Posted by Mark Paskell on Thu, Jul 02, 2009 @ 08:54 PM
Recently, I spoke with a veteran contractor who was having challenges with his business. There was significant budget slippage on projects and poor communication between his carpenters and customers. These challenges were causing significant culture issues among the employees in the field and the office. The owner found himself putting out fires every day. All departments were playing the blame game pointing fingers at everyone but themselves.
I educated them how come it's not working?
We delved into the situation and learned that the carpenters were great craftsman who were educated on the lead carpenter concept. The premise behind the education was once they were trained in the classroom, they would be first class lead carpenters in the field.
We discovered that after the lead carpenter training, the owner and office personnel were suppose to develop a paperwork system based on the lead carpenter concept. Then they were to help implement the system for the field personnel by providing checklists, pre-construction meeting forms, weekly meeting forms and a binder system. Well that was five years ago and the carpenters are still waiting!
All to often, contractor owners pay for education and rah rah motivation for their employees and then without any more effort, assume that their employees will perform like superstars in the field. Education without application, system development and implementation produces poor results. The money spent on education is wasted if it is not followed by application.
In our contractor coaching programs we start with education then follow up with system development and implementation into the contractor's business while the information is fresh. This reinforcement is vital to the success of the coaching program.
Follow up plan
If you are considering contractor education for yourself or your employees, protect your investment. Create a follow up plan for the development of a system that will reinforce the education you paid for. The owner needs to lead the charge and insure that the education is transfered to the field. The resulting outcome will be less slippage, better communication between employees and customers, less workplace stress and maybe a good night's rest for the owner!
mark the coach
Posted by Mark Paskell on Mon, Jun 29, 2009 @ 10:07 PM
Have you noticed the huge influx of wannabe contractors now claiming that they offer design build services to homeowners? This isn't anything new, but it seems that since we've been hit with the recent economic downturn any carpenter, roofer, plumber or handyman who can swing a hammer is claiming that they are a design/build company. Homeowners faced with less equity and looking for deals are taking chances hiring tradesman with little or no understanding of what it means to be a professional design/build company. This spells big trouble for consumers and contractors alike. Many design/build impostors are pawning themselves off as a true design build professional. These contractors bid incomplete plans and leave questions unanswered until they have the homeowner over a barrel. Once the job has started then the change orders are submitted for incomplete plans and scope of work. With little leverage the homeowner has no choice but to pay up or risk an incomplete job. This hurts the perception the homeowner has of our industry. The ensuing finger pointing between designer, contractor and homeowner leaves no winners.
The Professional Design/Build Contractor, who is truly committed to design/build, educates the homeowner on what the process means and does for them. Combining the world of architecture with construction and participation from the consumer usually yields a successful project. These contractors tend to use a contractor coaching service, are members of organizations like NARI and are constantly improving their systems and products to deliver outstanding results for homeowners.
The effort and training needed to become a professional design build company is well worth the effort producing happy customers who give great referrals. If you educate and show the consumer that you are the expert, using a real design/build approach, you will likely beat out the design/build wannabe every time.
In this downturn, now is a perfect time to look at your existing company and remodel any systems that you haven't had the time to fix when you were busy. You may have noticed consumers are harder to pin down now than a few years ago. Many approaches that work then aren't working now. Some new approaches that are working are, suggesting down sizing, looking for maintenance items on the home that need attention, letting the homeowner do some of the safe work, and working with special homeowner requests.
If you are a contractor who claims to be a design build company but you really aren't, it will be hard to win jobs in this economy from a savvy and educated consumer. The true Professional Design/Build Contractor is what the new consumer is looking for.
Any thoughts on challenges posed by design/build wannabes?
mark the coach
Posted by Mark Paskell on Tue, Jun 23, 2009 @ 08:37 PM
Imagine you finished a large kitchen addition remodel project last year and the client has a party with several high income friends over, oohing and awing about the project. Several hours into the night, after a few martinis, one couple says to the client, we need to talk to company who did this. The client replies no problem just call Smith Remodeling at 1-617-456-7891. Of course the couple says thank you, write it down on a napkin and lose it the next day. Then they get busy and forget your name and number and never call, or worse call someone else.
