Today I wanted to share with you some golden nuggets that our ‘boardroom’ members, uh, dredged up over the last three days at the event. So, number one, and I think these will help you massively in your business. Number one, business is all about the numbers. So, the numbers tell us a story of what's working well, and what's not working. And at the moment, Zak's mini golf game is not working. It's in the rough.
So, is your business in the rough? Do you need to get back on track with your numbers? And specifically, have a one-page dashboard that lets you know forecast versus actual gross margin that you're achieving, how it's job's progressing, and how your cash flow is going.
Number two, cash flow is king. So, it's critical that you, uh, control your cash flow and you're not acting as the bank. So, some of those key things are actually to make sure that, uh, when you are doing that, you get a bigger deposit, 15 to 20 per cent so your cash flow is positive through the job.
Number two, you have a great scope of works, and your foreman understands the difference between the scopes of work and the contracts, so they know exactly what constitutes a variation and you have a great process for capturing them, ah, during the week, and you're able to invoice them out weekly.
Number three, communication with the client is paramount. So what, specifically do you need to communicate. Well, you might have a pre-stat construction checklist so they know what to expect. Uh, some of our members have got a, uh, a document that outlines who actually is going to be in, in control of the different aspects of the, uh, the construction phases, and who they talk to in the office, the project manager, the QS, who the owner is et cetera, etcetera. And also a video that goes with this. Brendan's got a great one from for us.
Uh, the next one, in terms of communication might be: “A”, using project management software, like Build a Train, for example, to communicate this. Any variations get signed off each week, so there's no, uh, arguments at the end of it, you don't miss out on any, uh, any cash flow, uh, benefits that you'll get from invoicing them weekly, or as they proceed. Uh, and also, weekly meetings with the client, weekly analysis update, so what's happened this week, challenges with, any challenges on-site. Health and safety stuff. And what they can expect from next week and if there's anything behind the project schedule.
Uh, and, also, what were some of the other key lessons? Well, checklist. Checklist for everything from contract signing, uh, we've got a contract signing checklist. Number two, pre-site set-up checklist. Quality assurance checklist. Checklist for your foreman on-site every day so you know exactly what's happening.
Uh, next one is to get tough. Now, in business, you don't get what you expect, or what you deserve. But, you get what you tolerate. So if you've got a challenge with, uh, data, then that's something that you can do something about. And with that mean, um, outsourcing your data management and get someone else to make those phone calls. Or whatever it is that you need to do to make sure that you are getting that money in on time.
Uh, next, marketing is kind. So if you've got plenty of the right kind of leads coming in, then you can really dictate, uh, the kind of work that you take on, who you're going to have as clients, types of jobs that you're going to do. And a lot of that will impact your cash flow so that you get paid what you're worth. So, if you're booked out six to 12 months in advance then you don't have to take a, uh, job at a low margin just to keep your guys busy. You can pick and choose who the right kind of jobs are, who you want to work with, and where you want to take them. There's nothing better than being able to say “no” to a particular kind of client because they don't fit your ideal type of client. And you define yourself just as much if not more by the jobs that you say “no” to, as to what you actually say “yes” to.
Uh, another key, key strategy that came out of, uh, the boardroom meeting was systems. All a building company is is a collection of systems. Marketing systems to get the right kind of lead-ins. So, strategic alliances, 1% referral scheme, a nurturing system for the lead, lead gen maintenance that downloads your guide. 83 tips that you need to know when doing your next project.
And then how to nurture and educate them so people come educated, wanting you as the chosen choice of builder for the biggest investment of their life.
So that's a massive one. Uh, marketing is critical. And there's a lot of other things that you can do. Strategic alliances, with architects. Your one per cent referral scheme out there. Online and offline marketing site signage. B&I, et cetera.
Next, if you don't have a good sales process then, then you're at the mercy of other peoples sales process. And guess what they're going to use if you don't give them any other, uh, variables on which to assist you, that's right, price. And, if you're competing on price, then all prices is a race to the bottom. So you're going to make sure that you've got peoples five biggest concerns covered off.
Number one: time. So, show them all the systems and processes that you have to make sure that they've, ah, covered off via time. And that the job will be completed on time.
Next key thing: is budget. What systems do you have in place to make sure that they budget, the job is going to be completed to budget?
Number three, trust. What can you do to show them that your company is trustworthy? So, number of projects, number of years, do you have a guarantee? Do you have a separate trust account that the money goes into, uh, so that they can be certain that you're not running off to, uh, buy a new Ute.
Uh, next is, timeliness and quality of workmanship. So there's a lot of specific strategies that our members use to show these keys things.
So that's just some of the key tips that, uh, you can use that came out of our boardroom meeting and many more, uh, to help take your building company to the next level.
If you want to see how these strategies could be implemented into your business then feel free to book a call with the team for a FREE 15-min chat.
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