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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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

Did We Make a Mistake with This?

Since I work coaching contractors on improving their businesses, I’ve found they are suffering with the same constant problem no matter where they are in this country.

This problem is causing endless headaches, and I think we’ve made a major mistake.

When I first started my own construction business in the 70’s, I made a pledge with myself never to hire a foreman unless he had the following attributes to offer me:

       1.   An impeccable reputation of getting the work done on-time and on-budget
2.       Have sons working in his crew

I was trying to not only bring to my company a quality person, but also wanted to make sure I had future workers or foreman who were trained to that performance level as well.

My first foreman I hired had four sons in his crew of seven. They were all well-trained and excellent workers. Over time they were promoted up the ranks, one became my Vice-President of operations.

The problem is, try and do that today.

We’ve made a mistake that is costing us in the construction industry in a big way. We are suffering with the ability to find workers, let alone good workers.

Over the years, I’m sure you made the same mistake I did with my children. Telling them they had to go to college. The result is, not too many sons have followed in their father’s footsteps to master a trade.

The result is, we can’t find good people. It seems every young person believes they are college material. Some find out later in life they made an error. Unfortunately, sometimes too much time has passed them by.

To make matters worse, the price of college has skyrocketed. We have a generation of students graduating with degrees they can’t find a job for, and over-burden with debt. That also means the American dream is nowhere within their grasp.

The question to answer is, why would we saddle them with such debt and disappointment?

Working in construction can be rewarding in many ways. Most certainly, is a good paying job. Some can easily make six-figure incomes. Plus, the future looks good for continuing employment.

We must find a way to attract young people into the construction industry. Especially, when so many are not college material. I believe we need to look at our younger generation and show them a path to a trade school so they can learn a payable skill.

It’s our industry. If we don’t take the initiative in attracting young people to learning a trade, we’ll suffer with this problem for a long time. A problem I believe we created.

7 Reasons to Have a Business Coach

If I were to begin my journey of owning my own construction business again, I would refrain from the believe I had in the beginning of thinking I knew what I was doing. Instead, I would have paid and sought the advice from those who had already experienced what I was going through much sooner than I did.

You see, back then, the Internet wasn’t available so you did much painstaking trial by error by either doing it or wishing you had done it differently … after the fact.

It was by luck that I met a man who had his Doctorate in Business and was intrigued by what I was struggling with. Our offices were close by, and one day we met in the hall and that started the most rewarding episode in my journey. It literally shaved years off my journey and opened my eyes as to what really makes a construction business work.

We took the business apart, piece-by-piece. 

We worked solutions and uncovered what really makes a construction business work.

It was an education because once you know what makes something work, you can use it to optimize the business. Education is the answer to reaching your dreams and true potential.

I’ve taught this business model to many other contractors. I have spoken with many contractors as well. Some ‘burned through’ tons of cash trying it their way with poor results. Partly because they believed they could develop it themselves and for years never believed a business coach could put them on the high road to success.

This group of people who try to solve all their problems themselves on their own, no matter what, miss one important point. If you don’t have the right tools, you can’t fix it. Imagine trying to repair a washing machine with only a spatula and a pen as your tools.

Nevertheless, the effect of a strong attachment to doing it yourself produces the constant struggling with problems that could be easily solved with a business coach, not to mentioned the ongoing exorbitant cost of the problem not being solved.

Maybe it is an ego problem? However, whatever it is, working on them yourself without some outside eyes who are not attached to your problem can be costly, time consuming, creates more problems, or gets you stuck at a certain point and you cannot go any further. Which draws the conclusion that doing it yourself without help doesn’t work.

Here are seven reasons why working with a business coach will be more effective than trying to do it yourself, reading a book, consulting with people who do not have a grasp on your business, or even attending a seminar.

1.    Taking the first step. Just by acting to setting up a meeting with a business coach is very meaningful. It gives you the message that the problem is meaningful to you. The action is also a turning point in your career as the owner of your own construction business. It shows you care about your business, it means you recognize and can identify the problem, and you’re willing to confront it so it can be solved.

2.    The Commitment Effect. Nothing in this world is free. Committing to coaching requires you to pay a fee. The process also takes time. Moreover, as you work with your coach in solving your problem, you are engaging with another person who sees the problem from a different view. The synergy in this increases the possibilities of solving the problem and revealing interconnecting problems that need your attention as well. The effect makes people more willing to keep their declarations and do their “homework” more carefully.

3.    Stronger Concentration. Two things that hamper a human is concentration and comprehension. Have you ever read a book or listen to someone speak and found yourself drifting away? This happens in business as well but more so when you are working it alone, one’s vulnerability to distractions is higher when working it alone. It is easy to get distracted or off-course, whereas a business coach keeps you focused and on course.

4.    Knowledge. The business coach most likely has much deeper and broader knowledge on solving the problem, and the experience of solving the same exact problem for others is saving you time and money.

5.    Taking Your Blinders Off. The real caveat of having a business coach is that they can help you uncover the problems you don’t see or unaware of. The business coach can help you put together the unconnected details into one larger picture, and can point out the underworking or missing parts of a system in your business (for example, perhaps you always intentionally ignore the real reasons you don’t have cash flow). For example, I take my new clients through 22 question business evaluation that reveals the deficiencies in their business.

6.    Concentrating precisely on your needs and moving from theory to application. It is one thing to listen or read about doing something VS doing it. Let me use this example. You attend a seminar or read a book on marketing. During that listening or reading process, almost everyone ‘thinks’ they know the basic principles, such as finding your perfect customer, communicating the benefits of working with you, or closing the deal. However, when it comes to applying these principles in practice, many people can’t do it. This is because logical understanding is something completely different from applying knowledge in real life. A business coach helps you bridge this gap.

