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How To Win The Race Of Business

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You Win by Never Quitting

 

It’s NASCAR race weekend in Kansas City. My brother-in-law and I have already enjoyed Saturday’s race. There were several things that happened late in the race that changed the expected outcome. The winner of the race was not the one who lead most of the race, but he kept racing until the last lap and won.


Currently we are sitting in the hotel lobby, waiting to get back into our room, which we are locked out of and our stuff is inside the room. It appears that the battery on the electronic code reader is dead. Technology’s great…when it works.


I’m writing this on the hotel’s computer in the lobby since my computer is locked in the room.


Most people would say the only way to win a race, is to finish ahead of everyone else. I would argue that there are other ways you can win. For me winning is as much about staying true to values and core principles as it is finishing first. There are races inside of the race. Points accumulated toward the championship, sponsor visibility, etc.


When racing you need to be ready for whatever challenge is around the next corner. (Like being locked out of your hotel room.) There are other drivers, wrecks, breakdowns, all things that are out of your control. Things learned in this race or this season, help me to race better. Winning is how you deal with difficult situations.


This doesn’t mean you should race without passion or a desire to win.

 


In racing there are pit stops and caution flags that give you a chance to catch your breath and regroup. The same is true in business. Take advantage of these opportunities when you get them.


It takes more than a driver to win a race. It takes a good team, a good system and good equipment. Business is no different.


Winning the race is about how you run it.


Galatians 5:7, 2 Timothy 4:7 and 1 Corinthians 9:24


Three hours and we’re back in our room. The hotel was very apologetic, they comped our room, gave us free breakfast coupons and additional points. They had a computer and it served me well.


I’m going to call it a day so that tomorrow we can race another day.

When you win…remember to celebrate.

This video is from the Sunday race, 10/20/19

How To Balance Passion and Profit In Business

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It Doesn’t Have to Be One or The Other

 

Why is it that the owners of small businesses struggle to even make minimum wage? When you factor in the number of hours and amount of stress that most small business owners endure, often it’s less.


I had this conversation with a local contractor last week. The same conversation I’ve had with different contractors, including myself, repeatedly over the years.


Self-employed people are generally in business for one of two reasons. They either love what they do or they’re in it to make all the money they can. The ones who focus on quality and service usually don’t put enough effort into profit. On the other side, the ones who focus on profit, do so while neglecting the quality and service.


Let’s look at some of the reasons for this problem.


In a Score Contracts blog post, “8 Reasons Why Small Businesses Are Not Making Money” they list eight reasons. Most of these you have heard or experienced, but some are worth repeating.


#2 – They don’t know what they’re doing. They are technicians or trades people trying to run a business. They need to have a business plan in place and use it.


#5 – Poor thinking. Most are hard workers but have poor thinking habits. They spend more time planning their meals, vacations and daily chores than they do their life.


#6 – Lack of education. Not formal schooling, rather self-motivated expansion of knowledge like reading, studying, courses, on the job training.


#8 – Self-doubt or fear. Most people quit before they even get started. They look at the options and then talk themselves out of even giving it a real try.

 


Here are some additional reasons that small businesses find it difficult to make money, found in a blog post “17 Truths About Running Your Own Business”. 


#1 – You can’t be everything to everyone. You need to decide what your priorities are, be selective and learn to say no to the things that aren’t.


 

#6 – Your business isn’t a piggy bank. You can’t just spend money on everything you want without a plan. You need to be sure to have money for taxes, equipment or building repairs, investments, etc.

 


#8 – You can’t do everything. You need help. You need a team and they need to be good. You need to know what that looks like and how to get them.


#10 – Your customers are your most important asset. Treat them as such.


#17 – You are your own most important client. You need to spend some time every day working on your business and not in your business. If you don’t take care of the business, it won’t last.

 


What are we going to do to make our business profitable while being true to our passion?


As is the case generally, everyone’s specific situation is different. The important thing is to listen, learn and apply information learned. If you learn new things and don’t use them, they’re worthless.


