Search

business

Why It’s Critical to Save Money in Business and How to Do It

by

Setting Up a “Rainy Day Fund” for Your Business Can Help Keep It Afloat

We’ve just passed a painful time of the year…INCOME TAX SEASON. This can be stressful but doesn’t have to be if you’re prepared.

It’s common for people to spend everything they earn and not save anything for future investments or emergencies. For the most part, as a society here in America we have become comfortable.

We have forgotten how important it is to save money.

There have been times throughout history when things weren’t good financially, i.e. the Great Depression of the 1930’s. Enough time has passed, that for most people it’s become a distant memory. If you have ever talked with someone who went through the depression or a similar experience, saving money became more than something that needed to be done…it was the difference between life and death.

As reported in Zippia 42% of Americans have less than $1000 in savings and 10% don’t have any. Businesses aren’t doing any better, and it’s every bit as important.

Part of a good business financial plan includes saving money for those irregular and unexpected expenses.

Just like in our personal lives, in business we get busy with the process of daily living. We work hard at the normal operation of the business and neglect to intentionally plan for those “rainy days”. Things like equipment maintenance and repairs, building maintenance and repairs, quarterly and annual taxes, irregular payments, etc.

When I started doing construction work I learned the skill of building from some of the best craftsmen. Later when I went into business for myself, I thought I knew everything that I needed to be successful. The problem is that while they taught me how to build a solid, well-built structure, I was never taught how to build a business.

Early on in my business career I learned one of those business building lessons the hard way…the importance of saving money.

I was working hard to keep construction moving forward. The material figured and ordered and suppliers paid. Subcontractors and employees organized, having what they needed and paid. Things were going well, and there was even some money left over. So naturally, I spent it.  Then it happened…the accountant showed me how good my year was by telling me how much I owed in taxes.

How was I going to pay them? I didn’t have that kind of money. What was I going to do? I was going to have to make payments. Just so you know, tuition to the “School of Hard Knocks” is expensive.

That’s why over the last 40 years of learning lessons the hard way I designed and developed a system to help me build a successful business. One of those systems was a way to separate and save money that would be needed later.

The question then was how am I going to do it?

Several years ago, my wife and I found out about Dave Ramsey and his Financial Peace Program. It’s a program that teaches you to, “Live like no one else, so that later you can live like no one else.” The very first lesson he teaches is “Super Saving”. It’s a common-sense approach to saving money and the reasons it is important to do so. This was great for my personal finances but wasn’t an exact fit for the business.

So, using the basic principles of Dave’s plan for personal savings, I began working on a way to do the same thing in my business. The Savings Transfer Sheet is the tool I came up with and is one of the tools in the Business BUILDing Toolbox.

The “Savings Transfer Sheet” is a simple spreadsheet that with a few simple entries will give you the dollar amount that needs to be separated from gross revenue and saved. That money can then be put into a separate checking account, savings account, or turned into cash and put in a safe.

This keeps saved money from accidentally being spent on the wrong thing.

After talking with a lot of different business owners I realized that every business could use a “tool” like this. That’s why we’re currently working on putting business tools in the Business BUILDing Toolbox that will make the Savings Account Transfer tool available to construction companies.

You can find out more about the Savings Account Transfer sheet or other tools in the Business BUILDing Toolbox by setting up a free 30 minute construction company consultation.

Learn How to BUILD the Construction Business of Your Dreams

by

The Final Building Blocks in the 5-Step Foundation of Your Business

Dreaming big has always been my nature. Early in my life I had some really big dreams. The problem arose when these dreams didn’t come true. That’s when disappointment and a sense of failure set in.

This discouragement is why over 60% of US construction companies fail within the first five years. People’s business dreams aren’t going according to plan, and they don’t know what else to do but quit.

When I found myself struggling with feelings of failure, I concluded that my dreams must have been wrong. That’s when God got my attention with a smack upside the head…literally.

