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How Having a Plan Can Help You Build a Successful Business

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A Plan is Only Good if You Use it

The past couple of weeks we’ve discussed how important the Production Tracker tool is and how it can help you see the future of your business.

Building a construction business is no different than building a building. If you don’t have a plan, you won’t know what to do. You will just be guessing.

If you don’t have the right tools and know how to use them, it will be a lot harder to build anything.

The Production Tracker is one of those business building tools.

So far, we’ve discussed how…

  • Creating and recording project numbers can help you focus your attention on the right kinds of projects.
  • Tracking project bid amounts will give you a clear picture of where you are in relationship to meeting your financial goals for the year.
  • Tracking dollar amounts of signed proposals will give you the rest of the picture of where you are financially in relation to where you want to be by the end of the year.
  • Tracking dollars collected from projects will give you a clear comparison of your signed amounts with your collected amounts.
  • Percentage of jobs signed will let you know if your pricing is too high or too low.
  • Percentage of dollars signed per dollars bid will let you know how you’re doing in relation to reaching your financial goal for the year.
  • Percentage of dollars collected per signed simply lets you know if you’ve collected everything that was bid.

Now, let’s look at the final five areas of this tool and how they can help you build a successful construction business.

Average dollar amount of projects bid – This number (cell I-30) is just what it sounds like. It’s the average dollar amount of all the projects you have done proposals for. It can be helpful to know what this information is. It can help you determine if you should make changes to the sizes of proposals that you should be doing.

Average dollar amount of projects signed – This price (cell J-32) lets you see what the average dollar amount of your projects are and how it compares with the proposed amounts. Like the average bid amount, this number tells you the size of projects you normally do. You can then make changes to what proposals you should focus on.

Average dollar amount of projects collected – Like the percentage of dollars collected, this number (cell K-34) lets you know if you’re increasing or decreasing the dollars you collect after proposals are signed. This gives you a critical piece of information: knowing how accurate your proposals are.

These next two areas are instructive when it comes to production planning as it relates to achieving your revenue goals.

Projected timeframe for doing signed projects – This information (cells I-23 and J-23) tell you how long it should take you to do the work of the proposals that you currently have signed. This is determined by dividing what your gross revenue goal for the year is by 52 weeks. Then dividing the current total signed amount (cell J-22) by that weekly revenue target will give you the number of weeks needed to do that work.

Projected date work should be done – This information (cell K-23) converts the projected time needed to do the work of the currently signed proposals (cell I-23) to a calendar date. This is achieved by adding the number of weeks (cell I-23) to the starting date (cell H-23). This then gives you a target date on the calendar that the work should be done to stay on task and achieve your dollar goal for the year.

I find these last two pieces of information to be the most revealing and helpful when it comes to staying on target.

This information can increase a sense of urgency and focus. This information is critical to building a successful construction business.

I hope you’ve found this series on the Production Tracker, as a tool for building a successful construction business, helpful.

You can learn more about the Production Tracker by joining us for the Production Tracker Workshop at 10:30 AM CDT this coming Saturday, May 11th.

If you would like to know about some of the other business building tools we offer, take a peek in the Business Building Toolbox.

If you would like some help building your construction business check out the 5 steps here, or schedule a free 30-minute coaching call.

How Does the Production Tracker Help Us See the Future?

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Trust Me, It Doesn’t Take Any Magic

Last week we talked about what the Production Tracker is and what makes it an important tool to have in your business building toolbox. I also pointed out how most people operating construction companies hate paperwork, but how important paperwork is to build a successful business.

It’s amazing how people in construction will use all sorts of power tools and equipment but not paperwork.

We began breaking down the Production Tracker…a business building power tool, and how important it is to know what it can tell you…

  • Which types of work were consistently the most profitable
  • How you were doing at meeting your financial goals for the year
  • When you should have the signed projects finished to stay on track
  • How well you’re doing at getting proposals signed
  • What the average price of your projects are

We began with how the Production Tracker can help with creating and recording project numbers, tracking proposed project amounts, and tracking dollars of signed proposals.

