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Building A Dream Business

Poor Communication is the Number One Reason for Disagreements

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Avoid Disagreements by Going the Extra Mile to Achieve Clarity

As I stepped out of my comfort zone this week and prepared the proposal for VB Homes’ “construction proposal system”, I was reminded of the importance of communication.

As I worked on this proposal, I considered reasons for them needing this system and it reminded me of the importance of good communication. The consequences of poor communication are huge.

An excerpt of a previous post from August 2016

Over the last few days, I was reminded of how important good communication is.

Two separate instances have come to my attention confirming this.

One situation is of a customer who had been given a price for a project and then after the project was started (concrete was poured) found out the price for the project was more than they were told. This caused some real problems for both sides.

The second was someone who had a project done with no written agreement. Once the project was almost completed there were some quality issues. This left both the customer and the contractor in a place where they felt cheated. The contractor billed for work done but wasn’t getting paid. The customer felt that the work was below standard and couldn’t get the contractor to come back and fix it.

As is usually the case there were extenuating circumstances in both situations and both sides had legitimate viewpoints.

Both projects would have had less problems had there been clearer communication from the beginning.

It has been my experience that there are differing opinions on how much detail should be included in the communication between customer and contractor. The bottom line is that it needs to be enough so that all parties involved know what to expect.

Rarely have I known small to midsized contractors to spend the time and effort to include very many details.

I understand, it takes time. The question we should ask is this…

Is it better to spend the time communicating before the project starts or wait until there’s a problem and everybody’s upset?

On the other side there is the possibility of too much information and the customer being confused and feeling lost (I know, it’s hard to believe that I just wrote that).

Often large commercial contracting firms and architects do this. I recently was aware of a commercial project that the communication was overly complicated. There were forty-one pages of drawings and a spec book over 1” thick and it wasn’t that big of a project.

With all that information the customer was overwhelmed and unclear about the project. Don’t get me wrong I like details and information. I think it is essential to good communication. The problem is that if it’s too complicated the customer still is uniformed and lost. This is still poor communication.

Ultimately proposals should be about helping customers know what to expect and get their dream project done.

I have lost count of the number of times that I’ve heard customers say that a building project was the worst experience they ever had. How sad is this?

They were excited and looking forward to having some new project done and then they are left with feelings of regret. I think there’s a balance between the two extremes.

This is where the real challenge is, finding the sweet spot for all involved.

There is a lot to consider when it comes to good communication, but the first thing is, ask questions and listen to the answers. As a contractor, don’t go into a project with your preconceived ideas of what the customer wants.

Find out what THEY want and HELP THEM BUILD IT.

Hopefully the proposal sent to VB Homes was clear and understandable and gives them a clear picture of what to expect.

Doing a Proposal for Doing a Proposal System is Out of My Comfort Zone

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But “Comfort Zone” is Just an Excuse to Not Fulfill My Purpose

There have been a few times when I stepped outside my comfort zone and the results were not what I’d hoped for. On the other hand, there have been times when I stepped out and the results were better than expected.

So, if this is the case why is it that I push back at taking chances? The comfort zone is called that precisely because that’s what it is…comfort-able.

The problem is we won’t ever achieve our purpose in life if we stay comfortable.

Living the life God wants us to live requires getting uncomfortable once and while.

There are a lot of boundaries we put up to keep ourselves from going out into the big scary world of the unknown. It’s not that these walls are bad things. They may even be good things.

I know that, in an effort to be sure that I’m prepared before I go out there, I’ve done things like trainings, classes, courses, etc. You know, to be sure that I know what I’m doing. Ray Edwards refers to this as “educrastination”. These are not bad things; we just need to be careful to not let them trap us in our comfort zone.

There’re also tool barricades. I tell myself that this new tool, gadget, program, system or process, will make me better prepared to confront the big scary unknown outside of this place of comfort.

Here’s what I do know. If I don’t go out there and do that thing that I’m scared of, I’ll never accomplish the thing that God wants me to.

Okay, okay, I’ll do it.

I’ll start working on a proposal for making a proposal system for VB Homes.

