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Mark Eastman

Information, Instruction, and Implementation…This is Where the Real Work is Done

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Do You Think the Construction Business of Your Dreams is Worth it?

Last week we discussed how hard it is to keep a construction company from failing. If you have a construction company, this all-too-common outcome doesn’t have to be yours.

We’ve talked about how building a dream construction business starts with BEING AWARE of the issues construction companies face. The next thing is UNDERSTANDING these issues, which starts with asking questions and finding answers.

One of the biggest issues in construction is that most people in this industry are willing to do the hard physical work of building a building but will work even harder to avoid the work of building the business.

Building the business of your dreams is a choice.

Our lives are a string of choices, one after another, after another, after another, after another. These choices are the things that direct our paths through life and business.

We need to be aware of these choices and understand how they affect who we are. Understanding this leads us to gathering the information needed for building a business.

The INFORMATION that we consume determines who we will be.

Information comes from what we read, listen to, watch, and who we surround ourselves with. This is true for every aspect of our lives including our businesses.

Information is knowledge obtained through learning, investigating, experiences or study. It is the answers to questions that we ask. Knowing what’s needed to build a successful business begins with having the right information.

INSTRUCTION is an efficient way to consume information.

Instruction is advice or direction about how to do or use something. It happens when someone with more experience and knowledge teaches or trains others.

This lack of knowledge and understanding is why most people in construction don’t have business systems and tools. Sure, it can be learned without instruction over time, but why wait? Instruction is a more effective way to learn how to do or use things.

Don’t spend years by yourself in the “School of Hard Knocks” when is much quicker and less expensive to get instruction from someone who’s already graduated.

IMPLEMENTATION is making instruction and information real.

Implementation is the act of putting things learned into action or to use. This is where knowledge becomes reality. It’s where the rubber meets the road.

This is the scary part.

What if it doesn’t work right the first time? – It won’t.

What if I forget something? – You will.

What if it feels overwhelming? – It will.

Without implementing the things you’ve learned, you gain nothing.

This fear of failure is why most people choose to do nothing. They will just keep doing it the way they always have, knowing there’s a better way but just like the GEICO commercial, they’ll hide behind the chainsaws rather than getting in the running car.

Your construction business is worth the effort needed to gather the INFORMATION, get some INSTRUCTION, and IMPLEMENT what you learn.

If you would like some information about tools to help you build the construction business of your dreams, check out the 5-step Business BUILDing Process. Or if you need some tools for building that dream business, check out the Business BUILDing Toolbox. If you have any questions, you can schedule a free 30-minute consultation here!

Better Communication Often Leads to a Shift in Our Thinking

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It’s Really Not That Hard…It Just Requires a Change of Perspective

I’ve written about communication more times than probably any other topic. This is because I think it is as big or bigger than any other issue out there.

Miscommunication or no communication is due mostly to the fact that we get stuck in our own heads. It only makes sense that we would view things from our own perspective. Add to this that we’re all so busy that we rarely slow down long enough to listen and think.

Just a few weeks ago I wrote about how tricky communication can be (link to 9/27 post) and how a word like wonky can have multiple meanings. If I hadn’t asked some questions and done some research, I would never have realized there were other meanings beyond my own perspective.

I needed a paradigm shift.

A paradigm is a pattern, a model, or representation of the mental image you have in your mind. I first became aware of the term “paradigm shift” through a story in Steven Covey’s book Seven Habits of Highly Effective People.

“I was on a subway in a very large metropolitan city. It was Sunday morning, quiet, sedate. When a bunch of young kids came running into the subway car and their father followed. He sat near me and the kids went crazy on that subway, running up and down, turning people’s papers aside, just raucous and rude. I’m sitting there thinking, ‘I can’t believe this, their father does nothing!’

After a few minutes…, ‘Sir, do you think you could control your children a little? They are very upsetting to people.’

‘Oh yeah.’ He lifted his head as if to come to an awareness of what was happening. ‘Yeah, I don’t know. I just guess I should. We just left the hospital. Their mother died just about an hour ago and I guess they don’t know how to take it and frankly I don’t either.’”

Can you say paradigm shift?

