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.

How to build a Construction and Remodeling Business that grows sales, profits, people, and freedom of lifestyle

Watch this new video.

I just uploaded this new video for you, and it (literally) might be the most important video you've watched to date.

Here is why you want to watch it.

This video walks you through a brand new way to build a successful construction business.

If you are frustrated with your business? Working long, hard hours for little money or reward? , Wearing too many hats? Know you should be doing better, but don't know how? Then this video gives you the cure you've been looking for.

Click here and learn how!

That clinking and clanging you're hearing might be the ball and chain your business has attached to your ankle

If your business has you chained by the ankle to it, making you a slave to the business, and missing out on the important things in life, maybe you need to get help?

And … If you've ever said to yourself, “There’s got to be an easier way to run a construction business,” then today is the day for you to know that you’re right – there is an easier way. It’s called: The Golden Hard Hat Mentoring Program.

How does this sound to you?

· >> Increasing sales and profits

· >> Optimizing your business with a proven business model

· >> Implementing the systems and processes that empower your people to do a better job and make the work flow without you getting into it

· >> Organizing your business and the flow of responsibilities

· >> Having under your thumb at all times the financial stability of understanding your business metrics, all without the ball and chain weighing you down?

This is how this business-building program works.

The Golden Hard Hat Mentoring Program is made up of three modules:

1. The Business Evaluation

2. The Knowledge Mastery

3. The Implementation

The Business Evaluation focuses on a series of questions and answers. It takes a focused look into your business to uncover those systems, processes, and procedures that are either not working, or not in place.

Beginning with a proper Business Evaluation is essential. Because it highlights the missing puzzle pieces that need to be put in their proper place. Important to know what to fix for immediate results.

Once the Business Evaluation is done, you move into the Knowledge Mastery.

Here we start learning the Business Metrics that drive your business. These metrics are the backbone to your construction business. It is critical to your businesses success that you understand your metrics.

Then we develop and set in place our strategic business plan.

The last prong is implementation. Keeping on-track and working everything that you've been taught. Having your feet held to the fire. This process develops the ‘habit’ by working with me on a weekly basis. You are NOT left on your own. I will take you through the steps, one-by-one. Plus, you have my four HUGE volumes of reference material to reinforce what we are working on.

The program that accomplishes that is the Golden Hard Hat Mentoring Program. Right now, the contractors in this group are $3 million to $10 million in sales.

What type of contractors? This business model works for all contractors. Part of the process is adapting it to fit your type of contracting business. 

The results? Well, if I told you, you wouldn't believe me. However, they are growing their business, sales, and profits.

And, best of all, members share what works and how it worked, thereby giving you many good business savvy minds feeding you great ideas.

Can you get in? This is a limited program. I only have so much time. However, I can accept three more participants.

What do you get? First, you will get my proprietary information. It weighs over 18 lbs. I’ve never been accused of holding anything back. But the good news is this. I will lead through the information. You won’t be left on your own. We also have a member’s web site which is full of downloads and training sessions. Plus, we talk by phone every week on Thursday at your designated time for up to one hour and you get unlimited email with me.

The cost? The cost is $25,000 and 10% of any additional profit I help you bring to your bottom-line. The renewal fee is $1,050 per month with the 10% of any added profit after the first year.

How does the added profit work? Easy, let's say last year you made $200,000 in Net Profit. This year working with me, we bring in $300,000 in Net Profit. The added profit is $100,000 X 10% added NP fee, $10,000.00 of it is paid to me. This gives me a vested interest in working with you and if this happens in your business, your return on investment is 15.7%. Not bad because you can't do that with your savings account.

Do you have a payment plan? Yes! $5000 down and 11 monthly payments of $2,013.

Is there an option for not paying the 10% on added profits? Yes, but the cost is slightly more.

When can I expect results? Most clients start to see results in a 6 to 9 month period. But that depends on you.

As you can see, this program accomplishes everything necessary to help you in your business. It is a proven business model.

Let me ask you this.

Which is quicker trying to do it without a proven method or having the proven method?