God wants us to dream big. Mark 11:23-24

The thing that I realized after this wakeup call was…God wasn’t going to do this for me…He was going to do it with me. And I had to get off my “but” and stop making excuses. If I wanted to BUILD this dream business, I needed to get to work.

BEING aware of the problems and UNDERSTANDING them is where the turnaround for your business starts.

BEING aware and UNDERSTANDING are the first two steps in the 5-step process for BUILDing a better business. The next step is receiving the INFORMATION needed and getting INSTRUCTIONS about IMPLEMENTING this INFORMATION into your business. The I in BUILD is hard because it requires asking for help, and most construction guys don’t like to ask for help.

B = Being aware of problems

U = Understanding problems and how to fix them

I = Instruction and Implementation of systems and processes

This brings us to the L in BUILD…LEARNING.

LEARNING is the step that will take the longest and can be the hardest, but it’s also the most important. It is the one that leads to the biggest change. It’s a change from the way you have always done it. Most of us don’t like change. We’re comfortable wallowing here, doing things the way we always have.

Change will go faster if you have someone help you through the process.

LEARNING to build a building isn’t instantaneous. You don’t show up on a job site your first day knowing everything about building. You come back the second day and LEARN more and the third and the fourth. And years later you have LEARNED how to build.

Just like pouring concrete, framing a wall, pulling wire, soldering copper, shingling a roof, or installing flooring…after repeating the process over and over it becomes a part of who you are…you could do it in your sleep.

Building a business is the same. You can’t just wave a magic wand and have your business running like a well-oiled machine. It takes time and effort just like building a building does. This also becomes a part of who you are.

One of the greatest feelings ever is to step back and see a finished building project knowing that you did that. You built that.

You can get that same feeling about your business. If you put in the effort to learn the systems and processes, you will be able to step back and know that you built that business of your DREAMS.

This is the D in 5-step BUILD process. The DELIVERY of the DREAM. This is where all the hard work pays off.

If you would like some help BUILDing your DREAM business and receive a free 30-minute consultation of your construction company, simply take this short survey.

You Need the Right INFORMATION to BUILD the Construction Company of Your Dreams

by

Next, You’ll Need Some INSTRUCTION on How to IMPLEMENT This INFORMATION

Most of us in the construction business started out with a vision in our minds of what our dream company would be like. We see those successful companies out there and there’s no reason we can’t do the same thing. After all, we’re really good at building things.

The problem is more times than not…those companies are struggling with the same kind of things that you are. Everything always looks better from the outside.

Dreams usually aren’t founded in reality; it is after all…a dream.

Without knowing the struggles inside those other companies, we begin to doubt that we have what it takes to run a successful business. Then the dream turns into a nightmare. Maybe we’re just kidding ourselves. What made us think we could do this anyway?

This is where a lot of companies give up, close the doors and go back to working for someone else feeling like a failure.

In that time of doubt, you know something is wrong, but you just don’t know what. BEING AWARE that there is a problem is the first building block in BUILDing your dream business.

You don’t need anyone’s help with BECOMING AWARE there’s a problem.

This is where the next block in the foundation of a successful construction company needs laid. The second building block is UNDERSTANDING those problems. It would be nice to have some help with this block.

This is the realization that building a successful construction business includes more than just construction. It requires a plan for the business. In time you can figure out what you need to build a successful business, but it can take a long time and can be expensive. What you need is INSTRUCTION from someone who’s graduated with a master’s degree from the ‘school of hard knocks’.

Having been in construction for more than forty years I have just such a degree.

The third BUILDing block is INSTRUCTION. Just like going to school to learn from teachers is helpful, having someone with more experience in business operations to INSTRUCT you is also helpful. It’s important that you are INTRUCTED with the right INFORMATION. You need the right INFORMATION to help you solve the problems specific to your business.

Asking for help can be a hard thing to do, but it’s easier and faster than trying to do it alone.

