Today's residential construction business owners are discovering that to be successful, business training and education is essential. In the current marketplace the prospects of succeeding as a great craftsman doing superb work are diminishing. Now the craftsman must endeavor to become an astute business person learning and acquiring critical skills in marketing, finances, sales, management and systems to succeed.

What is the best path for a craftsman to secure industry relevant business training and education, Construction Industry Specific Business Training, College or HKU (Hard Knock University)?

Hard Knocks University (HKU)

First let's agree that HKU, the path many contractors take, is a process that requires trial and error leading to years of wasted time, energy and money. Some will make it after many years of doing it wrong. However most do not as evidenced by the high failure rate (over 90%) amongst contractors.

College or University Education

Research the majority of colleges and universities and you will find very few programs specific to residential construction education. Most relevant programs are geared towards commercial construction. However one may go to college and take a construction management program. Then one may take business courses to learn the basics of business. The cost for a four year education will cost $100,000 to $200,000. When you get out then you will have to join the rest of the world posting a resume and then search for a job. Once you get the job then you have to work your way up the ladder. If you start a business you are still lacking business education and you will likely have huge college loans to pay off.

Construction Business Owner Training & Education

In lieu of going to college and spending tens of thousands of dollars, construction business owners can consider taking programs geared specifically for them. Programs like this are taught while the contractor is working. As the student is learning he/she has the opportunity to use what is learned immediately on their business. The investment for a Construction Business Owner (CBO) Training program is usually a lot less than the typical college education.

CBO Programs taken by existing construction business owners will generally range between $10,000 and $20,000 dependent on how much training the CBO has acquired in his/her contracting career. CBO programs can be taken while working and often financed by the on going business. 

Another important factor to acknowledge is application of the CBO training into the current business usually leads to increased business that pays fo the entire program in less than a year.

The Return on Your Investment in You (ROI) and how to pay for it

Doing the math let's speculate that a CBO Program requires an investment of $10,000. Using the training into to your current business how much more work will you need to bring in to cover the investment? 

A Construction Business Owner who uses a 50% markup with a 33% gross profit margin will have to bring in an additional $30,000.00 in business to pay for a 10K program. Increases in business after that are gravy!

With the typical college program costing well over $100,000 while not working the Construction Business Owner industry specific program has a lot of upside. 

Teaching CBO programs I have contractor clients, who applied the program, and generated business over 10 times their education investment. It sure beats spending over $100,000 and giving up years of your life going to a 4 year college. One contractor client John, from Waltham, Mass said he tripled his business volume the year following adoption and implementation of a Construction Business Owner program.

One such program is about to start in the Boston area in February, 2015. To learn more click on the icon for Construction Business Owner Education and Peer Group Program. The program author and team lead trainer is National Remodeling Industry Educator and Speaker Shawn McCadden. CR, CLC, CAPS.

PS; I will be joining the training team.

Invest in your company now and not the government

Another thought to keep in mind is to invest and pay for your program using this years profits and limiting your 2014 tax liability. Many contractors are reporting that they have made a profit this year and have to pay a lot more in taxes. Invest before 12/31/2014 and reduce the amount you pay the government while preparing your business for 2015 and beyond.

Need business advice/help or guidance on planning for next year contact us.