Now let’s look at how the Production Tracker can help us plan for the future.

When we look at the total proposed amount and the total signed amount, we can see where we are in relation to our financial goals for the year. (See the previous post for more details on this).

Next is…

Tracking dollars collected from projects – This collected amount (column K) is exactly what it says it is. It is where we weekly enter the amounts collected from each project. This total gives us a comparison to our signed amount (column J), and lets us see if our projects have increased or decreased after signing.

Percentage of jobs signed – This percentage, 60% (cell I24), is the percentage of proposals that have been signed. This is cell B22 (15) divided by cell C22 (9). This information lets us know how we’re doing with our pricing. If the number is below 15%, we’re not selling well. If our number gets too high, above 50%, we may not be charging enough.

Percentage of dollars signed per dollars bid – This percentage, 53.11% (cell J26), is the percentage of dollars proposed that were signed. Knowing this percentage helps us as we’re looking forward, knowing how we’re doing in relation to reaching our financial goal for the year. Based on the percentage of 53% (cell J-26), knowing that if our goal for the year is $400,000.00, we need to have done twice that many dollars of proposals.

Percentage of dollars collected per signed – Just like tracking the amount of dollars collected is pretty straight forward, this percentage of 93% (cell K-28), is the same. This simply lets us know if we’ve collected everything that was bid. If not, there may be some outstanding receivables, or we may have made changes during production that reduced our receivables. It’s also possible for this number to be more than 100% which means that there were changes made during production that increased our receivables.

There are still five more areas of information that the Production Tracker provides, but to keep this post from getting too long today, I’m going to stop here. I know that this feels like a lot but it’s not nearly as overwhelming as it seems.

Just like there’s a lot to constructing a building, the same is true for building a successful business.

The five remaining areas are –

  • Average dollar amount of projects bid
  • Average dollar amount of projects signed
  • Average dollar amount of projects collected
  • Projected timeframe for doing signed projects
  • Projected date work should be done

Of these next five areas I think the last two are the most revealing to the future.

Now I will predict the future, and next week we’ll finish explaining the Production Tracker.

You can learn more about the Production Tracker by joining us for the Production Tracker Workshop at 10:30 AM CST on Saturday May 11th.

If you would like to know about some of the other business building tools we offer, take a peek in the Business Building Toolbox.

What Makes the Production Tracker Such an Important Tool?

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Because it Helps Keep Your Business Balanced

Recently we discussed the importance of keeping your construction business from getting out of balance. Achieving a balanced business requires paperwork and we know how construction contractors feel about paperwork.

I know, I know, paperwork is not a very exciting topic, but neither is concrete. And we all know how important concrete is in supporting a building. The same is true for paperwork and your business.

One of the three foundational piers in business is administration and finance. One of the building blocks in that pier is a Production Tracker. This tool provides valuable information for forecasting the company’s financial needs and production plans.

Wouldn’t it be helpful if you knew:

  • Which types of work were consistently the most profitable
  • How you were doing at meeting your financial goals for the year
  • When you should have the signed projects finished to stay on track
  • How well you’re doing at getting proposals signed
  • What the average price of your projects are

The Production Tracker is an Excel spreadsheet that lets you gather and track information. It has preset formulas that determine and sort the information you need to make your business more profitable.

This document provides information for:

  • Creating and recording project numbers
  • Tracking project bid amounts
  • Tracking dollars of signed proposals
  • Tracking dollars collected from projects
  • Percentage of jobs signed
  • Percentage of dollars signed per dollars bid
  • Percentage of dollars collected per signed
  • Average dollar amount of projects bid
  • Average dollar amount of projects signed
  • Average dollar amount of projects collected
  • Projected timeframe for doing signed projects
  • Projected date work should be done

This list can seem overwhelming but it’s really not.

Here is an example of what the Job List spreadsheet looks like.

Let’s go through the document and break it down into smaller brick size pieces.

