RUNNING
YOUR BUSINESS BY REMOTE CONTROL
It’s about time. Twenty-four hours just doesn’t
spread far enough to meet all of your needs. Your response is to prioritize the to do list.
Conditions usually dictate that time out, time off, time to think, time for the family,
even personal time are last on the list. Your dream of a vacation someday is overshadowed
by your desire to have a few minutes of peace today.
Where does the time go? You know how much time it will take
to hang a door because you have developed a system through experience which you use over
and over again. If you become swamped with doors to hang, you don’t hesitate to teach
another person your system knowing that with some practice this new person can more or
less match your performance.
How much time does it take to estimate accurately ? That may be a tougher
questions to answer unless you have a system in place which can be used over and over
again. If you become swamped with estimates to get out, you could teach another person
your system with the same expectations you had of your new door installer. You can
duplicate your sales efforts if you have a system to rely on. In fact you can duplicate
yourself right into free time by installing systems to run your business.
Sales and estimating are common to all types and sizes of remodeling
business, these systems might be the first to be installed:
Adopt a Unit Cost System of Estimating which provides you with
verifiable, scientifically determined numbers updated periodically for your location.
These systems are developed and monitored constantly by professionals whose job is to keep
you in business by providing correct costs figures. The systems simplify the estimating
process by identifying every construction cost by a unit of measurement; lineal foot,
square foot, each, each plus per square foot. It is possible to start using a system like
this manually with a plan to grow into a computerized version when appropriate. If you
already are using computers in your work, don’t hesitate to start out with a
computerized version. You will find products available at conventions, trade shows and
seminars, or learn by conferring with competitors and reading trade publications. Be aware
that when you chose a unit cost system what you are buying are the numbers or ‘data
base.’ The data base should be specific to your type of business; remodeling, custom
building, etc. Don’t fall into the trap of thinking that you can create and maintain
your own data base, that’s a waste of time, you should however be able to modify and
customize the system you purchase.
Implement a Sales System which will streamline the process of
qualifying leads in order to target the most likely buyer for your product. The sales
system will include the use of a lead form containing carefully crafted, open-ended
questions used as a script by whomever answers the phone to begin the qualification
process. Such a system will include a step by step process for setting appointments,
gaining the prospect’s trust and defining their needs, writing the contract and
finalizing the order. Discover such a system by attending conventions and trade shows or
taking advantage of seminars presented by those who specialize in this topic.
Once the sales and estimating systems are in place it’s time to
explore a system which would make it possible to arrange financing on behalf of your
customers. Contractors report that overall price is not as much of an issue when viewed as
a monthly payment. A difference in sales price of thousand of dollars represents only a
few dollars per month when presented in terms of a multi-year finance plan. Your customers
will love you for making the buying process easier for them.
Associate yourself with a lending institution. The lender will expose you
to a System of Financing. If the bank you deal with offers home improvement loans
to consumers, start by approaching your banker explaining your interest in sending them
clients. You would like to have the bank furnish you with interest rates, monthly payment
amounts for various sizes of loans, and simple applications which you would assist the
customer with completing. Ideally you would have the capability to quote a monthly
payment, define the length of time the payments would run and sign a contract
conditionally based on the bank’s approval. The approval process today may be as
little as a few hours to a few days after you have forwarded to the bank copies of the
contract and credit information. If this is not possible from a local source, there are
national lenders who specialize in working with contractors on financing. You can pick
their names from the pages of trade magazines, meet with them at trade shows or the
meetings of your local trade association. These lenders are anxious to teach you their
system in order to allow you to arrange financing for your clients. A system of financing
will allow you to sell more jobs at higher profits.
The larger your business, the more opportunities there are for systems:
When you reach the point of having multiple people in the office, create
an Organizational Chart which defines the duties of each of the staff. In most
office situations the actions of the staff are driven by incoming phone calls. Define who
handles phone calls from the field employees relating to payroll, materials or job site
questions, who handles calls from venders of materials related to production of jobs,
venders of materials or services related to the office, potential customers, past
customers and subcontractors. By defining who is responsible for these different areas you
are creating a system for making the office more efficient, everything takes less
time.
