T H E FA S T T RAC K T O P R O F I T

30 TIPS IN 30 MINUTES

1. NEGOTIATE LIKE A PRO

• Avoid: Wanting something too muchNot seeing your strengthsGetting hung on one issueSeeing only one optionAdopting a win/lose mentalityGoing on too longThinking short termBelieving your counterpart holds all the cardsAccepting firm positions

2. PROFESSION OR BUSINESS?

• The difference?• Profession: You are the brand• Profession: Nothing to sell at the end of it• Business: Your company is the brand• Business: Less personal income but something to sell

3. SYSTEMIZE

• ProBuilt experience• $½ million business to a $3 million business• Job descriptions: eg: site super, sales person, foreman etc.• Org chart• Policies and procedures

4. START ANOTHER BUSINESS

• The Pozzebon family• Other ideas: • Duct cleaning• Moving• Door and window installs• Floor finishing

• Register separately• Keep separate books• Make it a high margin business• Provides consistency

5. KNOW YOUR COMPANY CULTURE

• Impossible to be objective about your company• Do exit surveys• Ask others• What does your culture say? • “everything is a mess!” • “We always find the lose/lose.” • “We can do that!” • “I have an idea!”

6. HAVE A SIGNATURE VALUE

• Have proprietary: • Design• Installation• Behaviour

• Your signature becomes your brand• Increases margin

7. GET MARGIN

• Where does your margin come from? Marshall McCarroll, Dale Construction, Toronto:“You can buy a KIA for $20,000 or a Mercedes for $114,000. They both have four wheels and can drive you from A to B. So why would anyone buy a Mercedes over a KIA? Because some people set great store in quality.”

Fact: you will not bridge that gap with bricks and mortar. Margin is in:

Cleanliness, timeliness, signature style, reputation, everything else.

8. TEACH YOUR CLIENT

• An educated client is a safe client• No surprises• You’ll get a cooperative approach• Lower their expectations

9. WHEN YOU NETWORK

• Have plenty of business cards• Know your elevator speech• Have canned questions to start conversations• Have your exits in place• Make eye contact• Smile• Ask questions • Ask for a card• Follow up• Get out

10. SEE THE FUTURE

• Contractor Global Warming: • As the heat in the industry rises, islands end up under

water

• Remodelers Advantage• Renovantage

11. A GREAT NEW MARKET

• Aging in place• The cutting edge is now

12. STAY DIALED IN

• Better be on the bus than get hit by it. • Follow building permit stats• Listen to peers• Know the demographics of your market• Talk to your materials suppliers

13. HANG ON TO YOUR BEST GUYS

• Learn how to fire• Learn how to hire • Hire for character• Litwiller cleans house

14. ATTACH THIS TO YOUR CONTRACTS

• Residential Construction Performance Guidelines• Goes to quality, not code issues• Eg: Where a tread meets a riser: “Gaps between

adjoining parts that are designed to meet flush shall not exceed 1/8 inch in width.” • builderbooks.com • Becomes the arbitrator between you and client

15. GO TO HOME SHOWS

• And when you do: • Don’t sit down• Follow up• Have a goal for your needs• Budget for everything• Staff• Setup and breakdown• Opportunity costs• Booth construction and rental• Ancillary fees

16. DO FORENSICS

• Helps to clean up problems in accounting• Provides deep knowledge to inform estimating • Provides reassurance that you are on the right

track (or not)• Set up healthy competition between site supers• Gets staff focused on cost cutting strategies• Record and classify results from forensics

17. REJECT A CLIENT

• No bad client is worth it• Interview your client when they are interviewing

you: • Have they got the money? • Have they got a budget?• Knowledgeable or teachable? • Realistic?

Fire at least one client a year.

18. KNOW YOUR THREE BEST FRIENDS

• Net Profit• How much money your business is putting in your pocket

• Operating Cash Flow• What you need to run a business • You might have profit, but if you have no cash, you can’t

fill the tank.

• Return on Assets• Does running your business make you more than a GIC?

A mutual fund? These three measure must be in balance

19. MAKE PERFECTLY FLAT DOOR FRAMES

• String from top right to bottom left• String from bottom right to top left• Tap the bottom corners back and forth till the

strings touch

20. USE CHECKLISTS

• For something• For everything

21. HAVE A PUBLIC RELATIONS STRATEGY

• Radio• Local hardware store or lumber yard• Newsletter to your customer base• Awards• Charities

• Do it for your past and present clients as much as for your future clients

22. CONSIDER THE COST SIDE

• Once a year, renegotiate with: • Retail dealers• Employees• Subtrades

• Trucks• Equipment• Get creative (The Reno Coach toilet)• Can you partner with other renovators on the buy

side?

23. GET POLITICAL

• The answer to the cash economy• Work for rich people only• Sell fear• Do a bit of cash work yourself• Cooperate with the cash economy• Get political

• Who is the voice of the industry here? • What can you do?

24. CREATE YOUR BUSINESS ON PAPER

• Almost all you do when you succeed is backwards to what you are doing now. • It’s like visnualization

25. ATTACK YOUR WARRANTY WORK

Know what it costs youLeaking is low hanging fruit

26. SHOW UP

• Put yourself in the 10 percent

27. USE ELECTRONIC TIME TRACKING

• Eg: Exactime time tracking • Truck tracking

28. PAY YOURSELF FIRST

• Start there and build your business from here, not the other way around

29. LEARN CONFLICT RESOLUTION

• Listen• Acknowledge emotions without taking sides• Use and encourage positive language• Aim for S.M.A.R.T. solutions: • Specific• Measurable • Achievable• Realistic• Timed

30. READ CANADIAN CONTRACTOR