Now imagine if your number is so easy to remember that even a few martinis won't prevent someone from remembering it. What if your number was as simple as
1-888-REMODEL.
Imagine this number plastered all over your job signs, on your moving billboards (vans and trucks), on your posters, on your website, at the home show trade booth. Do you think it would be easy to remember?
In this new environment we all need the edge over our competition. This vanity number is one of the best available in the industry today. It is easy to remember and if you are in the remodeling or home improvement business could you think of an easier number to have for your company. The number is available all over the country and can be programmed for specific areas by zip code! It can be rented by town or county for a small monthly investment. For more information on exclusive areas and availability, please use the contact form and we can let you know if the number is available for your geographic area.
mark the coach
Posted by Mark Paskell on Thu, Jun 11, 2009 @ 06:45 AM
A contractor coaching client recently asked me to assist with an employee who was not meeting expectations. The employee was not performing in a satisfactory manner that has lead to a serious customer complaint and loss of profit.
I asked the contractor if the carpenter was following the company procedures and he answered no we never took the time to write them down.
Next, I asked does the employee have a job description, the same answer no. The employee was hired and placed in the field with no company orientation or training.
This is a common challenge for many contractors and entrepreneurs. Often times, employees are hired quickly and thrown into the field using the baptism by fire method. Owners assume that through osmosis the new hire will inherently know what is expected. Then when performance doesn't meet expectations, the contractor or entrepreneur becomes upset with the employee.
Every business owner should consider developing an employee handbook and job description for any new hire. Expecting our employees to be mind readers and meet our expectations without clear expectations is setting each party up for failure.
As an owner of a business, it is your responsibility to clearly describe what you expect from all your employees as well as your subs and vendors. A simple job description will prevent many misunderstandings and may prevent an employee from filing a complaint with the state board. Contractor training and education will benefit you, your employee and your customer.
Below is a link to the national forestry website employee handbook template. This simple template is free and will allow you develop a basic handbook for your employees.
http://www.na.fs.fed.us/wihispanic/employee_handbook/default.htm
There are many other free sites that will help you create a handbook for your company. Search "employee handbook" and several free sites will be listed.
The time invested in your company manual and job descriptions is well worth the effort.
Do your employees perform up to your expectations?
Posted by Mark Paskell on Sun, May 31, 2009 @ 10:31 PM
We are fast approaching the mid year mark and hopefully the beginning of an improved market. Many contractors and entrepreneurs are telling us that leads are increasing. However consumers are still cautious, slow to make decisions, seeking multiple bids, considering smaller projects, looking for more value and sales cycles are much longer. One friend said he just had 6 appointments to make one window sale, when it used to be two calls only 1 year ago. Does any of this sound familiar?
Change; With all the changes in the way consumers are responding to contractors, it is vital that we change our approach to line up with what consumers expect. In previous posts, I spoke about the next level contractor and how he or she is prepared to win jobs from the new consumer. Contractors who have invested in best practice training, sales, marketing, technology, networking and effort to adapt to the new market are keeping busy. Those who for whatever reason have not adapted, have little or no backlog and are in peril.
A very interesting fact; many of The Contractor Coaching Partnership clients have completed some form of college education like engineering, business, or finance and have decided that they need more training and education with us to win in this new economy. Go figure, those with an education want to know more?
We hear many contractors say they will improve themselves by reading books, taking a few webinars, going on contractor talk forums and doing some old fashioned marketing. Many have claimed that they can do it themselves and they don't need anyone's help. They claim to know how to handle this downturn because they have been through them before. Others have claimed that they can't make an investment in marketing or the training they know they need until jobs come in the door. Others don't want to learn new technology and some won't even get a web site.
