Archive for the ‘Business Management’ Category

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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.

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

PowerTips: Words of Wisdom from an Industry Guru

Thursday, August 11th, 2011 by victoria

I’ve worked with one of the most knowledgeable people in the industry. Linda Case, for over 20 years and it’s been an unbelievable pleasure.   You’ve been reading her column in Remodeling magazine for even longer and if the notes that we receive from readers are true, Linda’s changed many lives with her words of wisdom. Well, Linda is retiring from the remodeling industry at the end of this year and she’ll be sorely missed. However, you’ll still have a bit of her business savvy to help you build strong, profitable remodeling companies. That’s because she’s compiled a fabulous selection of essays on the topics you need most, and this valuable information will soon be available in her new book, Business Straight to the Heart: The Remodelers Guide to Leadership, Management and Success. Here’s a taste of what promised to be another best seller . . .

Are you wondering what you will do “when you grow up”? Are you feeling blah about your business and where you are in life? Do you wonder if there is more (satisfaction? money? free time? balance? fun?) than you are currently experiencing?

No, this is not a commercial for hair implants, little blue pills, or a singles dating service. It is not uncommon for me to work with remodelers who question the direction they have taken in their business lives. So what do I do? I ask them more questions.

This may sound like a fortune cookie, but I’ve learned over the years that the right answers come from asking the right questions. And the right answers come from reaching back to the bedrock in your life (what you love, what you believe, what is really important to you) and then working forward.

Here are some tried-and-true questions that I use to help elicit answers from clients that can point the way to the company that best suits their abilities and lifestyle. You can use them, too. Just be sure to write down your answers so you can adjust and edit them and return to them in order to mine the information they hold for you. To give you some idea of how your answer might look, I’ve provided a few of the answers recently given by a remodeler in his quest for a better fit with his company.

What are your strengths and weaknesses as a person?

What are your strengths and weaknesses in business?

“I tend to take on too much. I over-commit. I fail to follow through….I am sometimes almost visionary. I am particularly creative, resourceful, and a great problem solver. And I have always been exceptional at bringing in business…but not so good at handling it once I’ve brought it in.”

What do you love to do in your personal life?

What do you love to do at work?

What do you dislike doing at work?

“I hate being disorganized or not on top of my details. I also dislike being hectic, particularly because I tend to lose focus when I am hectic and then I can miss important things. I get tired and bored when doing repetitive tasks….”

If you had just the company you want 3 years from now, what would it look like?

How do you like managing others in your business? Are you good at hiring? At coaching? “I like managing. I can be a good coach, and I can tell people hard things, too, when necessary, usually in a productive way. I do, however, need a good structure to make sure I follow through on all of the details….”

What kind and size of projects please you the most?

What kind of clients (including education level, finances) do you prefer working with?

Do you read business books? How many in a year? If so which have been your favorites?

Do you read trade magazines, trade books, etc.?

How do you view the importance of finances in your company? How do you judge if you are doing well or poorly financially?

“It’s as if I have had blinders on these last 6 years. All I paid attention to was the checkbook balance, my billables, and what I was able to draw out as take-home pay….I understand that to move forward I must discipline myself to pay close and regular attention to the P&L and the balance sheet….”

Each of us can design a company that complements our goals and talents. It takes stepping back, analyzing what is working and what is not, assessing our strengths and weaknesses, and then building a company where our strengths are maximized to their highest impact and value—and one where we love what we do and what we deliver!

And More Questions….

The following is the quickest quiz you’ll ever take. It will take you approximately 10 seconds. If you can answer “yes” to the following three questions, you don’t need to read any further. Pat yourself on the back, for you are a success in business. However, if some of your answers are “no,” keep reading.

1. Do you make a good salary and a net profit that compensates you for the risks you take as owner?

2. Do you work 50 hours a week or less in your business?

3. Are you generally happy in your business?

The last question is undoubtedly the most important but is usually dependent on the first two. So let’s start with money.

1. Can a remodeler make both a good salary and a healthy net profit of 5 to 10%? Absolutely. Is it easy? Not particularly. But it’s not easy to be financially successful in any field. After working with thousands of remodelers, I have learned that turning this critical area around starts with convincing the owner that there is no use staying in their business if they can’t make adequate money (the “stick”) and showing them that others no brighter or more talented than they have conquered this problem (the “carrot”).