Last week I wrote that I was rethinking how my proposal system could be more helpful to contractors. I know of a couple of local contractors who got my proposal system and then didn’t use it. Why not…

I developed a system that works so well at efficiently preparing consistently accurate proposals.

Why wouldn’t every contractor want to use it?

Back to last week’s post.

After being connected with Chris Ettel of VB Homes by a mutual friend. Chris and I met a few times discussing my proposal system and I began to see that there might be some things in my system that could be changed to work better in their business.

I realized…not every contractor is the same.

At our last meeting we discussed the possibility of me designing and developing a modified version of my system that would work for them and their specific needs. He was very receptive to this idea…

Now comes the big scary, outside of my comfort zone thing.

Just like when I started doing construction, I didn’t know how to do proposals, this is the same thing. I made it through that scary thing I can make it through this one.

Here I go stepping out of my comfort zone.

I’ll let you know how that goes.

Giving Work Away for Free Doesn’t Sound Like a Very Good Plan

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The Benefit to Me is More Than Dollars and Cents

There’s a learning curve that goes with expanding my business from construction to include coaching and consulting.

After all, a coaching/consulting business isn’t the same as a construction business…or is it?

Several years ago, it occurred to me that most construction companies that I worked with knew how to build a building…but not a business. This became apparent when they would continually ask me how I did this or where I learned that. Or worse case when a construction company and customer ended up in court because something hadn’t gone as expected.

Then it happened, I got a wakeup call and realized that I needed to share this knowledge and experience with other construction companies and customers.

The problem is I’ve never been very good at teaching. It was always easier for me to just do it myself. Even though I didn’t realize it at the time, this is a pretty selfish attitude.

So, if I’m not naturally a teacher, how do I get these systems into the hands of the people who need them?

This is when I developed a downloadable proposal system, available online. It was complete with instructions for how to use it, templates, examples and a database. And what happened next…crickets.

What’s the deal? There’s definitely a need for better business systems in the construction industry. So, why aren’t people buying this inexpensive proposal system and taking control of their businesses?

Recently I have been in communication with a construction company that has shown interest in the proposal system. We’ve met a few times and discussed the system. I even did an example proposal of a project they are getting ready to start (at no cost) to compare to their system.

During our most recent meeting we discussed how my system could work for them. He asked some questions about some concerns he had.

If my system works so well for me, why wouldn’t it work the same for every other construction company out there?

That’s when I had an aha moment. It’s because they aren’t me.

So, I need to rethink this whole thing. Rather than me focusing on selling my system and teaching it others, I need to find out what they need and build them a system that works for them specifically.

I need to approach this more like doing a construction project. I wouldn’t build the same house for every customer. They’re all different. They have different needs and wants. Once I figure out what those are, I can build them the project of their dreams.

This is how I need to approach the coaching and consulting for construction companies. I need to find out what they need and build it for them.

This new thinking is going to require me to do some work in the beginning at no charge so that I can learn how to do this. Giving away work doesn’t sound like a very good plan…

But I think the long-term benefits to both me and them will be worth it in the end.

What Are the Benefits to Using a Coach or Consultant in Business?

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Not Nearly as Much If It Doesn’t Include Accountability as Part of the Process

Let’s start by answering the question, what is a coach or consultant?

That’s a really good question. If you ask five different people, I will bet you will get five different answers. As I’ve been working to help construction companies do better proposals with my proposal system, I’ve been asking myself this question.

So, what is the difference between a coach and consultant?

According to Wikipedia, coaching is a form of development in which an experienced person, supports a learner or client in achieving a specific personal or professional goal by providing training and guidance. Coaches use a range of communication skills to help clients shift their perspectives and thereby discover different approaches to achieve their goals.

A consultant, on the other hand, is a professional who provides advice and further purposeful activities in an area of specialization. Someone who advises on “how to modify, proceed in, or streamline a given process within a specific field. A consultant should be able to correctly diagnose and effectively transform a problem and apply information, resources and processes to create a workable and usable solution.

I see coaching as more teaching, training and implementing. It can include consulting, or it could be the next step after. It is more reliant on understanding the subject being coached.