The amount of information it takes to run a successful construction business can be overwhelming. Asking someone for help can be scary, not to mention time-consuming. Ultimately, it comes down to you making a decision. You can decide to keep doing things the way you’ve always done them or…

You can decide to do something different and change things.

After being INSTRUCTED and INFORMED you need to LEARN how to use the INFORMATION you’ve received. LEARNING is the block we’ll lay in the next post.

I don’t think your dream was to start a company and have it fail.

It’s up to you to keep that from happening.

If you’d like some help with finding solutions to the problems your company is facing, you can get a free 30-minute construction company consultation with me by filling out this survey.

What Do You Need to Know to Run a Successful Construction Business?

by

It Has More to do With Business and Less to do With Construction

There’s something exciting about the thought of starting your own business. It seems like a great idea initially. The problem is that most people don’t realize what it takes to operate a successful construction company.

We’ve all seen construction companies get started and then go out of business.

 According to the Small Business Administration…

60 percent of US construction companies fail within the first five years of operation.

These companies reportedly blamed several factors for their failure, including labor shortage, politics, insurance, taxes, natural disasters, and subcontractor incompetence. While these things may be a part of the problem, if we look a little deeper, we’ll see…

The real factors that brought about construction company failures are internal and within the owner’s control.

The reasons are more likely poor planning, inaccurate scheduling, hiring the wrong people, inability to innovate, poor management, and bad or no business system.

The good news is, that the next generation of construction businesses can learn from their forefathers’ mistakes and avoid failing for the same reasons. 

Owning or managing a construction business is a hard thing to do. And to do so successfully is especially hard.

The solutions to problems that can put construction companies out of business may not be easy. It takes a lot of planning, production management, hard work, and discipline to keep the business running successfully. But at least…

Most issues faced in a construction business are controllable.

Finding out what challenges are likely ahead can help construction companies be prepared.

Here are some reasons construction companies fail –

Lack of funding and/or poor cash flow – One of the reasons construction companies fail is not enough funds or unwise use of funds.

The ultimate dream of any professional in the construction industry is to earn more by owning and running a business, rather than collecting a paycheck working for someone else. But keeping a business operating at a profit is never as simple as just doing construction work.

There are processes and systems that need to be in place for collecting from customers and paying the bills. Construction requires tools, vehicles, and equipment, and these aren’t cheap.

It’s critical to maintain positive cash flow, have a budget for bills, and money saved for emergencies.

Overlooking these things can quickly lead your company to failure.

Poor project performance – One bad project can lead to a construction company’s closure.

Project performance is more than the physical construction work. The internal business systems for proposals, change orders, project management, invoicing, etc. are often not thought off when thinking about construction projects.

Construction projects are about good results. This includes starting and completing projects on time and within budget. Meeting contract requirements and customer expectations.

Failure in any of these areas may mean the closing of your company.

Failure to plan – Just like good planning can lead to a successful construction project, the same is true for building a successful business.

In project planning, you define goals and processes according to the customer’s requirements. You are intentional and clear on where the project is going and how you’re going to get it there.

A good builder will do the same when it comes to their business.

Consistant clear communication with customers, production teams, and suppliers is one of the important pieces of a good business plan.

The likelihood of companies going out of business without a plan increases exponentially.

There are a lot of risks lurking on a construction site that can cause a project to go poorly. The best way to avoid these risks is through awareness, understanding, and preparation.

The same is true for your company. If you become aware that there’s a problem and understand it, you will be more likely to avoid it. Instruction and learning can lead to building your dream business.

The road to success in the construction industry may be long and rough, but it’s worth it.

Become more successful through improved processes, systems, and management; take it one step at a time, and soon enough, you can achieve your ultimate business dreams.

Let us know what your biggest construction business struggles have been in the comments below.

How Implementing a Plan Can Help Us Build a Successful Business

by

The Five Remaining Areas of the “Job List” Building Block

Back in December we started discussing the importance of building your business on a solid foundation and why people in the construction industry avoid doing it. Then we talked about how a reporting process like the “Job List” can be an important building block in a construction business foundation. Last week we looked at how the “Job List” can help us plan for the future.