Creating and recording project numbers – Having a numbering system can help you sort projects so that you can review which types and size of projects are the most profitable and what you do the most of. It may be that your most profitable ones are not the ones you do the most often. Having this type of information can help you to focus more of your attention on the right kinds of projects for you.

This Production Tracker is a place to list project numbers in conjunction with the size and types of the projects, as well as their chronological order. This document provides the numerical part of the project number specific to each project. The other portion of the project number is determined by job specific parameters that are not included on this document.

Tracking project bid amounts – Our Blueprint for Building a Better Proposal system provides the dollar amount for each project. Once a proposal has finished, the specific information to that project is entered into the appropriate cells on the spreadsheet. This information includes Job Number (column E), the Customer Name (column F), Description (column G), Bid Date (column H) and the Project Amount (column I). Regardless of the system you use for preparing proposals, you should have a dollar amount that could be entered into this document.

As each new project amount is added in the project amount column, the total project amount at the bottom will update, giving you a total dollar amount of the proposals you have done this year. Based on your company’s history, this dollar amount should give you a clear picture of where you are in relation to meeting your financial goals for the year. We will explain this further with the tracking dollars of signed projects.

Tracking dollars of signed proposals – Once a proposal has been accepted, the accepted dollar amount should be entered in the signed amount column. Initially, this amount should be the same as the amount in the project amount column. Sometimes the dollar amounts of projects are changed due to change orders. This can be either an increase or decrease depending on the change order(s).

As each new proposal gets signed the dollar amount of the signed proposal should be entered into the correlating cell in the signed amount column. Just like in the project amount column, as each new amount is entered in the signed amount column, the total dollar amount at the bottom automatically updates giving you a total of work you must currently do.

With the total of the signed amount column and the total of the project amount columns, you should be able to get a clear picture of where you are financially in relation to where you want to be at year end.

Let’s say your goal for the year was to generate a gross revenue of $400,000.00. Using the example, you can see that as of December 12th you were at $352,877.66. This is close, but not quite there. If you compare the signed amount to the project amount ($664,381.27) you will see that the signed amount is 53.11% of the project amount. Based on this percentage, to get the signed amount to $400,000.00, the project amount would need to be $754,000.00.

This information is critical to the survival of your construction business.

Your business needs to be built on a solid foundation.

We’ve covered a lot here today. In our next post we’ll pick up at tracking dollars collected from projects.

Check out this and additional business building tools and training here. If you have questions, feel free to schedule a free 30-minute business coaching call.

Portions from a previous post 1/7/23 

The “Job List” Is One of the Foundational Building Blocks of a Successful Construction Company 

It’s Up to You to Get Unstuck

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You Have the Power of Choice

There’s a saying, “A rut is a grave with both ends kicked out.” Too often we get in a rut and don’t even realize we’re there.

This is how operating a construction company can be.

Plodding back and forth, doing all those things that need to be done, never looking up to see where we are or where we’re going. If we’re not careful the rut will get so deep that we’ll never get out.

This feeling of being stuck can be overwhelming. If we wait too long to do something, that’s when it becomes a grave, and we give up and go out of business. It’s just not worth it.

I could make more money and work less hours flipping burgers.

Last week, we discussed the difference between being self-employed and being an entrepreneur. The question you have to ask yourself is: do I want a job, or do I want to build a business? It’s up to you to decide which you want to be.

Building a business can be scary; it might not work. We know our rut well and it’s comfortable. Doing business because “we’ve always done it this way” isn’t a very good plan.

This kind of rut thinking doesn’t allow for building dreams.

Changing things just for the sake of change isn’t a good strategy either. Growing and changing is good, but there needs to be a plan.

Building without a plan isn’t a good plan, whether it’s a construction project or a business.

Things that need to be changed and are ignored have consequences, i.e., diapers, your car’s engine oil, furnace filters, toothbrushes, and bad habits.

Change costs time and money…the question is: is the change worth it?

Not changing is also costly. It’s up to you to decide which is more expensive.

You have the power to change if you want to. Change is up to you.