Let’s saw off that ball and chain that’s holding you down. Let’s get together and start building a construction business that works for you!

Click on the link below and let’s talk!

>>>I want the ball and chain removed!<<<

Things may change in a HUGE way!

No matter what your political outlook is, you must agree that things about to change in a big way?

Watching the latest news, you can't help but notice the momentum and enthusiasm to get our economy back on track.

Imagine, people back to work, making money, feeling optimistic about their future, and ... buying your construction services.

Just this last quarter the GDP grew to 3.2%! A HUGE difference from the paltry 1% we've experienced in the last 8 years.

Carrier announced it wasn't sending jobs to Mexico, Ford the same thing. Even Apple is trying to figure out how to make its phones in America. US Steel is bringing 10,000 jobs back. Things are changing, things are getting done. The near future looks fantastic for you.

And ...

It appears that this economy is going to grow like crazy!

However ...

Will you be ready?

Will you be able to maximize sales, profits, and growth with the existing business tools you have now?

Do you have your strategic plan to capture your fair share of this work?

What's your strategic marketing plan? Do you have all your promotional pieces ready to go?

If you are not sure, I can help. It is what I do. All you need to do is contact me and let's talk about your business.

Interested?

Click here to set up call. 

The time is now, not later when it will be too late.

Are YOU a Victim of “Cash Crunch?”

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Are YOU a Victim of “Cash Crunch?”

As a business owner, you usually have many hats you have to wear.

On top of that, you've got a couple of dozen ‘urgent’ priorities dragging you away from what needs to be done.

With so much going on, being pulled in so many different directions, it is difficult to focus on what is most important to your business.

However, a word of caution …

Whatever situation your construction business is in now.

It is usually NOT just one ‘thing’ that is holding you back.

Instead there is a whole bunch of little things that conveniently slip under your radar.

On their own, they may not grab your attention.

Add them up all together and it is a different problem.

You see …

They feed off of each other.

They even have the ability to run a muck in what appears to be a healthy company, slowly, ever so slowly, making it sick and sicker.

Let me ask you a question.

Have you ever found yourself desperate for cash?

You might realize it after you've paid your bills, maybe not all of them, and found not enough left to pay you?

If that is the case, you’re suffering a ‘cash crunch.’

Cash crunches are the result of those pesky ‘little things’ that slipped under your radar.

It happens when you’re not paying attention to your business metrics.

The next thing you know, you’re caught short and … in a ‘cash crunch.’

Let me dig a little deeper..

Cash flow is the lifeblood of your construction business.

Without it, you find yourself shackle to an 800 pound Gorilla. Not nice.

With poor cash flow you find yourself …

>>>Wondering where all the money went.

>>> STRUGGLING to pay your bills.

>>> Robbing Peter to pay Paul.

>>> Doing without for yourself and your family so you can try and keep the business alive.

Or even worse …

Not paying all your bills including Uncle Sam!

Seriously, put some thought into this. Aren't you missing something?

I can tell you the answer is a resounding YES!

What this boils down to is NOT understanding your business metrics.

As I said earlier, cash flow is the lifeblood of your business.

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Wearing Too Many Hats?

We can help!

Watch this 8-minute video and learn what you need to do 

by clicking here!

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With that thought in mind, here are some metrics you need to know.

ACC – Account collection cycle. Basically, how long does it take you to get paid on your receivables?

CCC- Contract to cash conversion. How long from the time you start the work until you get paid the last dollar owed to you.

Working capital. The amount of money available to you after you've paid your liabilities.

Capital Reserve. The amount of capital you need to have available to you in order to pay your bills according to your ACC.

And that’s just for starters.

I usually find that these other following items impact cash flow.

Pricing model. The amount you markup your work to arrive at a selling price.

Leakage. What you are unnecessarily expending with no return for its loss.

Seepage. What you freely give away to get the work.

Haltering. Taking on too much in Sales without the capital funding or the resources to support it.

So if you find yourself at the end of a month, good or bad in revenue, still scratching your head wondering where the money went …

You have a serious cash crunch problem, and … you need help NOW!