A business won’t stand long if it’s not built on a solid foundation.

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 our 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 document and how they fit into a solid business foundation.

Average dollar amount of projects bid – This number (cell I-30) is just like 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 is and how it compares with the proposed amounts. Like the average bid amount, this number let’s you know what size of projects you normally do. You can then make changes to what proposals you 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 can be a critical piece of information about 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 number gives you the number of weeks needed to do that work.

Projected date work should be done – Like the projected timeframe, this information (cell K-23) converts the projected time it should take to do the work of the currently signed proposals to a 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 the most revealing and helpful when it comes to staying on target.

This information can increase the sense of urgency and focus, and this is something that is critical to building a successful construction business.

I hope you’ve found this series on the “Job List” as a foundational building block helpful. If you would like more information about this or other business systems and processes, go to SolutionBuilding.net or reach out us in the comments below.

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

by

Now, What’s the Purpose of This Building Block and Why Does it Matter?

Recently we discussed the importance of building your construction business on a solid foundation and how paperwork is outside of most contractor’s comfort zones. 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.

As we discussed previously, one of the three foundational piers is administration and finance. One of the building blocks in that pier is a Job List which offers 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 Job List is an Excel spreadsheet that lets you gather and track information. It has preset formulas determining and sorting 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 doesn’t have to be.

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

Let’s go through the document and break it down into smaller bite 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 Job List 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 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 been finished, the information specific 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 to this point in the year. Based on your company’s past history, this dollar amount should give you a clear picture of where you are in relationship 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 currently must 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 the 12th you were at $352,877.66. This is getting 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 kind of info is helpful when looking ahead to the future.

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

I hope you’ve found this helpful. If you have questions, feel free to put them in the comments below and I will answer them.

Why It’s Critical to Build Your Business on a Solid Foundation

by

Because If You Don’t…It’s Likely to Come Crashing Down Around You

If you own or operate a business, I’m sure you’ve experienced the feeling of your world crashing down around you. There are a variety of different reasons this happens. A few of them may be due to things out of your control. But, more often than not…it’s because of bad decisions we made.

Most of us that are self-employed started out learning our trade as an apprentice 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 business. This is a critical part of why so many businesses don’t survive.

It doesn’t have to be this way if the business is built on a good foundation.

The foundation of a building is made up of two parts, the footing and the foundation. The footing creates an attachment point between the foundation and the soil. The role of a footing is to support a building and help prevent settling.

The foundation is the base of any building structure. The foundation transfers the load from the structure to the footing and also provides resistance from loads exerted on it. If the foundation of a building is inadequate or not maintained, the building will collapse.

The foundation of a good business is the same. If your business isn’t built on a solid foundation, it will likely collapse.

The footing for your business is who you are. It consists of your purpose, core values and mission. These are the non-negotiables. The things that, when faced with decisions, will be rock solid.

Your foundation is three piers supported by the footing while supporting the business. This is the business systems and operations. These piers are sales/marketing, production/operations and administration/finance. 

  • 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 preparation of estimates, proposals and contracts.
  • Production/Operation – Organizing, scheduling and maintaining the project or product. Determining who the right people are to preform specific tasks. Knowing the parts that are needed and making sure they fit. Maintaining communication between all parties involved. Upkeep and maintaining facilities and equipment.
  • 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 ‘trades-people’ to neglect and one of the most important.

For a business to be successful for the long term it is critical to have these three piers in place and to maintain them.

If one or two of these piers get neglected when doing the busy day to day work…the business begins to lean and if not corrected in time, it will collapse.

These three piers are made up of several different pieces. I plan to break these pieces down and explain how they fit together and serve their part in supporting a successful business.

I will start with the Administration/Finance pier, because it is the most often neglected by ‘trades-people’.

It’s up to us as business owners and entrepreneurs to build and maintain our business. If we do this well…everyone benefits.