Application is the hard part.


Because we have struggled ourselves with finding a business system to fit our needs, we decided to develop a user-friendly business system that can be tailored to different business’s needs including training and implementation support.

 

 


It doesn’t have to be only passion or profit; IT CAN BE BOTH.


Here are some previous posts about some of our business system thoughts and struggles.


Building Your Business Is Critical to The Survival of The Business
Be Careful About Short Table Legs
What Does It Take to Be a Builder?
The First Next Thing to Building A Better Business

 

Share business struggles that you or someone you know has had in the comments below. This will be helpful to us as we design the system.

 

 

Rome Wasn’t Built in A Day and Neither Is A Colossal Website

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A Website Isn’t as Important as Rome, But Pretty Close

 

 

We’re in the process of rebuilding our Timber Creek Construction web site to freshen it up and provide a clearer and more informative message. Whether building Rome or a website, both are big projects. I thought it would be good to share –


The reasons behind the rebuild


A sneak peek at what’s coming

 

Why does anyone even bother having a website anyway?


According to How Stuff Works, “A website lends an air of credibility – it lets people know that you’re serious and ready to do business. It’s a guaranteed sales booster and a whole lot less expensive than buying ads.” So, if you’re in business and you want to connect with someone who might need your product or service, having a website is a good thing.


Okay, but we already have a website, why do we need to rebuild it?


 

 

That’s a good question and one that I asked myself. What’s wrong with the site we have? It’s not that old. We built it when we started Timber Creek Construction…in…2003. Okay, so that’s a little longer ago than I thought. It was cutting edge then but now…not so much. It took someone on the outside to bring this to my attention.

 


We need to clarify our message.


There is a whole list of issues that customers typically have with building contractors, almost all of them come down to one thing – poor communication. Good communication takes two, but in a business to customer relationship the majority of this responsibility lies on the contractor. Clearer, better communication is one of the main things that we hope to accomplish with the new website.


One way to improve the communication is to improve contractor’s business systems. Most small construction companies knew how to do their trade when they started their business but didn’t have any idea how to manage the operational part of their company.


As I looked closer at the Timber Creek website, I discovered that both Timber Creek Construction and Solution Building’s messages at the foundation were the same. In both cases we help people find solutions for building their dreams, whether that’s constructing a building or an operating system to run a more effective business.


Helping small businesses develop and implement business systems and informing and educating the customer is the purpose for Solution Building.

 


Let us know about any issues or problems that you’ve have with construction projects or operating your business in the comments below.


We will be sharing progress updates and more details of both Timber Creek Construction and Solution Building in future posts.

One of the Biggest Issues in Business Is Over Promising

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Why in the World Do We Do This and What Are We Going to Do About It?

 

 

I received a phone call from a gentleman asking about a problem he was having with a leaking metal roof on his shop building. As normal when confronted by a situation like this I began asking questions.

 


Early in the conversation I found out some important pieces of information. First, he thought he had called his contractor neighbor. Second, they live almost a hundred miles away. I pointed out the distance and unlikeliness of my coming that far to do a project.

 


This didn’t stop him from needing answers to questions.

 

 


As the conversation continued, he shared about his problem and I (being the solution seeking contractor that I am) continued to discuss his situation with him. Then I found myself looking for ideas to solve his problems, all the time thinking to myself, why are you doing this when you know he’s so far away and you’re already doing too much.


Near the end of the discussion, I agreed that if he would send me some pictures and a written description of what the problems were, I would give him an estimate…strictly from a consulting perspective of course.

 


You know you have too much to do. Why did you do that?

 


As we ended the conversation, I told him that I was busy and would get him something as quick as I could. He proceeded to tell me a story about several experiences he had with people in the construction industry that had made promises and then not kept them. He asked why this happens? I’ve asked myself this question many times.


