Posted by Mark Paskell on Sat, Nov 21, 2009 @ 10:56 AM
Contractors and remodelers agree that 2009 has been a challenging year for our country and the residential construction industry. In spite of the current economic environment there are numerous examples of successful remodelers and contractors.
At the recent national NARI business meeting and Remodeling Show in Indianapolis, I met several such companies. These companies have adapted to the new economic environment skillfully. They are focused on working smarter to maximize their time. Some claim that they are not working any harder than before the recession hit. Following are some observations from these winners.
Working Smarter, Not Harder, Maximize Time
1. Identify your niche; insure that consumers want what you are offering. Find a void in the marketplace that your company is uniquely positioned to satisfy and then exploit it fervently.
2. Client type; define the type of clients you want to attract and work for and avoid the ones you do not want. The clients you don't want are time wasters, profit drainers and are not worth the trouble.
3. Your vision and plan; create your long term vision. Build a plan that stages your growth. Review your plan often and adapt to changing conditions.
4. Know your strengths and limitations; hire a team that is highly capable to create a balanced team. You cannot do it all yourself. Hire people that share your outlook, learn to trust them to help you fulfill your vision. Stategically align yourself with professional partners and trades.
5. Clearly share your vision and strategy to build your company with everyone on your team. Don't assume they know what you want by osmosis. Coach them thoroughly and validate that they understand what you expect. Praise for jobs well done often.
6. Deliver service that is REMARKABLE; your satisfied clients will stick to you. They will buy more and refer you to their friends.
7. Passion; make sure that what you are doing is something that you are passionate about. If you think your business is just a job you are probably in the wrong business, maybe you should get a job.
8. Have a life, stay fresh; on purpose make sure you take care of what is most important in life, family, fun, recreation, worship, health, self-development and down time. Sun up to sun down schedules lead to burnout, broken homes, loss of profit and poor health.
9. The right business model that matches successful construction companies; what ever the cost insure that your business model is in line with successful companies in your industry. Traits of a successful model include vision, goals, a business plan, capital, implemented systems, business education, legal compliance, certifications, the right employees, professional trade partners, sales training, effective marketing, use of technology, integrity, leadership, superior service, constant and on going training for all stake holders, coaching, the ability to be resilient and the willingness to embrace change positively.
One remodeler stated "the commitment and time to properly align my business with best practices in the industry was the best decision I ever made for my business. I now have more time for my family and the things that are most important to me. I have discovered that taking care of what's most important first makes me better when I am servicing my clients."
mark the coach
Posted by Mark Paskell on Tue, Nov 17, 2009 @ 01:02 PM
How many times have you or your team gone to the job and you find out you are missing something necessary to do the work?
Without checklists you or your team are guaranteed to forget something. The big question is what will it cost you?
Potential losses from not having a checklist
1. Money
2. Employee hours lost going back to get what's missing.
3. Men standing around doing nothing.
4. Sub shows up and can't do the work, has to re-schedule one week later causing a domino effect for all the subsequent trades.
5. Embarrassment for your men, morale takes a hit.
6. Embarrassment because the homeowner now knows you don't have you stuff together.
7. Next progress payment you need is delayed and you can't make promised payments.
8. Building inspector due to come to inspect but you have to cancel because you won't be ready.
9. Employees are ticked off because this may impact their ability to complete the job within the budget. Loss of bonus.
10. Loss of referrals from homeowner who was ready to refer you to their next door neighbor.
Surely, if you have been in the business long enough you could add to the list. In our contracting coaching sessions we go over the philosophy of having the right system and then develop checklists to insure that the system is implemented. Without checklists we are left depending on our memory to remember. Contractors and entrepreneurs are too busy juggling numerous balls in the air to remember everything that must be done on a project.
You worked hard to sell the job at a number that will cover materials, labor, overhead and profit. Insure that you realize your hard earned profit and develop the habit of using checklists to jog your memory.
mark the coach
Posted by Mark Paskell on Mon, Aug 10, 2009 @ 09:06 PM
I recently learned about a contractor who lost a suit from a homeowner who decided to stop paying for a completed project. It turns out the contractor did not receive several payments totaling over $40,000. He finished the job believing that the owner would eventually pay up. The contractor had never been sued in 15 years of business and has a good following in his community.
As it turns out the homeowner, who said they were happy for most of the project, sued the contractor and claimed that the work was not what they expected. The contractor returned the favor and sued to collect his balance.
An attorney reviewed the situation and found the contractor was not in compliance with the Mass Home Improvement Laws. There were so many contract violations that the court found in favor of the consumer and awarded them a sum significantly more than the balance. The contractor was advised to accept the decision due to the numerous violations. Ouch!!!
