Getting Your Business to Work

Is Your Ship Sinking?

George Hedley — Thu, 16 Jul 2009 05:00:00 -0700

In good economies, a rising tide lifts all boats. Even business owners who weren’t following basic business fundamentals were making money over during the boom over the last 5 to 10 years. Now that the tide’s gone out, they are exposed and don’t know what to do. Now these business owners are stuck without sound financial tracking systems, a marketing presence, loyal customer relationships, trained people, operational systems, old equipment, or any cash left over to weather the storm.

Successful business owners adapted technologies and leveraged their competencies to seek new markets. Today you must re-think your business model and stop resisting change to survive. While many do nothing and hope the pain goes away or the economy to get better as they postpone decisions affecting their future until it’s too late.

A business that’s gone from $5 million to $2 million has to start over again from a $2 million operation, re-organizing sales, marketing, cashflow, and overhead. They need to try new markets, products, delivery methods and systems. And if you don’t have the expertise to move into new markets, you need to hire someone who does.

Think like a Fortune 500 CEO. They’ve got to make a profit every quarter regardless of the economy. Their top line has to grow as well. If it doesn’t, they get fired. Successful CEOs seek strategic alliances, partners, companies to buy, divisions to sell, joint ventures with other buyers and vendors to grow their business. They also weed out ineffective employees from effective ones and ask employees for input on improving the company.

You’re not in the business you used to be. You’re in the money-making business. What else can you do to make money? Perhaps you can add more services and become a full-service provider for your customers. You can’t make money by saving money. There are two kinds of business people: those who try to save their way to success by doing everything cheaper and those who invest in their future through marketing, training, customer service, and improving their image.

JOIN US In Orlando September 11 & 12

We will be hosting a special ‘Profit Builder Circle Academy’ focused on changing your business to work for you in a slower economy. We will include a session on finding new markets and customers, offering new services, and how to emerge stronger and more profitable than ever before.
Learn More

Webinar

“How To Win More Jobs At Your Price!”

I will be presenting a 1 hour webinar on next month. Everyone is invited to sign-up and participate. You will be receiving a link and a registration form shortly. I am doing this in partnership with Hanley-Wood and the World Of Concrete.

Get Your Business To Work!

Thanks to all of you who purchased a copy of my new book on Amazon.com. With your help, it reached #7 on the small business books best-seller list. To purchase additional copies, I am now offering the book on in my bookstore at the discounted price of 2 for $30.00 or only $1.00 if you order 3 of the workbook cd sets. Check it out in our HardHat bookstore.

You Can’t Win Without a Great Coach and The Right Plays!

George Hedley — Fri, 05 Jun 2009 05:00:00 -0700

Every winning athlete & team has a great coach.

- Look at Tiger Woods or Kobe Bryant.

- Look at the University Of Southern California football team.

Winners know they can’t do it alone and need continuous advice, ideas, tips, support, guidance and encouragement. Just like a sports coach, a professional business coach pushes you to achieve optimum performance and helps you make good decisions, put in the right players and call the right plays. A coach observes what’s really happening, listens to input, provides new ideas & fresh perspectives, and tells you like it is.

A business coach helps company owners improve their leadership, organization chart, accountability, sales, marketing, management, operations, finances, estimating, customer service, production, pricing, equipment and so much more. Just like a sports coach, your business coach makes you stay focused on what it takes to win the game.

Owners of small to medium sized businesses find it hard enough to keep pace with all the industry changes and innovations going on, let alone find time to devote to sales, marketing, systems, planning, team building, and do what it takes to build a business. As the market gets more competitive, having a business coach is a necessity to grow your company and make a profit.

I want to be your business coach. I’ll look at your company objectively and let you know what you need to do to reach your goals. I can help you as your advisor, sales manager, training director, strategic planning facilitator, confidant and mentor.

I have worked with 1,000’s of companies. This has given me wisdom and insight to help you get your business to work the way you want it to. I can jumpstart your progress & cut years off your learning curve. You have a lot of money invested in equipment, facilities, people, customers and overhead. Are you getting the maximum return you should? What’s next to achieve the results you want? Should you buy another piece of equipment, hire a new manager, fire a non-performer, promote someone, find new customers, seek new markets, install operational systems, increase field productivity, develop your management team, train more, or what?