The question of over promising is rampant. I know that in my business it raises its ugly head daily, whether it’s sub-contractors, suppliers, IT people, mechanics or my own schedule. I certainly believe that most of the situations of over promising that I experience are not done from a place of malice. That doesn’t change the fact that it’s still being done.


Why does over promising continue and what am I going to do about it?


 

Maybe this isn’t the right question. Andy Andrews says that “The quality of your answers is determined by the quality of your questions.” I’m thinking that maybe my question isn’t very good.

 

 


This is a big issue, as you can see from these previous posts.

Over Promising Is Easy When You Have A Servant’s Heart
5 Ways to Stop Over Promising and Under Delivering
How to Create Realistic Expectations for Customers – Part 1
Honesty Is the Best Policy – I Don’t Care How Hard It Is

 

 

I’m not going to stop looking for an answer to this question.

 

 

Is Real Customer Service a Thing of the Past?

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It Doesn’t Have to Be

 

Customer service is a term that has been thrown around a lot. It’s often a marketing slogan rather than a core value. In this fast paced, information overloaded time that we’re living in, it’s easier now than ever to become part of the noise and make unrealistic promises.


Customer service is found in the heart, not the head.


When running a business, it’s easy for our focus to be on the bottom line rather than the customer, not that bottom line isn’t important. Bottom line is head thinking. Heart thinking is about serving the customer’s needs. It’s finding out what the customer’s goals are and helping them achieve them.


We all tend to naturally lean in one direction or the other, heart or head. It’s important for us to be clear which we are and adjust accordingly. Once we acknowledge that we can compensate accordingly.

 


If we’re operating our business well, both heart and head will be in sync.

 

 

The problem with heart thinking is that in an effort to help the customer achieve their dream, we over promise. We create unrealistic expectations and then when they aren’t accomplished there is disappointment. We need to be clear with customers and ourselves on what’s realistic and share that with them honestly.


Customer service is not about telling them what they want to hear. It’s about telling them the truth. It is hard to tell someone things that they don’t want to hear, but that’s better than telling them a lie. This kind of honesty is hard for a people pleaser like me. By wanting to help everybody with everything, ultimately, I do the customer and myself both a disservice.


This past week I encountered both sides of the customer service experience.


First – Our air conditioner at home quit one night this past week. The next morning, I made a few calls to HVAC contractors that I use as subs. The only one that answered his phone said that he was busy until later in the day. Then in a few minutes he called back and said that he could be out within the hour. Once there, he diagnosed the problem, it was going to require a new part that he could order and have the next day. Or if I would go to Wichita and get the part he would come back out and put it on. I did and he did, by 1:00 that afternoon the AC was working. Thanks Jim Finney with Finney Heating & Air for great customer service.


Second – I was meeting with a customer about a project that was going to include some painting. I have done a lot of work with this customer over the years and several of them included painting. While talking about the painting the customer told me they didn’t want “that painter” to do the work. When I asked why, they told me about some issues on some separate painting projects they had used him on. These consisted of using lower quality paint than they thought they were getting, scheduling delays, and lying. They had been working with him on a parent’s home painting project that the start date had drug out over two years. They even said they would have been okay with the timetable if the contractor had just been upfront and honest with them.

 

 


We need to start by being honest with ourselves. Figure out who we are and who our customer should be. We can’t’ be everything to everybody and we shouldn’t try.

 

How To Keep A Finger On The Profit Pulse Of Your Company

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Accomplished by A Weekly Profit Comparison

 

Have you ever been shocked when preparing your year-end financial paperwork and you find that profits were not what you expected?

 


You had, what you thought, was a good year. You were busy and working hard all year long. This was an unexpected and disappointing surprise. What happened?

 

There is so much required to operate a business and it’s hard to keep everything balanced. There are three support columns that hold up a company and financial health is a crucial part of one of them. If you neglect to regularly monitor finances, by the time you realize it, that support leg may be too weak to keep the company stable.

 


It’s easy to lose track of things if you aren’t intentional.