This is an excerpt from Chapter 1 of Business Straight to the Heart: The Remodelers Guide to Leadership, Managment and Success.  The book is in production and will begin shipping in mid-September.

To tap into more of this knowledge and insight,  join the community of successful remodelers and array of industry experts who are all a  part of Remodelers Advantage. Over 300 remodeling company owners and staff have experienced the difference Remodelers Advantage can make.  Click here to contact us today and see your life improve tomorrow!

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

PowerTip: Take Charge of Your Online Reputation

Tuesday, July 26th, 2011 by victoria
  • A Virginia design/build remodeling company learned that a competitor had registered seven “lookalikes” of the company’s domain name. The only difference was that the legitimate company’s URL ended in .com, whereas the lookalike URLs ended in .net, .org etc. and were directed to the competitor’s site.
  • A California remodeler checked out its profile on Yelp!, where it had 20 homeowner reviews. Unfortunately, only three remained visible — and these happened to be the three negative reviews.
  • A Georgia remodeler found his company in the humiliating Angie’s List “penalty box” after receiving an F rating from one disgruntled client — despite five years of steady A ratings.

All three incidents, reported on daily5REMODEL by  Leah Thayer reveal the growing challenges remodelers face in managing their online reputations. More remodeling searches are taking place on the web, and ratings sites and social media platforms are proliferating. Increasingly, projects and money are at stake if your image comes across poorly — or if prospects trying to find your site are directed to another site.

Here, Leah shares several concrete actions you should take to minimizing the risks of potentially damaging content about your or your business.

Know where you stand

Type your name, your company’s name, your employees’ names and so on into online search engines. In the event that the unflattering or inappropriate content was posted by you or the employee — say, updates from an employee’s personal Facebook page — have him delete it or adjust his privacy settings.

Get on it quickly

Google Alerts is probably the most widely used tool for free web monitoring of when your name (or any other search term) has appeared online. Don’t wait for someone else to bring a potential embarrassment to your attention.

Overwhelm the negative with positive

If you can’t remove a negative post, you can try to reduce its visibility by publishing new, positive content that will push older items down in a search. Your social network profiles can be a big asset here. Profile pages on LinkedIn, Facebook, Twitter and the like often show up high in searches, so keep them current and positive.

Use the complaint process

If you find that another company is using your name in web searches, you may have legitimate grounds for a complaint. Here are links to the forms for the major search engines:

Respond quickly and professionally to negative reviews

Ask your good clients to post fresh, positive reviews on the sites they use. Make this easy — email requests to them, with direct links to the appropriate sites. Be classy, be positive, keep your chin up.

Register alternative domain names

A number of steps can help you establish a basis for recourse against abuse of your name. Register URLs that are similar to yours, or might be typos, abbreviations or synonyms for it (e.g., JonesRemodeling, JonesRemodel, JonesRemodeler, JonesRemodleing). Consider “geolocal” URLs, like SouthParkRemodeling.com. Have those domains redirected to your site.

Also consider registering your personal name as a domain.

Trademark your name

You can place a TM next to your name, logo and/or slogan at any time, even without registering your trademark through the U.S. Patent & Trade Office. Even without a federal trademark registration (which allows you to use the ® for registered), you can establish rights in a trademark based on your use of the mark in commerce. 

Reach out to the source

If a negative review is false or unjustified, don’t be afraid to go directly to the review site. It might not get you satisfaction, but it can’t hurt. The remodeler whose longtime “A” rating on Angie’s List was jeopardized by an “F”? His company was later featured in a glowing article on the site.

If you’re ready to take your company to the next level of success, join the best remodelers in the business — the members of Remodelers Advantage. Contact us today and have a better life tomorrow.  Click here to contact us.

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

PowerTips: What Sales Managers Measure

Tuesday, June 7th, 2011 by victoria

At a recent meeting of one of our Roundtables peer groups — this one with owners of companies producing over $5,000,000 annually — I participated in a rousing discussion of the techniques and procedures used in managing sales successfully. As you can imagine, once a company reaches a high volume, using a proven, effective sales process is even more important than it is for smaller companies.

For one thing, rarely can the owner continue to be the only sales person. Typically, there are 1 to 4 additional salespeople on the team. To maintain the company’s reputation and to make measurement more effective, all salespeople should follow the same solid process. Secondly, the company must maintain this volume to cover expenses and profits, therefore, they need measurements that a process provides to see when and how to turn up the volume on marketing and sales efforts.

