Resolution #1 Leadership
When I was a young boy, my father took his young family to Brazil. We arrived at our first port late in the evening. The city was called Belém, and was located at the mouth of the Amazon River. I was 8 years old, and intensely interested in all of the new sights, sounds, and smells of this new country. I stayed up most of the night observing the unfolding events.
The Amazon Delta is a treacherous place, with shifting sands and random currents. Although our captain was very skilled (he had already taken us through a minor hurricane), he was not allowed to pilot his boat into the port. A small pilot boat approached, and the port pilot climbed aboard to take us through the treacherous waters of the river as it merged with the Atlantic Ocean. The port pilot’s job is to guide the ship into port safely. His knowledge is current and very specialized. He takes command of the ship and skillfully brings it in, where it will be unloaded and restocked. It was a fascinating night, as I watched the boat being unloaded under the powerful lights on the dock. The next morning we embarked for our final destination.
As I look back on this event of my childhood, I am reminded of the leadership that you provide to your business, peers, and family. Just as we all are salespeople, of sorts, we are also all leaders. Many don’t think of themselves as leaders. Some leaders don’t even realize their leadership responsibilities. It is this realization that you need to build upon, with the knowledge that you are the one responsible for bringing your ship into the port safely, or running the ship aground on the shifting sand.
As 2014 approaches, make Resolution #1 to be the best leader possible. Stay up-to-date on the latest legislative regulations, make a realistic budget for the coming year, resolve to put more systems in place, and finally, and as a result of your prior resolutions, commit to spending more quality time with those you love.
One of my goals in teaching and coaching remodelers, is to help them raise their profit margins. For over three decades I have heard countless remodelers tell me how busy they are, the huge contracts they’ve signed, and how bright the future was for their company. I have also observed, over this same period of time, that the very remodelers that boasted of their good fortune had very little to show for their “good” fortune. I suspect that they, for one reason or another, were either losing money on each job or just making ends meet. This could happen for a number of reasons. Maybe they weren’t estimating accurately. They might not understand the difference between their overhead and the true job costs. They may have been afraid that they wouldn’t get the job if they used the multiplier that they should to make a profit. Or they just didn’t understand that they were losing money on each job, due to poor or non-existent job costing.
Make your Resolution #2 for 2014 to charge what you are worth. Be bold. It takes guts to charge a fair amount. And it also takes savvy. If you fail to show the value of your estimate, then it is just a number and will be treated as such. By building the perceived value of the project, then showing them the price, you have shifted them from a non-emotional decision to an emotional one. They start to think of everything they are going to get and how much they want it. The price becomes secondary. In 2014, be bold with your pricing. Resolve to make a profit, for you and your team.
My final suggested resolution, Resolution #3, is to start choosing your clients. This is a complex process involving shrewd marketing, smart networking, and meticulous qualifying procedures. Resolve that next year you will not be desperate to get every job that comes along. Make sure that your marketing efforts are adequate to produce a bounty of leads. And of those leads, you will take only the “cream” that rises to the top.
This may require a different mindset for you. Be assured that this is a healthy and beneficial mindset; one that will reduce the stress in your business, assure a positive cash flow, and increase your profit margins. Read over those three byproducts that you’ll get when you have the right mindset. There is not a company out there that doesn’t want this. When you have the right mindset, you attract good clients; clients that are happy start-to-finish, and pay like clockwork. Consequentially you’ll have a happy company.
From now on, go into a sales meeting, not with the singular goal of getting the job, but assessing whether the prospective client is the right fit for your company. Instead of taking any and every job, make yourself exclusive. You’ll be surprised how this will make you increasingly sought after. Just as you see the value in a diamond due to its rarity, you’ll see the value in yourself as you become a sought after remodeler.
This will be the last Weekly Wrap-Up for the year. The next Weekly Wrap-Up will be delivered to your inbox on the first Friday of the new year. I want to thank each of you for your support, suggestions, and comments. They mean a lot to me. And I hope that you have learned something new, or been inspired to try something new, from these weekly reports.
Have a wonderful holiday season, wherever you are. Better yet, celebrate each and every day. There’s no better way to live. Ciao.
My gift to you this holiday season is the Year-End Evaluation Checklist, which will help you plan your new year. If the holidays allow you some extra time to think and plan, use this list as a guide. Planning and writing things down has a magical effect. Make the effort and it will pay off. Remember that dreaming is fun, but doing gets it done. Enjoy!!!
Scientific Remodeling System members click here to get a copy to the Year-End Evaluation Checklist.
Wishing you the best of fortune now and in the coming year, Randall
Randall S Soules
Remodeling coach, adviser, and educator
My one-on-one coaching will take your remodeling business to new heights!
This article was written by Randall Soules, creator of the Scientific Remodeling System, showing you easier ways to advance your business, raise your profits, and improve your life, through the use of superior remodeling processes. If you would like to learn more about this eCourse, click here.
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