7.    Implementation. The true benefit of coaching is not only uncovering the problems, or presenting the solution, but creating in the business owner the will to implement it in their business. This means creating a new habit. The result of a business coach showing you how to set up the process is all well and good. Teaching it to the business owner so that he understands it is another positive factor. However, getting the business owner to implement it and monitor it on a regular basis is entirely another issue. If a person has a bad habit of not doing it, that means the business coach must rewire the owner into creating the good habit of doing it on a regular basis. Implementation is the key. It takes time and patience but a good business coach is experienced is helping you accomplish it.

Too many business owners struggle with the same problems year in and year out. The result is costly and destructive. Even worse is the business owner who finds their excuse to ignore it. Their excuses range from; ‘it costs too much’, ‘they can’t afford it’, ‘this is the way business is’, ‘I can solve it myself’, or ‘their business is different’.

When you are absorbed in your problems, you can forget your strengths. Your skills, positive circumstances, and past situations are taken over by a black hole of chaotic thoughts and emotions.

Your ability to work and solve your business problems becomes cloudy, and like being in a fog you can’t find your way out.

When faced with heavy issues that may shake your outlook or working on a problem that may trigger overwhelming emotions, you can lose control.

Sometimes the support from a business coach is just about support, sometimes it’s about pointing you in the right direction or helping you work the solution and encouraging you to follow through. And sometimes it is more complicated.

I have seen massive changes in business owners who have sought my help, worked with me and developed the good habit. They have made more money, assembled a dynamic team, and found more free time for themselves to spend with family, friends, or other pursuits.

Clients who have coaches start to think and act in a constructive, positive manner as they implement the skills they are learning from their business coach. Instead of reacting, they become process-oriented.

Unfortunately, business skills are usually left by the wayside for many business owners. Instead, they focus on building their construction skills to improve their business, all the while ignoring the real problem, their business skills.

Contractors don’t fail or struggle for a lack of business skills, they fail or struggle for a lack of business skills.

If you are ready to roll up your sleeves and work on your business, not in it. Click the link below and let’s talk.

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Understanding Business Metrics

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.

Want help with your business? Click here for a free telephone call to discuss your concerns.

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.

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How to Close More Deals – Part Three The Measure Call

Professional Selling

Professional selling is needs-analysis driven, and the questions you ask uncover the client’s needs.

Understanding client needs and providing solutions is what selling is all about. As I have said many times, people buy for emotional reasons, and they avoid buying from people they don’t trust. By asking detailed and specific questions from the onset, you acquire all the inside information you need to close a deal. You also get the client relaxed and comfortable with you because they perceive your questions as concern for their best interests.

The Measure Call

I like to refer to the emotional buying needs of the client as “triggers.” This is what will persuade them to buy from you when you present back to them their triggers. In essence, you flip their buying triggers.

The measure call presents the greatest opportunity to ask specifically designed questions to find these triggers. You conduct the measure call under the guise of a site inspection in order to ‘measure’ the quantity of work they want done.

You visit the site, you do take measurements, check dimensions, gather information, and collect additional information on what work the client wants done.

The client perceives your visit as just that, not as a sales call. You catch them off guard and, with the right questions, perfectly timed, they will reveal to you all the information you need to close the deal in the final selling process I call the Proposal Stage.

The two greatest points you need to understand about using the measure call is:

• 1.     Ask pertinent, drill-down questions.

• 2.       Listen intently.

First Impressions

People don’t make first impressions, they get anchored to them. It is important to remember that your first impression on your prospective client will weigh heavily on them and hiring you as their contractor.

Dress professionally to fit the meeting. You should have some form of identification, and don’t be afraid to present it to them. Now is the time to also hand them your business card. Your business card should be another selling tool, and not just a plain old ordinary business card. You can learn how to build a powerful business card that sells from my E Book: “The Contractor’s Magical Marketing Tool Belt!”

This also the time to leave some promotional materials, such as; Brochure, references, copy of state licenses (if any), and FAQ’s (Frequently Asked Questions). They can be handed over separately, or in some bound manner.

Small Talk

Building a high comfort level is a primary strategy of the measure call. It also helps you to uncover important information you’ll need to from the client in order to sell it back to them in the proposal stage.

Small talk, that is talk that is of the interest to the client and interwoven in the normal process of measuring for the job, breaks down any apprehensions in the client. It should ‘flow’ naturally and seem unscripted.

Here are some of those questions:

“What made you call us?”

 "If you had a wish list of what you would really like in this job, what would it be?”

“How long have you been considering this work?”

“What prompted you to do this work now?”

These are just a few of the questions. If you would like to learn more of them, I have them in my book, “How to Market & Sell Your Construction Services Like Magic!”

The measure call is an ideal time to clarify the needs and requirements of the client, as well as the restrictions, deadlines, desires, wants, expectations, perceptions and emotional buying triggers so you can formulate a proposal that addresses their needs.

________________________________________________________

Ready to grow your business?

Talk to Henry!

Let Henry show you how to build a better business one that works for you, how to improve your marketing, and how to make more profit.

To schedule a no obligation conversation with Henry Goudreau click on this link!

_________________________________________________

Again, you accomplish this with your questions to the client and by listening intently to their responses, digging deeper with additional drill down questions when necessary. Avoid talking about yourself. Focus on the client.

If you have executed a thorough measure call you are fully armed and ready to prepare an accurate proposal call that sells your services and keeps the client focused on the benefits of doing business with you, and away from the low price arena.

We’ll talk about that in the next blog. 

Until then …

Good hunting.