowerTips: Leveling The See-Saw Called Life

Tuesday, December 20th, 2011 by victoria

Each member of the Remodelers Advantage team brings a unique and powerful point of view to our organization and I love it. Having an array of personality types, and people with differing sets of experience on our bench means that we can have a wide set of information at our fingertips, and we deliver that much more value to the members of our learning community. One of our most effective business coaches and  popular facilitators is Paul Winans. Paul’s thoughtful yet exacting input helps our members identify the stumbling blocks that are holding them back from reaching their potential. Here, Paul shares his views on the importance of building a balanced life.  I thought it was particularly appropriate for this time of year.

Remember going to the playground when you were young and riding the see-saw?  Some people call it the teeter-totter.  Little more than a board centered on a fulcrum, you and a friend would get on each end, alternately pushing one another up and down.

After doing that for a while (sometimes trying to move the see-saw so violently that you would knock your partner off!) you might work with the person on the other end to try to get the see-saw balanced, so nobody’s feet were touching the ground.  This took a little more work than simply pushing up and down, and you and your playmate had to work together to make it happen.

I mention the see-saw because the way we played with that is a lot like how we approach trying to create work-life balance in our lives as adults.  It IS possible to create it, though not without investing effort that is often counter-intuitive for motivated people.

Why bother creating such a balance in your life?  My wife, Nina, and I went to a wedding recently.  The bride was the daughter of dear friends we met 33 years ago.  We knew them before their daughter (the bride) was born.  Now we were watching her get married

Sitting in the chapel I couldn’t help but reflect on where did all the time go?  How did she get to be such a beautiful young woman, no longer the young child who once played with our children?

I was grateful for the choices I had made which allowed me to see much of the growing up their children and our children did in all those years.

At the same time, there were times when I was too consumed with work.  So much so that I was not able to appreciate how ephemeral so much of what I took for granted as being permanent truly was.  My see-saw got out of balance pretty regularly.

My experience of being alive for all these years so far is that each year makes it easier to understand how important it is to get the board level.  Yes, there will always be that tension between work and life on either ends of the see-saw.  Those choices about what to pay attention to are your life in the long run.

How to make it happen in your world?  Simply put, take a long term perspective when trying to decide what to do today.

What does that mean in real practical terms?  Consider this: When you are lying in your death bed what will you be reflecting on?  Probably not that you wish you could have worked more hours and days!

Rather, you will likely be thinking about the relationships and memories you helped sustain and create.  Try keeping that in mind when the board is being pushed down by the weight of work and all its attendant obligations.

Put into your planner all those things which will help keep you healthy and keep you connected to family and friends.  THEN fit in the remaining space your work.  This looks like a simple thing to do and I know that it is not.  Remember how you had to work with your friend to get the board balanced and that it took more work than simply pounding your side of the board up and down?

Your life is as balanced as you take responsibility for making it be.  There is no right way or wrong way to live your life.  Do keep in mind what you want to be reflecting on when watching people who used to be your age going through one of life’s wonderful transitions.  That is all up to you.

If creating the life you really want is a challenge for you, let us give you a hand. Everything we do is aimed toward helping you life a better life — and our coaches are ready to work with you.  Contact our friendly staff today at 301-490-5620 or complete this form and we’ll give you all of the details on this very effective service. Learn how we’ve helped our clients — straight from the horse’s mouth!

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Posted in Business Coaching, Business Management, Leadership | No Comments »

PowerTips: Using the Power of Job Cost Reports

Tuesday, December 6th, 2011 by victoria

We are lucky enough to work with some of the smartest people in the industry — and I love it because they, like everyone here, believes in sharing their expertise and knowledge to help everyone in the community succeed. One of my favorites is Tim Faller, president of Field Training Services. Tim is a master of production and the systems that make this department hum (as well as being a super nice guy!)  As a consultant, Tim’s changed the profit picture for many remodelers by showing them how to shore up their internal processes and capture every bit of profit.

Tim’s allowed me to share the main article from his recent newsletter with you.  It’s all about Job Cost Reports — one of the most important information sources you have.  Too few remodelers use this tool effectively.  Tim shows you how.

Everyone reading this understands how important it is to set and meet a budget for a job but many find it difficult to do. Half the battle is setting and selling an accurate budget for the job, the other half is getting everyone involved in meeting it.  Here are some tips.

Use the estimate as the first Job Cost Report. The estimate for the job should be evaluated as a job cost report looking for issues that may present themselves in the future. The person running the job should spend time before the job starts to evaluate and learn the estimate so that they can identify any potential errors or omissions. If any of these are found then they can be dealt with before the job starts. Most problem areas are either swept under the rug or not even found leading to ignorance during construction. But if a discussion of them is started early than a possible solution can be found. In other words, simply discussing them will lead to solutions whereas ignoring them will lead to financial loses.