I see a consultant as someone who evaluates a company’s processes and systems, assesses them, and offers ways to improve or new to replace the existing. Consulting is a valuable procedure, but a little more distant and less connected than coaching.

The biggest issue with either is the lack of follow through on the part of the receiver.

Around thirty years ago when I was in a business partnership, we had the construction thing figured out. We knew how to build. What we were struggling with was the business side of things.

After some discussion, we hired a consulting company…and it wasn’t cheap. It cost us $20,000 and in the early 90s for a small company, that was a lot of money. I could have bought a new truck.

They reviewed our business extensively and gave us a lot of new processes and procedures. It was great. The problem was that after the new wore off…we quit using them.

I’ve seen this happen over and over, both with company’s and individuals. We pay for some new training or program, and then gradually slide back into the old routines that we were trying to get away from.

The problem is a lack of accountability.

This is a bigger problem than just with business systems and training. It permeates our society. We want to do better, but what happens if we don’t…nothing. Sure, we may be disappointed, but that only hurts for a little bit and eventually becomes the norm.

How can we be more accountable?

As a Construction Company It’s Hard to Make a Profit

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We Work Too Hard in the Construction Industry to be Giving Away Money

Just like there’s a proper way to do construction projects…the same is true for proposals.

You don’t shingle the roof before you pour the foundation or start hanging sheetrock on a wall that hasn’t been framed.

There’s a proper way to construct a building. Doing proposals is the same. Having a system for doing proposals makes this possible.

Pricing of any construction project uses the same information to arrive at a dollar amount…material and time needed to do the work. Where problems arise is in overlooking or forgetting something, guessing at how long it will take, or unclear communication.

The key to unlocking the profit vault is having a system that prevents overlooking, guessing and poor communication.

Proposals should be done, so that you –

  • Avoid miscommunication
  • Have happy satisfied customers
  • Have budgets for customers
  • Provide scope of work to production crews
  • Have budgets for production crews
  • Take responsibly as the professional
  • Have a more profitable business

This is accomplished through five simple steps. These five steps are –

1st – Gathering information – Gathering the right information correctly and effectively is critical to preparing an accurate and thorough proposal. The initial gathering should include:

  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes.

The important thing in this step is to gather any and all information needed to prepare an accurate proposal. Using the system’s Bid Sheet minimizes the chance of overlooking things because the different areas of a construction project are already listed out.

2nd – Preparing a scope of work – This is the process of taking the information that was gathered and describing each specific task in terminology that both the customer and the contractor understand. It needs to include enough specifics to be thorough without being too technical. This written description will be transferred to the Proposal and serve as a written description of work to be performed and materials to be provided.

3rd – Pricing the project – This process is the copying and pasting of pertinent information from the Data Base to the appropriate cells of a blank Worksheet.

4th – Quantities – Fill in the quantities of the work on each line item included in the project. This may be lineal feet, square feet, square yards, cubic feet, cubic yards, numbers of pieces, etc. Now you have prices for each of the different tasks to be performed.

5th – Preparing the proposal – Now you have everything needed to complete the Proposal. Take the descriptions from the Bid Sheet and the prices from the Worksheet and put them together on the Proposal. After filling out some job specific details the proposal is ready for the customer.

Proposals done well, above everything else, is the one thing that will contribute to you having a profitable business!

The Blueprint for Building a Better Proposal system provides clear and accurate proposals…every time.

You can get the Blueprint for Building a Better Proposal and have proposal system that will do all this and more. This system is currently at a reduced Holiday price of $497 plus it currently includes some bonus templates.

If you would like to learn more about how proposal mistakes cost construction companies a fortune, check out this free download.  

How to Build a Successful Construction Business Without a Master’s Degree

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Building a Successful Business Doesn’t Have to be Slow and Painful

The majority of small and medium sized construction companies have the construction part figured out but get overwhelmed by the “business” side of things. Most of the people working at these companies learned a trade…not how to run a business.

Like me, most started doing business full of enthusiasm, having no clue what could go wrong. I had no clear plan or system for running a business.

