It's What You Don't See That Makes the Difference!

by Henry Goudreau, C.S.L.

Great looking picture of a restaurant done by Golden Hard Hat Mentoring Program member S.A. Casey out of Orlando, FL. But what you fail to see is the metamorphic change that took place in the business over the last four years, from just grinding it out being in the construction industry to becoming a hugely successful commercial contractor

You don't see the change in Sales from $3 million (barely making it) to over $15 million with a healthy bottom-line.

You don't see the Net Profit change from a paltry low single digits that was the owner's salary to healthy two-digit Net Profit after taking a handsome six-figure salary.

You don't see the entire system and processes that lead to a well organized team that is outperforming original expectations.

You don't see the Strategic Business Plan that brought in higher bonding and bank credit than ever before.

You don't see the increase (doubling) of owner's equity.

It's what you don't see that makes the difference, the huge change in confidence and perseverance in him as an individual and business owner that he got from mastering the Golden Hard Hat Mentoring business model.

Check out his site at https://www.sacaseyconstruction.com/  and you will see so much quality.

Want to learn how he got there, check my program out here. I would love to have the opportunity to change your entire direction for 2020 and beyond for life! 

Happen to know another construction company who may need my services? Then please share this post.

Thanks in advance.

It's What You Don't See That Counts

The picture is beautiful, no doubt about it. But what you do not see is the transformation my client has gone through from just grinding it out being in the construction industry to becoming a hugely successful business person who happens to be in the remodeling industry.

The operational side, financial side, sales and marketing all became front and center for this client of mine.

On the Operational side you don't see the systems, processes, and organizational change that was needed to go from doing the work himself to hiring and implementing a working system for them to follow.

On the Financial side you don't see the development and mastering of his financial and business metrics that drive the business and tell you what to do next. You don't see the return on his investment in the program of 1245%. Nor do you see his personal wealth doubling in six figures two years in a row.

On the Sales and Marketing side you don't see his R.O.I. on his marketing investment, nor do you see his increase in closing the work he wants. Let alone his new website that brings his largest lead numbers.

It's what you don't see that makes the difference, the huge change in confidence and perseverance in him as an individual and business owner that he got from mastering the Golden Hard Hat Mentoring business model.

Check out his site at https://www.oneilindustries.com/ and you will see so much quality.

Want to learn how he got there, check me out here. I would love to have the opportunity to change your entire direction for 2020 and beyond for life! 

Happen to know another construction company who may need my services? Then please share this post.

Are You A “Show Me How to Do It Right” Kind of Business Owner?

I have been coaching business owners of contracting businesses for over 24 years. That’s a large time of my life. But the one thing that I have learned is simple and yet, most don’t follow it.

Action must happen first before results are produced.

Most business owners get into action only when they feel motivated. And, they only feel motivation when they feel an emotional inspiration.

And most people only become motivated to do something when they fear the consequences of not doing it.

That means we slack off in times when we shouldn’t.

Most contractors call me when they’re in financial trouble. You see, the motivation is business failure. The correct action would be to come to me before they are in trouble and that action would have prevented them from getting in trouble.

Emotions are powerful. They can work for you or against you. Look at the emotion of ego. If any emotion will help you or hurt you, ego is the leader of the pack.

What you really need to understand is action is the key. Action keeps you moving forward. Action produces results.

The conclusion is that if you are being prevented by some emotion than make an important change in your life and business, and do something. Harness the power of action. Don’t allow yourself to be frozen by fear, apathy, excuses, and procrastination.

So, let’s talk about this.

There are basically three types of business owners, they are:

Do nothing

Do it for me

Show me how

We all know the results from doing nothing. Nothing! They will find all the excuses in the world, but it produces nothing.

The second one, do it for me, is just as dangerous as doing nothing. The problem with ‘do it for me’ is that you do not have a true understanding of what it means and how to work it. It’s like trying to assemble something without the right tools and direction. You will end up with some parts missing or left-over and no clue what to do with them.

I’ve had clients come to me after paying big bucks to some consultant and have no clue what it means. One such client had a consultant build a report for them but had no clue how to read it or what it meant.

So, this all points to …

“Show me how’ being the pinnacle. It’s the highest rung on the ladder. It’s big, and it’s a big step up for the business owner, that’s ‘show me how to do it right.’

You see, it’s much more desirable to have someone walk you through a process, making sure you have a complete handle and knowledge of the process.

In my coaching business that is what I do. I coach my clients on how to build sales, profits, people, and lifestyle. Very much like a coach you might have had in school who showed you how to play a game better, or a tutor who showed you how to properly solve a math problem, or understand some other topic better.