We are in unprecedented times which call for cutting edge business, marketing and consultative sales measures to maintain the same revenue stream. We cannot expect to do business the same way with outdated methods and processes. It is time to take action to stay in business and be ready for when things rebound. We must be pro-active instead of reacting to challenges and shooting from the hip. Focus, find a better plan and work on projects that are in line with your core competencies.
If you think you can succeed on your own, we hope you are right and wish you the most success. However, if you are not busy at this mid year mark, do you think if you do nothing different things will change for the better?
Sometimes our ego and pride get in the way and prevents us from doing what is rational for our business. Successful business people don't allow this to happen and persevere in the most difficult of times.
So do you think it is time to consider a contractor business coach?
mark the coach
Posted by Mark Paskell on Thu, May 28, 2009 @ 11:38 PM
I was riding through a suburban neighborhood last week and saw 12 projects in progress in an upscale Massachusetts town. I took the names of the companies down to research who they were. I was somewhat pleased to see that at least some companies are winning jobs.
If you listen to the media you here all the doom and gloom and think maybe no one is buying. Well this little trip in suburbia proved otherwise. Some people are buying cars, buying homes and yes, remodeling too.
I looked up several of the companies and found that there websites were well done, easy to navigate, and very educational for the consumer. I was familiar with some of these firms and know that they are exceptional companies. Several firms proudly displayed their affiliations with NARI, NAHB, AGC and other contractor associations. Some also displayed their designations for Certified Remodeler, Certified Lead Carpenter, NKBA, CGB, LEEDS, and more.
No question sales are down and harder to come buy. But some people are buying from someone, maybe not you. Do you think there is a correlation between a contractor who obtains education and training and those who don't? Do you think a well built website that educates helps a contractor differentiate themselves from other contractors?
The reality is in spite of what is reported and heard from the media consumers are still purchasing cars, homes, appliances, furniture and remodeling. Certainly things are not the same as before and we all must be prepared for the way things are now and the way things will be when the economy rebounds.
The proven path to success in any business is to run your business like a business. That usually means following best practices, setting goals, planning, education, training, adapting, using systems and anything else that successful companies do. This includes marketing that produces leads of the people you want to work for and dare I say professional sales training so you can sell those leads.
I find it interesting that many of our clients are educated and they want to know more. They are like, or want to be like, the companies I saw in suburbia working for discerning homeowners. They realize that if the don't change they will perish, and if they do change they will win. If you are contractor educated and trained are you working for those who are buying? if not will you seek more education and training from a contractor business coach to make sure your business makes it?
If you haven't invested in contractor education and are not working do you think it's time to invest in yourself and your business? Of course, if you don't want to work for suburbia where the people are buying, you can stay put. Hopefully the sales come in before the money runs out!
mark the coach
Posted by Mark Paskell on Fri, May 15, 2009 @ 11:30 AM
A few months ago I discovered a company on ContractorTalk that is a great resource for marketing ideas for remodeling and trade contractors. The owner of the company is Mark Buckshon and he has been working with contractors for many years. He is in touch with the contractor's needs, understands consumers and has great insights for marketing your business. I frequently read and learn from his site and always come away with ideas that can help my business as well as my contractor coaching clients. I recommend you sign up for his newsletter and visit his site frequently. Here is his blog link.
http://www.constructionmarketingideas.blogspot.com
Posted by Mark Paskell on Mon, May 11, 2009 @ 10:40 PM
In our 4 Legged Chair System for contractors and entrepreneurs, the first leg of the system is marketing.
In recent months, contractors and entrepreneurs are saying they don't have enough leads coming in to their businesses. One would think that these companies would have developed a marketing strategy by now due to all the press this subject has been given. Unfortunately, this is not the case for many contractors and entrepreneurs.
We ask them; do you have a marketing strategy with a plan? Some of the answers we hear are, "no I don't have the time to do one, we do not know where to begin, that's only for big companies, or we don't need one."