Trying to balance construction projects and running the business can be overwhelming.

I had no idea how to do a proposal, a production budget, or accurately invoice a customer for progress payments. No one told me I should set money aside for things like taxes, tools, or emergencies.

One day I looked up and wondered how I got here. I liked building things…not necessarily running a business. As I built my business, I learned these things, but it was a slow and painful process.

The truth of the matter is…building a business doesn’t have to be slow and painful if you know how.

Think about it, a traditional trade school education will cost between $7,000 and $40,000. It’s been my experience that a real-world, hands-on education is worth even more. Often classroom education doesn’t translate well to the construction site.

Early on in my construction career, I was working for a local house framer. On a couple of different occasions, he hired some young men from the community college’s construction program, for summer help. After a few times of doing this, he stopped.

He said, “It took longer to unteach and reteach than it did to start from scratch.”

Looking back, I now realize how valuable that hands on education was. I just wish I’d had someone teach me the business part.

Instead, I got my business degree from HKU, also known as Hark Knocks University. And let me tell you, the tuition is high and it takes a long time to graduate. What’s an education like that worth?

Wouldn’t be great if you could get 40 years of experience without having to wait 40 years to use it?

You can!

This is what we’re doing a Solution Building. We are taking those 40 years of hands on, trial and error education and making it available to other contractors through programs, trainings and downloadable tools.

One of these tools is the Blueprint for Building a Better Proposal system.

This proposal system allows for the preparation of proposals that communicate clearly and accurately with customers, while allowing for increased profitability. It will give construction companies years of advantage over the competition for a lot less than the cost of a traditional education.

Currently this proposal system is available at a Holiday price of $497 plus some additional bonus templates through the end of the year.

How Do We Know the Destination if No One Has Given Us the Map?

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It’s a Puzzle to Solve, not a Predetermined Destination

As self-employed entrepreneurs this is the hardest question to answer. We constantly struggle with questions like –

  • Where am I going?
  • What should I do first?
  • How do I build a customer base?
  • What’s the most important thing?
  • How do I know if this is the right thing?

We know there is a destination, but we don’t know what it is or where it’s located. We don’t know which direction to turn.

We’re looking for a map, we expect one, but there isn’t any.

This is the biggest challenge for entrepreneurs. We know there’s a need for which we have to offer. There’s something that we’re supposed to do, we can feel it…but what is it EXACTLY?

What if I’m wrong? This sense of uncertainty keeps us from doing anything or incentivizes us to do less important things. Things that do nothing to move us toward our destination.

The question of “Every time I start to do something, it feels like something derails me. What should I do to move forward?”, came up in our mastermind this week. As we talked, it became glaringly clear that all of us in the group are looking for the answer to that question. We were looking for what to do and how to do it. We’re looking for a “map”.

We just want a map so that we know where we’re going and how to get there.

Everyone in the group is working hard to reach their business destination. And every one of us has the same questions. (See examples above)

As we discussed, it occurred to me…we knew the answers…we were all answering each other’s questions that are the same as our own. So, if we know the right answers, why are we still asking the questions?

The problem isn’t the questions or the answers…it’s a lack of movement.

We’re approaching our businesses as if there’s a map ready for us to follow…there’s not. As entrepreneurs, we’re going places where few or maybe no one has been before.  

Imagine explorers like Lewis and Clark heading to places unknown. They had no map or GPS to tell them where to go. They had no specific destination, just find a way to the Pacific Ocean. They were commissioned to explore and map the new territory and find a practical route across the western half of the continent.

If they had continually questioned themselves, they would still be in St. Louis.

Instead, they took the information that they had, made a decision based on that information and started moving. Granted, along the way they ran into obstacles that they had to go over, around or through.  

We are our own roadblocks.

The most important thing is to do something. Take that first step and move forward. You can make adjustments and recalculate as you go.

“Even if you’re on the right track, you’ll get run over if you just sit there.”

Will Rogers

“The most productive people start with purpose and use it like a compass. They allow purpose to be the guiding force in determining the priority that drives their actions.”