Sometimes they send over their work and I just fix it for them and get them moving on the right track. The important thing is keeping them in action.

Some work with me for a few months until they feel comfortable, others have been working with me for years.

So, if coaching is so great, how come everybody’s not getting it?

Simple, most people let self-doubt stand between them and the successes they deserve.

It’s that little voice that cheerfully offers up excuses, such as, can’t afford it, I don’t have time, it won’t work for me, I don’t need it, I’ll figure it out myself, etc.

What works better, doing nothing or having someone show you how to get the results you want that is faster, easier, more efficient, than you could ever possibly do for yourself.

The latter if you want results, right?

Well then, you need to act. If you think your potential business increases could be meaningful or even life-changing – and you’re ready, we should talk. I’ll help you improve your results beyond everything you are doing now.

Seriously. When we work together, I guarantee that taking action on my advice will pay you multiples of whatever you pay me, you’re willing to put the time into it.

I’ll lead you to the right track. Help you understand what you need to do and why, devise growth strategies, develop and implement the systems and tools you need to build a business that works for you.

Not everyone gets the same results, some more and some less, and it doesn’t happen overnight, it takes time, so …

If you’re committed to ramping up your business for the coming year, while at the same time reducing your risk to the lowest levels possible and boosting your odds of success …

Set a time for us to talk with this appointment calendar link below.

Click here to set an appointment for your business-building call.

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The Forest Gump Secret to Success

On July fourth weekend, my wife and I visited Savannah, GA. We had a great weekend of sightseeing, walking around the city seeing the beautiful older buildings, monuments, and visiting the restaurants...

While there, we saw a man portraying Forest Gump in of the many squares in the city. He was sitting on a bench and played the part perfectly.

He even did a rendition of Forest Gump famous line; “Life is like a box of chocolates …”

Damn good imitator.

My wife took pictures, we laughed and enjoyed the moment.

Anyway, one of the things that struck me was that Forrest was successful whenever he followed the precise instructions he was given by people with more experience than him. He didn’t question the procedure; he just did it.

As entrepreneurs, we can sometimes be averse to listening to the advice of others. Hey, one of the reasons we went into business was so we could make our own decisions, right?

But, grasshopper, sometimes our ego gets in the way and it hurts us.

When I first started in my own construction business, I fell into the trap. The trap of thinking that me, working long, hard hours, doing everything, wearing all the hats, would make my business a success.

It was quick that I realized I was moving in the wrong direction, so I sought advice from experts.

 Mind you, we didn’t have the internet and finding an expert on building a successful construction business was non-existent, so I found experts in parts of this and parts of that. But, not the whole picture. Because … no one knew it.

That lead me to questioning how things worked and how the systems flow together on my own. That meant building the business system or process from scratch, ground up!

Believe me …

It’s a lot easier to start implementing a system AFTER you’ve been instructed by a real deal expert, than trying to invent it on your own. Kind of like re-inventing the wheel.

But, no one had it figured out then, so I had to use my knowledge and do it myself.

I’m not at all saying you should be a sheep and follow someone blindly. That’s not the right way.

You want to be a student, not a follower. But, as a student, you should follow the proven plan given to you. You need to learn it before you use it.

Seek the advice of those who are knowledgeable and experienced than you, listen, learn, and implement.

And …

… don’t be afraid to admit you need help and seek it out.

That’s the secret to success.

If you're ready to tap into your courage, easily navigate risks, and reap big rewards. I offer a free consultation on your business. Click here to get your Jumpstart Consultation.

The Case of Client A

Client A is a general contractor who was doing approximately $4, million in sales and they were in a negative liquidity position.

They came to me approximately two years ago and joined the Golden Hard Hat Mentoring program. Dissatisfied with their performance they wanted the help to get their business on the right track and performance levels.

After joining the program, we rolled up our sleeves to identify the deficient areas of the business, and started the correction process.

One deficient area was in their financials. It was messy. Nothing made sense. We immediately acted to correct this, including the dismissal of their present CPA.

We studied where the business was now, at that time, and where they wanted to take it utilizing the program information in Volume Two and plotting the course best suited for the business and set sail.

We corrected the financial reporting system with changes and regular review. We implemented the weekly financial snapshot, cash flow, and invoicing system that is in Volume Three. We analyzed the companies Time Distribution and balanced its output.

We also jumped into the organizational structure and brought order quickly. Yes, some people were let go, but we developed standard operating procedures, implemented training, and got the staff moving in the right direction, as outlined in Volume Four of the program.