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Talk to Henry!

To schedule a no-obligation conversation with Henry Goudreau, America's #1 Business-Building Coach for Contractors, click here!

Let us help you design a BETTER, more PROFITABLE Business.

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Understanding the Business Metric of Volume Derivation

I was reading a question posed on one of the construction group forums last week that asked how much volume a contractor should have to be successful and make a profit.

Unfortunately, the basis of the question is wrong to begin with. It assumes that there is a ‘magical’ amount that makes things work (I had to laugh when I saw some of the answers, especially from so-called ‘experts’). Sadly, there is no one size fits all.

Here is how it really works.

The idea is to develop a realistic model of a company’s capacity to perform within its marketplace, an optimum market mix, and the optimum use of the time and skills of its management staff.

The key word here is “Optimization.” That means utilizing the full capabilities and capacities of the company.

The derivation is based on an optimum Distribution of Management Time, typical Job Characteristics of the market, and the Overhead Expenditures needed to attain a balance among sales, production and finance.

These three sources of information formulated from the existing company provide the base for the model that will guide company’s capacity to sell, perform, and finance its volume according to capacity.

The company’s Volume Derivation combines data from the Distribution of Management Time, the Distribution of Job Characteristics and other pertinent statistics such as capture rates and markup rates to perform a series of calculations. This is the capability of the company to achieve the volume.

It is these calculations that set the sales goal for the company and its people. These calculations also balance the Sales production and Financial Capabilities of the company, which drives the optimization factor.

I teach this to my Golden Hard Hat Mentoring Group. That is why they understand what they need to produce for sales and by utilizing the Job Characteristic Report, which sales optimize profitability and management time.

Unfortunately …

Most contractors try and sell as much as possible, mostly at low pricing models. Selling alone will not make a company successful, and neither will the advice of a consultant or coach who doesn't understand Volume Derivation. 

Remember, optimization of the company’s metrics will always produce the best results.

Do You Understand Your Business Metrics?

Are you struggling with your businesses because you don’t understand what drives it?

Every business focuses on making sales, paying the bills, and hopefully making a profit.

However, there are other financial and performance measurements that can provide early warning signals and detailed avenues to greater success.

At this point, you may be asking …

What are business metrics?

They are a unit or units of measure to gauge and detail a company’s performance and provide the company’s management with standards of improvement.

For example.

You may ‘think’ it would be a great idea to hire a new employee. Maybe, you think it might make things easier for you, or grow your business. The true answer is, how do you know? Can you prove it’s in your best interests?

It is NOT what you ‘think’ is best, it is what you can justify within your exiting capabilities and capacities of your business.

In my Golden Hard Hat Mentoring Program, I show owners of construction businesses how to measure, track, analyze and justify their business metrics. In hiring people, we use the program’s distribution of time to develop the metrics for each position within the company. Based on the strategic business plan we have developed together, and the existing performance of the company, we can clearly justify when it is required by performance for new hires, thereby eliminating a top heavy business.

Another example that I see so often, is the ‘thinking’ of which work is most profitable for the business. Unfortunately, for most owners, this is nothing more than a thought based on emotions. Remember, we want to measure, track, analyze and justify. To do that, we use the program’s Job Characteristic Report to show us, based on our specific parameters, type of work, or owner that provides us with the highest return for our efforts, thereby eliminating that work or owner who hurts our bottom-line performance.

Even one more element is understanding your pipeline and backlog metric. As we all know backlog is the amount of work you have in the work process at various degrees of completion. Your pipeline is the amount of work you expect to funnel into your backlog through your marketing, lead capture and capture rate of the leads into signed contracts. Based on your turnover metric, we can calculate your maximum and minimum backlog you should have at any given time.

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The use of business metrics, including the measuring, tracking, analyzing, and justifying help keep the business on its target, and within the capabilities and capacities of the business. As in all things, it is critical to the success of the business to know the right parameters – and then to know how to use them. Measuring with the wrong metrics can do more damage than good.

