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.

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.

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Working for Peanuts Only Feeds the Elephant.

"I'm working 16 hours a day, and I'm still not making money!"

If that is you, you need to stop working for peanuts!

Since I work with contractors from all over the country, I typically find their pricing model is all wrong. Simply put, they are working for peanuts. Peanuts are okay if you are an elephant. However, working for peanuts is not good for you or your business and its survivability.

A good pricing model must cover your costs and generate enough for your reasonable wage and profit. This is where too many contractors make this fatal mistake. They allow the market to drive their price down into the cellar.

The steps to correcting this is to have a real understanding of your numbers. That means, having them in a format that allows you to see what it is costing you, what your burden or overhead really is, and what you project you can do over the year.

Nevertheless, let me warn you. I see lots of numbers from hundreds of contractors. In 9 out of 10 instances, their Chart of Accounts is wrong and misleading. Why? Because most accountants and CPAs that set them up are inexperienced on what makes a contracting business work.

If the Chart is incorrect, that means all the assumptions being made are inaccurate. This leads to assuming you are making money when you are really leaking money.

I often hear contractors say that their competition is taking all the work for nothing. I say, let them! The earlier they feast on the peanuts, the sooner they will find themselves in financial trouble.

Don't assume yours are correct. I strongly urge you to find out what you have, and what you need to do to correct them.

The bottom-line is this. You're in business to make money. You need to earn a weekly wage just like the wages you pay your help. However, in order to grow your business and survive, you need to make a profit on top of everything else. Get on top of your financials. This is the key to success.

#contractorcoach

How to STOP Hurting Your Business!

Which is it, the economy or you that are hurting your business?

With the uncertainty about the economy, many are wondering what is wrong with their business. In many cases, the answer lies in your ability to come to terms with “how” you manage your business, not is “what” is happening to your business.

Typically, a business owner realizes that their business is in trouble. However, they fail to take corrective action. You should want more and care enough about your business that you will not allow, nor will you settle for mediocrity. I am going to reveal four common mindsets that will hurt your business if you fail to implement them properly.

Failure to build lasting relationships with your customers. Satisfied customers, people who have bought from you and who are happy with that experience, need to be cultivated. They need to know you appreciated their business, that you understand what is of interest to them, and that their powerful referrals are appreciated. People forget, don’t assume they don’t. Keep in touch. Make ‘special’ offers, and always ask for referrals.

Failure to prune your operation. Assuming everything is okay is a mistake! You will wake up some morning to huge problems. Take inventory, set standards, design standard operation procedures, and monitor performance. Don’t wait until it is too late. If something or someone isn’t meeting the standards and required performance levels, take action. By pruning, you get rid of the deadwood and help the good wood grow. It is a necessary action for developing a winning organization.

The dreaded “I-Do-It-All” Syndrome. Afraid to delegate? Scared stiff to give your employees responsibilities? Do you really think you’re the only one who can get it done correctly? It is time to check yourself in for a psyche test!

It’s not uncommon for business owners to ‘waste’ numerous hours doing the work that they hired employees to do for them. Ever wonder why? Usually it is because you failed because of the following:

·         Failed to have a workable system in place.

·         Failed to properly train the employee to the system.

·         Failed to properly communicate with the employee.

            You see. It is not always the employee. What you have is an organization problem of major proportions … YOU!

            You need to learn the art of “Leverage and Linkage,” that is the effective process of written systems, standard operating procedures, and employee training.

           

Failure to sharpen your own saw! Knowing you should be doing better, but failing to get the help and guidance to correct it, will never make it get better. You’ll still be dealing with all the stress, chaos, and frustrations of your business.

Improving yourself and your business is a constant and never-ending process. The sooner you come to terms with this fact of reality, the sooner you can start solving a lot of your major business headaches.

Perfection is something that is unattainable. It is the pursuit of perfection that produces winning advantages.

The Common Traits of Successful People

Have you ever wondered what it really takes to be successful?

Most people have a false belief of what success really is, and how you attain it.

Some think it is the price tag of the car you drive, the size of the house you live in, the family you were born into, the school you attended, or just the mere perception you may have more than them.

However, when you take a true look inside what success is, you see a different set of values.

Successful people see things differently for one thing. One may see a problem and develop a solution to fix the problem, where others are just fixated on the problem, or blame others.

Successful people may see a run-down part of town where hopelessness, poverty, crime and despair reign, and find a way to build it up so it can prosper. Others are content to wallow in their meager existence.

Successful people have their eyes constantly scanning for opportunities, while others are focusing only on mediocrity.

Successful people sharpen their skills with passion in order to do their best in their endeavors, while others passionately find excuses for doing nothing.

Successful people consistently view the future in the present tense, while others always look back in the past.

Successful people don’t wait for success to come to them, instead they relentlessly chase after it. Most people quit too early and never give success a chance to develop.

Another trait that is prevalent among successful people is courage. They nurture the courage to keep up the effort, the courage to be creative,  the courage to go against the group, the courage to get moving, and the courage to go it alone.

You see. The successful realize it isn’t all about the money, the cars, the homes, jewelry and other trappings. It’s about accomplishing something of value with their lives. It’s about achieving something that is worthy of their efforts. It’s about the courage, skills, self-reliance, personal responsibility, and self-worth to do it.

Successful people realize what the real value is of creating advantage and opportunity.