Unfortunately contractors often end up with the short side of the stick in these situations. Consumers are usually portrayed as the victim. Not to say that some contractors don't deserve it, but what about those contractors like you who do a great job? Are you sure your contracts and practices are in line with the contractor laws in your state?
In order to protect company, familiarize yourself with the laws governing contractors in your state. Your practices, contracts licensing and insurance should all be in line with the rules and regulations governing your industry. If by some chance you run into a knowledgeable consumer who doesn't want to pay at least you will have a leg to stand on provided you do your job well.
Some items to think about in Massachusetts;
http://www.mass.gov/legis/laws/mgl/gl-142a-toc.htm
1. Review the sample state contract on line at http://www.mass.gov/Eoca/docs/sampcont.pdf
2. Make sure you are registered properly with the right name, address, and city or town. Notify the state promptly if anything changes.
3. Use your registration number in ALL advertisements.
4. Make sure you have the required language, in the right size font on your contract, in the right places.
5. Provide every homeowner with a three day right of rescission.
6. Make sure all your sub-contractors are also registered per the law.
7. Have an attorney review your documents for compliance.
8. Don't charge more than 1/3 down except for special orders.
9. Study the law and know your responsibilities and rights.
10. Use the arbitration clause.
11. Educate the homeowner.
On insurance, make sure you properly protect yourself, your employees, your customer and also make sure you obtain insurance certificates from your subs. No comp on subs and you pay their workmen's comp. Refrain from the temptation to forgo workmen's compensation or misclassifying your workers to save on comp. Many contractors are audited and caught misclassifying their employees. Then they are whacked with a huge comp bill! Can your business afford that?
The professional contractor who follows the rules and knows how to explain this to the consumer, will stand out from those who don't and win jobs. Today's consumer is smart and wants the right professional to work on their most valuable investment. All you have to do is prove it. The cheaters are dead wood being expunged by the economic downturn. When the consumer returns, it will be you, the transparent professional contractor who is there to serve their needs.
mark the coach
Posted by Mark Paskell on Wed, Nov 19, 2008 @ 10:26 PM
Many small business owners become trapped thinking that they have to do everything themselves. At times they think that because no one can do it as well as them that it is more effective to do it themselves. If you are a small business owner and don't want to grow this may work ok. However, if you want to grow, the odds are stacked against you if you are a CEO owner wearing most of the hats. We are seeing many contractors who say they want to grow, stubbornly resisting giving up control of tasks that can and should be done by someone other than the CEO. Contractors are not the only profession exhibiting this behavior. It is prevalent in many different types of businesses. In contracting, it is not uncommon to see the CEO running the company, handling the sales, running production, driving nails, making collection calls, and anything else they think that only they can do. This feeling of invincibility that they can do it all is not without grave dangers to the health of the business and the owner. It contributes to poor health, burnout, marital issues, questionable judgment, employee issues, money problems and sometimes heart attacks.
For example the average work week for a CEO is 50-60 hours and for a professional salesperson 55 hours per week. How is it possible for one person to do both effectively? Not to mention the other items the CEO owner handles.
The road to success for contracting companies is clearly available to any who seek it through modeling other successful companies in their industry, research, education and training. The only thing the CEO owner contractor needs to do is decide to run their business in line with established contractor best practices and proven paths already blazed by successful contractors.
If you are a CEO owner of a contracting company wearing too many hats, do you think you are invincible like superman?
Are you too stubborn to let some of the work go?
Do you need the feeling of saving the day and telling yourself no one can do it as well as me?
Do you think it is possible to keep up the pace and be profitable and healthy?
If your answer is yes, I wish you the best.
If no, maybe you are ready to work with a professional residential contractor coach who can show you how to shed the hats you are over qualified to wear!
Does this sound like anybody you know?
Posted by Mark Paskell on Wed, Oct 15, 2008 @ 09:07 PM
As 2008 comes to a close are you working on your business plan for 2009? Have you assessed the results of 2008?
With the recent downturn in economic activity and the pending election, many contractors are experiencing less work than previous years at this time. Many have never witnessed such a dramatic drop off in business so early in the fall. While the economy works itself out this is the perfect time to develop your strategy and business plan for the coming year.
Many contractors are realizing that their lack of planning and training has left them in a precarious position this fall. Now it is more important than ever to know how to sell your services. Across the board, leads have dried up and backlogs of work are not sufficient to carry companies through the end of the year. Droves of workers are being laid off or let go. Hopefully, this will not mean the end of the road for many contractors, only time will tell.