In Acts 10:9-15, Peter was up on a roof at noon praying and was getting very hungry. While the food was being prepared, he fell asleep and had a vision. He saw heaven open, and something came down like a huge sheet held up by its four corners. In it were all kinds of animals, reptiles, and birds. A voice said to him, “Peter, get up! Kill these and eat them.” But Peter said, “Lord, I can’t do that! I’ve never eaten anything that is unclean and not fit to eat. The voice spoke to him again, “When God says that something can be used for food, don’t say it isn’t fit to eat.”

Peter had to shift his thinking from what he had been taught and what he had always believed to be right. He pushed back and God told him three times. It’s more important to listen to what God tells us than what man tells us.

Peter just had a paradigm shift.

We need to be careful to not get too stuck in our own heads and be open to what God is telling us. At the same time, we need to be careful not to take everything we’re told by people at face value. We need to weigh it against what God says.

Like Peter, we need to be willing to shift our thinking if it’s from God. Acts 10:34-48

Why is it so Hard for Construction Companies to Stay in Business?

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It’s Really Not That Hard…It Just Requires a Change of Perspective

It’s crazy the number of business that start and fail. Millions of businesses get started each year, but only a small portion survive. Why is it that 90% of all businesses fail? An article by Luisa Zhou is full of research-backed business failure statistics.

  • 18.4% fail within the first year
  • 49.7% fail within the first 5 years
  • 65.6% fail within the first 10 years
  • Only 25% make it beyond 15 years

There are countless reasons that businesses fail, but just because other businesses fail, doesn’t mean yours will too. Being aware of and understanding these statistics increases your chance of survival.

You can’t succeed if you don’t try.

If your dream is to own a successful construction business, you need to do your homework and then commit to it. Construction businesses do have a high failure rate, but that’s not to say you should avoid the construction business.

It just means you need to be aware and get prepared.

Listed below are five small business types with notoriously high failure rates.

  1. Restaurants – Independent restaurants have a failure rate of over 60% at the 10-year mark. The key to success is the ability to raise capital when needed. If a business owner cannot do that, there’s not much left but to close the doors.
  • Retail stores – Another business with intense competition is retail stores. Not only do you have to contend with other brick-and-mortar stores, but you also have online businesses undercutting your prices. Like independently owned restaurants, retail stores have a failure rate of over 60% at the 10-year mark.
  • Direct sales – Yes, it’s your own business, but if a friend asks you to become part of a multi-level marketing (MLM) business, say no. What you’ll hear are success stories. You won’t hear that, like a pyramid scheme, 99% of direct sales reps suffer significant financial loss. It’s the people at the top and the person who recruits you who makes money. 
  • Construction – Starting your own construction business is a tough gig. Construction businesses also have a failure rate north of 60% at the 10-year mark.

Not only do you have to be good at your craft, but you have to become a full-time salesperson, accountant, administrator, bookkeeper, and part-time counselor.

If you have a passion for building and offering unique touches that buyers can’t get from another builder, you’re off to a good start. The thing that’s usually missing is a business plan and the right business tools.

  • Insurance sales – Insurance agents face the same challenges of construction…wearing too many hats. They must be a master of administrative work, sales, and an ever-changing insurance scene.

If you’ve been in construction for any length of time, or know someone who has, you’ve become aware of how hard it can be to operate a successful construction company. Understanding the things that are needed to achieve this is one of the BUILDing blocks in a solid business foundation.

NOW WHAT? Now you need to change your perspective.

Perspective is a particular way of looking at something. This doesn’t mean it’s right or the only way. It just means that it’s our perspective.

Rather than assuming you’re the only one in construction dealing with issues you need to understand that this is not the case. These struggles are common across the construction industry. But changing your perspective is just the beginning.

Real change requires action. You’re going to have to do something.

So, what is the something that you need to do?

You need to lay the next block to BUILD the foundation of your business. This block is INFORMATION, INSTRUCTION, and IMPLEMENTATION. This is the third block in our 5-step Business BUILDing Process. Check back next week, and we’ll take a hammer to this building block to see what it’s made of.

It can be really frustrating trying to figure out how to build a successful construction business. But you don’t have to do it by yourself.

After owning and operating a construction business for more than forty years, I’ve developed business tools and systems that we are now making available to construction companies to give you an advantage over the competition.

If you would like to learn more about BUILDing a successful construction business, you can schedule a free 30-minute consultation here.

Life is Full of Interruptions, What is the Best Way to Handle Them?

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By Being Clear on What Your Priorities Are and Being Prepared

An interruption is the act of causing a break in the continuity or uniformity of an activity by saying or doing something.