It amazes me how many times I’ve talked with people who do construction from their ruts. They tell me all about how frustrated they are with their business. Yet, even when we offer them a ladder to help them out of their rut…they won’t use it.

I understand. I’ve been there. Change can be scary.

I remember when I’d had enough of the rut. Doing things the way I was, wasn’t working.

It was after my partner, at a previous construction company, hired a consulting firm that things changed for me. They came in to help us with the business part of our construction company. It was expensive, but what I learned was worth every penny and it cost a lot of pennies (2 million to be exact).

The sad part is this is…I’m the only one that used the business tools that they gave us.

I’m still in business and they aren’t.

Just talking about doing something or buying tools isn’t the same as doing it…action is required.

If you or someone you know is tired of trudging back and forth in a construction business rut, then let us give you a ladder to help you get out.

You have the power to do this. It is a choice that only you can make.

If you would like some help getting out of your construction business rut, check out our tools and training, or schedule a free 30-minute construction company coaching call.

Portions from a previous post 4/27/19 

Being Careful to Not Get Stuck in a Rut 

Who Knew That I Was an Entrepreneur?

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That Was Never My Plan

Most people in construction would not consider themselves entrepreneurs. They see themselves as self-employed.

There’s not a huge difference between the two, but it is significant.

It’s the difference between working in your business or working on your business.

Someone who is self-employed is earning income from their own business, trade, or profession. This is how most people working for themselves in construction see it. It’s just a job like any other.

Most of them started out working for someone else. They learned their construction trade but not the business. Being self-employed tends to overlook the business part.

Doing business is scary…not to mention most self-employed construction people don’t like doing paperwork. The problem is, like it or not, self-employment is being in business.

An entrepreneur, on the other hand, is someone who organizes, manages, and assumes the risks of the business. This difference is mostly perspective, and it’s critical. It’s how you see yourself.

It’s about where your focus is. Are you focused on just showing up on the jobsite every day doing construction, or is it bigger than that? This is the difference between having a job and owning a business.

Is what I’m doing just a job or is it building a business?

If we see ourselves as just having a job, the daily rat race becomes overwhelming and is often the reason self-employed contractors go out of business within the first five years. The numbers are staggering.

So if you see yourself as self-employed, what are you going to do to avoid becoming one of these statistics?

The first step is becoming aware. You have to see the problem before you can do anything about it. Then you can decide if you want to keep doing things the way you always have or do something different.

After you become aware of the problem, you need to understand it. This is where things are going to get harder. It’s going to require some research. This is going to take time that you don’t have, but it’s time well spent if you want to stay in business.

Now that you understand the problem, you will need information and instructions for implementing changes. I know this sounds like a lot, and you may be wondering, is it really worth it?

If it is, then you need to learn these new and different ways of doing business and change how you do things.

If this seems like too much, maybe you should just go back to working for someone else!

If you decide that you want to accept the title of entrepreneur and work on building your business rather than just working a job, then we can help.

At Solution Building we help you make this transition from self-employed to entrepreneur. We have business building tools and training available.

If you have questions about transitioning from self-employed to entrepreneur, you can set up a free 30-minute construction company consultation. It’s up to you. You get to decide if you want to accept the role of entrepreneur or continue working as an employee for yourself.

Ideas Without Actions Aren’t Any Good

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To Build the Business of Your Dreams You Must Take Action

“I AM A PERSON OF ACTION.” “My future is immediate. I will grasp it with both hands and carry it with running feet. When I am faced with the choice of doing nothing or doing something, I will always choose to act!” – Colonel Joshua Lawrence Chamberlain

From the book “The Travelers Gift” by Andy Andrews

For years people have asked me where I came up with the business system and procedures that I use. As I thought about it, I realized that early on my business and life had developed without much intentionality.

I was a dreamer at an early age. I had big ideas and plans for my life. Then there was a portion of my life where I became disillusioned and accepted that my dreams were just that…dreams.

I decided I was just kidding myself the whole time.