Meanwhile why not spend this time working on your business? Seek out and invest in best practice education and training to prevent this from happening to you again. Some major reasons for failures in our industry are lack of planning, inadequate marketing and lead generation, not aggressively selling, poor cash flow, lack of or inadequate systems, lack of industry specific and business training and owners wearing too many hats.
The industry is rapidly changing. Homeowners are more knowledgeable, savvy, demanding and discerning on who they will hire to work on their home. The Next Level Consumer is expecting service from The Next Level Contractor. If you are not like the contractor they expect, you will have a difficult time getting work. If you are not like the Next Level Contractor, even if they hire you, they will not pay you the amount necessary to run a legal profitable contracting business.
Most contractors have learned that the best customers are homeowners who are professionally educated. These customers tend to provide professional services in their jobs that are supported by processes and systems. These consumers are expecting the same quality of service from their contractors who work on the home. The Next Level Contractor knows this and has adopted the use of best practices and systems to deliver his service. This way the Next Level Contractor can command the price needed to support a professional contracting company.
The Next Level Contractor is an expert in his field. He will use best practices and systems to deliver an outstanding contracting experience. He is now planning for 2009 to make sure that when the economy turns around he will be ready for The Next Level Consumer. He is working marketing plans, website development, sales training and processes, lead carpenter and employee training, home show planning and more.
The Contractor Coaching Partnership teaches contractors how to align themselves so that they can win the business of this consumer.
Are you ready to start your planning for 2009?
Mark
Posted by Mark Paskell on Tue, Oct 14, 2008 @ 11:11 PM
Here we go again. Another recognition for the boys from GoodFellas. The Eastern Mass NARI chapter has featured Joe and Dale and their company the GoodFellas, as the member spotlight company in the October newsletter.
GoodFellas continues to educate and train best practices to their employees insuring that they continue to provide outstanding services to the residential home improvement market.
Great job Joe and Dale.
Mark
The Contractor Coaching Partnership
MEMBER SPOTLIGHT
GOODFELLAS CONSTRUCTION MGMT LLC
Several years ago, Dale Shadbegian and Joseph Kupstas shared a "simple" goal -
to deliver a better building and remodeling experience. After meeting another EM
NARI member, they knew that joining NARI was a critical and pivotal step toward
reaching that goal.
"GoodFellas' commitment to education and skill advancement is a great concern
of ours", says Kupstas. "We were also amazed at how professionals in the same
industry can come together and share ideas. After meeting several NARI members,
and attending a membership meeting, we knew we had to get involved."
"We have received a warm welcome from the membership, and are excited to share our ideas with others as
well. The energy of the membership is really directed toward the betterment of the Remodeling Industry, and
not towards the betterment of oneself."
GoodFellas Construction is a full-service custom design/build remodeling firm. The firm has been honored with
several awards including the most recent Qualified Remodeler's "Top 500 Remodelers 2008". Shortly after
joining NARI, Joseph Kupstas achieved his "Certified Remodeler" status as well as several GoodFellas Lead
Carpenters were also certified through NARI's "Certified Lead Carpenter" program this past Spring.
Posted by Mark Paskell on Tue, Sep 23, 2008 @ 07:21 PM
Joe Holm from Sandler Sales Training Center and The Contractor Coaching Partnership are offering a free seminar for residential contractors. This program is specifically designed for contractors and the trades who provide contracting services to the home owner market.
This is a great time for contractors to plan and work on their business for next year.
If you or someone you know is interested in attending click the link below to register for the free seminar.
Subject: Contractor Coaching Seminar
|
Free Seminar
"The next level remodeler"
Remodelers, Replacement Contractors, and Small Trades
Invest two hours discussing these and other important issues with your peers
- You are spending too much time working IN your business and not enough time spent working ON your business - How to develop systems
- Your fear that the economy is going to ruin the business that you have killed yourself building
- How to prevent home owners from stealing and using your expert information to scope work and hire low ball contractors
- You're sick and tired of communication problems between your employees and customers
Wednesday, October 8th, 2008
4:00 pm to 6:00 pm
Sandler Training Center
Summit-Place
420 Lakeside ave
Marlborough, MA 01752
To Reserve a Seat contact Joe Holm 508-449-3861 JHolm@sandler.com
Or
Mark Paskell at 508-847-0162 Mark@thecontractorcoachingpartnership.com |
|
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Profit From Other People's Experience
Other people's experience can be enormously helpful. With it we can often overcome both time constraints and lack of training. But this experience can only be helpful if it is used.
Most people, mainly because of pride, cannot make use of other people's experience. Many cannot accept expertise or help. Most people cannot even listen to others' advice - or rather they seem to be listening but cannot make use of it.
To learn to listen to, evaluate, and use the wisdom of others is an invaluable aid to being successful. This takes receptivity and is born of humility and self-confidence.
