Five Steps for Business Success
Starting your own business is a career change, a mind shift many builders never understand until it is too late, and failure is inevitable. Most will say, "It is not a career change. I am still doing what I love; I am in construction." Wrong, you were a carpenter with carpenter responsibilities. Now you are a business owner, and you could own a business in any industry you chose construction, smart; because that is an industry you know.
Take some time right now, while you are thinking about it, working ON your business instead of IN it. What is the difference? Picking up the lumber, working on wall layout with your lead carpenter, or setting up a material order is giving into fear. These are in your comfort zone, skills you have, the skills you know you can do well, and comfortable doing. These jobs belong to someone else now; there is plenty of work that only you can do as the business owner. You did not become a great carpenter by doing plumber or concrete all day, you may have stepped in when needed, but you became great by focusing on being a great carpenter and learning the trade. It is now time to start over.
Where do you start? ……at the beginning. Let's look at five things to set your focus.
- Goals
- What is your business goal?
Not sales for this month, profit for the year, or even percent margins. What does your business look like when it grows up? This goal is the most critical question you need to answer. You have heard the phrase, "my business is my baby," implying you love it and care for it, great, but like a baby, it will grow; it needs to evolve to survive. Not like the adult child living in the basement, but to go out on its own and make its way in the world without you having to watch it every living second.
In ten years I will achieve the following________________________________________
As a result, I need to accomplish this in five years________________________________
My three-year picture includes_______________________________________________
By this time next year I will_________________________________________________
The five thing I need to accomplish this quarter are_______________________________
So please sit down, pen and paper in hand, and write it down. What does it look like, what does your life look like when this happens. This focus is the difference between "I want to go on vacation" and "I am going, with my wife, to Jackson Wyoming in February for a week of winter adventure, skiing, snowmobiling, Yellowstone, nature, and relaxation." Knowing where you are going is the key to getting there and, a goal without a plan is just a dream, so let's set up a plan.
- What are your personal goals?
The business is here to work for you and help you to achieve your personal goals, so what are they? Again, Make a list…in 10 years, I will_______________. This step is important because this is your why, your bucket list; it gives your life and business meaning.
Now that you know where you are going tailor everything you do to that objective, and I mean everything. How you dress, the car you drive, your proposals, even how you answer the phone. Start looking at every procedure; make sure it targets achieving your goal. I went from work boots, cowboy boots, and penny loafers to dress shoes. Each represented a bit above what customers expected when I went on a sales call, but I adjusted slowly as my business grew to reflect my steps towards the goal I wanted to achieve. Write down the key areas of your business that need immediate attention and block you from achievement.
2. Money: Accounting is the scorecard for your business. You know how to build, you will learn how to sell, but none of it matters unless you are making a profit, paying your bills, and taking in revenue. There are two elements to be aware of accounting and finance.
- Accounting:
Bookkeeping is your basic system for tracking your money, and it produces your profit and loss statement. The other key element is job costing for making real-time decisions. Having a sound accounting system is key to money, time, and business management. Do this first!
- Finance:
Your balance sheet is the other piece to money management, Assets, and liabilities – your companies net worth, on paper. This report is about your company's financial health. It will be produced automatically due to good bookkeeping, but understanding it is the business owner's job and the first thing your accountant and banker want to see.
3. Advertising
- Sales:
Selling is your primary goal; without sales, you will have nothing to build; it is that simple. Your carpenters cannot sell, only you can, so let them do what you hired them to do so you have time to do what you need to do. Think of it this way; your primary job is to find and retain customers. As the owner, this will always be your focus at some level; even when you have a staff of five seasoned salespeople, without sales, you do not have a company. Wrap your head around this; if you are not comfortable with selling or speaking, look into a Dale Carnegie sales course or toastmasters for public speaking. Customers are your job, so meeting people is marketing, make a list of groups you can join, Chamber of Commerce, School board, community groups; they are all good contacts, referrals, and yes, customers.
- Marketing and sales are opposite sides of the same coin.
This business is referral driven; to get referrals, folks must remember you, so staying in touch with your contacts is vital when you want your name remembered at the next party. Set up a process to keep in touch, monthly email, birthday wishes, construction anniversary, be creative but stay at the forefront of their minds. As the list gets longer, you will need a CRM to speed things up. As we all know, social media is so important, and Facebook will be your most likely resource, stay on LinkedIn for business, contacts, subcontractor contact, and education but, Facebook will be your sales focus. You must post regularly to stay relevant, but you do not have to be creative every day. Plan-ahead, in times like this, rain days or touring a job site, think about your next post, take a picture, shoot a video and then save it; if you have 5-10 in your backlog, a posting gets more comfortable, especially when you get busy. Just grab a saved file post and done. Do this while you have other computer work to do so you can reply quickly while the post is current.
4. Production: There are two components to production, field, and office. One builds it on paper, the other in real life.
- Field Production
Work in the field is easy; most likely, you have been doing it your whole life, you know how you want it, what you want, and when. You need to document these steps because you are the only one who knows what you want, and it is the company's public face.
- Office Production
Though painful, this step is unavoidable. Someone needs to write contracts, order materials, review invoices, write change orders and bill the client. This role is the communication hub for each project. All information flows through here. As the hub, the better the flow of information, financial and otherwise, through this position is key to customer satisfaction and efficiency.
5. Systematize everything! There is only one of you, and though in the beginning, you may have to do everything, in a short order of time, it will become impossible. The first things to look at are accounting, project management, and lead generation. This step is huge, so take small bites. Think again about what the company looks like when it grows up and begin by setting up systems that support that goal. You may not need 30 job cost codes today, but you will in a few years. Set up your accounting and job costing for the future company to get comfortable using them, and when you do require this information, it will be there for you. Consider first an accounting system, Quick books, Xero, etc., a project management system, Co-Construct, Builder trend, etc., and a CRM; Mail Chimp, constant contact, etc.
Finally, people buy from people, so take your business and sales hat off for a minute and take time today to check in with your friends and customers to see how they are doing, let them know you are thinking of them and there if they need you, wish them well and stay in touch.
This list will keep you busy, but you must make it your full-time job: today and every day. You are working on the business, not in the business. Only you can do these tasks, and they are your tasks to do; you are the owner of your company, so get out there and do your job.
Each one of these steps requires hard work to set-up, so they meet your specific business objectives and will work without you, Ultimately that is the goal, correct?
Let's set up a strategy call. Business success is there for anyone who wants it and is willing to work.