Presentation on theme: "THE FAST TRACK TO PROFIT 30 TIPS IN 30 MINUTES. 1. NEGOTIATE LIKE A PRO Avoid: Wanting something too much Not seeing your strengths Getting hung on one."— Presentation transcript:
THE FAST TRACK TO PROFIT 30 TIPS IN 30 MINUTES
1. NEGOTIATE LIKE A PRO Avoid: Wanting something too much Not seeing your strengths Getting hung on one issue Seeing only one option Adopting a win/lose mentality Going on too long Thinking short term Believing your counterpart holds all the cards Accepting firm positions
2. PROFESSION OR BUSINESS? The difference? Profession: You are the brand Profession: Nothing to sell at the end of it Business: Your company is the brand Business: Less personal income but something to sell
3. SYSTEMIZE ProBuilt experience $½ million business to a $3 million business Job descriptions: eg: site super, sales person, foreman etc. Org chart Policies and procedures
4. START ANOTHER BUSINESS The Pozzebon family Other ideas: Duct cleaning Moving Door and window installs Floor finishing Register separately Keep separate books Make it a high margin business Provides consistency
5. KNOW YOUR COMPANY CULTURE Impossible to be objective about your company Do exit surveys Ask others What does your culture say? “everything is a mess!” “We always find the lose/lose.” “We can do that!” “I have an idea!”
6. HAVE A SIGNATURE VALUE Have proprietary: Design Installation Behaviour Your signature becomes your brand Increases margin
7. GET MARGIN Where does your margin come from? Marshall McCarroll, Dale Construction, Toronto: “You can buy a KIA for $20,000 or a Mercedes for $114,000. They both have four wheels and can drive you from A to B. So why would anyone buy a Mercedes over a KIA? Because some people set great store in quality.” Fact: you will not bridge that gap with bricks and mortar. Margin is in: Cleanliness, timeliness, signature style, reputation, everything else.
8. TEACH YOUR CLIENT An educated client is a safe client No surprises You’ll get a cooperative approach Lower their expectations
9. WHEN YOU NETWORK Have plenty of business cards Know your elevator speech Have canned questions to start conversations Have your exits in place Make eye contact Smile Ask questions Ask for a card Follow up Get out
10. SEE THE FUTURE Contractor Global Warming: As the heat in the industry rises, islands end up under water Remodelers Advantage Renovantage
11. A GREAT NEW MARKET Aging in place The cutting edge is now
12. STAY DIALED IN Better be on the bus than get hit by it. Follow building permit stats Listen to peers Know the demographics of your market Talk to your materials suppliers
13. HANG ON TO YOUR BEST GUYS Learn how to fire Learn how to hire Hire for character Litwiller cleans house
14. ATTACH THIS TO YOUR CONTRACTS Residential Construction Performance Guidelines Goes to quality, not code issues Eg: Where a tread meets a riser: “Gaps between adjoining parts that are designed to meet flush shall not exceed 1/8 inch in width.” builderbooks.com Becomes the arbitrator between you and client
15. GO TO HOME SHOWS And when you do: Don’t sit down Follow up Have a goal for your needs Budget for everything Staff Setup and breakdown Opportunity costs Booth construction and rental Ancillary fees
16. DO FORENSICS Helps to clean up problems in accounting Provides deep knowledge to inform estimating Provides reassurance that you are on the right track (or not) Set up healthy competition between site supers Gets staff focused on cost cutting strategies Record and classify results from forensics
17. REJECT A CLIENT No bad client is worth it Interview your client when they are interviewing you: Have they got the money? Have they got a budget? Knowledgeable or teachable? Realistic? Fire at least one client a year.
18. KNOW YOUR THREE BEST FRIENDS Net Profit How much money your business is putting in your pocket Operating Cash Flow What you need to run a business You might have profit, but if you have no cash, you can’t fill the tank. Return on Assets Does running your business make you more than a GIC? A mutual fund? These three measure must be in balance
19. MAKE PERFECTLY FLAT DOOR FRAMES String from top right to bottom left String from bottom right to top left Tap the bottom corners back and forth till the strings touch
20. USE CHECKLISTS For something For everything
21. HAVE A PUBLIC RELATIONS STRATEGY Radio Local hardware store or lumber yard Newsletter to your customer base Awards Charities Do it for your past and present clients as much as for your future clients
22. CONSIDER THE COST SIDE Once a year, renegotiate with: Retail dealers Employees Subtrades Trucks Equipment Get creative (The Reno Coach toilet) Can you partner with other renovators on the buy side?
23. GET POLITICAL The answer to the cash economy Work for rich people only Sell fear Do a bit of cash work yourself Cooperate with the cash economy Get political Who is the voice of the industry here? What can you do?
24. CREATE YOUR BUSINESS ON PAPER Almost all you do when you succeed is backwards to what you are doing now. It’s like visnualization
25. ATTACK YOUR WARRANTY WORK Know what it costs you Leaking is low hanging fruit
26. SHOW UP Put yourself in the 10 percent
27. USE ELECTRONIC TIME TRACKING Eg: Exactime time tracking Truck tracking
28. PAY YOURSELF FIRST Start there and build your business from here, not the other way around
29. LEARN CONFLICT RESOLUTION Listen Acknowledge emotions without taking sides Use and encourage positive language Aim for S.M.A.R.T. solutions: Specific Measurable Achievable Realistic Timed