Then in 2012 I had “A Life Changing Wakeup Call” and realized that I had gotten sucked into a world of doubt. I had given up and quit dreaming. It can be hard for those of us that are dreamers to turn ideas into action.

After my accident, I began to think about what my life was and what I had expected it to be. I became reenergized about dreaming and about life. It’s great to be excited about life again!

Dreams are just dreams if no action is taken.

Not that my life was terrible before the accident, it just wasn’t what I had envisioned. I had been living without a clear plan, and there was so much more for me to accomplish.

At that point I decided to become more intentional.

I’ve always been a planner but it’s sad that it took a hit in the head for me to realize the importance of intentional action.

When we’re young the tendency is to think that we’ll have all the time we need. There’s no need to think about the future…we’ll get around to that someday. Then one day we wake up and realize life is flying by and we haven’t done those things we wanted to.

You don’t have to wait until you’re smacked in the head to become intentional.

Think of your business as a construction project. It all begins with a dream. You can see the vision of the completed project in your mind. The tricky part is getting that dream out of your head and making it a reality.

Having a plan will let you see if it looks like your dream or not. It’s easier to make changes and corrections during the planning stage, rather than the construction.

After I realized that that my dreams weren’t going to happen without actions, I began to develop business tools and systems needed for building my dream business. It would have been easier if I had some help.

It’s always a good idea to have the help of a professional when drawing out plans and building your dream business. Their experience, knowledge, and skill can save you time and money.

This is why at Solution Building we’re making these tools and systems available to others in the construction industry.

To build your dream business you can’t stop at the planning…there’s more action needed.

Don’t wait to be smacked in the head to get intentional about taking action for building your dream business.

If you would like some help with planning or building the business of your dreams you can schedule a free construction company consultation.

How to Keep Your Business from Getting Out of Balance

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Be Careful with Short Legged Tables

Have you ever felt like your business and/or your life were out of balance? It’s a little like a three-legged table with a short leg…kind of wobbly.

I know I have felt this way and sometimes still do. You have probably heard the saying ‘feast or famine’. This seems to be especially true in the construction industry. It refers to the common problem of either having way too much to do, or worrying about how you are going to pay the bills if you don’t get some work soon.

Sometimes this is caused by situations beyond our control. The economy, the weather, or some other external force. More often than not the reason is an “out of balance business”.

Like a table with a short leg.

I wrote about this originally in April of 2016, and it’s a topic that is still relevant. I say this because I’m currently going through one of those times of famine. This is not due to a lack of leads for construction projects. It’s because I’m spending time getting the coaching and consulting for construction companies started.

One thing that I’ve learned over my 40+ years in construction is that business is a lot like a three-legged table.

When all the legs are the same length, it helps provide a level, sturdy platform for the company to sit on. When any one or two of them is too short, the table begins to lean. If it tips too far the company will slide off.

It’s never good when a company crashes to the floor.

The three legs of the construction business are:

1 – Sales/Marketing – Searching for and finding customers that you can help by providing your service and/or product through word of mouth, advertising, and awareness. Meeting with potential customers, determining what they want/need and preparing estimates, proposals, and contracts.

2 – Production/Operations – Organizing, scheduling, and maintaining construction projects. Determining who the right people are to perform specific tasks. Knowing the parts that are needed and making sure they fit. Maintaining communication between all parties involved.

3 – Administration/Finance – The preparation of documents needed to communicate, track, and record all aspects of the business. The filling out and filing of income, expense, banking, and tax papers. This leg is one of the easiest for ‘tradespeople’ to neglect. When it gets short, it can really cause the table to lean.

The tabletop is the big picture planning and organizing. It’s what connects the three separate legs. It’s easy to give too much attention to one or two legs and forget the others. This is when the tipping begins.

To get so focused on production of projects that we forget to follow up with a new customer shortens the Sales/Marketing leg.

To get so into preparing proposals that we forget to invoice shortens the Administration/Finance leg.

To work so diligently on tracking expenses that we don’t leave enough time for working on projects shortens the Production/Operations leg.

There is no perfect formula to keep the table from ever leaning.

The most important thing is to realize that it can happen and continually strive to keep the table balanced.

Most of us in construction started out by learning our trade while working for someone else. This is how I got started. The problem with this is that while I learned how to build a building, I wasn’t taught how to build a well-balanced company.

After years of struggling and learning things the hard way, I developed Business BUILDing tools that are great for building a construction business.

Just like any tool, if you don’t use them…things don’t get built.

Having the right tools and using them only goes so far. You also need to continually work to keep the table legs the right length so that the company doesn’t come crashing to the ground.

This is why at Solution Building we offer coaching and consulting to help you keep your construction business well supported and level.  

Now that I’m done sharing this solution, I’m going to get to work on some proposals so that I can lengthen the Production/Operation leg of my construction business!

Trying to Build a New Business

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Why Does Everyone Tell You It’s Easy When It’s Not?

Helping people in the construction industry build their businesses has been a real struggle. They say they need a better way of doing things but won’t take the time to do anything about it. They struggle with construction proposals, change orders, payment applications, saving money, communication, etc.

I know because they tell me this all the time. Not to mention, I was there too once so to totally understand.

So why don’t they do something about it?

Because, doing something about it is not a simple thing. I know because I struggled with these same problems in my construction company. Then I decided to do something about it. But what?

I began looking for solutions but couldn’t find what I needed. This involved things like computer software, hiring a consulting firm, etc. Not that any of these things were bad, but they didn’t fix the problems.

This is when I realized that there is no magic solution. It’s going to take time and hard work.

It’s a little like building a building…there’s no computer program you can download from the internet, or it won’t magically appear from a blueprint or some written instructions. It requires time and hard work.

When building a building there’s going to be bumps along the way, it’s not like after the first one is built the second one is going to be much easier. But, with each new project it gets better. The mistakes are reduced, and the process becomes more repetitive with experience. Then at some point it becomes so routine you can do it in your sleep.

It takes time and hard work, but it’s worth it.

This brings me back to the problem at hand – helping people in the construction industry build their businesses.

I’ve been working to get other construction companies to use the business building tools and systems that they have been asking for. I’ve been working on this for years and wondering if I’m supposed to keep trying. Then I think back about the difficult journey of building my construction business and keep going.

Part of the problem, like building the first building, is there’s a big learning curve, and it takes time to learn it.

I realized the other day that this is not just a construction business problem…it’s an every kind of business problem.

And the problem is this, we’ve become an immediate gratification society. We don’t want to wait for anything, and a business is no different.

We’re being over promised on social media and the internet with advertisements telling us how we can buy this thing and lose all the weight we want by next month or make a million dollars in six months, etc., etc.

Don’t believe it…it’s a lie.

I’m not saying these things are impossible. What I am saying is that they are highly improbable. After spending a lot of money and not achieving expectations, people are left disappointed and feeling like failures.

Marketing does a great job of doing what it’s supposed to. It gets you to buy things. The problem is the marketing makes it look easier than it is.

Building a business, like building a building, is not for the faint of heart.

This is why I’m going to tell you right now, if you buy our business building toolbox it’s not going to magically make your business an overnight success. Implementing and learning to use these tools is not magic.

Like any tool, if you buy it and don’t ever get it out of the box, you’ll never learn how to use it. If you’d like to learn more about how we can help you through long journey of building a successful construction business, schedule a free 30-minute construction company consultation.

It’s Time for the First Meeting

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And Gene’s Not Sure He Can Squeeze It In

It’s Friday, and Gene is in his normal state of overwhelm. He’s supposed to be meeting with John tomorrow afternoon to go over the Building a Better Proposal system, and he doesn’t know how he can fit it in.

There are still so many things that need to be done.

“Maybe we can reschedule,” thinks Gene, “I’ll just give John a call and see about moving the meeting back a week… Okay, that’s enough.” Gene says to himself. “The whole purpose for this meeting is to change things, so that I don’t have to feel this overwhelmed.”

“I’m tired of always feeling out of control.”

