I was working with a husband/wife team, coaching clients, when I discovered the source of much of their trouble. They’d never taken the time to establish who did what in their business. As we discussed important things that weren’t getting done, they pointed fingers at each other.
The discussion got heated and that’s never good, especially when you’re dealing with a married couple. I called a timeout and asked them each to write down what they perceived to be their duties in the company, and their spouse’s duties. A week later we got together and compared the lists. It was an eyeopener for both.
We laid out a program where they were to compare their lists daily, firmly establish who was to do what, then prioritize both their lists. By our next visit they were already seeing an improvement in their business and in their marriage.
In another situation, a contractor asked for help because he was having severe financial problems. I called him four times over three days and he never answered or responded to my messages. He might be in trouble, but it doesn’t appear to be that important to him. It should be.
Discover more for your business with our
Markup & Profit Class
Michael talks about pricing jobs, working with employees & subs, contracts, profitability in 1-hour streaming videos.
Order it Here
These experiences were another reminder of the importance of setting priorities and staying focused.
I can often tell when I start working with a coaching client what the end results will be. If they show up for every call, and are on time, they almost always turn their company around. Our success rate with these companies is well over 90%. If they don’t show up on time or at all, with a few exceptions the results are seldom good.
If you’re a business owner, prioritizing how you spend your time is critical. There aren’t enough hours in a day to do everything that needs doing.
How do you determine your top business priorities? If it helps your business be profitable, or more profitable, it’s a priority. Everything you do should be focused on how to make the maximum profit from every job. If you do that, your business will function more smoothly, you’ll have the money to pay your employees better, and your bills will be paid. From a business viewpoint, if what you’re doing won’t make you more profitable, why spend time or energy on it?
As a business owner, you need to stay focused on marketing and making the sale. If you aren’t good at sales or marketing, hire someone who is, but you still need to manage it closely. Nothing happens in any business until somebody sells something, at a profit.
Return your phone calls and make sure your employees do as well. Look at it from your client’s point of view. Why should they hire you to get a project built when you won’t even return their call?
Make sure you set clear guidelines on how your jobs are to be run and built. Don’t listen to BS and HooRah from employees who won’t follow the rules. If they don’t follow your guidelines about being on time, holding to a schedule, keeping the job clean, being courteous to your clients and their neighbors, and helping the subs get their portion of the job build, then transfer them to your competition. You don’t need employees who are a distraction, especially those who cause the same problems every day. Being slow to hire and quick to fire should be your rule.
With that in mind, determine what needs to be done in the immediate future. Prioritize those items and get after it. Do the top things on that list every day, preferably setting your schedule the day before.
I have a to-do list at least two pages long but I focus on the top five things. If I get two or three done each day, it’s a banner day. You might be able to get four or five things done. Just keep in mind there will be days when you don’t get anything completed. Stuff happens.
Check yourself daily to be sure you are following the plan you have set for yourself. Again, that plan should have you focused on making money. It should not have you working on jobs, cleaning job sites, delivering materials, or resolving problems with unhappy clients that could have been prevented if your employees and subs followed the rules.
Keep in mind, I’m only talking about business priorities; family and life priorities matter as well. Your business isn’t your life; you have a business to financially support your life. Don’t abandon your family to make your business more profitable. If you’re spending more than fifty hours a week on your business, it’s time to make changes because your business is running you; give me a call if I can help.
The knowledge and experience Michael Stone gained in his 60+ years in construction has helped thousands of contractors improve their businesses and their lives. He is the author of the books Markup & Profit Revisited, Profitable Sales, and Estimating Construction Profitably, and is available for one-on-one consultations.
Listen to the audio here, or select dots on the right to download: