Category Archives: Strategic Planning

Keeping Customers In Your Back Pocket

As you continue to find new methods to grow your business don’t forget about those past customers who can still provide a wealth of work for you.  Renew your own confidence and commitment to work hard to earn the respect and business of your customers.  Then, you will find that you may keep them in your back pocket…rather than them spending more time in some other contractor’s back pocket.

 

 

 

[TRANSCRIPT]

Jack couldn’t understand why several of his past customers were not using him for their new concrete work.  Quite by accident Jack ran into one of his past customers, Grant Hill, while attending his daughter’s soccer game.  When Jack asked Grant why his company had not won the concrete project at a new retail strip mall Grant simply responded that he hadn’t heard from Jack in over a year and just assumed he was too busy and didn’t really need or want the work.

Does this sound familiar?  Hopefully not but the fact is that many contractors do very little to keep customers.  Keeping your customers in your “back pocket” isn’t meant that we should assume any customer’s loyalty but more that we work hard to keep them close to where it counts the most…the wallet!

So, how can you keep customers in your back pocket?  Let’s look at a few tips and techniques that you might employ.  We’ll take the perspective of customers whom you have at least completed one project.

  1. Pre-Plan 4 Customer Contacts per Year

At the very least you should be making some form of contact quarterly after the completion of a project.  The contact might be a card of thanks, an e-mail message, a new advertisement of services you are offering, a seasonal or holiday “best wishes” card, etc.  It is important for you keep your name in front of customer’s eyes several times a year, especially those clients who do regular work.

  1. Execute Collected Facts about Clients

You need to begin collecting facts about each of your customers from the first moment that you begin a relationship.  What is their work history?  Do they have kids?  How old?  Birthdays?  What are their hobbies and interests?  Who is their favorite ball team, player, etc.?  You just never can get enough facts.  However, just collecting facts isn’t enough.  You must execute efforts that reflect your willingness to maintain a relationship.  Sending birthday greetings to a client sends the signal that you wish to maintain some form of a relationship.  Congratulating a client on their child’s graduation reinforces your effort to stay in contact with clients.  They know what you’re doing by staying in touch but they also recognize that most contractors DON’T work hard to stay in touch!

  1. Update Clients on New Work, Services, & Clients

This is just the best excuse to send a mini-newsletter out on a quarterly basis.  First, it reinforces that you’re still in business.  Second, it communicates that you’re also developing and interested in improvements, quality, and growth.  Whether we want to admit it, many past customers are often impressed or persuaded by who you begin to perform work.  It reinforces their belief in you by seeing other individuals or companies who have embraced your company.

  1. Conduct Open-Houses and “Lunch & Learn” Sessions

Open-houses might be done around holiday times.  I’ve attended contractors holding a mid-summer barbeque where all of their clients were invited to enjoy good food, some games, and just time to “press the flesh.”  Lunch & Learns are still one of my favorites to see conducted and they offer even more on the new business development side of things.  Secure a hotel banquet room and invite past clients and new prospects over a lunch.  While they are eating lunch have a speaker, other than someone from your own company, who might be presenting a topic of interest for those in attendance.  It might be a topic on your own industry, financial investing, public relations, etc.  Find a topic that you think might be just right for your clients but start holding 2-3 Lunch & Learns a year.  They may start off small but they will grow over time.  This time also allows your past clients to mingle with your new prospects.  Trust me, your past clients always speak well of you, your company, and your services.

  1. Schedule a Client Business Update Meeting

This should actually fall out of your sales effort from the last project you completed with a client.  The meeting should address what future plans they have for expansion, including what needs they have that you can assist them completing.  Many times a customer will discuss, during a project, their plans on adding another room or wing to their building or how they want to add another parking area in the upcoming budget year.  Such conversations should not fall on deaf ears.  In fact, many customers will be pleased that you remembered and are actually holding them accountable to doing what they had planned to complete.

  1. It’s Never to Late to Get Referrals

Again, while this effort should be done during the natural sales relationship with every customer, don’t ever pass up an opportunity to ask past customers about other individuals or companies that they might refer you to.  First of all, this keeps your customer recognizing that you are growing your own company.  Past happy customers normally are very glad to pass on good news and experiences.  Secondly, it is also not uncommon for a customer who in giving you the names of other potential clients suddenly realizes that they too have more work that they would like you to complete.  Once again, don’t ever pass up the chance to get more referral business…it’s the most profitable work you can land without having to spend a lot of money to develop!

Use the five points presented above.  Often you will need to execute two or more of the efforts to keep a fuller picture of what the customer needs and how that can open the door for your firm to complete the work.  The tips and techniques are, in themselves, not difficult to perform however what is difficult to do is to remember to perform them.

As you continue to find new methods to grow your business don’t forget about those past customers who can still provide a wealth of work for you.  Renew your own confidence and commitment to work hard to earn the respect and business of your customers.  Then, you will find that you may keep them in your back pocket…rather than them spending more time in some other contractor’s back pocket.

Good luck!

Contractors Starting Up [AUDIO]

Any aspiring contractor needs to think through these five critical areas before starting a new company:

1. Insure you have capital to carry you for 2-3 years.
2. Develop a business plan that reflects growth objectives for markets served and expansion steps for adding employees, equipment, etc.
3. Have a marketing plan.
4. Hire wise & solid players.
5. Set weekly, monthly, & quarterly goals.

Listen as Brad expands on these areas, and learn how to better position you and your company for the future!

 

[TRANSCRIPT]

OK, seriously, starting any new business is taking a huge risk.  I love new business start-ups, and the owners who start them.  Over the years, I have supported many such new companies, especially new construction companies, but I also realize that starting any business is often begun on some less than ideal facts.

After conducting many educational sessions at a few construction industry conferences, I was amazed how many new start-up owners were attending.  Many of them were searching for answers to strengthen their leadership, their firm’s sales and profitability, and the proverbial search of the “holy grail” of workers.  Let me share a few insights that I shared with these new and young owners.

  1. Prepare for the Worst; Plan for the Best

Old advice that fits more contractors today than ever.  I have found three keys to success missing from many new start-ups.

  • Under Capitalized – honestly, the owner simply doesn’t have enough money to keep their dreams a float till they obtain enough work.
  • No Business Plan – even the older seasoned business owner needs a business plan. You just can’t run a successful contracting business for long without one.
  • Focus on Sales OVER Quality – hate to say the obvious but you can sell all the work you want but if you have no workers who can complete great work…the right way…the first time…you got nothing but problems coming your way.

Obviously there are many other things that can throw a wrench into the dreams and hard work of a new contractor but my goal isn’t to write a book on such things (at least not yet!).

Now, let me share some wisdom from many of the best start-up contractors I’ve had the privilege to either work with, listen to, or read about.

New Contractors Start-Up Starting Five

  1. Insure you have capital to carry you for 2-3 years.
  2. Develop a business plan that reflects growth objectives for markets served and expansion steps for adding employees, equipment, etc.
  3. Have a marketing plan.
  4. Hire wise & solid players.
  5. Set weekly, monthly, & quarterly goals.

OK, again, there are at least another one-hundred things that need to be done by the new owner but this list of five will get you heading in the right direction.  Let me expand each point with some greater clarity.

  1. Insure you have capital to carry you for 2-3 years.

Either flush out your retirement money, borrow from relatives, or line up some credit with a banker (be willing to mortgage your life) but shoot to have 2-3 years in available money to pay wages, rent equipment, buy materials, etc.  To say money is the root of all problems would be stating the obvious.  More businesses, and marriage relationships, can be brought to a very unpleasant ending if the needed capital is not secured.  To believe that your first year will produce an incredible ROI is grossly mistaken.  Create a budget and consider what your financial needs will be.  Sure, cut to the bone initially, but realize that you will need to pay employees, your family needs to eat, and banks will take your home, or equipment if you fail on payments.

  1. Develop a business plan that reflects growth objectives for markets served and expansion steps for adding employees, equipment, etc.

A business plan is not that difficult to build but is more often missing from new contractors than any other of the four items addressed in this article.  The business plan needs to clearly identify: Where are we going as a company?  What markets are we to pursue?  At what levels of growth will we add workers, equipment, etc.?  Will we leverage production by “sub-contracting” sold work to other contractors?

A business plan is a roadmap of sorts, sometimes needing to be adjusted and edited, but still providing some well thought-out strategies on how to best attack our future.

  1. Have a marketing plan.

A great companion plan that new start-ups need is a market plan.  Combined with a business plan and the contractor has two key weapons to address the future.  The marketing plan should address more clearly what business that the company is in, what markets will they be serving, and what strategies will best gain greater recognition, reputation, and branding.  I always encourage contractors, especially start-ups to determine how they will be selling their wares, products, and services.  Certainly the entire “electronic tool box” opens the door to outlets to spread the news of our company and what we can deliver.  Check all outlets including your own Web-site, Face-book, Linked-In, etc.

  1. Hire wise & solid players.

Now, here we have perhaps the toughest of all the five recommendations to overcome.  Hiring “wise and solid” workers any time can be a herculean effort but with our current transition in the generations, the lack of mechanical minded education in more and more communities, just finding available workers who really want to work can be daunting.  But finding capable workers is still greatly needed and must be pursued aggressively.

Over the years I’ve written about finding, hiring, and retaining workers, so I’ll be brief here.  However, the best thing any new owner can do to find and hire wise and solid “players” is to first create a clear description as to what is needed in the company, specifically related to what is expected in the job including the roles that might be fulfilled and more importantly, the responsibilities that will be completed.