Growing up, I remember watching TV or listening to the radio and hearing the phrase “We interrupt this program”. This was a common phrase used to indicate an emergency broadcast or a breaking news event.

The phrase was first used in the United States in the 1960’s as part of the Emergency Broadcast System (EBS), which was established to provide an expeditious method of communicating with the American public in the event of war, threat of war, or a national crisis.

For me personally these announcements never caused me to worry. Sure, I would stop and pay attention, but it was more about listening to the information rather than panic. I remember when the attacks happened on 9/11 and people went to gas stations to fill up any kind of container they could.

If the world was coming to an end…a gallon of gas in a milk jug wasn’t a very good plan.

As Jesus’ followers began to spread the good news, the religious leaders would interrupt them trying to stop them. The followers didn’t stop. The more the followers shared, the more the religious leaders interrupted. These leaders liked the way things had been and didn’t want anything to change.

Then Saul was interrupted and struck blind with a flash of light.

We need to be careful not to get stuck in our ways or we might get smacked upside the head with a board. We need to be clear about who we are and Whose we are.

Philip was preaching in Samaria telling the people about Jesus and the people were eager for more teaching and to witness more miracles. Many people with evil spirits were healed, and the spirits went out of them. Several paralyzed and lame people were also healed. Everyone in that city was glad because of what was happening. (Act 8:4-8)

Sounds like things were going well for Philip and what he was doing. It would have been easy to stay there and continue.

But Philip was interrupted.

Philip was told by God’s angel to go into the desert on the road that goes from Jerusalem to Gaza…and he went.

There Philip saw an Ethiopian official riding in a chariot. The Spirit told Philip to catch up to the chariot…so he did.

The Ethiopian was heading home after he had been worshipping in Jerusalem and Philip heard him reading from the book of Isaiah. Philip asked him if he understood what he was reading. (Acts 8:26-30)

The Ethiopian said, “Not unless someone helps me.” Philip helped him understand and the Ethiopian asked to be baptized. They stopped the chariot at some water and when they came up out of the water after the baptism, the Lord’s Spirit took Philip away. (Acts 8:31-40)

Talk about an interruption!

Too often we get stuck in a routine activity. Doing that same thing we’ve always done, the way we’ve always done it. It may even be a good thing like what Philip was doing in Samaria. We just need to be open to God’s interruptions and be willing to act on them.

We’ve all had those things that tug on us to do something that isn’t a part of our plan or that we aren’t comfortable doing. Often, these are God’s way of interrupting us.

It’s His way of letting us know His plans.

We just need to embrace the interruption…and do it.

Why Understanding is Critical to BUILDing a Successful Construction Business

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Because Your Company is Too Important to Just Roll the Dice

Why is it that people operating construction companies are willing to gamble with their business? This random hit and miss business model is an all-too-common practice in the construction industry.

Somewhere along the way as we grow into the routine of life and business, we stop asking questions.

As kids we’re expected to ask questions. In school we’re taught to ask the five Ws (who, what, when, where and why) and how. These questions are considered basic to information gathering.

UNDERSTANDING starts with asking questions.

Asking questions is the first step to understanding success. The questions are more important than the answers. Asking questions is necessary to break out of routines. Questions cause us to dig deeper and ask more questions. If we don’t ask questions, we will stay stuck in the mundane habits of doing the same old things over and over hoping for a different outcome.

It’s like people in horror movies. If you’ve ever watched a horror movie then you’ve seen this. Teenagers are in a dark scary place and instead of getting out when they have the opportunity, they continue to hide in a basement, an attic, a cemetery, etc. The GIECO “horror movie” commercial is a great example of this.

If you don’t want your business to be ‘chopped up by a chainsaw’ you need to BE AWARE and start asking questions.

Asking questions leads to UNDERSTANDING.

Like any tool, if you don’t understand how to use it, what its purpose is, and how it works it won’t be any help to you when you’re doing construction. The same is true for tools used to build a successful construction business.

  • Sales tools like Proposals and Contracts
  • Production tools like Change Orders and Payment Applications
  • Financial tools like Job List and Savings Account Transfer Sheet

Understanding how these tools work, their purpose, and how to use them can be just what you need to build that business of your dreams.

Understanding is the mental grasp or comprehending of something. It is the knowledge about a situation, how something works or what it means. Understanding is also an agreement between two or more people. It is the sharing of thoughts and ideas of others and willingness to listen with an open mind. This kind of understanding leads to trust.