Profit and loss reports are easy to prepare, especially if you use a computer bookkeeping program. The problem I had with the profit and loss report was that it didn’t answer questions that I wanted answered, not without doing a lot of extra work. We all struggle with not having enough time to get everything done so, it gets put off and the next thing you know the year’s over.

 

Been there done that. That’s why I developed a Profit Comparison report.

 

I wanted, at a glance, to know if we were on target for the current year’s financial goals. This way adjustments could be made before the financial support leg got too weak. I also wanted to be able to see how the company’s income and expenses compared with last week or last year at any time throughout the year.


The Profit Comparison is an Excel spreadsheet that within a few minutes can be filled out and ready for review. We take information from a standard profit loss report, enter it into the proper places on the spreadsheet and with a few clicks of the mouse it lets us see what the “profit pulse” is. By filling it out and reviewing it every week we can stop bleeding before it becomes fatal.


The Profit Comparison report provides:

  • Comparison of the current Gross Profit to last week, last year and this year’s goal.
  • Comparison of the current Overhead Expenses to last week, last year and this year’s goal.
  • Comparison of the current Net Profit to last week, last year and this year’s goal.
  • Revenue deficiencies or surpluses, providing an opportunity to make necessary adjustments to get and stay on target.
  • Job cost overruns, providing an opportunity to make necessary adjustments to get and stay on target.
  • Excessive overhead expenses, providing an opportunity to make necessary adjustments to get and stay on target.


One of the biggest problems that businesses struggle with is the lack of time to get everything done, this is especially true for small to medium size companies. Financial reports are one of those things that get put off because they aren’t “directly connected” to generating revenue.

 


This simple report can easily provide the “profit pulse of your company” weekly.

 


We are working on developing this Profit Comparison Report complete with instructions into a product available for use by others. If you or someone you know would be interested in this, please let us know in the comments below.

 

God Is in The Business of Making All Things New

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A New Building on An Old Site

 

 

 

There was a building for sale in a rundown part of town. It had broken windows, graffiti and trash scattered all around. It didn’t look so good. When a potential buyer met with a realtor to look at the property, the realtor said, “The seller will make the necessary repairs and clean up the trash and graffiti.” The buyer said not to worry about it, he was going to tear it down, clear the site and build a new building.


God can rebuild or repair our trashy rundown lives.


Whether it’s a repair project or a start from the ground up rebuild, God can turn ugly into beautiful. We can leave the old rundown building standing, or we can make it a place that radiates beauty. Our part is to decide.


There are a couple of reasons the old ugly buildings are left standing.

  • First – We think we’re supposed to be perfect. I’m supposed to have it all figured out. This is what others expect of me. I put on a positive coat of paint on the outside and no one will know. People will let their building fall down before letting anyone see that the structure needs help.

 

  • Second – We think we’re unworthy to be helped. Everyone else has it all figured out, not me. Everyone else knows what they’re doing. People would think less of me if I ask for help. People expect my building to fall down so I should just let it.


We can decide if we’re going to let our building fall into disrepair or not.


In the play “Man of La Mancha” from the mid-sixties, Quixote meets Aldonza, a servant girl and prostitute. She has grown up abandoned and believing she is worthless. He sees her as a beautiful lady that he will serve forever and insists that her name is Dulcinea.


They encounter each other again and he continues to build her up and call her Dulcinea. She questions his seemingly irrational perspective after being beaten and raped by a group of men.


Years later Quixote is dying and has lost his positive outlook, when a beautiful woman that he doesn’t recognize forces her way into his room. She reaffirms his vision and says, “My name is Dulcinea.”


We can decide to be Aldonza or Dulcinea.

 


God has a dream for our building, whether it’s a clean up or a rebuild. We need to find out what that plan is and get to work. Our dream needs to align with His.

 

 


Turn your Aldonza into Dulcinea…it’s up to you.

A Missing Piece of The Puzzle

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What Ever Happened to Contractor Etiquette?