The Benefits of Combining Your Calendar and To Do List

by

The Strength of These Two Things Together Can Increase Your Productivity

As business owners, entrepreneurs, hardworking employees of companies, and active people, we find ourselves busier than ever during this time of the year. As we approach the end of one year and begin preparing for next, there just isn’t enough time to get everything done. Add to this the Holiday season and everything that goes with this…it can get overwhelming.

As busy people we struggle trying to get everything done. The thing we need to remember is…

We don’t have to get EVERYTHING done.

Instead, we should prioritize our actions and focus on the first next thing. What is the most important thing currently on the list? At the same time we need to remember there is a limited amount of time available.

Recently I had a day that made the importance of a calendar and the limits of time very clear.

I typically have my calendar packed tight. Some of you have seen my calendar and know what I’m talking about. On this particular day, I had no meetings or events scheduled. I was lazy about putting things on the calendar.

As always, I had a long list of things to do. More than I could ever get done. The problem with not having things scheduled on the calendar is…the importance of time available is lost. At the end of that day, I was disappointed in how little I got done. I should have put things on the calendar.

This is why it’s important to use a list and a calendar together.

A calendar is a visual view of the time available. As you put things on the calendar, the day, the week(s) and the future begin to fill up. It’s a gauge for what you can get done. It isn’t an exact science; you already know that some things are going to take longer than you plan for.

Seeing this limited amount of time packed to the point of running over amps up the sense of urgency. This increased urgency improves productivity. It’s a black and white way to see the limited time available, a list of things to do doesn’t show you this.

A calendar is a great way to measure the time you have to do the things on the list.

The purpose of lists is to keep track of things that need to be done. We all have lists of things to do, whether it’s in our head, on paper or electronic. I use OneNote for my lists because of its simplicity, connect-ability, flexibility and options available.

The thing that I like about my OneNote list is that it improves my ability to keep track of the things on the list and allows me to easily move things around and add or remove as things change. And we all know that things never change. 😊

A list is a great way for prioritizing things that need done first and keeping track of the rest.

A calendar is a time focused tool. The “to do list” is just what it says…a list of things to do. These are two different tools, with different purposes and abilities that work well together.

Most of us business owners, entrepreneurs, hardworking employees of companies, and active people want to be more productive. Using these two tools to support each other is a good place to start.

How Does One, Make All They Can, Save All They Can, Give All They Can?

by

At First Glance, One Naturally Thinks Money…but it’s So Much More

I started writing about my core values as a life filter back in January of 2017. Core values are an important part of intentionally living our best lives, the lives that God has designed for each of us.

In that first post I said I would break down my core values in future posts. Well, here we are…almost five years later and I still have two left. Today we shorten the list to one. The core value for today is…

Make all I can, save all I can, give all I can.

This is a variation of the words of the 18th-century theologian and founder of Methodism, John Wesley. Make all you can, save all you can, give all you can. As one of my core values I wanted the focus on me and my business.

Growing up in the Methodist church these words were a part of my life from a young age. As it is with most things we hear when we’re young, it’s not until later in life that we grasp and appreciate the full meaning. As we mature, we begin to realize the importance of taking the blinders off and seeing the bigger picture.

Too often money and business get a bad rap. I believe that most businesses are not working to take advantage of people. Nor do I think that money is evil. It the lust after money that’s evil. Sure, there are cases where people and businesses are being selfish, but I don’t believe that to be the norm.

Make all you can, Save all you can, Give all you can

These are great words to live by and they also serve as a great business motto.

Make all you can –

Making all you can is about more than just money. Making is the process of making or producing something. It’s the qualities needed to make something. Making sounds a lot like building…making buildings, making businesses, making lives. Money is needed to make things, but it isn’t the only thing needed.

From a business perspective, if you don’t make money you won’t stay in business.

This is one of the reasons it’s one my core values…I tend to put making money lower on my list of my priorities. I use this core value to remind me not to do that.