A few minutes after noon on Saturday, Gene pulls up in front of the SMR Construction Company office and admires the building. As he gets the pizza out of the truck and goes up to the front door he thinks, “I sure hope I can have a place like this someday.” As he walks through the door John greets him with a solid handshake and a grin as he says, “I wasn’t sure that you would make it.”

“I wasn’t sure either.”, Gene says with a smile. “I came really close to calling yesterday, to see about rescheduling.” “I’m glad you didn’t.”, replies John. “You’ve taken the hardest step in a series of hard steps.”

“The first step is the hardest. It requires a change of thinking and direction.”

“Bring the pizza and let’s go into the conference room.”, John says. As they make their way into the spacious comfortable room Gene thinks back on when they used to have their weekly production meetings in this very room. Looking back, he realizes how much he had taken what John had accomplished for granted.

John hands Gene a plate and they both get some pizza. “There’s water and soda in the fridge like always.”, says John, “Help yourself.” As they set down and start eating John asks Gene, “Why did you start your own construction company?”

“Why do you do what you do?”

Gene sat there for a while chewing his pizza at the same time chewing on this question. “Why was he doing this?” He had asked himself this question a lot, but it was usually a question of frustration, not really looking for an answer.

After what seemed like an eternity, Gene answered, “I really don’t know. I suppose that seeing what you had accomplished, I wanted the same thing.”

“That’s the same answer I would have given if I’d been asked why I started SMR Construction.”, agrees John. “It wasn’t until I realized that to have a successful and profitable business, one that I was running rather than it running me, I needed to make some changes. One of those was to answer that question.”

“The WHY is more important than the HOW. Maybe your why is to make a lot of money, the enjoyment of building, the control that comes with owning your own company, something completely different or a combination of things.”

“Do you love what you do? In your current situation, do you even like it?”

Now Gene has another unanswered question to ponder. Does he like what he does? Life sure was easier when he worked for John. What was it that prompted him to go into business?

John interrupted Gene’s thinking, “Gene, you probably won’t get the full answer to these questions today, and we’ve already been discussing this for a while now. I would suggest that you take some time to think about these questions and dig down deep to find the answers.”

“The answer to these questions is the foundation your business will be built on.”

“Before we run out of time today, let’s move on to the topic you came for, a better proposal system. Here’s an overview of the proposal system that we’ll go over today. These are yours to make notes on and take with you.”

“Just like the why question for your business, you should answer the why question about proposals.”

“Why do we need to do proposals?

“Gene, there is a huge misunderstanding between construction companies and customers. The biggest part of this gap is poor communication. Even when attempting to communicate clearly, it often goes badly. Let me give you an example.”

“Several years ago, I met with a customer early in the process of building a new home. The customer pointed out that the distance from the electric meter to the house was more than the 50’ allowance, as per the agreement. He asked if this was a problem. I told him it wasn’t a problem. Guess what…”

“It was a problem.”

“The problem didn’t surface until later when the customer was billed for the additional 100’. After some research, the communication breakdown was uncovered. The customer asked, “if it was a problem”. What he was really asking was…”is it going to cost more?”.”

“The response ‘in reality’ was, “It’s no problem to dig the additional 100’, but it will cost you more.” Neither party intended nor expected this to be a problem. It was a simple matter of misunderstanding…a lack of communication.”

The bulk of the communication responsibility is the contractor’s; we are the professionals after all.

If you follow along on the overview, on page 2 you can see the importance of a proposal system and why you need it. Page 3 has reasons for and common reasons against doing proposals. Page 4 is a list of documents included in the system and descriptions of how they work. Pages 5 and 6 are an overview of the proposal system.”

“As we wrap up today, Gene, I would recommend that we schedule some time weekly to work through the proposal system. I know that you don’t feel like you can spare the time, but I would point out that if you want things to be different, it’s going to require you to do some things differently.”

Gene thought about this for a few minutes, “I get excited about the possibilities for my future every time we talk about this. Let’s do it. How does next Saturday sound, same time and place work for you?

