What allows you to have a business that works and produces profits? The answer is systems with clearly defined processes and procedures. The systems needed to run a fine tuned contractor business are marketing, sales, production and administration. In our training, we use the Four Legged Chair analogy to represent these four systems. Each leg must be strong to prevent the chair from falling over or collapsing.

When business is slow it is prudent to find cost effective ways to lower costs. Some items can be pared down wisely with minimal adverse effects to the operation, and some should not be cut, instead increased. A common belief is that marketing should be cut. Cutting marketing is a huge mistake that precedes serious damage to the health of a business. We are hearing from many contractors and businesses that they are falling short in the sales and lead generation department. We ask if they are marketing their business and most say "no we are cutting marketing and not doing that right now. We need more business then we can increase marketing." Go figure!

Traditional marketing mediums are not producing the quality leads residential remodelers, general contractors and home improvement companies need to keep busy. Newspapers, post cards, newsletters, print advertising are not producing the needed results. Contractors are saving their money and focusing on marketing efforts that have a higher return on investment. We are seeing a huge investment in time spent on networking activities.  

Homeowners have become masters at knocking out contractors with TIO's (think it over), wasting one of our most valuable resources, time.

Spring has sprung and homeowners are starting to call residential contractors for remodeling and home improvements. Even though the economy has been tough, people still need to maintain their most valuable investment.

Last week, in our Corridor Nine Chamber of Commerce Referral Group meeting, two contractor coaching clients described their recent success using the power of positive thinking and goal setting. In their coaching sessions they are studying the concepts of "Think and Grow Rich" written by Napoleon Hill. The Contractor Coaching Partnership contractor course teaches clients how to use this powerful study guide to develop the right thinking habits and the power of setting goals.

Over the past four weeks we attended many trade shows and spoke with over two hundred remodeling contractors. We volunteered to work the JLC trade show in Providence and the Residential Design Conference in Boston for the Eastern Mass NARI chapter as well as attended the NARI national business conference. We acquired over two hundred business cards from contractors at these events and had the good fortune to meet outstanding remodeling contractors who are at the top of their game and a few who are not. 

I was looking at the dates between today's post and the last one and noticed that it has been almost two weeks since my last post. (promised myself that I would post at least twice a week) I could use some lame excuse why I fell short of writing twice a week but I have no one to blame but myself. Yes, I have been busy coaching contractors and networking and like many people, could justify the lack of results I agreed I would hold myself to. Instead of allowing the excuses, I re-read my goals and definite chief aim and followed my coaching checklist to get my head back in the game.

Two weeks ago I went to the national NARI business meeting in Atlanta and met many successful remodeling contractors from all over the country. I was interested to learn what was behind their success. The contractors I asked were eager to share the factors and experiences that led to their success. Here are some of the major factors shared;

I recently found a video on Youtube describing how a screened contractor took advantage of a homeowner on a deck job.