Keller, Gary; Papasan, Jay. The ONE Thing (p. 105). Bard Press. Kindle Edition.

The first step to reaching your destination is determining your purpose. It’s that thing you feel deep down in your core but have trouble figuring out.

You’ll never get to your destination if you don’t start moving.

What’s the Most Powerful Tool in the Construction Contractor’s Toolbox?

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This Tool Can Make You More Money with Less Chance of Cutting a Finger Off

The past couple of weeks I’ve written about how much we love our power tools and how tools make building easier.

The sense of control that comes from pulling the trigger on a power tool is amazing. We feel like we are in control of our destiny. There’s no task too big. We can conquer the world.

There’s no doubt that power tools make construction projects go faster and easier than using hand tools. (And there are a lot of cool new tools that we’d like in our toolbox.)

Of all the tools out there, which is the most powerful?

This is a question that could be debated forever.

I would argue that the most powerful tool isn’t a tool in the normal sense of the word.

If the purpose of power tools is to increase control and be more productive, then having a power tool that would 10x these things would be worth 10 times what you paid for the most expensive tool you have.

Increasing your profit margin just 10% on a $5000 project and the tool has paid for itself.

What kind of tool could have this kind of return on investment?

The tool that I’m talking about is affordable and won’t wear out like other tools.

Most construction companies are great at “constructing” but are overwhelmed by the business side of things. This is not where their heart is.

You don’t need a master’s degree in business to be successful if you have the right tools.

A tool for doing clear and accurate construction proposals is this kind of tool.

Without a tool for doing proposals, a lot of contractors make mistakes that cost them a fortune. Unexpected costs, changes to projects after they’re started and poor communication are a lot more expensive than the cost of the tool.

Those mistakes include:

  • Lack of clarity with both the customer and the production crews
  • No budgets for customers and production crews
  • Losing money
  • Not doing accurate proposals due to a lack of time
  • Guessing at pricing of projects

Learn more about those mistakes and how to avoid them with this free download.

Download Here

Wouldn’t it be nice to have a tool that would –

  • Increase you profit
  • Communicate clearly with both the customer and the production crews
  • Allow you to consistently and accurately price construction projects
  • Allow you to customize it to fit your company’s specific needs
  • Give you the freedom to delegate the paperwork so that you could focus on construction

The Blueprint for Building a Better Proposal will do all of this and more. I use this proposal system on every construction project I bid.

Just like power tools make construction projects easier…there’s a “power tool” that will make doing construction proposals easier, allowing you to reduce stress, be more profitable and build a successful business.

You’re not in business to lose money, so get this tool.

Get Your Power Tool Here

We’re currently running a special Holiday offer for our Blueprint for Building a Better Proposal system. The reduced Holiday price is $497, including some additional bonus templates.

In addition to this special offer, we’re having a drawing for building contractors.

One lucky winner will receive a DeWalt cordless tool combo kit valued at more than $700.

Your opportunity to win starts now and ends at midnight 12/3/21.

Enter here
for your chance to win

Can You Imagine What It Would be Like to Build a House Without Power Tools?

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So, why is it That Most Construction Contractors Will Do Proposals Like That?

Think about building a house by sawing every board and sheet of plywood with a handsaw. Mixing the concrete all by hand. And driving every nail with a hammer.

This sounds like a long drawn out, difficult method for building.

This is how most construction contractors do proposals.

The same way they’ve been done for 100 years. It’s like building with hand tools but it doesn’t have to be like this.

There’s a power tool for doing proposals.

When doing proposals, the old “hand tool” way the contractor will do them the same way grandpa would have.

If they are a particular person, they will determine the size and quantities of the material needed. This will include –

  • The cubic yards of dirt that needs moved
  • Cubic yards of concrete
  • Boards needed for framing of floor, walls, roof
  • Siding, exterior trim, exterior paint
  • Shingles, roofing underlayment, flashings
  • Insulation for floor, walls, attic
  • Doors and windows
  • Base, casing, stairways, misc. trim
  • Cabinetry, countertops, closets
  • Interior paint, stain, clear finish, wallpaper
  • Carpet, vinyl, tile, etc.
  • Plumbing pipe, fixtures
  • Heater, AC condenser, ductwork, registers
  • Electrical wiring, fixtures, receptacles, switches, breaker panels
  • Porches, decks, railings

Once these things have been figured and counted, they will get prices for each of them to determine the cost. Then they will guess at how long it will take to do the work and put a price to it.