If you’ve been in construction for very long, you’re aware of problems like –

  • Balancing construction projects and paperwork
  • Feeling like your business is out of control
  • Keeping projects on schedule
  • No money for bills, taxes, or emergencies
  • Keeping projects within budget
  • Disappointed or upset customers
  • Communication breakdowns

You can either ignore these issues and keep doing things the way you have, or you can start asking questions and figure out what to do about them.

Questions like why…

  • Why should construction contractors do proposals? –

This question is the one that baffles me as much as any. How can contractors expect customers or production crews to know what work is going to be done and what it’s going to cost without some clear communication? I don’t think you would buy a truck without knowing what you were getting. I know I would be disappointed if I ordered a new $70,000 truck and when I got it, it was a 1999 ½ ton pickup missing a wheel and the driver’s door.

  • Why don’t contractors do proposals? –

The most common answer to this question is that they simply don’t know how. This is something that just isn’t taught. Most contractors start out doing construction, not paperwork. They figure out some guesstimation process and then wonder why customers are upset when they get a bill that is higher than they expected for less work.

  • Why does this customer want to do this construction project?

This should be the primary question that a contractor gets the answer to. It is more important than what. The “what” answer has a “why” answer behind it. The why question doesn’t have to be asked directly, but regardless, needs to be answered. The why is the foundation for the customer’s dream. A foundation is critical to building construction projects and dreams.

  • Why do we do the same things over and over expecting different results?

We all do this to some degree. Why? Why do we continue to repeat things thinking it will be different this time? We shouldn’t do things just because… “we’ve always done it this way”. The more we walk back and forth in a rut, the deeper it gets and the harder it is to get out. I heard it said that a rut is just a grave with both ends kicked out. Stop walking and determine if this is what you want and if it’s the best plan. If not do something different.

These questions are a starting point to understanding how you can BUILD a better construction business.

Like so many things out there UNDERSTANDING can be a scary thing. It may take us outside of our comfort zone and we don’t like that. We would prefer to be like the people in scary movies…and just go hide behind the chainsaws.

At Solution Building we’ve developed a 5-step BUILDing process to make stepping out of your comfort zone a little less scary. If you would like some help knowing which questions to ask or answering questions you have, schedule a free 30-minute consultation here.

How Do You Know If You’re Heading in the Right Direction or NOT?

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When it Comes to Clarity of Life Purpose, This Can Be a Hard Question to Answer

Too often, we find ourselves going through life without really knowing where we’re headed or why. This may be because of where we were born and raised, our family and community dynamic, or an unexpected situation in which we are caught.

Going through life, headed in the wrong direction leads to being lost.

People start life making decisions based on what they know. We all know of stories where the child is living out the life that is expected of them. Whether that’s following in the family business or going all in on sports because that’s what a parent wanted. Or maybe someone takes a job to pay the bills and continues to work there without any clear reason.

Or, we may have been doing exactly what we’re supposed to up until the time we need to make changes. These changes may be a slight adjustment to course, or a complete one-hundred-and-eighty-degree turnaround.

Being aware is where clarity of direction starts.

Sometimes the direction changes come in a flash of light or maybe it involves getting hit upside the head with a board. I experienced the latter.

In Act 9:1-16 Saul experiences the flash of light direction change. Saul had been persecuting the early followers of Jesus. This is how he had been raised and what he had been taught. He thought he was doing the right thing. While Saul was on his way to Damascus to round up some of the followers, he was blinded by a bright light and redirected.

Saul could have pushed back and stayed the course…but he didn’t. Instead, he chose to follow the directions given to him by Jesus. Saul became Paul and went on to do the work he had been called to do.

We need to open our eyes and ears to what we’ve been called to do.

We can be led by the crowd to do what seems like the right thing. How can we be clear on what the right thing is? Ultimately, there is an internal voice that aligns with the Word of God. We can choose to listen to it or not.

The crowd’s voice can be very loud and make it hard to hear God’s voice. We need to be aware that sometimes when we choose to listen the crowd instead of God there may be a flash of light or board coming our way.

Sometime this change of direction can be a scary thing. Going to some place out of our comfort zone may require courage. If we want to go where we’re supposed to and be obedient, we need to be willing to step out in faith.

Be open to God’s leading, and you’ll experience a life beyond your dreams.