Train non-managers to read the reports. One very common mistake that business owners make is to ask a Lead Carpenter to use a job cost report but neglect to train them in how to use them. Every business owner has had a learning curve to learn the financial aspect of the business. This is true even though they have a heavy motivation to do so. It is unrealistic to expect someone that is in the business to work with their hands to pick up financial info without time, training, and patience.

Train solutions. The most important aspect of training is to get around the age old statement, “it is what it is.” This statement is usually uttered after an owner shows a Lead Carpenter a report stating that the job is over budget on framing! The meaning of the statement is “there is nothing we can do now”. By letting this stand an owner reinforces the belief that the reports are worthless and can be ignored. So what has to be done is for the Lead Carpenter and owner/manager to stop for a few minutes and identify the problem and find a solution.  There is always a solution. It may be for a future job estimate or it may be recouping the money on another aspect of the job.

To learn more about Tim and how he helps his remodeling clients succeed, click here.

And if you’re getting ready to hire new employees as your workload increases, be sure to take the time to hire the best. Click here for your free report on Selecting Superior Performers.

Posted in Business Coaching, Business Management, Production | No Comments »

Tuesday, November 15th, 2011 by victoria

I’ve been talking to dozens of our members over the last couple of weeks and 95% of these remodeling company owners tell me that business is up, backlog is building and they are very optimistic about 2012. This is great news as it means personal income will rise again, profits will be generated and new options will be available. One of the options that business owners will be considering as the market continues to improve, is whether or not to grow the company to an entirely new level.

Below, Remodelers Advantage founder, Linda Case, discusses the challenges and the opportunities that come with significant growth.  Are you ready?

The “When to Grow?” Challenge

This may seem a strange question when so many remodelers have shrunk because of these economic times but there will be a time when you wonder “Should I grow my company?”

Many folks want to know the best way to grow quickly. There actually are a number of routes. You could raise your average job size, which for many companies can be the simplest and least disturbing. You could add a new profit center, increase your geographical area, or just do more of the type of work you already do. Or you could join forces with another company, which can work but may be the most problematic way of all to grow. You are adding the complexity of working with a new partner to the complexity of growth.   Your company cultures may be quite different.  Spend lots of time talking through all the issues of partnership and know that you will still be surprised when some you haven’t discussed, arise.

So the question of how to grow your company is not just by selling more but could also be by selling different or bigger.  You do want to account for the distraction of trying to start a new division – it will take away from your focus on your base business and can be damaging.  So be sure you have those proverbial ducks in a row, have done the requisite planning and “what if” scenarios before you head out to conquer new territory.

Caution Signals

We get asked “What are the caution signals that would say slow down and get your house in order before you grow substantially?”  If you are planning a greater than 10-15% growth in one year, make sure you’ve conquered this list of cautions:

  • Your company does not consistently reach an annual net profit of 5% or more.   A remodeler has to learn the recipe that leads to consistent profitability.  Growing more than 15% will be disruptive (not necessarily bad) and you are unlikely to do much infrastructure improvement while experiencing fast growth so learn to make money before you head out.
  • Your company has poor infrastructure. Your employees are not harnessed to work toward company goals. Accountability is weak. Systems are spotty.  Many times, the company is held together by what is in the owner’s head.  As you grow this will break down with an increase in errors, decrease in profitability and a dropping satisfaction level for clients.
  • You do not have a strategic plan and vision for the business.  You don’t know where you are going.
  • You are not managing by the numbers using accurate P&L’s, balance sheets, job-cost reports, and budgets.  Without these numbers, you will have difficulty spotting trends and keeping your finger on what is working and what is not.
  • You are not using a professional level markup—most likely in the 50% to 67% range resulting in a 33%-40% gross profit to cover overhead and net profit. This markup is what you will need to buy the increased overhead growth will demand and allow for a net profit each year.

Many business experts feel that if you grow without getting rid of the above problems, that your “baggage” will substantially increase your risk of failure.

Green Lights

As your market improves or as your market share increases you are likely to begin thinking about how to expand.  What are some of the signals that might give you a green light to increasing volume substantially?