Use the Lead Carpenter System to define the bottom-up system
of management which empowers your key people in the field to be responsible for ordering
materials, writing and pricing change orders, coordinating sub-contractors or any
additional help needed and managing the production of the job with minimum direction from
the office.
Results-Oriented Job Descriptions are another system which
becomes more important as you have more employees and subcontractors to direct. These job
descriptions should be used for everyone from office staff, field employees,
subcontractors as well as yourself . Designed to define not only the what but the why
for most activities of everyone. For example a Lead Carpenter might be expected to
"maintain communication with the home-owner as necessary to keep them advised of the
activities on the job which could affect the use of household utilities eliminating the
potential for a home-owner to arrive home and be surprised to find that the water or
another vital utility was shut off in the house." The entire job description for the
Lead Carpenter might be composed of fifteen or twenty key statements such as the previous
example which define performance expectations.
By now your investment in systems may be beginning to pay off, giving you
enough free time to allow you to think of even more systems which might be
installed to make the business run more efficiently. The following systems are actually
software programs. Your volume might dictate that the following systems would be
beneficial:
The Computerized Estimating System gives you the tools to generate
that estimate and print the proposal in just minutes. When combined with lap-top computer,
this tool opens the door to "one-call closes" in the remodeling industry. The
ability to play "what if" allows you to present many more options to the
home-owner increasing your chances of a sale. This system should be an outgrowth of the
system you adopted manually when you first began your systemization as it takes some time
to gain confidence in the system and the prices generated, it would be a waste of time to
start over. Spend some time selecting the right product for your business and install this
system with a long term relationship in mind. The biggest and brightest stars in the
industry use data generated by professionals who update cost items specifically for each
location on a regular basis.
A computerized Job Cost Accounting System allows you to allocate
expenses on a per job basis as checks are written for employees, subcontractors and
suppliers. There are numerous products available, the best system would be integrated with
your estimating system, manage your checkbook, profit and loss statements as well as all
book-keeping needs, may create invoices based on work completed per job and even remind
you when certificates of insurance from subcontractors have expired.
A Scheduling System, most commonly computer generated, allows you
to answer the question; "How long will it take?" with less guesswork and more
accuracy by generating a flow chart of activities involved in the project. This product is
available from a variety of sources.
A Computer Aided Drafting System allows you to present your
customer with professional plans, elevations, perspectives and visualizations for use in
sales and to document the intended results. Many choices are available, consider the ease
of use, as well as the ability to integrate with your estimating system. This will also be
a powerful addition to your sales system. Many venders have booths at conventions and
trade shows allowing you to test drive the product you are considering.
A Lead Tracking System allows the customer information to be
entered into the computer as the questions contained on the Lead Form are asked. This
system can then be used to evaluate and track leads, organize appointments, generate
marketing data-bases for future use, tabulate the number of leads required to make a sale,
sort the leads into various categories such as: "how the customer got your
name." This is a powerful management tool which allows you to focus your marketing
resources more productively, determine the cost per lead, and rate the efficiency of
individual sales people, among other things.
During this process of installing systems to run your business, you have
converted your business into an entity which could more easily be sold. You’ve begun
to think of your business as a vehicle which you could sell and perhaps retire from at
some future date.
As time goes by technology promises even more systems which will
streamline your business. Prepare yourself for the time when each lead carpenter will have
a lap-top on the job, with access to all of the integrated systems in your office as well
as Email contact with all subs and suppliers who are linked to your scheduling program for
each job they are involved in. Digital cameras now allow photos of job progress to be
submitted on a regular basis. Just as radios and cell-phones have had a large impact on
management’s ability to operate by remote control, technology will create new
opportunities for more systems.
Systems Run the Business,
People Run the Systems
As you add more systems to match the needs of your business
you will find that systems run the business, people run the systems. To be effective a
system must be able to be duplicated, allowing it to be used over and over again by
numerous people with predictable results. By delegating responsibilities to others who
will run the systems you have placed, you can create the ability to run your business from
just about anywhere in today’s world. All you are required to do is to monitor the
systems. All that requires is a cell phone and/or a modem.
Where was it you wanted to run your business from next
month, somewhere in the Caribbean? |