Less detailed contractors just guess at the whole thing.

Building a house takes a lot of pieces. The same number of pieces…regardless of how you figure the price.

Wouldn’t it make more sense to have a power tool that would allow you to consistently determine the price whether you are a detailed person or not?

The Blueprint for Building a Better Proposal is a “power tool” for doing proposals.

This power tool provides:

  • A scope of work that communicates clearly with customers and production crews
  • A budget providing production crews with a clear understanding of time allowed and material costs
  • A system that allows for delegating portions or the complete proposal process

To get this “power tool” in more contractor’s business toolboxes, we’re offering a Holiday Special beginning Black Friday through the end of the year. This special includes a reduced price for the proposal system plus free bonus templates.

In addition to the reduced price for proposal system there’s going to be a contractor drawing for a…

DeWalt cordless tool kit

Check next week’s post (11/28/21) for details of how to get entered in the power tool drawing.

If you or someone you know would like to learn more about how this power tool can help avoid the 7 common bid mistakes contractors make that cost them a fortune.

Click here.

What is it About TOOLS That Building Contractors Love So Much?

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Wielding a Power Tool Gives Us a Sense of Control and Respect

Those of you who build, know what I mean. Feeling that power in our hands. We are in control, but the machine can never be tamed. We have to respect it, or we will regret it. We pretend to be in charge of the “power tool beast” but know better.

Power and control –

  • Power tools have the power to create. When the power tools come out, we have no idea what is about to happen. Every time we connect with that much electricity, a child-like excitement oozes from our pores.
  • Power tools have an untamed spirit that screams: “Anything can happen.” Turning on a generator makes you feel like you are The Generator. For a few minutes, you’re off the grid and in-charge. You have the power and can decide who you will bestow it upon.
  • Power tools let us pretend that we can do anything. Don’t fool yourself, your power tool is in charge! Just look at the sticker on your SAWZALL: “Warning this device is powerful and is capable of doing serious harm to your home, your person or your entire way of life.

Meditate on the raw power, the Amps and the Volts. Be in awe and imagine where your power tools may take you.

This fascination with tools is very similar to the reason most guys would take almost any ridiculous “man challenge” for the promise of a gold sticker on their forehead and “buddy cred”.

“Hey, I bet you can’t crush that can with your head!” Sound familiar?

Hopefully most of us are smarter than this.

As builders we love the rush we get from building something. That sense of accomplishment that comes from creating a dream home out of that stack of boards. Tools give us the power and control to do this.

A tool that is even more powerful than the biggest meanest saw, is the Blueprint for Building a Better Proposal.

I know it doesn’t make as much noise or make your arm numb after using it all afternoon, but it’s a tool that will allow you to build your business into a skyscraper of success.

The hardest thing you will ever build is a business. The tools used for this kind of building are different than what we normally think of when thinking tools.

During my thirty-five plus years of building my business I’ve continually worked to achieve and maintain a sense of control over my profit and respect for the power of business.

Just like any other building project, it’s important to know what tool to use for specific applications. You wouldn’t use a cordless screw gun to saw a board, or a reciprocating saw to nail down a shingle.

You can saw a board with a hand saw or you can use a circular saw. We both know which is faster, easier and makes more sense.

The same thing is true for preparing a proposal.

You can use the old school “guesstimation” method or you could use the new and improved power tool. It’s important to have the right tool for the job.

We are going to be offering a Holiday special for the Building a Better Proposal system starting on Black Friday complete with a weekly tool drawing starting on Black Friday.

If you or someone you know would like to feel the power of a tool that gives them control over building a successful construction business while respecting that power without regret…stay tuned for upcoming details or contact us in the comments below.