“If I don’t commit to doing something different, nothing will change.”

John smiled wide and remembered when he had made this same decision. He was encouraged about Gene’s future and excited to be a part of it. “Remember when you called me a few weeks back and how frustrated you were? And then in the next call we discussed the possibilities for your future? Think on these things and your why as you study the pages from today. When we get together next week, I want to hear about your why, and we’ll go deeper into the Building a Better Proposal system.

“As you go through these pages write down any questions you have, and we’ll discuss them next week.”

If you’re interested in the Building A Better Proposal system that John and Gene are working on, check out Solution Building’s Business BUILDing Toolbox. To discuss how the proposal system could help your construction company, you can schedule a meeting with me here. As always, feel free to post any questions you have in the comments!

What is “Business Clarity” and How Do You Find It?

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You Start with a Plan

Once again, Gene was alone at the office late on a Saturday night working to get at least one more proposal done, before going home. He had promised four different customers their proposals this week. If all goes well, he’ll have this second one finished before midnight.

As Gene crunched numbers hoping he hadn’t forgotten anything, he asked himself, “Why am I doing this? I could go to work for somebody else, make more money and work less hours. This sure isn’t how I pictured it five years ago when I started the company.”

“I had no idea that running my own business would be this hard!”

Gene rubbed his eyes and stretched his back and thought, “I must be doing something wrong. When I was working for John at SMR Construction things looked easy. I wonder what he was doing different.”

It’s Saturday, and Gene has been working like crazy all week long. Between production crews not showing up, materials not being delivered on time, cost overruns and computer issues…projects were behind schedule and the company was losing money. Even if he works tomorrow, he’s going to have to disappoint at least one of the customers waiting on a proposal.

“How am I ever going to turn this around?”

When Gene finishes the proposal and looks at the clock, it’s 12:40. It’s already Sunday and he still needs to proofread it, print it and sign it. Something has got to change! “I’ve been leaving home early and getting home late all week. I haven’t even spoken with my wife for days. I’m calling John on Monday to see how he did things.”

First thing Monday morning Gene called John. After a few minutes of catching up, Gene asked John the question that he couldn’t quit thinking about. “John, I’ve been working day and night trying to keep up. When I worked for you it seemed like you had everything figured out. You weren’t stressed even when things didn’t work out as planned. Your customers understood what to expect with their projects and were happy when they were finished. What am I doing wrong?”

That’s the question that almost every business owner asks themselves.

“Know this,” John said, “When I started my business, I was just like you. I struggled to keep up, worked too many hours, neglected my family, was mad at myself for letting down my customers, my family, and myself. I kept asking myself that same question. What am I doing wrong?”

“By the time you were working for me, I had figured some things out. It’s amazing what you can learn when attending the ‘school of hard knocks’. Keep in mind this is the most common process for learning but isn’t the most effective.”

“What really turned my business around was when I found out about Solution Building’s, Blueprint for Building a Better Business.”

Think about how much easier and better a construction project goes when you have a plan. The same thing is true for a business. A plan gives you direction, keeps everyone involved working together, and improves the odds for a successful outcome.

“Gene, if this is something you would be interested in, I would recommend starting with the, ‘Blueprint for Building a Better Proposal’. This is the most important and most neglected part of construction communication. If you’d like I would be happy to meet with you and go through the process and answer any questions.”

“There’s a lot more to the ‘Blueprint for Building a Better Business’, but starting out, you should focus on the proposal system. After you get this part implemented, we can discuss which part of the business blueprint system would be best for you, next.”

After talking with John, Gene thought, “I’m sure glad I made this call. For the first time in a long time, I feel like there might be a light at the end of the tunnel that isn’t an oncoming train.”

If you struggle trying to keep up with operating a construction business or know someone who does, we are going to be having a free 90-minute workshop for Building a Better Proposal on Saturday, January 6, 2024, at 10:30 CST. Register for the workshop here.

If you have any questions about the workshop or business systems, you can schedule a free 30-minute construction company consultation here.