The #1 Mistake Contractors Make With Their Business

What is the #1 mistake contractors make with their businesses?

It is thinking if we just ‘work harder’ or ‘take the work cheaper' we will make more money.

The result?

You do more and more, still struggling, but the hole gets deeper.

 The truth is sometimes you don’t need to do more, but instead you need to remove the obstacles in your path to get better results.

Are there any obstacles in your path to success? 

If so, what are they and how are you going to overcome them?

Can you even identify them?

After working with hundreds of contractors, I've seen the obstacles.

The obstacles are not their lack of good construction skills. In fact, they have mastered that end of their businesses very well. It is their business skills that need the help.

Now, here is the startling part.

They think they've got the business skills down pat. The truth is, they don't. They just need help in utilizing the right skills in the right manner. Once they've learned them, they see a huge difference in the performance of their business. Even in this difficult economy, they make more money, and have more time for themselves.

Want to help your business perform better?

Want to drive more money into your pockets?

Want to have real control over your business?

Get help with your business skills.

#contractorcoach

Why Having an Executive Business Coach is Scarier Than Dating Angelina Jolie

In the last twenty years, I have been working as a coach to owners of contracting businesses, I've come to realize more owners prefer not having a coach to help them with their business, then the number that actually engages coaching services. The question is. Why is that?

The answer to the problem is two-fold.

One. Too many contracting owners allow their ego to get in the way. They feel, that hard work, long hours, and greater risk are the only way to succeed, let alone, admit they need help.

Two. Accountability. Some do not want to be held accountable for their actions. I guess it is a lot easier to blame anyone or anything else. The problem with this approach is that the problem never goes away.

For me, as an executive business coach, I have to talk to 100 prospects before I can land a client. That means at least 99 continue  with the same problems, never improving. Think about that. 

For that 1% that do engage my services, they proceed to solve their problems and mastering their businesses, getting a huge R.O.I. for the coaching, thereby making more money for themselves, and having more time for themselves. 

You would think more would prefer success over hard work and low returns, unfortunately, that is not the case. Human nature is somewhat baffling.

1% seems to be a specific number. 1% of those who are successful earn more money than the average 99%. You would think more of the 99 would want to join the one percent.

Meanwhile, I guess it is a lot less scary to be dating Angelina Jolie.

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

If I Had To Start My Business Again (Step by Step)

Often.. I've wondered...

What would I do if I lost EVERYTHING and had to start my business again?
 
We'll here's what I'd do:

CLICK HERE - Find Exactly How I would Do It!

Inside you'll learn step by step how.

The Art of Tolerance

What is tolerance? 

We've heard a lot about it in the news lately. Especially after the patriarch of the Robertson clan expressed his religious belief.

It appears to me that tolerance is the weapon of  the extreme left minority  to force their beliefs and practices on others, the majority. That is not tolerance. That is intolerance.

Tolerance means I accept your beliefs and practices. However, I do not have to practice or take part in them.

According to the Webster's College Dictionary, tolerance is a fair and permissive attitude toward those whose race, religion, nationality, etc., differ from one's own.

That raises the question, what is fair?

 

Is it 'fair' to force your opinion or view on others? I do not think so.

Is it 'fair' to force others to change their beliefs because it offends you? I do not think so.

Is it 'fair' to force a third party to inflict hurt to the person or person's you disagree with? Definitely not!

When you force another to change their beliefs, religious or otherwise, directly or indirectly, you yourself are not being tolerant, you are being coercive.  

Coercive means using force or threats to make someone do something you want. Something that is different than the beliefs about the person you want to change. That is precisely what is being done here by GLADD. As a matter of fact, that is accurately what the left is doing and their tool is called "political correctness." They are coercing someone to change their godly views because they do not like them by forcing financial pain on them. By demanding A & E to take action against Phil Robertson because of his devout views, something A & E has known for years ... Phil's deep religious belief, they are being coercive. Shame on them!

As for the rest of us, how should we be handling this event? For me, I will support the Robertson's for standing tall on their religious beliefs. It is not important if I hold these beliefs myself or not. They have a right to them and to express them. I respect them for that.

I do condemn those who coerce those to change because they do not like their beliefs, religious or otherwise. That is wrong, and it is shameful, if not just plain disgusting.

A man who walks in his beliefs, stands tall on them. Men who have no beliefs, cover their footsteps with lies and deceit.

I'm tired of the intolerance of those who wish to change the majority of us because they don't like the term 'Christian' or otherwise. If you expect me to show tolerance to you and your beliefs, I expect you to show tolerance to mine.

Working Harder, Earning Less?

Are you working harder for less money?

A common complaint from many contractors is being forced to drop their margins in order to get work from owners who suffer with the low bid mentality. 

The result in for the contractor is working harder but being personally grossly underpaid for their efforts and risk.

This raises the valid question; is being the low bidder worth it?

In my forty years as a contractor, one thing, I did learn is this. The only way to be successful as the low bidder is to have complete control and understanding of your financials. And here lies the problem for many owners of small construction businesses.

Too many contractors either judge their financial progress by their checkbook balances, or by their gut feeling. Both  methods are the formula for a perfect storm.

As a business coach for contractors, I find in my contractors coaching, many small contractors (those doing under $10 million or more), are operating with bad numbers, poor pricing models and insufficient markup.

I also find in the contractors coaching process that they fail to understand what selling their value really means, and the hidden gold mine of targeting their best type of customers.

Without these two, elements understood perfectly. Marketing and selling suffer dramatically. Costs rise, and profits decline.

The good news is this.

All the above syndromes can be rectified with coaching and guidance. I've worked with some positive contractors who are willing to take the time and put forth the effort to gain control over their businesses, and increase their worth.

In the meantime, if you're  working harder, and earning less, maybe it is time you consider getting help and discovering how you can take control over your business. Why? Because no one needs to work for nothing, especially when you own the business!

The Problem with Promises

We've all experienced that client or customer who tells you they're going to give you a job ... or maybe the next one.

The problem is that too many business owners start seeing the money as theirs, like they already have it in their hands.

 Even worse, some in spite of not having it but believing it is theirs, start spending it.

 They call it "gearing up" for the promised work.

 The truth is, until you have actually got the money in your hands, you don't have it!

I run into this quite often with owners of construction companies. Someone promised them the work, got them all involved, suck all their good ideas out of their minds, and move on to someone else.

These so-called prospective customers are bottom-feeders. You need to figure out their approach and avoid them like the plague, or develop a system to stop their flagrant use of your precious time.

I suggest entering into a limited contract to hire you as their consultant. You can also start making them pay for your estimate. To sweeten the pot, offer to credit it off of your contract for the work.

Whatever you do, stop spending money you haven't earned yet.