Last week I wrote about etiquette after a friend had a plumber spit tobacco juice in her sink while they were talking. The lack of professional conduct (especially in the building industry) baffles me. As I have been considering this topic it’s become apparent to me that this piece of the professional puzzle is missing and needs to be found.

Where has this important piece of the business relationship puzzle gone?

It’s easy to find, but hard to put in place. This puzzle piece is right here in each of us. The problem is the unawareness that it’s even missing. We’ve become so busy in this fast paced, need to get things done life, that we’ve become self-centered. Not necessarily in an intentional knocking people out of my way selfishness. Its more production focused rather than people focused. As I think back on situations that I’ve witness or heard of, it is apparent that this problem needs attention. Whether it’s –

  • Standing in a customer’s upholstered chair using it for a ladder
  • Leaving an electric circuit turned off over a weekend which had a customer’s freezer plugged in to it
  • Laying down after lunch and taking a nap on a customer’s couch
  • Throwing food trash in the void behind a stone veneer and leaving it or
  • Spitting tobacco juice in a sink

As professionals it is up to us to do something about this.

So, what are we going to do?

The first thing is to be aware of the problem. If we ignore it, it won’t go away, it will continue to get worse. This means that we need to hold each other accountable for our actions. As professionals, if we see something unacceptable being done, we need to call each other out with respect and in private. This isn’t about public humiliation. It’s about raising the bar. The difficult thing is my acceptable behavior and yours may be different. That’s why we need to find a reasonable standard.

Here’s a good place to start –

GOLDEN RULES FOR CONSTRUCTION CONTRACTORS

  1. If you open it, close it.
  2. If you turn it on, turn it off.
  3. If you unlock it, lock it up.
  4. If you break it, admit it.
  5. If you can’t fix it, call in someone who can.
  6. If you borrow it, return it.
  7. If you value it, take care of it.
  8. If you make a mess clean it up.
  9. If you move it, put it back.
  10. If it belongs to someone else and you want to use it, get permission.
  11. If you don’t know how to operate it, leave it alone.
  12. If it’s none of your business, stay out of it.
  13. If it will brighten someone’s day, say it.
  14. If it will tarnish someone’s reputation, keep it to yourself.

Okay…so these are the same as the Golden Rules for Living in last week’s post. If they make sense for life, they make sense for business.

In my research I came across a Construction Etiquette blog post by Stefaney Rants. She points out some specific etiquette for the contractor to the customer.

  • Return calls, send contracts in advance, sign papers in a timely manner.
  • Be on time!  If you are going to be late, call the home owner.
  • Keep the job site “clean”.  Have the crew pick up their lunch trash and water bottles.  Ask the home owner for recycling bins.  Dust will be expected, but use a plastic tarp if possible to contain the dust and/or clean some areas if it gets out of hand, like on the home owners grill for example.
  • Be aware of landscaping.  Don’t park on flower beds or other plants.
  • If something breaks, let the home owner know!  You want to keep a good reputation and the home owner will definitely tell their friends about your work.

She also lists some etiquette for the customer to the contractor. Next week we will approach this missing puzzle piece from that perspective.

Contractors – start working on your business relationships – the BAR IS BEING RAISED.

Christmas Is About Giving, Business Should Be Too

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How Do We Know What to Give Without A List?

Last week I wrote about the coming new year and our excitement about the possibilities and opportunities it will present. This week I’m going to back up just a little (chronologically) to focus on Christmas (considering that it is just a few days away).

Christmas at its very foundation means giving. “God loved the world so much that He gave His only Son, so that everyone who believes in Him would not be lost but have eternal life.” John 3:16, ERV. We’re talking about the ultimate gift. The giving of His child to be mistreated and ultimately killed on a cross. This Holiday is the celebration of that Child’s birth.

“God created humans in His own image. He created them to be like himself.” Genesis 1:27 ERV. If we have been created in His image, then shouldn’t we be willing to give. Isn’t this a part of who we have been put here on earth to be?

What does giving look like in business?