Successful business models follow processes described in the 4 Legged Chair System. The four legs we teach our clients at The Contractor Coaching Partnership;
- Marketing
- Sales
- Production or Operations
- Administration.
Successful organizations, large or small, have a clearly defined marketing strategy and plan. Many contractors and entrepreneurs sense this; however they find reasons why they cannot put one together instead of why they can. Some say they don't have the money, they don't know how, they will get to it sooner or later, and they say when the economy comes back we will invest in one. Whatever your reason or excuse for not having one, running a business today, without your marketing strategy and plan in place, is business suicide. Many think that referrals alone will work. Are referrals enough for you to generate the revenue you need to pay all your business bills and leave a fair profit? If not, maybe now is the time to consider a marketing strategy and plan to produce the required leads. With no leads, there are no sales, no sales no work to produce, no work no money to pay the bills.
The rules for marketing your business have changed. Contractors and entrepreneurs who adapt to these new rules will have a better chance of succeeding in this new economy. If you are not able to create and implement a marketing plan for any reason, contact someone who can help you. Your business will thank you.
Posted by Mark Paskell on Fri, May 08, 2009 @ 09:30 PM
A recent thread on the Linkedin NARI group has generated over 130 responses from parties interested in the relationship between contractors and lead generation sites. The purpose of the thread was to provide a forum for contractors and LGC's about the numerous problems between the two groups. We were interested in obtaining dialogue from contractors and LGC's.
After 90 plus posts Service Magic, the Goliath of the lead generation industry finally joined in to share their views. In subsequent posts it was learned from Service Magic, that lead generation sites as a whole can not qualify leads for contractors because they don't understand contractors' businesses. You would think that if you provided a service that generated leads for a customer that you would understand and know that client!
This is one of the major concerns of all contractors who purchase these leads from the LGC's. Many LGC's claim that they provide good leads for their contractor clients. Based on the comments in the posts this is not the consensus. On ContractorTalk.comtheir are numerous threads about the poor service, sub-par leads, leads sold to more contractors then stated and misstated and incomplete information generated by the LGC's.
In these trying times contractors need to be very careful how they spend their marketing dollars. The strongest way to generate leads is to tap your client base and their contact sphere by generating referrals. Until LGC's change their way of doing business contractors will continue to receive little value from the leads generated. Newer contractors who have not been exposed to these problems continue to spend and waste thousands of dollars keeping these LGC's in business. If you are a new or established contractor and are considering buying leads from LGC's make sure you know what you are buying. The LGC's are very good at making things seem to good to be true.
One poster recommended that you should use the smaller local LGC's who seem to have a better track record then the big boys. Also, it doesn't hurt to have a strong marketing plan to generate leads from your existing client base and contact sphere.
Posted by Mark Paskell on Sun, May 03, 2009 @ 10:00 PM
This past week I posted a simple question on the Linkedin NARI group. It was, should contractor organizations and trade publications lead the charge to protect contractors from lead gen companies tactics. Little did I realize, that the thread hit a nerve in a big way with many contractors throughout the country. The responses blew me away and started a strong and passionate debate about the subject. This debate is likely to continue for weeks. The basic problem is how lead gen sites use questionable tactics to sell low quality leads to contractors. There are thousands of verifiable complaints about lead gen firms all over the web on forums.
Some lead gen companies claim that contractors lack sales training, marketing skills and business coaching, therefore they are to blame for their own failures with the leads.
I started a new group to discuss this subject. We have invited contractors, lead gen companies and hope to attract trade publications and contractor organizations.
The more attention we can bring to this debate the better to prevent contractors from falling prey to the tactics of the lead gen companies. We hope that a spirited and tactful debate will spawn new ideas to improve the relationship between contractors and lead gen companies.
What are your experiences with LGC's. (Lead Generation Companies)?
Link to the new group; http://www.linkedin.com/groups?home=&gid=1933902&trk=anet_ug_hm