We implemented the Employee Incentive Plan that is in the program, in Volume Three. Introduced it to the staff and enthusiasm jumped to the ceiling. Performance levels, getting the jobs done on budget, and on-time completion became the acting norm.

Immediately, existing customers started writing, saying how much they enjoyed working with the company. Rave reviews, repeat business, and referrals started taking hold.

We focused on what work we were doing and what customers and work were best for the company and focused our energy on those performance centers.

Today, that business is doing over $10 million with double digit net profits, positive cash flow in the six-figures every week, and the future looks bright.

Instead of finding excuses, procrastinating, or beating their heads against the wall, doing the same old things repeatedly, they admitted they needed help and acted by joining the program, rolling up their sleeves and getting to work on their business instead of in it.

How about your business? Are you ready to take control and break through some glass ceilings?

Getting started may feel difficult but the difference between your dreams and reality is called action.

The opening step is easy. Click on the link below and let's talk on a day and time that is convenient for you. I'll call you. If you like what you hear, then we’ll start the program. If not, we’ll part as friends.

>>>Click here to get started!<<<

Remember, the difference of working on your business versus in it will pay you back many times over in dividends in your future years.

Henry Goudreau has been a business coach, mentor, author, speaker and seminar leader to the construction industry for the last 24 years. His proven business model for contractors have helped his clients achieve and exceed their goals like it did for his own construction business. His education is in civil engineering and business. You can visit his website www.contractorcoaching.com or www.hgassociates.com or email him at: henry@hgassociatates.com

Understanding Pricing Models

Do you understand what you need to charge for your construction services?

Whenever a prospective client tells me they’re doing a lot of work but not making the money they should, I know they have a basic pricing problem. In other words, they’re either not charging enough, or their costs are too high.

One big problem is the use of pie-in-the-sky markup rates or guesstimating the job cost. Either one will lead to some form of financial headaches. This is where the low-ball arena will take you.

There is a way to properly calculate your markup, but few even make the attempt to run through the numbers. However, there are some other factors that must come into play when determining your pricing model.

VALUE

One big element is what you bring to the table. Do you have a selling process that uncovers exactly what the prospective client is looking for, is it something they can’t get from your competition, and can you deliver?

No one can put a monetary amount to value, even your prospective client. But they do know they want it.

COST

What are your costs associated with the service or product you are delivering? How much is the “cost of goods” or as I call it “cost of sales.”

One of the problems with using margins to develop your selling costs is that it must cover your overhead and produce the profit you desire. If something changes below your gross profit, such as your overhead, this will impact your use of your gross margin making is an ineffective pricing method. That is why I use the markup method. It forces you to monitor your overhead and net profit amounts.

In the low bid arena, where you must have complete control over your costs, the MUR (markup rate) is especially helpful if it is coupled with good cost control and budgeting models.

PRICING OBJECTIVES

What are you trying to accomplish with your pricing?

This depends on what you are trying to accomplish with your overall business strategy. If you are pricing low to maximize sales, you are bootstrapping your cash flow and it’s a no-win game.

Are you trying to maximize long-term profits by increasing market share through an economy of scale? If that is the case, revenues might be more important than profits and that can be a no-win game.

Higher revenues at a slim profit, or even a loss, reveal what I call the Wal-Mart Syndrome which is a risk based on market capitalization.

The bottom-line is where you need to focus after you have considered all related costs, including your reasonable salary. Here are some basic considerations:

·         Your pricing model must be high enough to cover reasonable variations in sales volume.

·         Your selling price must be enough to provide you a reasonable wage.

·         Your pricing must produce a reasonable net profit.

·         Your price should NEVER be below your direct and indirect costs.

A pricing model is a tricky thing to develop. It takes a lot of variables that must be considered and tested. You are entitled to cover your costs and make a profit. That profit is what you determine, not your client.

Your pricing model must provide the value that the client is seeking because it is worth what someone is willing to pay for it.

However, if you don’t know your business metrics, it will be tough getting anything of value formulated. I suggest you start there. If you are looking for help, I have some business coaching slots available. Click on the link below and let’s talk about how I can help you.

>>>Set up your no-cost, no-obligation telephone consultation with Henry!<<<

Henry Goudreau has been a business coach, mentor, author, speaker and seminar leader to the construction industry for the last 24 years. His proven business model for contractors have helped his clients achieve and exceed their goals like it did for his own construction business. His education is in civil engineering and business. You can visit his website www.contractorcoaching.com or www.hgassociates.com or email him at: henry@hgassociatates.com