To strengthen this fourth recommendation it is critical for even new owners to prepare to make “on the job training” and education a major part of their weekly efforts.  Unless you can hire seasoned and proven craftsman, prepare to spend a lot of time teaching, keeping workers  a little late some afternoons to train on a needed technique.  Even consider hiring technical consultants, even retired workers, to assist in the training.  Such an effort early will provide greater returns later.

  1. Set weekly, monthly, and quarterly goals.

This final recommendation is key because it sustains a new contractor to keep his or her vision focused on what is attainable in shorter segments of time.  Sure you need the business and marketing plans, but its’ just as important to have short-term objectives that can be measured and managed on a regular basis.  Keep the goals clear and important to the upcoming week, month, or quarter, and review the results regularly.  Make such a review part of your weekly meetings with your team of leaders and workers.

Starting up your own company is hard work.  If you do it, have more than just some dream and an emotional hunger…both will die out if that’s all you have.  However, if you are starting a new construction company then determine to be methodical, persistent, and never say “quit.”

Living the life of a successful contractor is only achieved via the extremely hard work known by those who have paid the price.  Work to be the best that you can be…stay away from comparing your success against other contractors.  Seek the best for you, your family, and your company and enjoy all of the learning experiences you will endure.  Let them form and mold you to be the best that you can be!

Here’s to building your best!

START Faster and Smarter

I want to dedicate this article to a great concrete contractor and his many field Foremen and Supervisors up in Packer country.  In their desire to be better, they challenged me to raise my own efforts to create an easy to follow reminder for field leaders when beginning each new workday.  The bullet points presented below for each START activity is provided by these fine construction leaders.  Thanks guys for inspiring me to develop START, and may your efforts help other current and future construction leaders overcome their own challenges!

START Faster and SmarterOne expert in the construction industry has found that the least productive hour of the workday is the first hour.  In that first hour important decisions are often NOT made, there is failure to insure critical maintenance has been applied to equipment and tools, and field leaders, in a hurry to get going, fail to review critical project plans and documents.

Every contractor knows first hand the real action starts at the “front-lines,” where actual crews and leaders execute project plans.  Yet this is where we lose too much firepower, productivity, and precision after hard fought jobs have been estimated, won, and pre-planned.  Sure there are always surprises on projects, but the contractor who can prepare his or her crew leaders to consistently follow a sequence of preparation steps will empower their crew leader, and their crew members, to perform “No Bad Jobs!”

Ok, let’s consider a sequence, placed in an easy to remember order, which will raise your crew’s ability to hit their daily numbers.  Let’s jump START your workday! 

START is an acronym that you can teach your crews in fifteen minutes.  The secret isn’t the ease in which they learn START, it’s building it into a daily commitment for them to adapt and execute each new day.  Here we go…

Schedule Your Day

Sounds almost too simple but it’s sadly not completed every day, much less by the crew.  Sure, many contractors may have their crews meet in the “shop” each morning and the Supervisor may talk to the Foremen about their day’s efforts.  That’s good and needed.  Yet seldom does the actual Crew Foreman sit down and actually line out just what he intends to have his crew work on for the day, much less set any targets that need achieving. 

The Crew Foreman, hopefully working with a formal one or two week “look ahead,” should focus 15-20 minutes each morning working through his plans for that day specifically.  Enlisting his Lead Man or several members from his crew will bring even greater insights to the days needs and thus, improve performance.  This process allows the crew to leave the shop more confident about what they are doing, what they will need to complete their work, and how much work will need to be completed.  (Please read some of my previous articles about job site planning and use of a look ahead for more information.)

  • Look and Review the “Super” Schedule
  • Identify the “Times of Need” to Be On-site
  • Involve the Entire Crew/Team to Discuss That Day’s Plan
  • Crew Leader Prepare Their Decisions to Make That Day
  • Break the Day’s Plan into “4 Quarters” For Greater Attention & Faster Adjustment

Take Daily Inventory

This second action directs each Crew Leader to insure that their trucks, trailers, and workers have exactly what they need to complete their work.  Leaving the yard without every piece of equipment and tool secured and confirmed is a leading reason why workers fail to achieve needed production rates and targets.  Waiting for the company’s “hot truck” to bring something from the yard because the crew did not inventory the missing shovels, or oil cans for the equipment is simply a waste of time and drives profit margins south.

An inventory list should be created for work crews that list all of the equipment and tools, materials, safety equipment, etc., needed for each project.  For many contractors, this can a list that remains constant as their crews may perform the same type of work each day.  However, such consistency of work often breeds complacency among the crew members, each thinking someone else got the needed tool or component needed on the job.