What’s the Number One Problem Construction Companies Struggle With?

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It Would Be So Much Easier If There Was Only One Problem to Deal With

The construction industry is a complicated business and is only getting more so in today’s fast-paced world. If you’re working in construction, or know someone who is, you know how overwhelming it can be trying to keep up with the business.

As complicated and overwhelming as the physical on-site construction portion is, the business part is equally daunting. This includes things like budgeting, scheduling, communication, labor issues, planning, and cash flow to mention a few.

While researching the number one problem construction companies faced, it was confirmed that there is more than one problem, and they are common across the industry. Trying to ensure that projects stay on schedule, within budget, compliant with safety regulations, and running smoothly is difficult.

Wouldn’t it be great if there was only one problem?

Blackridge Research and Consulting is a market research and consulting organization. Their 2023 blog about the Major Challenges Facing the Construction Industry confirms what I’ve been saying for years.

Here are seven major construction industry problems –

  • Cost overruns – This is one of the top construction industry problems. This is when a project exceeds its pre-planned budget. A McKinsey study estimates that 98% of large construction projects deal with cost overruns of more than 30%. This is often caused by poor cost estimates during the planning phase, design change requests, and payment delays. This results in lower profit margins, material shortages due to running out of funds, damage to the company’s reputation, and delays.
  • Delays – The same McKinsey study also shows that 77% of construction projects are at least 40% late. Some factors that contribute to this can’t be controlled, i.e., weather, labor shortages, and equipment failures. But there are as many or more factors that can be controlled and prevented, including scheduling issues, project conflicts, and incorrect data. One of the best ways to reduce delays is through the use of technology but the industry’s willingness to adapt is a problem.
  • Push back on new technology – This is one of the biggest problems in the construction industry. Its hesitancy to adopt new systems and processes that could make their companies more efficient is a problem. Even when construction companies acknowledge that there are solutions that they could benefit from they tend to stick to the mantra, “This is the way we’ve always done it”.
  • Poor communication – One of the most prevalent construction issues is poor communication. Since construction projects require multiple people during the planning and construction, effective information exchange is crucial for the project’s success. Oftentimes, there’s a disconnect between the office and on-site workers. Poor communication is linked to a high percentage of construction problems resulting in complications such as unrealistic expectations and important tasks being overlooked. Keeping everyone in the loop by sharing obstacles and daily progress is a great way to avoid conflicts. Documented communication helps in cases where conflicts do arise.
  • Poor planning and budgeting – When projects aren’t planned well it leads to unachievable goals that can result in construction issues like stagnant productivity. It helps to break larger goals down into smaller and more attainable ones with daily objectives. In terms of budgeting, incorrect estimates can disrupt progress and can cause projects to be delayed or dropped altogether. It can also lead to a reduction in company profit.
  • Lack of organization and poor document management – This is another prevalent problem in the construction industry. Construction involves dealing with a lot of information, from contracts to material orders to receipts to insurance certificates. Document management is not something that people in construction typically like doing. Not doing it is inefficient and creates room for mistakes. Having a system that is digital allows for better access and centralizing important information.
  • Cash flow issues – Problems with cash flow can cause construction challenges. Having a steady stream of funds is crucial to paying employees, subcontractors, vendors, and suppliers on time. When payments fall behind, it further disrupts cash flow, halting project progress and causing delays. The reason so many construction firms struggle with managing a project’s funding is that they rely on outdated systems. Having more modern solutions can ensure that all payments are made and accounted for.

Dealing with these problems is the reason I developed the business tools that I use at Timber Creek Construction every day. Seeing other construction companies struggling with the problems is the reason I started writing about them on Solution Building.

Now we’re going to make these tools available to construction companies that are tired of feeling trapped with no way out.

We plan to open our digital Business Building Toolbox next week. These tools and training are designed to help construction companies build the business that they always dreamed of. We will continue to add new tools and training in the future. If you would like more information about these tools and training and how they can help your construction company with these problems as well as others, schedule a free 30-minute consultation here.

Clear Communication Can be a Tricky Thing to Get Right

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There’s a Reason We Have Two Ears and One Mouth

Too often we think we know what some is saying without bothering to even listen. Good communication takes twice as much listening. This is why we have two ears and only one mouth.

We’ve seen a lot of miscommunication in Luke and Acts over the past several weeks as we’ve been going through these books. This was a problem between the Jewish leaders and Jesus then, and this is still a problem for many church leaders today.