Two parts of the discussion were particularly interesting to me. One focused on the metrics for measuring success, and the other focused on the steps in the process — or the Sales Pipeline.

First, measuring.  All of these savvy owners agreed that results–projects and dollars sold– is the ultimate measure. But what else is measured regularly? Close ratios are also no-brainers: the ratio between qualified prospects and design contracts signed (if applicable), the ratio between design contracts and construction contracts, the ratio between leads and appointments. Comparing these among salespeople can quickly uncover weak areas — and then you can train for improvement.

Plus, many agreed that the best managers also measure the activities that create sales. If a salesperson is participating in sales generating activities, it is reasonable to expect that they will have better results, right?

During the Roundtables meeting, owners worked together to develop a list of activities to measure weekly or monthly. Here are just a few.

  1. # Leads self generated — Prospecting and yes, I believe all salespeople should self-generate some portion of their leads.
  2. # of Referrals self generated–Ask for the referral!
  3. # of networking activities attended.
  4. # of calls to previous clients.
  5. # of visits to architects and/or interior designers (if applicable)

I’ve seen this process in action. Several years ago, we took three of our top Roundtables Groups to visit a highly successful remodeling firm in the Northwest. During the process of learning about the operation, the owner of this high-volume company showed us a chart. On one axis were the names of the sales representatives. On the other axis was a long list of activities that were available to the reps. This list included working the showroom on Saturdays, presenting educational seminars in the showroom, attending networking events, sending out a personalized newsletter to their contacts and clients, and more.  The results of the chart clearly showed that the sales reps who participated regularly in more activities had greater results — a higher sales volume. If you’re not measuring activities that drive sales, you should be.

What sales metrics do you measure?

Next PowerTips, we’ll discuss the Sales Pipeline.

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

PowerTip: Dealing with Unpleasant Conversations

Tuesday, May 10th, 2011 by victoria

One of the toughest parts of managing for many people happens when they have to talk to an employee, sub, or client about an unpleasant topic — whether it’s underperformance, a disagreement about a bill, or a misunderstanding about a project. Many people don’t know the best strategies for dealing with these tough conversations so what could have been a productive discussion often turns into an angry exchange after which both parties feel betrayed and hurt.

Because most of us don’t know the most effective ways to deal with these tricky conflicts, we do what most people do — simply avoid it! Hey, if you ignore it, maybe it will go away! Unfortunately, that rarely happens and putting it off just makes it worse.

What a difference it would make to our lives if we could all handle these touchy situations with aplomb, elegance and productivity!

Authors Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler, call these situations crucial conversations and, in their book of the same name, identify them as a discussion between two or more people where 1) the stakes are high, 2) opinions vary, and 3) emotions run strong.

That could describe many situations in the remodeling world. Especially since you’re dealing with someone’s home, a direct reflection of the owner, emotions are particularly vulnerable.

In the book, Crucial Conversations, the authors take a very different approach to dealing with conflict. They share the reasons why we act like we do when faced with a problem from the adrenalin rush that muddies our thinking and pushes us to fight aggressively or flee the situation — to the way our minds create angry stories about the other person’s actions which starts us off on the wrong foot altogether.

These human relationship experts believe that we can all learn how to create productive discussions without anger or defensiveness by using a variety of simple strategies.

For example, the authors describe a tendency that most of us have to let our emotions take over when somebody does something that we disagree with. When this happens, we begin to unconsciously invent stories about why the person involved took the action they did. And in these stories we overemphasize the other person’s guilt and assume the worst possible motives while ignoring any good intentions a person may have.

Then, when we approach them to discuss it, we’re walking in with our minds made up and immediately attack! With this approach, we’re acting as our own worst enemies and the chances of getting what we want is severely diminished.

Instead, the authors suggest, if we learn to recognize this pattern, we won’t be drawn into inventing the reasons behind the decision. We’ll understand that we don’t really know why the person did what he or she did – we’re just imagining that we do. All we really know is the action they took. With this mindset, we walk into a conversation trying to explore the reasons behind the action – which more often than not are totally different than the story we have told ourselves. Once we understand the reason behind it, we can work together to come to a solution. No attacking, no defensiveness – just a dialogue between two people who both want things to work.

I highly recommend that we all read this fabulous book and follow the guidelines that it provides.  If we can all learn  improve in the way we approach and address difficult issues that will always be there, we’ll find less stress and greater satisfaction in all aspects of our business.

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

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