It doesn’t mean we do work for free. It doesn’t mean that if we win the customer loses or the other way around. Business isn’t supposed to be a win-lose arrangement. It can and should be a win-win.

Once again, this last week I met with another couple in the middle of a remodeling project that has taken a bad turn…they had to fire their contractor. What should have been the fulfilling of their dream turned into a nightmare. This was primarily due to a breakdown in communication. As professional builders, or businesses of any kind, this responsibility is ours. This is such a big problem. I have written about it as much or more than any other.

Here are links to some of those “Weekly Solutions”:

So, how do we know what it is that the customer wants? WE ASK THEM

This seems to be a no brainer, but for whatever reason the question doesn’t get asked, not really. The basics get discussed and everybody thinks they know what the outcome is going to be, but some where in the process things go off track. It takes time and effort to dig deep and find the underlying dream. This is critical to the project being a win-win.

It’s like finding out what a child wants for Christmas. Sure, we can go get them a gift and it might be something they like but, the odds aren’t very good. Or, we can have them fill out a Christmas list. If we don’t understand something on the list, we can ask and get some clarity before the process starts or money is spent.

Have the customer fill out a “Christmas List” for their project before moving forward.

To the point of having a list filled out…I need a list filled out to help determine the best direction for Solution Building going forward. I have a lot of ideas, but your input will help me know what would be the most beneficial to helping you build your dreams.

Please share your thoughts, questions, ideas or dreams in the comments below. This will help me know what gifts I can give you.

If you would prefer you can give me your list by taking this short 8 question survey.

How to Simplify A Complicated Business System

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Focusing on One Shovel Full of the Mountain at A Time

With my years of construction experience, I tend to view things from a building perspective. The things needed to build a good structure are the same for building a good business.

 

These things are:

• Purpose – The why, the reason for building it, who is it going to serve?

• Design – How is it going to look, how is it going to serve (products, services or both)?

• Style – Personal preference of the finished project, not everyone wants everything to be the same, we are all individuals.

• Foundation – This is what supports everything else, the core values of the construction.

• Framing – This is what sets on the foundation and connects everything, it is the system of operating.

• Tools – These are used to put everything together and maintain it daily.

• Team – The people employed to put the pieces together and to perform the daily operations.

 

There is a lot that goes into building something. I have written about how building and operating a business can be like standing in the shadow of an overwhelming mountain and the importance of having a clear plan and being organized. It is easy to be pulled in many different directions when trying to build and operate all the different pieces of a business.

 

By nature, I tend to make things complicated (sometimes more than they need to be). This is in part due to my focus on detail and isn’t all bad. The down side to being like this is that things don’t get done very fast. I know that I need help to build my business and move my mountain.

 

I have been working to get better at sharing shovels. I have determined that one of the things I’ve done in the past is to overwhelm new team members. So, to avoid this I am working on ways to simplify the system and to focus on one shovel of the mountain at a time.

 

Our business has three areas of focus; Sales/Marketing, Production/Operations and Administration/Finance. There is a lot in each of these areas and they all are critical to the support of the business. Keeping them operating equally is one of the most important and difficult tasks.

 

The focused shovel today is preparing a Proposal. This is the area that I’m currently working on in preparation for my Administrative Assistant. It involves things that both I need to do and things I can delegate.

 

Preparing a Proposal involves:

• Meeting with the customer – Finding out what the project consists of and helping them figure out what their dream is. Take pictures, get measurements and make the necessary notes needed.

• Writing down the scope of work to be done – Fill out the areas and categories of the Bid Sheet with the explanation of the work to be done.

• Preparing the price for doing the work – Use the information gathered to determine lineal feet, square feet, cubic feet, etc. of the different areas described in the Bid Sheet and enter it into the Worksheet.

• Compiling this information on to the Proposal – Take the information of the two previous bullet points and put it on the Proposal to be presented to the customer.

I know that I have almost forty years of developing this system and I need to get it out of my head, simplify it and put it on paper if I ever hope to move this mountain.