Without an experienced business coach, your next decision is almost impossible to make alone. The best advice you can get is from outside, unbiased professionals who know your business, can give you real opinions of how to improve, and are not afraid of telling you the truth and hurting your feelings.

Every business owner has internal challenges, external threats, and tough decisions to make. Some have long time employees have stopped being productive. Others have relatives in the company who aren’t doing there share of the work. Many just can’t decide what moves they need to make to make more money or find better customers. Some struggle with incentive compensation programs or basic ways to generate steady and profitable revenue. But without sound advice, owners try to make good decisions but usually stay stuck doing what hey’ve always done.

Let Me Be Your Business Coach. Some of my services you may want to consider include: Strategic Planning Retreats , Re-Organize Your Management Team, Improve Profitability, Create Equity & Build Wealth, Organize Operations & Install Systems, Marketing & Sales Implementation Plans, Improve Productivity & Operations, or Find New Customers &
Markets.

Face Reality

George Hedley — Tue, 05 May 2009 00:00:00 -0700

I sent this email to the President of a company I am consulting with. See if it can help your thinking during the slow economy.

1. Whether or not the note comes due doesn't change anything for the next few months. The money is still due and deserves a return. More investment money will only enable you to limp along longer without accountability.

2. The economy is not an excuse for 4 years of no growth and no profits. The purpose of every successful company is to grow and make a profit. The more sales and profit, the more valuable the company.

3. The sole purpose of a real company is not to sell it, but to grow it. Entrepreneurs grow companies. Small business owners own a company that barely makes them a living.

4. CEO's of companies who don't steadily increase the value of their stock and/or grow their revenue get replaced fast. No excuses. They make it happen or find another job.

5. The meeting we had was the same meeting we have had at least 4 times over two years:

No grouth and not profit.
No positive sales results.
Not enough sales activity or impact to attract new customers.
For whatever reason, you have not hired more sales people to close enough leads

As you know, I study entrepreneurs and small business owners. 95% of them get stuck and can't grow beyond a certain level that leaves them short of successful. Good intentions, hard workers, work 80 hours / week, care about their product, and very convinced their way is the best and only way. But these 95% of all small businesses don't move beyond the owner's ability to control all the work. This keeps them stuck at a level they can't get beyond. They don't know what to do next except try to work harder themselves. They get frustrated when questioned because they value working hard over getting results. They never can find any good help they can afford. They are slow to hire new people who will help them grow the company. They don't put strong people around themselves because they think they cost too much. They can't let go, can't delegate, and micro-mange everything that happens every day.

The only way to break the cycle is for the owner to change their habits or be replaced by another manager who knows how to manage instead of doing the work. For example, my friend has started 6 companies and eventually gets replaced or fired by the investors when the company gets stuck. With new direction and leadership, the company gets back on track.

Now what is your solution?
I DON'T want to Survive for another year. You have a great product that saves companies money. The economy is not the reason for the lack of sales. It is a lack of enough excellent and qualified people selling. You can't do it alone with a weak players surrounding yourself. You must reshuffle your staff to make way for at least 1 more fully qualified sales closer to get the revenue back on track. Time is too short to hope for a big deal or another loan to bail you out for another 6 months. I will close this rant with one of my quotes:

"The results you get are a direct indicator
of the leader of an organization."

It is time to face reality. What BIG change do YOU need to make (and your company) to get different results.

George Hedley CSP
Certified Speaking Professional

Rebuilding is sometimes the best thing to do.

George Hedley — Wed, 22 Apr 2009 00:00:00 -0700

If you could listen in on a seminar, you'd hear.....

"There is good news, and then there is really good news, said George Hedley at his recent seminar to a large group of contractors in California. “The worst days of the recession are behind us,” said George enthusiastically. “Now we get to rebuild and start over!” Despite the chuckles from the attendees, that last bit was the really good news. It may sound like it’s not, but according to George, now is the time to take a hard look at every aspect of the business, make some tough decisions, and create a written blueprint for success which will guide and focus each business owner in building a much more profitable business.

“Make a resolution that 2009 will be mighty fine,” George said with a smile, “and that in 2010 you will not be a has-been.” It all begins with having a blueprint for success. That does not mean having an idea in your head of what you want to accomplish. It means having a written plan. Business owners who have a written business plan are twice as likely to succeed as those who don’t.

The first thing needed for a successful plan is to know exactly what you want from your business. What are the reasons you decided to go into business in the first place? Included in the handout materials George gave each attendee was a fifteen point list of why people start their own business. On that list are personal goals such as attaining freedom, building personal wealth, and having more time for family and social events. “The only way you are going to get what you want out of your business,” George pointed out, “is if you know exactly what you want from it.”

In order for your business to succeed, as you rebuild it, you need three key things:

1. You need to know what you want.

2. You need a written plan to get there.

3. You need to monitor results to make sure you and your business are on target.

Once the goals and objectives of the company have been clearly defined and written out, the next step is to implement. That, according to George, means making some tough decisions. “As you redesign and rebuild your business, you need to make the tough decisions. Are you going to cut back your business to your comfort zone? Down-size and be stuck in the ditch, with your head down, working hard for the rest of your life? Or, are you going to grow your business? Get out of your comfort zone? What exactly,” George asked, “are you going to do different as your rebuild your business to make your company be exactly what you want it to be and give you what you want?”

The number one reason why businesses fail is that owners won’t change. “Great generals have great lieutenants, and good companies have good employees,” George pointed out. Every business needs four basic types of people: a visionary leader, excellent managers, quality accountants, and superior workers. If you, as the business owner, are the superior worker, than, George says, “you will never get rich because you have your head stuck in the ditch.”

Knowing how to do the work is not the same as knowing how to make a business grow. No one is great at everything. Having a great team to support the business is critical. “Know your strengths and weaknesses,” George advised the group, “and then replace yourself in those areas where you are weak with strong employees who will make each of the four aspects of your business shine.”

As part of the seminar, George covered the eight critical business-builder success factors. One of those factors is having a “passionate purpose and inspiring vision.” Another is having “clear written targets and goals.” But, the most important of the eight factors is for your business to be “different, unique, focused on your delivery system, services or products.” “If you are not offering something different or better,” George said, “then you are just selling price, and you can’t build wealth selling price.” Finishing up his seminar, George gave business owners this bit of advice: “Spend more time with your customers, and less time stuck in the muck.”

Surviving The Economic Slowdown: Part Three

George Hedley — Fri, 13 Mar 2009 00:00:00 -0700

For more, see Part One, and Part Two, of this series. Look at your fixed costs! Another part of the equation is your fixed cost of doing business. What things do you need and what things can be postponed or eliminated from your ongoing cost of doing business? If you think your business volume will go down by 20% in the future, start cutting your overhead by 25% now. Cut more than you think you’ll need as profit margins will also go down in a tight economy. Start with your largest expenses first – your equipment, backhoes, forklifts, cranes and trucks. If you aren’t using them on the jobsites at least 24 to 32 hours every week, they’re costing you more money to own than they are making on the jobs. Sell what you don’t need and lease the equipment you need when you need it. Getting rid of that old unused equipment littering up your yard will free you to focus on getting more profitable business instead of keeping your equipment busy. Take a hard look at your management, supervision, administration, foreman, and field personnel. Now is the time to eliminate every “C” player, keep the “A’s” and warn the “B’s” they need to improve. As work slows, you will be able to replace poor workers with quality employees who will be readily available. Don’t accept less than the best now. It is an employer’s market so take advantage of it. Get your team together and let them help you reduce fixed expenses. State your goal to cut your fixed cost of doing business by 10%, 20% or more. Let them come up with ideas how to make it happen. By making cost reduction a team activity, everyone will help and feel a part of keeping your business running as costs go down. Be sure to look at every major cost items including job costs, production, benefits, training, receivables, payables, banking, insurance, and technology. George Hedley

Surviving The Economic Slowdown: Part Two

George Hedley — Thu, 12 Mar 2009 00:00:00 -0700

What moves are you willing to take to get ready for your future? Consider two parts of your business as you decide what to do. Look at both your target market and cost of doing business. (Part One, yesterday. ). Look at your target market! What types of customers have you built your business with? Do you have a short list of customers you have targeted to obtain new or repeat business from over the past several years? What other customers have you ignored as your backlog has stayed full? Which customers need what you offer even as the economy might slow in the future? What other services can you do for your existing customers? Which potential customers will gladly consider your company to be on their bid list? I have noticed I am getting a lot more phone calls from new subcontractors seeking projects to bid. They cold call and ask if they can get on our bid list. There is kind of a desperate tone in their voices. They have to get work or they’ll go out of business. They aren’t looking to build a long term customer base. They’re looking for work to survive until their regular customers call them again. Before you start blindly calling every new customer target you can think of, have a strategic plan of attack. When I get those cold calls, the salesperson doesn’t have a clue about our company or what we specialize in. Research your targets. Find out what kind of work they do, how they do business, and how your company can help them meet their goals. Pick only potential customers you want to create long time relationships with. Building and growing a loyal customer base takes time and commitment. Not a short term fix. To enter a new target market, you’ll have to convince potential customers your company is qualified and experienced in the type of work you’re proposing on. You’ll also have to demonstrate how your company can help new customers build faster, better, or cheaper than the subcontractors or contractors they are using now. Be ready to show how you can solve their problems and become a team player. Show them you are in it for the long haul. You are not there to just get on their bid list. You are there to build a relationship and you know relationships take time. Also consider what other types of project types, locations, sizes, or services you can go after. If you are in the heating and air conditioning business, why not offer monthly service as well? If you specialize in building new commercial projects, consider offering development and construction management services. If you are a drywall subcontractor, consider adding metal stud framing, acoustical ceilings, insulation, painting, and door installation so you can become a full service tenant improvement contractor. For more, Part One. Part Three, Tomorrow!

Surviving the Economic Slowdown: Part One

George Hedley — Wed, 11 Mar 2009 00:00:00 -0700

Do you think business will go up or down in the years ahead? What will you do to survive if your business shrinks by 40% or more? Shouldn’t you start doing something about your future right now? What are you waiting for? It’s the last quarter in your last game of the season. If you win, you’ll get into the championship playoffs. Lose and you are eliminated. You are twenty points behind and only a few minutes remain in the game. What will you do different to win? Is it finally time to change your game plan and try a new set of plays? Think about your business. Most business owners know a slower business market will become a reality in the future. But most don’t want to make a move and change the way they do business. They are sitting and waiting wait for something to happen. In the slowdown of the early 1990’s, my business went from $50,000,000 to $5,000,000 in annual sales in only one year. It was hard to believe the construction business nearly stopped as quickly as it did. There just weren’t any jobs to bid or build. I had to reduce the number of employees from 150 to 10. I had to cut my overhead budget from $2,000,000 per year to $500,000. As your business slows down, it is almost impossible to reduce your expenses as fast as your revenue diminishes. You have to keep people on staff to finish the projects and do the paperwork long after the work is finished. In other words, you lose money in a slowing market. Consider your choices! The choice is yours. You can continue to charge ahead doing business the same way you always have and hope the economy continues to boom ahead. Or you can make some strategic moves to get ready for a business slowdown. In the late 1980’s we anticipated our core industrial building construction business market to slow down in the upcoming future. To weather the storm and diversify, we made a decision to invest in the future and hired an experience retail construction division manager to seek major retail construction work. We also tried bidding public works construction at the state universities. The retail decision worked out well and we soon become a major contractor for many of the national retail chains including: Mervyns, Costco, and Wal-Mart. What moves are you willing to take to get ready for your future? Consider two parts of your business as you decide what to do. Look at both your target market and cost of doing business. (Part Two, Tomorrow) George Hedley

Stop Whining! It is what it is!

George Hedley — Tue, 03 Mar 2009 00:00:00 -0800

Remember 5 or 10 years ago when your business was only half of what is was in 2008? Or your investments, or your house value or your salary? Well it is time to stop looking back and start looking forward. Looking back will get you depressed and all upset about what you had. Guess what? You don’t have what you had anymore. It’s time to start building again from where you are. Building is fun. Whining is over rated and depressing. Calculate the gross and net revenue you really can expect for 2009 and 2010 and then figure out how to make a profit with what you’ve got. If it means you will have to cut back your expenses 60%, then do it now. If it means you will have to go back to working hard, making sales calls, getting out of your comfy office, or getting your hands dirty, do it. I know you thought you could retire in a few years or reduce your involvement in the business. But you can’t. Besides, you don’t want to be one of those old folks who do nothing positive with their time except complain about the price of healthcare. My current message is to START BUILDING & START MAKING A PROFIT with what you’ve got. That means you now have a chance to redesign your future. Exciting! Now you can design your business to be the best in your market. It is back to basics! As a result, I have re-designed my Profit-Builder Circles Academy to help every business owner Re-Build using the basic 7 characteristics every “Best In Class” business has in common. Excellent market leading companies all have: 1. Passionate Vision, Clear Written Targets & Goals 2. Structured Organization & Accountable Responsible Team 3. Operational Systems To Run The Business 4. Above Average Profits and Focus On Numbers 5. Unique & Different Delivery System, Product Or Service 6. Pro-Active Sales & Marketing System and Fast Growth 7. Equity Growth & Wealth Building Ready to start over and build your business better than ever before? Let’s keep talking! Stay tuned for more ideas to help you get your business to work! ~George

What Makes You Different Than Your Competitors?