  • The market is signaling that it will support your growth. You have strong leads and a good backlog of work in the 3-to-6-month range. The economic outlook in your community is bright.
  • Your company is thriving at its current level.
  • A larger company will fit your vision both personally and professionally.
  • You have staff ready to grow, willing to grow, and craving the career advancement that comes from growth.
  • As owner, you can and will delegate. You will be able to see your primary role as coaching the team. You have a key management team in place that meets regularly to work on the business.
  • Your business approaches each new challenge by creating a plan and looking at what the pros and cons of taking that step might be.  You don’t make big impulsive moves that could put the company at risk.

Growth is an exciting adventure into new territory. Just be sure you are as prepared as you possibly can be.

If you are planning significant growth, then be a smart entrepreneur and learn from the experiences of others who have already grown successfully– and avoid the pitfalls that can cost you thousands of dollars and hours upon hours of hard, unprofitable work.

Join the dozens of  savvy business owners who are a part of  Remodelers Advantage Roundtables, the remodeling industry’s largest peer group. Members of Roundtables drill deep into the successful practices of each company and share the best they have to offer. By analyzing hard numbers–the performance metrics of each business–members uncover best practices that drive profitable sales, build strong teams, and deliver the ultimate customer experience. Want to learn how Roundtables can help you?  Give us a call at 301-490-5620 to learn more today. There’s no obligation so very little to lose . . . and so much to gain!  www.RemodelersAdvantage.com

Posted in Business Growth, Business Management, Leadership | No Comments »

PowerTip: Characteristics of Successful Companies

Tuesday, October 18th, 2011 by victoria

Even though we have several weeks still in October, it’s time to begin planning for 2012. We believe strongly that the companies who plan are the companies who are most successful. Just like planning and preparation are the keys to bringing a job in on time and on budget, so are they the keys to a successful company.

Remodelers Advantage founder, Linda Case, and I just completed a seminar on Targetting Profitability at The Remodeling Show in Chicago and we highlighted several characteristics that we see in the most successful of our many members. Here’s our list.

You and all your staff are Committed to “live within the company means.” This means creating a budget and sticking to it!

You have an adequate Markup policy applied to all jobs and change orders. You’ve proven your plan on paper and are confident that your company’s pricing policy will deliver every one of the gross profit dollars your company needs in the coming year. Once you know that the plan is workable, stick to it! Understand that each time you sell a job for less Gross Profit than your plan says you need, you’re taking one step away from a successful year.

Your company has a bias toward Planning before taking major actions.  Like we said above, the companies that plan are the companies that have the most profit, are the most efficient, and have employees that are happier. It’s the thrashing around without a plan that adds stress and anxiety for everyone.

Your company has a proven ability to Implement across the company. It’s fabulous to have the ability to come up with ideas and direction but only if you can implement the tactics that actually bring an idea to life. At each meeting, wrap it up by reviewing the action items, who is reponsible, and the deadline agreed upon.

? Your culture includes Accountability for results on the part of every team member. Give responsibility to your team members and hold them accountable for making things happen. This doesn’t mean abdicating your responsibility — it means training, monitoring, and helping your top team members focus on the most important activities and meet their commitments.

You have built a company culture that embraces Continuous Improvement. One thing I’ve learned since being a business owner is that this is a journey, not a destination. We are always looking for ways that we can deliver more value to our members. You and your staff should be doing the same.

You have key Information feedback loops in place. These feedback mechanisms are typically an array of accurate and timely reports which deliver exactly the  information that helps you make the best decisions for the company. The reports you should be reviewing regularly begin with. . .

  • Profit and Loss Statement
  • Budget to Actual Reports
  • Balance Sheet
  • Marketing Statistics
  • Job Cost Report(s)

And there are many more that you may find very useful. This is just a start.  You may not have any of these available to you now but that shouldn’t stop you from getting started.  To me, the most important starting point is also the most important report you can create and that’s your Company Budget. Without this important planning document, your results will be a shadow of what’s possible.

Start today to embrace your role as a business owner and begin creating your 2012 budget (if you haven’t already).

If you’re ready to take your business to the next level — or if you’re a business owner who’s tired of working alone –it’s time to join a group of smart business owners who are facing the same challenges you are.  Whether you’ve been in the business 20+ years and want to talk business with other experienced business owners . . . or if you’re just starting and want to share with other young entrepreneurs, we have the group for you. That’s the beauty of having the industry’s largest, longest-running peer group for motivated remodeling company owners! Give us a call today to learn how you can join us. 301-490-5620 X106

Posted in Business Growth, Business Management, Financial Management, Leadership, Why Join a Peer Group | No Comments »

PowerTip: What to Say When Something Goes Wrong

Tuesday, October 4th, 2011 by victoria

Conflict Management

One of the most challenging parts of running a successful company is dealing with conflicts.  We are in a people business which means that conflicts are inevitable.  Because most people simply don’t like dealing with unpleasant issues – issues that could potentially mean loss of business or tension in the office —  a common response is to ignore it and hope it will go away!  Experts say that this is exactly the wrong approach. They recommend an immediate response which clears the air and keeps relationships moving productively.