Save all you can –

Like making…saving is not just about piling up money. Saving is reserving and not wasting. It is about spending time wisely. It’s about being thrifty and frugal.

I see figuring out ways to save as a challenging puzzle and I’m constantly looking for ways to solve it.

We should always expect the unexpected. Saving allows us to be better prepared for the unexpected.

Give all you can –

Giving is something that is often connected to money. Around the Holidays we are bombarded with opportunities to give. Once again giving is about so much more than just money.

One of the best ways to give is to share our skills and abilities.

Whether that is at our church, community organizations, or through our vocation. Sharing our gifts through work is honoring to God even if it’s something we get paid for. Last week we discussed the importance of service over sales. Service is about giving.

Finding the balance and not getting too focused on one thing or the other is important to operating a successful business and living a fulfilling life.

That’s why Make all I can, Save all I can, Give all I can, is one of my favorite core values.

Previous core valuer posts –

Using core values as a life filter

Honor God in all that I do

Intentional action

Take the blinders off an be more observant

Pay attention to detail

Spend time wisely, there is a limited amount

Never be satisfied with mediocrity

Find and maintain the balance in everything

Build the wall one brick at a time (previously, move the mountain one shovel at a time)

Remember that I have two ears and one mouth

Be accountable

Why is it That Businesses Put More Emphasis on Sells Over Service?

by

It Doesn’t Have to Be One or the Other…It’s Our Job as Businesses to Find Both

When thinking about business ownership or leadership, the focus often is on making a lot of money. Not that there’s anything wrong with making money. The problem is when money becomes the driving factor.

We’re all aware of those people who have been super profitable in their business. You know…those rags to riches stories where someone started out with nothing, came up with a new idea and became wealthy.

Making a lot of money is a big reason why so many people decide to start a business.

It doesn’t help that we are constantly being bombarded with some new product, formula or process that is a “shortcut to wealth”. The problem is…most of them aren’t.

This isn’t to say that they can’t or won’t work. What I’m saying is…more often than not…these things sound better than they really are.

After my wakeup call in 2012, while recovering from my accident, I began researching ways to share my construction expertise and business experience with others. I thought, I’ll help construction companies and customers through coaching and consulting.

The problem was…I knew how to run a construction company…not do virtual coaching and/or consulting.

So, I subscribed, bought, downloaded and joined multiple programs, courses, classes and trainings in an effort to turn this new idea into a business.

It didn’t go as well as was expected.

Not that I didn’t gain a lot of valuable knowledge, insight and things that I can and will use.

The problem is that it was the proverbial “getting the horse ahead of the cart” thing. We’re being bombarded through commercials, emails, social media, etc. with the next shiny new thing that is going to be the answer to all our business prayers.

All those things that I was sure were what I needed to get my next business up and going…weren’t.

This led to feeling like I was, “wandering, lost in the business dessert”.

After feeling this way for a while, I began to doubt myself. Maybe that great idea I had wasn’t so great after all. Too often this kind of thinking leads to saying to heck with it and giving up.

In our mastermind last week, Becky Warner shared that she had an aha moment when she realized that starting out trying to sell too much, too early, was a mistake. She said, we need to start with connection and community.

Connection and community…these are the same as SERVICE!

When I heard her sharing her thoughts about this, I felt relief. It was a confirmation that I wasn’t the only one feeling like this.

Starting the journey across the business dessert with unrealistic expectations leads to wandering.

The information that Becky shared with the group confirmed what I had been feeling. I needed to look back at what had worked in my construction business and that was…focus on service, not on sells.

This isn’t to say that sells don’t matter. What I am saying is…

Our businesses are more than just profit.

We have all been given skills and abilities that provide a service to others. If we figure out what that purpose is and use it, we can sell more and make more.

97% of businesses fail within 10 years. This is in large part to their focus on sells and not service. I don’t know about you, but I want to be part of the thriving 3% of businesses that succeed.

If you provide service…the sells will follow.