Here are five easy tips:

1.      Understand and know your businesses capabilities and capacities. I hate to say this but I see too many contractors get themselves into trouble because they do not understand their capability and capacity. You only have so much time, money, employees, equipment, knowledge and experience. Use it wisely.

2.      Understand measure, track, analyze and justify. Every element of your business should be exposed to this concept. Accountability is fundamental to effective management and decision making.

3.      Determine the correct metrics. You need to determine the correct metrics, and then make sure you fully understand them and have the proper tools and information for measurement. Choose your metrics that best fit what matters to your strategic business goal, from which individual objectives are created.

4.      Avoid the pitfall of ambiguity. Your metrics must be extremely clear. A broad goal like ‘increase sales” can leave everyone with different ideas, thereby producing failure. Your metrics should be so clear that an outside person could come in and check whether the objective has been met. Clarity produces certainty.

5.      Invest in the knowledge, help and tools that deliver. To make this work for you, you need a working knowledge and real-time feedback. In the Golden Hard Hat Mentoring Program we provide owners of contracting businesses, the knowledge, resources and spreadsheets that feed the vital information to the owner via dashboards that allow them to quickly view and analyze its performance.

     Here is an example of a dashboard that show the financial and employee metrics to do its

     yearly volume:

From this snapshot, we can see the following metrics from a fictitious company we will name, Your Construction Company.

The company plans to do $1,000,000 in volume at a markup rate of 1.45, and produce a bottom-line of $85,000 after paying its owner a reasonable salary. The company will need a capital reserve of $152,500 in either a line of credit or cash, or a combination of the both to properly fund its goal.

It collects on its receivables every two months, and it takes the company approximately 150 days to complete its average project.

The maximum backlog amount it can’t exceed is $200,000 and its minimum backlog amount in cannot go under in order to maintain its goal is $145,161.

As long as the company controls its expenditures and reaches its goals in all areas, its break-even volume is $725,806.

Based on its capture rate, the company will have to bid approximately $14,285,714 of new work in order to produce its desired volume of one million. This metric indicates that either estimating or the companies target market may have to be reviewed.

According to its time management requirements, it has the correct number of estimators, and project managers. It has an excess in salespersons which indicate that with proper modifications in its sales people it could increase sales.

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    Talk to Henry

To schedule a no-obligation conversation with Henry Goudreau, "America's #1 Business-Building resource for Contractors," click here!

Let us help you build a BETTER, more PROFITABLE, more ORGANIZED construction business.

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Keep in mind that you will need to reevaluate and adjust your metrics as your business priorities change. Fortunately, this program shows you how to accomplish that. Such knowledge is extremely helpful in making every effort to achieve what you set out in your strategic plan, even if your targets were off.

Unfortunately, too many owners of construction business don’t always recognize what makes their businesses work thereby stunting growth, profitability, and the freedom they desire in their lifestyle. When you invest time and thought into setting, monitoring, sharing, and refining your metrics, you’ll be amazed at how much more in tune you are to the state of your business, and how much more easily you can make the critical decisions that can catapult your business’ success.

Remember, your business metrics is what drives your business to success!

#successincontracting

The Iraq Turmoil and Your Fuel Cost Index

Unfortunately, the chaos that is taking place in Iraq at this moment, will play havoc with the cost of fuel. Rumors are spreading that we could see the cost of a barrel of oil rise to $116 per barrel. That would add .40 to $1.00 to fuel.


In my weekly radio show, "The Contractor's Corner" on Mondays at noon (EST) I announce the cost of gas and oil for the opening bell of the week. This way, contractors can adjust their fuel cost index for their estimates for future work. I would think with all of this turmoil in the middle-east, that index needs to be increased.


In other words, if you are paying $4.00 a gallon for diesel, you may consider an index of $4.50 to $5.00. The same consideration should be applied to gasoline. This covers you for rising fuel costs in your estimates.


You will also see increases in materials and transportation rise. Expect the same for these items, and consider placing an escalation clause in your proposals and contracts.


Since pricing varies from area to area, you must determine what rice increase is best for you.

#TheContractor'sBusiness-BuildingCoach