There may other forms of needed inventory for field leaders to employ such as the requirements for a particular customer involving an inventory of what is needed to complete at the site, a list of contact information, and a list of what workers have been cleared to work on the project due to security requirements of the customer, i.e. Clearance documents needed to perform work on a military base. 

In short, any inventory list for any reason is too simple not to create.  Possessing an inventory list doesn’t guarantee your workers producing quality results but it sure makes it easier for them to achieve needed results by first insuring that they have the needed tools of their trade in their possession when leaving your company’s yard.

  • Use a Quality Audit Document that Lists Non-Negotiable Process to Follow
  • Implement a Daily Inventory of Trucks & Trailers AND Confirm Needed Items are Secured Before Leaving Yard
  • Push the “Star” Process: Assign Crew Members to Provide Extra Attention on Quality, Safety, Tool/Equipment Preventive Maintenance, etc.

Ask Questions Daily

In the rush to get going every morning there is usually little time to solicit questions.  Crew Leaders often feel the need to just get the crew out of the office and to the job site.  But more questions may need to be asked prior to leaving than after the crew has arrived at the job site.

Simple questions such as…

“Who is setting up the chalk lines today?”

“Where are we going to park the trucks today?”

“What area of the site are we going to begin working today?”

“Do we need to bring any extra forms or anchor bolts today?”

…all seem to be innocent enough but are too often asked later rather than earlier.  Crew Leaders need to be asking their workers and company senior leaders questions before start-up and their employees need to be free to ask questions each morning to insure that we’re all on the same page.  A work culture that appreciates asking questions, sometimes the most important question at the right time, is a culture that will perform tasks better and do more things right the first time.

  • All Supervisors Ask Daily Questions of Their Foremen to Insure All Bases are Covered
  • Make Daily Use of the “Process Book” of SOPs for Every Major Work Process Company Executes; Get Sign-off from Users
  • Lead “Process Book” Questions, Especially with New Employees Or Employees Not Performing Well
  • Circle Back to Your “ADHD” Workers to Insure They Understand

Review Documentation Daily

There seems to be more documentation today required for the simplest of projects than ever.  Big or small, your Crew Leaders are often the holders of copies of blue prints, CAD renderings, OSHA and DOT documents, Weekly “Look-ahead,” city or county permits, customer requirements and contact information, location and contact information for local material plants and suppliers, and Standard Operating Procedures or “SOPs,” to name a few. 

For the contractor performing larger sized projects with the crew operating out of a job site trailer, the need and reasoning is still the same.  Important project documentation needs to be identified in terms of what is to be reviewed and completed daily, weekly, or monthly.  Our Crew Leaders can simply not omit reviewing needed documentation. 

  • Identify “Needy” Foremen and Lead Them to Review Their Daily Documents
  • Inspect Training Plans for Employees Needing Extra Training & Support
  • Crew Leaders to Engage Other Reliable Crew Members to Assist in Reviewing Documentation for Inventory, Tracking Crew Hours, Quality Audits, Safety Inspections, etc.
  • Regularly Assess What Crew Foreman Needs What Accountability and Support for Greater Performance & To Build Foreman Mental Retention

Train Your Workers…Daily

If there is one action every Crew Leader must be fast to start it is to increase the effort to train and educate their workers.  At no other time have we observed so many employees joining the construction industry with so few skills for their trade.  Thus, it will be incumbent on the Crew Leader, supported by their Supervisors, to make every day a “class room” of learning. 

Suddenly every start, stop, and restart has a teachable moment.  Rather than take the job back from the new employee, Crew Leaders must take that extra one to five minutes to explain the “Why?” behind a particular technique while demonstrating the “How to.”  If there is one daily effort that more Crew Leaders will employ it will be that of training and educating their workers.

  • Crew Foremen to Be Highly Active to Train…Even More Active than Performing the Work Personally
  • Supervisors to Redirect Crew Foreman When a Wrong Step Has Been Taken; Crew Foreman Redirecting Their Crew Members When a Wrong Step Has Bee Made
  • Engage Recently Taught Employees to Train Another Worker…ASAP!
  • Slowly Add Little Pieces of Responsibility to Workers
  • Drive the Non-Negotiable Importance of Safety & Job-Site Cleaning Along with Technical Training
  • Refuse Mediocrity… NO BAD JOBS!

Like my Crew Leaders from Packer-land have begun to do, initiate your own frontal assault on making your project teams and field crews more productive.  Gone are the days that we just hope that by pure badgering of our workers things will begin to get better.  It takes too long to wait out that method and it also risks losing potentially long-term employees who will give up too soon before a more organized approach is implemented.

Look, to START faster and smarter takes exactly those items shared above.  Why wait for the performance to improve when you can START right now!

May you have a great START to productivity records this year!