A good example of how miscommunication can cause problems happened in Sunday School this past week. We were talking about the new book The Great Dechurching. Bradley Gamber has started reading it, and he described it as “wonky”.

I asked him what he meant by “wonky”. His definition of wonky is something that has a lot of detail and statistics.

I told him that’s not what wonky means to me. It means that something is out of whack, leaning, or crooked.

This led to quite the discussion about the word “wonky”, and we discovered that there were a variety of thoughts on this. I’m glad that I asked the question because otherwise I would have assumed that Bradley didn’t like the book, but this isn’t what he was saying.

What’s even more interesting is that after doing some research…both definitions are correct.

Wonky according to the Cambridge Dictionary means “knowing or showing that you know a lot of details about something, especially politics or science”. This sounds like the way Bradley was using the word.

Wonky also is defined as “askew, cockeyed, lopsided, rickety, shaky or wobbly”.

It’s no wonder that there’s such a problem with communication.

This brings me back to the Scripture in Acts 5-7 and Pastor Lisa’s message this week. The focus was on Stephen and his arrest and stoning. This story is full of miscommunication.

As followers of Jesus were gaining more and more popularity among the people, the Sadducees were becoming jealous and had some of them arrested. Then after the apostles were released by an angel, they went back to the temple and were teaching. Then the apostles were called before the council and again told to stop speaking about Jesus. (Acts 5:17-28)

Stephen was a man of great faith and was filled with the Holy Spirit. He was one of the men chosen by the apostles to help spread God’s message to many more people. (Act 6:1-7)

Then Stephen is arrested because there were men who started arguing with him and accusing him of saying terrible things against Moses and God. These lies turned more church leaders against Stephen. Stephen begins to give the church leaders a history lesson about Abraham, his descendants, Joesph, and Moses bringing the slaves out of Egypt. (Acts 7:1-47)

The church leaders didn’t like what Stephen was saying so they covered their ears and started shouting.

Doesn’t this sound like a child who’s not getting their way.

The members of the church council get so mad that they attack him, drag him out of the city, and stone him to death. In order to throw the stones, the men that brought the charges give their coats to Saul to take care of. (Acts 7:54-58)

Check back next week to see what becomes of Saul, the coat keeper.

As Stephen is dying, he calls out to Jesus to welcome him home and asks Him to not blame the men throwing the stones because they don’t know what they’re doing. (Act 7:59-60)

There was no question what Stephen was saying as he spoke to the leaders of the church. He didn’t mince words, he said what he believed. This took boldness and courage in his willingness to stay true to what he believed.

We need to be willing to speak what we believe in love. We need to open our ears and listen. We need to discuss and learn.

Stephen was clear on what he believed and was willing to die for it.

A faith worth living for, is a faith worth dying for.

Are you clear about what you believe and is it a faith worth dying for?

On a side note – My amazing personal assistant, Dori, recently shared a link with me of Dr. Albert Mohler, President of The Southern Baptist Theological Seminary speaking at a recent chapel at Cedarville University. In addition to the great message presented by Dr. Mohler, I was impressed with the number of students and their focused intensity.

Maybe there is hope for the future of our country and our world.

Getting Signed Construction Proposals, What’s the Best Number for You?

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How to Know What Your Number Is and What You Should Do with It

I have been reading Simon Sinek’s book Start with Why this past week. In it, he discusses how customers will do business with companies and not even really know why. He says that it often has more to do with trust than price.

This is where word of mouth marketing comes in. If someone you trust shares about the great experience that they had with a company, you’re more likely to do business with that company.

This got me to thinking about the closing ratio of our proposals. Our closing rate has almost always been higher than industry standards. This is in large part due to many of our projects either being

repeat customers or someone that has been referred to us by one of our past satisfied customers. It does not seem to be this way for most construction companies.

With the hit and miss way of doing business in the construction industry, it’s amazing to me that there are any construction companies out there at all.

Another thing to be aware of and something that is often overlooked is when our closing ratio gets too high. Selling a lot of jobs is a good thing, but when this number gets too high, it’s a good indication that your pricing is too low.

Is your bid-hit ratio ok?

When asked the questions… “Do you know what your bid-hit ratio is? Do you keep track of it? How do you use it?” Most contractors have no idea. Well over 50 percent don’t have a clue what their ratio is. Less than 25 percent know and track theirs.