Many of us resist using other people's experience because we are afraid of our own potential dependence and compliance. To the extent that we can assert ourselves, we can overcome this fear and use other people's expertise as we do that of doctors' and lawyers'.
People who have strong ideas of their own are less reluctant to make use of expert consultation. Someone else may already have paid a price you need not pay. Look to your associates for lessons already learned. |
Click here to register for the Free Seminar |
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Posted by Mark Paskell on Mon, Sep 22, 2008 @ 10:53 PM
I met with a prospect recently who is afflicted with chief cook and bottle washer syndrome. He is the CEO, the salesman, the bookkeeper, the office clerk, the production manager, the service manager, the marketing manager. He is working over 75 hours per week and said he is concerned that he is working at a breakneck pace. He said he would like to leave the business to his kids who work in the business. He also said he doesn't really take vacations and when he does he is working from the vacation destination.
His spouse doesn't want to work in the business because he is very particular and for lack of a better word anal about the way things are done. His volume of work is in excess of seven figures. He even does his own payroll for 10 plus employees. He says he doesn't trust anyone! And I am glad to say he is a nice guy and is legally licensed and insured with a strong reputation. However he knows he is missing out on the family, the grandchildren, and time with his spouse. He doesn't have the time he would like for his hobbies and leisure. He was quick to point out that he was self made and learned from the school of hard knocks.
The above description is quite common for contractors. The likelyhood of a contractor similar to the above making it over the long haul are slim. They usually burn out, make mistakes, get divorced, or worse have heart attacks and of course go out of business. When this happens homeowners are left in the lurch and complain to the authorities. Is it any wonder that contractors are the most complained about industry in America, according to the Consumer Federation of America. These contractors usually have little or no systems, business training, and very rarely use best practices.
He says he needs a coach or some help, but is not sure if he can ever let go of his baby. Hopefully he doesn't join the ranks of 95% of contractors who don't make it and leave their customers with no one to service their work.
What do you think he should do?
mark
Posted by Mark Paskell on Sat, Sep 20, 2008 @ 10:40 AM
The recent commotion in our economy is presenting many of us with challenges we haven't faced.
To all contractors, contractor providers, business associates and fellow networkers please use this forum to share your challenges and insights on what you are doing to overcome the current challenges?
What would you suggest to others who read this blog?
How do you market and generate lead opportunities?
Maybe you are doing something that will benefit a reader of this blog and can become known as an expert in how to succeed in challenging times.
Please suggest topics that you would like to see on this blog and I will write about them and also encourage my networking team to participate.
Let's help each other!
mark
Posted by Mark Paskell on Tue, Sep 16, 2008 @ 11:16 PM
An article recently published by Eastern Mass NARI in the monthly newletter sent to all members about The Contractor Coaching Partnership.
MEMBER SPOTLIGHT
During the May NARI meeting we welcomed a new member company called The Contractor Coaching Partnership. Founder, Mark Paskell came to us and said if there is anything he can do to help us increase the chapter membership that we can always count on him to help. In that same meeting he brought six guests. We learned that he is an expert in building groups through networking, in addition to his profession as a "Contractor Coach". In August, Mark was nominated by EMNARI President, Bill Farnsworth, to join the board of directors.
Mark has over 22 years experience in our industry and is known as a Design/Build and Exterior Renovation Expert. His industry related experience includes Sales and Marketing Management, Production and Administration System Development, Design/Build and Lead Carpenter System Development, Public Insurance Adjuster, and BNI Networking. He is a Graduate of Sandler Sales Institute, Design/Build Institute and a 10 year member of Certified Contractor Network. In February 2008, he founded The Contractor Coaching Partnership. The company provides coaching and industry specific best practice system development and training for residential contractors and the supporting trades.
He says that he got the idea for coaching contractors when he met Richard Kaller of CCN in 1996. Mark says, Richard taught average contractors that they could succeed if they developed, implemented and trained systems and best practices. Mark also said that he was inspired to start a coaching career by Tim Bretton of Sandler Sales and Shawn McCadden, Consultant. "I always believed that choosing the right role model and mentor has a huge impact on long term success.
In NARI, I see a great opportunity for new contractors to learn from the professional remodelers and I recommend NARI to all my clients"
Don from Bryan Construction says "The Lead Carpenter and Systems training has been great. I look forward to the Design/Build sales training we are now starting. Working with someone that has direct knowledge of the industry, has made all the difference in the world. Thanks Mark, Don Bryan"
For more information please check Mark's
website and blog at
www.thecontractorcoachingpartnership.com
mark@thecontractorcoachingpartnership.com
Cell; 508-847-0162, Off. 978-422-6354