How you handle conflict makes has a major impact on the overall health and productivity of your company. Handle it correctly and your company thrives. Handle it poorly and the it can fall apart.

Here are some tips for handling conflict effectively:

Maintain personal ownership of the problem.

Keep the initiation mild, not threatening. Don’t say, “You do X and it’s wrong!” Instead, start the conversation with a request for help. “Bill, do you have a few minutes? I have a problem that I’d like to discuss with you.” Indicating that it’s your problem helps diffuse any defensiveness – a common barrier!

Use the X-Y-Z Approach to stating a problem

“I have a problem. When you do X (a very specific behavior), Y results (consequences), and I feel Z (emotion).”

Here’s an example:  “Bob, I have a problem. When you don’t show up on time at the client’s house . . . they get rightfully angry since they were expecting you. This makes me feel very frustrated because we try so hard to deliver top customer service. “ Then simply wait for the response.

Don’t make accusations.

Stick with the observable behavior.  Don’t supply solutions. The first step is to agree that there is a problem. If you jump to a solution, you’re assuming that you know what’s going on in their heads and you don’t.  So wait until they acknowledge the problem and then work on a solution together.

Persist until understood.

If you state a problem and they don’t want to listen, don’t understand, or try to change the subject, go back at it again in a different way, still sticking with the XYZ approach.

Encourage two way discussion.

Ask them for input and their view of the issue.

Keep the initial comment short. A rule of thumb is that the longer it takes you to tell them about the problem, the longer it’ll take you to work through it. When someone keeps going on and going on about something, we get defensive and once someone gets defensive, they stop listening and begin to think of a rebuttal making it very difficult to develop a productive solution.

Have the guts to start the conversation! If an employee or trade contractor continually takes actions that are upsetting, bring it up immediately.  Remember, they can’t read your mind so slamming doors and dirty looks aren’t getting the message across. Chances are they are totally oblivious to your frustration.  Plus, if you don’t say anything when rules are broken, what do you think  your other employees are thinking? They’re saying, “Why is Joe getting away with that?” Bringing up issues is may not be easy but speak up early before you are so mad that you’re ready to blow.  And remember the tips above to help you through it.

The more you practice effective conflict resolution the better you will become! This is a managerial behavior that can be learned and the more we learn, the more our customers, employees and subs will appreciate us!

Posted in Business Coaching, Business Management, Customer Service, Employee Retention | No Comments »

PowerTip: Your #1 Tool for Maximizing Profits

Tuesday, September 6th, 2011 by victoria

Judith Miller is known as the industry’s “numbers” expert.  She uses her in-depth knowledge of remodeling company operations and financial statements to help remodeling company owners “own” the numbers of their businesses and make improvements from what they find.  Judith believes that a deep understanding of company financials is the foundation for consistent, long term success. We agree.  Below, Judith shares her thoughts on how to identify priority areas for your continual improvement efforts.

Over the years of working with remodeling contractors, some simple patterns have become apparent.  One remodeler’s strong interest in people leads to success in sales.  Another’s love for design produces award-winning projects.  Both companies can enjoy a certain level of success and stability over time.

But to develop a larger company complete with beautiful office space, internal staff and consistent profitability sufficient to develop a nest egg for retirement demands an owner with another attribute – a love of numbers.

Only by digging through job cost reports, understanding financial statements and developing trend-lines for current concerns can an owner truly understand, protect and forecast company profitability. Your financial statements are truly your #1 tool for maximizing profits.

Embracing this role is not a task for the faint-hearted;  neither can it be delegated in the early stages of company development.  The owner must understand certain vital components of the business and measure them continually.

To many whose interests lie elsewhere, the task seems overwhelming.  But long-term success rests on determining not just what to measure, but when.  Some indicators, such as cash flow, merit weekly tracking, others, such as gross profit margin, are job dependent so are measured throughout the course of a project.   Monthly and quarterly tracking suffice for still others, such as accounts receivable and payable turnover ratios.

Certain problems quickly point out where you should put your focus:

  • If vendors and subs continue to hound you for payment, then maximizing cash flow should be your number one priority.
  • If your produced gross profit margin is always more than 2 or 3 points different from what was estimated (either way), then an in-depth look at estimating and production jumps to the top spot on the priority list.
  • When sales are erratic and you complete one job only to wait for the next, marketing–including the analysis of lead flow and closing ratios– bears scrutiny.