This is like driving a car blindfolded — trying to go somewhere without a clue where you are headed!

In order to determine how many jobs to bid on and what type of jobs to bid on, you must know your bid-hit ratio. Track it regularly. Track it for all projects you bid on. Track it by customer.

Having a system will help you determine which jobs to bid on and which jobs not to bid on. It will also help you determine when to eliminate a project type or customer from your plate and seek out better opportunities to invest your estimating dollars.

Knowing the percentage of proposals that get signed can be a critical piece of information and may determine whether your company will stay in business or not.

Most small to medium sized construction companies run their businesses by just throwing a dart and hoping it hits a dart board. They have no real idea of what they’re doing.

I would bet my annual salary that most construction companies have no idea of what percentage of their proposals turn in to actual construction projects. This is vital information to have for building a profitable business.

This is why we have a Job List tool for tracking this information in our construction business. This tool will do a lot more than just tracking the percentage of signed proposals.

You can find out more about this tool here –

I realize that the whole business thing can be daunting and overwhelming, but it doesn’t have to be.

The Job List tool, as well as, the Proposal, Contract, Change Order, Payment Application, and Saving Account Transfer tools are some of the tools that will be coming soon in our Business Building Toolbox.

If you have questions about the Business Building Tools and if they would be a good fit for your construction company, you can schedule a free 30-minute construction company consultation here.

What Does Living with Boldness Look Like?

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How We Do it is Just as Important as Doing it

Being bold can be perceived as being pushy and overbearing…like being a bully. I think this is why many of us are scared to say what we think. In reality, these two things are quite different. A bully is someone who seeks to intimidate or coerce someone else into their way of thinking.

Boldness is not the same as being a bully.

Boldness is not hesitating or being afraid when facing our fears. It’s about being clear about what we believe and being willing to stand up for those beliefs.

What we believe individually is different. This is where the whole thing can get kind of tricky.

Pastor Lisa shared a story of being in a doctor’s office waiting room last week. When she went in, there was already a woman sitting there, so Lisa sat down with a chair between them. Then another woman came in and sat in the chair next to Lisa on the other side.

This wasn’t a problem, but Lisa thought it odd that she sat down next to her when there were other empty chairs.

Then Lisa got a magazine and lady number three asked Lisa to get one for her too. So, Lisa picked one out, hoping it was one she would like. Then the lady started talking about what she was going to have for lunch.

Later Pastor Lisa was talking with her daughter about her interaction with the lady in the waiting room. Her daughter said, “I’m never like that. I just don’t talk to other people in the waiting room. I’m just not that bold.”

This got her thinking about Peter’s increasing boldness that we’ve been seeing as we move forward into the first part of Acts. (Acts 1-4)

At the end of each year, Lisa picks a word to focus on for the upcoming year. This topic of boldness reminded her of her word for last year…moxie. Moxie is having a courageous spirit and determination. Or as Lisa explained it…

Moxie is boldness with a little bit of sass.

I found it interesting that Moxy is the name of our dog. I think boldness with a little bit of sass describes her to a tee. This is exactly why she is named Moxy. Sometimes, in her aggressiveness to get to a varmint, she will tear bark from trees or metal siding from trailers. This is taking boldness a little too far.

Some people are naturally shy, and this makes boldness hard for them. But boldness is about facing our fears. Remember that we can change if we choose to.

Boldness is a choice.

Let’s look at Peter’s boldness and how he got to where he is in in Acts.

Remember back in Luke 22:49-50 when Peter in his boldness cut off the ear of a servant of the high priest. This sounds a little like our dog.

Then shortly after that, in his fear he went the other way and lost his boldness in Luke 22:54-62 when he denied Jesus three times.

This brings us to Peter’s increasing boldness in the first part of Acts. In chapter 3 verses 5-10 Peter and John heal a man in front of the temple. Then in verses 11-24 they are boldly speaking in front of a crowd in the temple. In chapter 4 verses 1-22 they are brought before the council. Next, Peter prays for courage in verses 23-31. We may be bold and do and say things before thinking like Peter did when he cut off the servant’s ear. Or maybe we’re shy and scared to speak up about what we believe like Peter when he denied Jesus. Either way…like Peter, with the Holy Spirt, we can be bold and speak the Biblical truth.

Live in boldness with a little bit of moxie!