George Hedley — Mon, 23 Feb 2009 00:00:00 -0800

WOW! I just finished my busy winter speaking tour. I presented two programs at the Minnesota Nursery & Landscape Association; held a 2 day Profit Builder Circle in Baltimore for 23 business owners; spoke three times at the World Of Hardscape in Atlanta; presented a 3 hour seminar to the Fresno Builders Exchange; presented five programs at the World Of Concrete; held my 2 day Profit Builder Circle boot camp academy in Las Vegas; spoke to Heavy Construction Company in Rapid City in South Dakota; presented a marketing and sales program to the division managers of Western Waterproofing in Orlando, Florida; and gave the keynote speech to Merlin 100,000 Mile Shops franchisee convention in Chicago, What did I learn? In spite of the economy, many companies are doing well while most are struggling. The companies who are looking towards a good year offer a different approach to their business and a unique delivery process that sets themselves apart from their competition.

The successful landscape contractors offer full design and build services and don't limit their scope of work to only a single part of the overall process. Their customers want full service and don't argue about the price.

The successful waterproofing company focuses on customers who appreciate the extra service and quality their competition doesn't provide. They are known as the best in the business. Their staff attends several hours of training every year to continually improve.

The concrete businesses who are still doing well specialize in the tough jobs that take some brains and technical skills. Their competition is very limited if any. And they make a lot of money while 99% of concrete competitors try to look for the standard jobs to bid and sell low price to get work.

The auto service business makes their distinction by developing repeat customers and trying to help get their customer's cars to last 200,000 miles. Unique and effective.

What makes you unique and different than your competitors? What entices your customers to pay more for your service and keep you loaded with work and profit? The choice is yours: Be the same as everyone else or do business different! Guess what? - Next I get to fly off for 5 days with my wife to the Grand Cayman Islands. I will be presenting another program to a unique company, Johns Manville who really knows how to treat their customers. To get a free copy if my new e-book entitled: $ure $trategies To $urvive A $lowdown! Send me an email. (gh AT hedleycontstruction DOT com) See you on the road! George Hedley CEO Hedley Construction & Development Inc.

Jack Be Nimble, Jack Be Quick, Jack Change Your Business Plan Before It's Too Late

George Hedley — Wed, 11 Feb 2009 00:00:00 -0800

In a slower market, when you continue to do what you’ve always done, you’ll find it eventually doesn’t work and won’t deliver the same results you are used to achieving. So it’s time to let go of your past and face the fact that the future will be different. And only the nimble, quick, and strong will be successful. Look at the car manufacturers trying to change their business plan. Too late. It’s over for them as they have done it for 50 years or more. You must change how you do business to thrive in the years ahead. Golfers know what ‘mulligans’ are. They are second chances to re-hit your shots. But in the real world, you don’t get a second shot. Every day you face reality of a slower economy and tougher business climate. Either improve your swing and try something new, or continue to hit your shots into the rough and your score won’t improve and you will lose the game. The booming economy handed out lots of mulligans when many companies delivered average or mediocre performance and poor results. It gave them a second chance with their customers, clients, and contract requirements. But now companies won’t get any mulligans for a long time. This is the real deal, no “take-overs! You must get it right every time on the first shot every time. Welcome to the PGA tour where you can’t rest on your past performances to pay your bills, keep fans coming back wanting more, and keep you at the top of the money list. To survive, you will have to work harder, smarter, more, get organized, stay in control, try new ideas, and work different than you have in the past. To work differently, you’ll have to improve how you operate your company and change how you work with your customers, implement your marketing plan, sell your products or services, deliver your projects, and elevate your level of quality and service. To get a freecopy if my new e-book entitled: $ure $trategies To $urvive A $lowdown! Send me an email: gh AT hedleycontruction DOT com