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Common “Cents” Package

Finding the common “Cents” in Construction for the next 12 months.

 

What is your Position? Months 1 - 4

“A Position Which is Desired to Obtain and Which is Kept in the Mind”

Anyone who has started a business, started it with a purpose in mind. They might not have realized it or understood, but they did have a purpose. What’s yours? Do you have a dream or a vision of what your business will look like someday? Have you identified what is important to you so your business will have meaning? Have you recognized what you must focus on daily to achieve your purpose?

This is where the road begins to meet the highway. Of all industries, you would think the construction industry would be best at this. After all, who should know better than us how important the purpose is. In construction, we don’t build anything without at least knowing what the final result should be.  So, why is it so many businesses are run day-to-day without knowing where they’re going when they wouldn’t begin to show up on a job site without having a destiny in mind. ”Aim at nothing and hit it every time”

Since you are already in business and our goal is to improve your Performance, which equals Profits, the first thing we’ll need to do is identify your current positions and make adjustments if necessary. So first and foremost, in this section we must determine What you want to be, Who you want to work for, and What behaviors you are after.

 

Company Position (“What is it you want to be?”)

This is the first question I ask new clients and, inevitably, they’ll answer, “I want to be the best.” Then I’ll ask, “At what?”  They will tell what they can do, “Landscaping.” I then ask why they are the best and they’ll try to tell me about their great quality.  Now, for the trick question. “What types of projects do you get?” They answer, “I do commercial projects that I win by being low bid.” Ah, my next question is, “If you have a landscaping business that truly provides the best quality, how can you possibly be making a profit on low bid commercial work?” Now, there could be a right answer here, but the real point I’m trying to make is this. If you don’t know exactly what it is you want to be, and have the right structure set up to match it, I can assure you profits will be very hard to come by.

So, for Month one, the first thing we’ll do is analyze all of this in depth, recognize effects of one versus another, and possible positions for you to choose.

Prime or Subcontractor

  1. We will recognize the difference between them and what it means to you
  2. We will identify the best position for your company

Residential or Commercial

  1. We will recognize the difference between them and what it means to your selection above
  2. We will decide what the best position is for your company

Price Provider, Quality Provider, or Service Provider

  1. We will recognize the difference between these
  2. We’ll identify what you really should be providing to match up with your choices above.

 

Customer Position (What do you offer and who will you work for!)

Now that you know what you want to be, you can determine how to get the best opportunities by matching your Product, Market, and Profile with the best customers. Back to the example above, if you are selling the wrong product to the wrong customers, somebody has to lose. Many make this too complicated. You have one goal: Find those who are willing to pay for what you offer.  If you want to build mansions, that’s fine, but first you need to figure who would want one and can afford it.

Now that we know your company position, for Month Two, we will have the ability to properly match your Product, Market, and Profile to give you the best opportunities.

Product

  1. We will determine the correct type of work you want to do for the customer
  2. We will determine the correct size of projects you will do for the customer
  3. And we will identify how best to match your product with your company position

Market

  1. We will determine where you want to work
  2. We will determine the best segment in the market for you
  3. And we will identify how best to position yourself in that market

Profile (Customer)

  1. We will determine who you want to work for
  2. We will determine the best ways to promote your offerings

 

Employee Position (What behaviors will you expect to represent your company?)

Well, you’ve decided what you want to be and who you want to work for, we now have to determine what you expect from your employees and what you have to offer in return. As a rule, employees want to do the right thing for the right reasons, it’s just too many owners never take the time to figure this out correctly. If your business doesn’t have a Culture of Discipline in it, you are not making money.

As an owner, you must first establish the rules of the game - those things you will and will not tolerate.  Then, recognize what benefits you will give to get that behavior and the correct compensation package to support desired actions. What good is it to get the work if you can’t motivate the employees to perform at acceptable levels? Profitable companies perform by a set of strict guidelines -treat employees fair and show appreciation for the efforts they put out.

For Months Three and Four, we determine exactly where you stand and put the right pieces in place to get desired results.

Behaviors (Handbook)

  1. How your company does business
  2. How you want employees to behave
  3. How you will deal with problems

Benefits (Handbook)

  1. Determine which benefits best motivate employees
  2. Determine what you want to offer them
  3. Determine the costs of your offerings through  Labor Burden

Compensation Package

  1. Determine the correct values for your company through Labor Burden
  2. Determine how you are going to control adjustments fairly
  3. Determine when the best times for you to make these adjustments are

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