Just as the emergency room crew determines which patient to handle first, you must learn to use your financials and other performance metrics to  identify which problem should have top priority and then perform ‘triage’ on that area quickly.  Triage looks at the current situation, establishes relative importance and operates ‘first on the worst’, then moves on to the next. It’s a never ending cycle that continues the life of your business – just as one variable is stabilized, another takes on greater importance.

The result of this focus on continual improvement is company performance that improves and improves, delivering greater stability, greater profits, and greater results overall.  Treat this process with the importance it deserves and you will earn the life you deserve.

Posted in Administration and Human Resources, Business Management, Financial Management, Leadership | No Comments »

PowerTip: Reduce Stress and Prepare for Tomorrow

Tuesday, August 23rd, 2011 by victoria

One of our most popular business coaches is Paul Winans.  Many of you know Paul from his days as President of NARI or from his many blog posts and articles in the industry press.  Today, many of our members call on Paul to share practical steps they can take to improve their company performance.

Many times, these steps include a thoughtful assessment of your business situation and tactics to reduce stress and help understanding that it won’t always be like this.  If you’re feeling burnt out and overwhelmed, listen to Paul as he shares what he learned from being a remodeling company owner just like you.

Tomorrow Will Come

In my work as a consultant to remodelers I am hearing from clients about the challenges they are facing. A downturn looks different in each person’s world. A signed job (or two or three) is canceled. Permitting obstacles delay or prevent a project from starting. Pricing pressures tempt or force the reduction or absence of profit, as work is needed simply to cover overhead. And so on.

It is worth noting that there are remodelers who have work and are doing more than well. Why? To some extent the answer to this question is the same for both situations, both good and not so good. For most remodeling companies, getting the job or not makes a huge difference. If your company does twenty jobs a year and you don’t get 5 in a row that can be devastating. On the other hand, if your company gets an unusually large job the business can be carried for several months until more sales occur. In doesn’t take a lot to make a big difference, one way or the other.

So what can you do?

Consider all possibilities

In general, people tend to get wrapped up in the way things are. The thing is that is just the starting point. Take some time for yourself to reflect on what you would do if…. Many of us never think about such things. We just work a little harder and a little longer thinking it might make the difference.

In the meantime we are miserable, finding very little satisfaction with anything.

Break the patterns and do something different. A client loves to fish but had a hard time finding the time to do so, particularly with the down market he is in. He realized he could take a great client fishing, building the relationship that will translate into more business and referrals, while doing what he loves. What is the equivalent for you?

Live in the present being pulled forward by the future

It is very hard to get up every day and go to work when yesterday was not as successful as you wanted it to be. More of the same old, same old, with likely the same results being realized.

That mindset can cripple your business. You set the tone for your entire company. If you are in sales it is imperative to be focused in a positive way on your future, not being anchored by a yesterday you wished you never experienced. How can you do that without being a wishful thinker?

A client was experiencing real hurdles with his team. They just were not performing the way he thought they could. At the same time, he was not clear about his own goals, the life he wanted for he and his family.

Sales were down. This was before the downturn. Getting people to commit was impossible.  He started getting clear about the life he wanted. He began by doing some simple exercises that got out of his head thoughts that were in there but to which he was not paying much attention. The resulting clarity changed his expectations of his people so that all in the company feel more successful. Clients are signing contracts and the company has work, even when many other companies don’t.

I am not saying it is magic and it works in all cases. I do think that being clear about the point makes you more effective in all areas of your life, not just in business.

For many of us our work is how we define ourselves. After all, we spend most of our working life at work.

Running a small business is very hard, even in the best of times. It does not take much to make it close to impossible to succeed.

I remember in the early 90’s living through a set of circumstances that felt like a perfect storm. Dealing with several difficult remodeling clients, the prospect of no upcoming work in the foreseeable future, and new challenges coming every day: when was it going to end? I was doing everything I could think of and nothing seemed to be working.

I found that stepping away, in even little ways, made a big difference. Carving out some time for me to stop being a remodeler and be a person made me able to be more effective doing what the business needed me to do. For me it was taking walks, reading, spending time with my wife and children, and taking inexpensive short vacations.

You are not your business. Things will get better. What do you want your tomorrow to be? Craft a vision that will pull you forward. And start living it today.

Thanks, Paul!

If you’re looking for an experienced business coach to help you improve the performance of your remodeling business, contact Remodelers Advantage Inc. today.  Our team of coaches are ready to dive in and share the best practices that they have seen work over and over again. Why struggle alone when you can have a business coach to help you become more profitable and productive. To get started, call us at 301-490-5620 x106.

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