???????? My Top 36 Business tips for Building Companies to Smash 2019 ???? PLUS… Lessons from 2018.
1 Pick a niche that you become the surgeon in, whether that's villas or architectural new builds, be known as the go-to best person in that area. You can still take on any other the work but do that as your focus
2. USP, why would someone choose you over anyone else? make sure that you have good reasons why people should choose you and this leads into having a compelling guarantee. Typically, your USP should be around people, process and product, not price. So, after all this, people's biggest investment of their life. We wanna to make sure that we've got the systems in process to guarantee they get the result that they're looking for.
3. Do you have a guarantee? Over and above the master builders or the certified builders. So you might guarantee completion by a certain date. You might guarantee no mess or no yucky things on site. What do you do guarantee to differentiate yourself from your competitors?
4. What are the five concerns … Are you overcoming the people's five concerns in your marketing and sales process? So number one, budget, two timeliness, three quality, four trustworthiness and five communication. Make sure that you're covering off all of those. You're only as strong as your marketing system, so don't rely on word of mouth and all you need is two or three well chosen strategies that can make sure you go from a trickle to a flood of leads.
5. Make sure your website has great landing pages, great direct response copy and educates people why they should choose you and why you're building company's different.
6. Have a referral system. Our members use a 1% referral system fee and reward those people who refer work and turn them into raving fans.
7. Have a business maturity date. So systemize yourself out of the business, and create a business that you work on, rather than in, and work through that process over the next 18 to 24 months.
8. 6x Growth management strategies.
So number one going into the job, so make sure you've got great marketing so you've got plenty of leads going in. Good sales process that positions you as the surgeon and three you're pricing to a target margin that includes your overhead recovery margin, PNG, etc.
And the second part of that is the three strategies to control the job on the way through. Number one, control the labour day to day forecast versus actual. Number two control your materials and get them reviewed every ninety days and number three your subbies.
9. Business will teach you what you need to learn and who you need to become. So do you need to become someone who systemizes more. Do you need to be someone who understands new numbers or focuses on improving your growth margin. It is possible to have a business that has good turnover, but poor cash flow and it's easy to go broke in a scenario like that.
10. Make sure that you're doing everything to improve your cash flow. See our 12 cash flow tips. So, for example see if you can move to weekly or fortnightly invoicing.
11. Get a PA (personal assistant), if you don't have a PA you are the PA. Hint: they can be remote working
12. Systems. All of business is a collection of systems. System train your business, people run your systems, you hire and train those people, and then you as a leader set the tone in the roles for them to operate under. Discipline will set you free, create a business that gives you both more time and more money.
13. Build it once, build it right. So master it, systemize it, and then delegate it or automate it.
14. Pricing is critical. Make sure that you've got your pricing process, you're targeting a minimum of 20% GP. It's well systemized, you've got everything to improve PNG and overhead recovery margin project management fee, QS time, etc.
16. Know your numbers and how to improve them. So if you want to improve your gross margin, set a target for that and then use three strategies to improve that over the next ninety days.
17. Use a one page dashboard to make sure that you're looking at the right numbers each day for the job and the company.
18. Add back costs in real time and make sure that your guys are filling in their daily site logs with labour and materials
19. Control the labour it's your biggest opportunity and also your biggest liability as well. So make sure that you've got good visibility of the hours, the foreman drives the job, you know we're the hours are going, the guys know what tasks they need to be doing, what milestones they need to be hitting.
20. It's all about team creating a great culture of accountability and performance. Make sure you've got the rules in place so that the inmates aren't running the asylum and you have great company values and you establish those clearly that everyone lives by and exhibits.
21. Hiring, have a good process for continually hiring the right kind of people 'cause there's nothing worse than getting Muppets who act and perform.
22. Accountability. Accountability comes from two key things, number one visibility and number two what are you doing daily and weekly tasks.
23. Grow leaders in your business. Make sure your foreman is doing the core fifteen tasks that he should be to take any tasks that you are doing off your shoulders.
24. Sales. They're either following your process, or you're following them. Follow our proven seven-step sales process so you know which jobs to take and which jobs to walk away from.
25. Level up. Level up everything in terms of income, lifestyle, people you're surrounding yourself with. They say you are the sum of the five people you surround yourself with the most.
26. Don't compete on price, go fishing instead. Nothing worse than winning a job, especially a big job that ties you guys up for a long period of time that you don't make much money on. You miss out on all those small jobs that you could've been doing.
27. Know how to charge for quotes. Charge for the next step in the sales process, your professional knowledge and opinions are worth quite a lot if you only learn how to position it and charge for it.
28. Using information pack that you send out in advance of going to the site visit 'cause people wanna know four key things before they'll buy from you: who are you, who's your company, can I trust you and how can you help me. So sales becomes easy when marketing does heavy lifting in advance by answering those questions.
29. If you're not happy with something, change it, seek advice, take action. You're not a tree, you can change whatever situation you're currently in. And there's always an answer to your situation that someone has previously worked out.
30. business goes through stages, stages are the builder's ladder. As you grow, there's gonna be challenges going from foreman to having a team, from having one team to having multiple teams to establishing a management team and running a business by the numbers. You need to learn different skills at different stages as you grow in order to grow your team, grow your business successfully and financially so it gives you both time and more money.
31. Seeing your week and months for energy and productivity. So make sure you have a break every ninety days. Make sure you're taking some time out, maybe half a day during the week to sit somewhere strategic to think.
32 work in two week sprints. Map out what are the core strategic elements that you need in your business across pricing, sales, marketing, on-site, et cetera and then put those somewhere visible for the team to work on.
33. two times daily stand up. So have a short five minute meeting with your team first thing in the morning, set the plan for what the team is gonna accomplish for the day and then five minutes at the end of the day at four o'clock to see have they completed what they said they were going to be. This has been a massive game changer for us and allows you to get done twice as much work as anyone else.
34. visibility leads to accountability. So put your numbers, team, performance up where everyone can see it.
35. All business is a collection of systems, systems run your business, we hire and train the right people to run those systems and then you as the leader put the process in place, provide a great culture and show them the way forward.
36 – You need to delegate to elevate. So get rid of the low-level low dollar stuff, focus on 20% that's gonna make a big difference and line that up with your cash flow forecast for what you're going to achieve next.
All right that's it, these are my biggest takeaways from 2018 and how you can make 2019 your best year in business yet.
The Professional Builder
P.s – If you want to know more about these systems and strategies, and how they could work for your building company…
Book a time and let's get a game plan together for you to smash 2019. Click below: