Category: Uncategorized

The Key to Success: Goal Setting

 

How do you react when someone asks you the question, “What are your goals?” Do you find yourself ill at ease looking around the room for some answers?

Goal setting has a tendency to be directly linked with looking into the future. However, I would like to offer you an alternative and enlightening approach to viewing the subject that changes “What are your goals?”  into “What are you doing, and are you currently doing it to make sure you reach your goals?” In other words, this approach allows you to link goal setting to both the future and the present.

There are three stages to goal setting: the dream, the goal, and the objectives. These stages start out broad with the dream and narrow down to specific details with objectives. The dream is your vision when you first started your business. It is what outlines the direction you want to go.

In your case, your dream is probably to become a successful contractor. Next are your goals or wants. These are more specific and defined. For example, “I want my top technician to produce $300,000 annually.” The most important part of goal setting is the objectives. Break down the annual goal into monthly and daily increments (e.g. $300,000 divided by 250 working days yearly is equal to $1,200 daily). Then you must measure yourself against the goal that you have set.

A helpful tip is to write your objectives and goals down in as much detail as possible. Don’t use words like “try” and “maybe.” But use “I will” or “I shall.” Be specific! Also, give yourself a deadline for your objectives. This allows you to know exactly what you are going to do and when you are going to do it. Once you have an outline, you can start working on it.

How do you get to your goals? Motivation is a powerful reinforcement or cure to the “goal-setting blues.”  You would be amazed at how much more you can accomplish and come up with when you are motivated. Motivation is all around you, but the trick is that it needs to be found. It is one of the greatest treasures, making it worthwhile to look for.

What motivates you? Your kids, a great book, a song, a walk in the park, a winning lottery ticket, a football game, a new addition to the family, a new outfit, coffee with a best friend… the list is endless. Whatever it may be, use the adrenaline rush you get from it to build yourself up. Pick up a pen and brainstorm. You might not be able to use these ideas at that moment; however, once they are written down, you can always go back to them.

The next time someone asks you—”What are your goals?”—tell them what you are doing to make sure you reach your goals.

Apr 03, 2013 | 0 comments View Post

What Will You Do Today That Will Matter Tomorrow?

One of my favorite quotes is “What will you do today that will matter tomorrow?” I don’t remember where I first heard it, so I searched it online so I could give credit to the author — quotes are always more powerful when they are credited to a respected icon of wisdom—but all I found were some school websites that use that quote as their mantra. The reason I like this saying is that it reminds me to keep focused on improving myself and my situation every day. I know that the life situation I started with is not the one I need to end with. It is this simple belief that I attribute to my success.

If you do the same thing over and over and expect different results, you are thought to be insane. Yet this is what I see time and time again. I talk to business owners who want to make a positive change in their business but are not willing to make the changes necessary to do it. Maybe you have wanted to start a new process, install new software, or offer your clients a new product but did not want to take the time to become an authority on it. What you end up with is an outlay of cash or increase in debt, and a small buzz of excitement and a halfway implemented project that doesn’t work.

Learning something new is hard—at least until you have learned it. It’s hard because it requires change and we humans resist change.

Make change a part of your life. Do what is uncomfortable. It’s okay to feel awkward because that is a part of growth.  I always tell people, “if you are not failing, you are not learning.” Snow skiing is a great example. Success is not making it down the slope in total control; it’s about pushing yourself to the edge of being out of control and learning your limitations. If you don’t fall a few times, will you never actually learn your limits?

The biggest fear of change in most business is the fault of the human heart. It is your people that need to be changed and most of you don’t have the heart to do it. We either need to push them to grow or find other employment. You can’t grow your business with people unwilling to grow with you. Our people need to be pushed to their limits so they can grow. I am not suggesting that you become a tyrant; I am suggesting that you get them to test their limits by challenging them to do things they are uncomfortable with. Stars will rise and loafers will become resisters. Get the resisters out.

The biggest change you can make is changing your recruiting process. Don’t hire the best of the bunch; keep searching until you find the perfect fit.

Do what’s uncomfortable and learn to be a master recruiter. Always be working on your leadership skills. Read a quick chapter of one of John Maxwell’s books each morning and try to apply what you read each day. You don’t have to learn it all right away, just be sure you learn something every day because it is what you do today that will impact tomorrow.

Mar 27, 2013 | 0 comments View Post

Insurance Rates Rising Each Year for Contractors

Are your insurance rates skyrocketing each year and you are wondering what you can do to get them down?  We are hearing from contractors across the country who are facing insurance sticker shock as they open up their latest statements.  Since you need insurance to run a proper business, especially in the home services trades, what can you do?  Here are a few quick suggestions:

  • Do Some Shopping – The easiest think you can do is to get on the phone and start calling around.  Get some competitive quotes from other insurers for the policy you need to protect your company.  If you find one that saves you money for the same level of coverage, don’t be afraid to make the switch.
  • Boost Your Share – The deductible is essentially the portion of the risk that you’re willing to take off the backs of the insurance company.  When you agree to take on more of the risk, they reward you with lower rates, so see if raising your deductible is a strategy that makes sense in your company.
  • Classify Correctly – The rates for a contracting company will be determined by the classifications the insurer puts you in based on the types of work that you do.  Talk to your insurance company and make sure they have you classified in the proper section.  For example, if you used to do a lot of work that required ladders and heights but you no longer do that work, you’re likely still classified there and paying more that you need to.  Make sure you’re insured for the type of work that you actually perform currently.

Finding a lower rate for your insurance is possible, but it will likely require some leg work on your part.  However, every dollar that you save in insurance costs is another dollar that will wind up on your bottom line, so finding the best deal on the proper coverage is a valuable exercise for every business owner.

Mar 21, 2013 | 0 comments View Post

What Should a Contractor Do in a Slow Economy?

If you’ve ever read anything about economics, you’ll find that things have a way of fluctuating back and forth. I suspect that our country and economy will bounce back in full force. However, it may take a bit longer than anyone would prefer.

In the meantime, the economy is the last thing you should use as a reason for struggling in business. It may make things more challenging, but it’s necessary that you have a positive attitude throughout this temporary downswing. It’s time you quit thinking about all of the problems circulating around the country and focus on one thing: Your business and taking it back to the basics! Like the old saying goes, “When life gives you lemons, make lemonade.” Well, when the economy gives you a recession, make the most of it.

  • Look for technicians and salespeople you could add to your team. For the first time in a long time, there are actually good, qualified candidates looking for work.  More than likely, these people will be hungry to prove themselves, so they are able to keep their job.
  • Realize that training is more important than ever. Your people need to know how to do their job properly and professionally. Every time your technician or salesperson walks into a home, they need to give the homeowner options and persuade them to do business with you. People’s sales skills can only be enhanced if you help and train them during weekly training meetings.
  • Take advantage of Free of Very Inexpensive Marketing during the slow periods. Set up an email marketing campaign for your existing clients – sending them weekly tips and offers, have your techs drop flyers in the neighborhood they are working in, host an open house for your existing clients, set up a YouTube account and post videos of jobs you’ve completed. All of these marketing ideas are either free or very inexpensive but could have a major impact on your business during slow periods.

Believe it or not, not everyone is struggling now. We talk to contractors every day who continue to grow their business. It may not be growing as quickly as they would have liked, but they’re taking steps forward. Continue to stay positive that your company can manage through these slower times. I’m confident that if you take the focus off of what’s going wrong, and place your focus on implementing the basics, you’ll survive. Eventually, your business will be in a position to grow once the economic storm has lifted.

Mar 12, 2013 | 0 comments View Post

Rising Tides and Sinking Ships

It’s been hard to avoid stories of companies failing over the past year, but when a company finally goes under, sifting out the real reason isn’t always that tough.

Companies don’t fail.  People fail.

When a company throws in the towel, it’s often because leaders have failed to lead and managers have failed to manage.  The problem is that often leaders are not great managers, and often managers are not leaders.

As the owner of a contracting company, chances are you need to be both, so how do you excel as a leader and manager?

 

Leaders:  Creating and Communicating the Vision

If your business is a ship, then the leader’s job is to point the ship in the right direction.  You need to create the vision and paint it in a way that inspires everyone to get on board with one common purpose.

Great leaders inspire others to want to achieve the desired goal and then provide the means by which it can be done.

Pointing the ship in the right direction will only get you there if everyone else on board believes it is the right direction.  When they believe that, they’ll go to work on making sure they get there.  Or as General Eisenhower one said, “Leadership is getting people to do what you want them to do, in the manner you want it done, and getting them to believe that that’s what they want to do.”

If your vision is to add a second location to your company, it’s the leader’s job to paint that picture and inspire everyone else to want to achieve it too.

 

Managers:  Executing the Details for Achieving the Vision

Management is the process of coordinating and overseeing all of the team’s tasks that go into achieving the desired goal.

For example, if the vision is to add that second location, where will the location be?  Who will staff it, and what advertising should be placed to make the phone ring?  Those are some of the tasks that are involved in turning the vision into reality, and it’s the manager’s responsibility to see them through.

A good manager will look for ways to achieve the vision faster, more efficiently, and more profitably.

 

The Main Difference?

Great companies need great leaders, and great companies need great managers.  And more often than not, both responsibilities fall on the same person.  After all, management is a component of leadership, and leadership is a component of management.  The two are separate, but they do overlap.

To excel at both, you must realize that while management can be learned, leadership must be earned.  Getting your team to believe in your vision take earning their trust, and that can take time.  To do it, you can build your credentials so others see your track record, and you can persuade others to follow your plan.

When companies fail, the ship starts sinking and crew members jump overboard, and it’s often because the leader didn’t create an exciting vision or the manager didn’t manage the tasks necessary for a successful voyage.

To operate a successful contracting company this year and next, make sure you have both strong leadership and management in place, and if you’re weak in one of the other, now is the time to make a change.  If you’re a great leader, but not a great manager, it’s time to build a management team around you that can successfully execute your vision.  And if you are a great manager, but not a great leader, now is the time to make a commitment to increase your leadership skills.

If a lack of leadership and management is why companies fail, your prescription for success is to make sure your company is strong in both of those areas.  One of the ways to that is to attend leadership building events like Success Day with other successful contractors.  You can avoid becoming a sinking ship by improving your leadership skills and rising with the tide.

For more information on great leadership building opportunities, contact Electricians’ Success International® at 1-866-943-8066. 

Feb 28, 2013 | 0 comments View Post

Focus on Making Money Daily

Let me ask you this, when’s the last time you considered your own focus?

Do you make decisions throughout the day with your profitability in mind? Is it your focus, and do you put in the effort to achieve it? To make money every day, you have to come to work each morning with a focus on doing what it takes to achieve this goal. You have to focus on sales, and to do that, you must master these three areas.

Know What You Need

The first is that you must know the numbers you need to generate each day to meet your goals of revenue and profitability. How many calls do you need? That should be a number you share with your team each morning and track throughout the day. If it looks as though you’re falling behind on this goal, then hit the phones and call your customers with a special offer or schedule your yearly maintenance agreement visits. If you don’t know what you need every day to meet your goals, you won’t be able to focus on achieving it.

Boost What You Have

You must also strive to maximize what you do have. This means that you must train your technicians to make the most of each service visit they run in a day. That doesn’t mean taking advantage of your clients because that is never the goal. Boosting your revenue comes from, first, maximizing the number of calls you book from the calls that come in.

Your call-taker should have a highly effective script for booking calls and you should train them frequently on this script. Here’s a tip. Mystery-shop your call-takers and record them. Then, use these recordings in your training sessions. If your average invoice is $263.00, and they miss one potential service call a day, you’re losing $68,380 in lost revenue each year, so training is crucial.

Secondly, your technicians must do what is in the client’s best interest. By doing this, you’ll maximize the amount of revenue available on each call. Perhaps it is in the client’s best interest to replace their system, roof, panel, or water heater instead of going forward with an expensive repair that may break down again in the future. Not only is this scenario in their best interest because their comfort will be protected, but it is in yours because you’ll reap the financial rewards.

Boosting what you have comes from training and focusing on the details. Train your call-takers to turn as many incoming calls into booked calls as possible. Train your technicians to offer options to your clients that are in the customer’s best interest. Training your employees in these areas and focusing on them every day will boost your sales and the money you make every day.

Track What You’ve Got

If your focus is on sales and meeting your goals every day, then this step should be a no-brainer. You have to track your results to see if you are meeting your goals. Doing so will show you where you have to improve and what you must do differently to meet your goals. You’ll see where your team needs more training and you may even end up changing your goals.           

Focusing on sales every day takes a top-down commitment. As the owner, that commitment must start with you, and you must pass it on to your team. Get your team excited about hitting their goals. Show them why revenue and profit are important to the future of your company and to their future success.

Getting your team involved in this daily sales focus will help refocus your team on the most important goal – service success.

 

Feb 21, 2013 | 0 comments View Post

Whistle While You Work!

Have you ever been in an uncomfortable situation on the job? You thought you were alone, but when you turned around, there was someone right there behind you. You might have been talking to yourself through a job, without controlling your language, thinking that you are not being watched, only to suddenly hear your customer suddenly appear. No matter what the situation was, it probably put you in a really uncomfortable position.

First and foremost, you do not want your customer to think that you cannot be left alone. In other words, you want your customer to understand that the way that you appear around him/her is no different from the way that you normally are. Know that you are being watched at all times. This is true even though it may sometimes seem as if it is not the case.

Make an effort to control your language anywhere around your customers’ homes, turn down the car stereo in your company vehicle, and shine with confidence at all times. Your customer will not believe that you are capable of completing the job if you don’t believe it.

The initial shock that your customers get when they see you act differently when they are not around is enough to have them not use your services a second or third time. Your customer is nervous about having you invade their privacy to begin with; you want to make them feel as comfortable with you as possible. You want to enhance your customer’s home without causing too much trouble. This means not making any mess or causing an unnecessary scene.

What can you do to enhance your frame of mind? Build your personality into your work. Remember that everything reflects on your work, including your mood. Your customer is probably going to tell if you are happy or sad, lazy or efficient, and tired or awake.

By improving your personality and mood, you improve your work. This may be as simple as going to bed an hour earlier instead of watching television. You are guaranteed to be more awake and aware, and in return, able to do your job productively.

Uplift your spirit by whistling or humming a favorite song, like “Whistle while you work,” to give yourself a little boost during your day. Not only will your day go by a little smoother, you will be more enthusiastic and as a result accomplish more.

Feb 07, 2013 | 0 comments View Post

Keeping Your Eyes on the Road

Experts say most accidents that happen on the road are the result of driver negligence. It doesn’t take an expert to figure that out. After all, you’ve seen the usual suspects on the road. There’s “Mr. Cell Phone Talker” who’s oblivious to everything not attached to his ear. There’s “Ms. Eye Shadow Applicator” who’s trying to finish that last dab of Purple Sunrise before she hits the brakes. But with all of these offenders, the worst may be the good old-fashioned “rubbernecker.”

These are the drivers that slow down…way down… to see what everyone else is doing and what’s going on. In the process, they almost cause a wreck of their own. If there is one thing you could say to these people, it would be, “Keep your eyes on the road!”

The business world is full of these rubberneckers, too. What you do in your car is one thing, but in your business, everything can fall apart if you start taking your eyes off the road.

Here’s what I mean: In the past week, I’ve gotten several calls that started with, “My competition is this and that.” While it’s a good idea to keep an eye on your competition from time to time, it should be in your rearview mirror as you zoom past them on your way to success.

Before you get too concerned with what your competitors are doing, pay attention to what you’re doing. Keep your eyes on the road.

When Business Owner Bob gets caught up in what the competition is doing, here’s what happens: Bob starts paying more and more attention to the competition. Eventually, he stops doing what made him successful in the first place and he starts mimicking the things he thinks the competition is doing to succeed. Unfortunately, what he doesn’t see is that the competition only looks successful. Behind the scenes, that competitor is probably struggling to pay the bills, attract clients, and keep his doors open. The worst part is that Bob won’t realize this until he’s in the same shape. If he’d only stuck to what was working in the first place, he’d be in the fast lane.

It’s all about balance. You should keep an eye on your competitors to see what they are up to, but don’t get stuck staring as they zoom past you.

In the end, remember that competition is like death and taxes. It’s always there. Just expect it to be there and don’t waste your productive time worrying about it. You only have the same 24 hours a day that the competition does. Make the most of them! Don’t get caught rubbernecking on the road to success.

Jan 31, 2013 | 0 comments View Post

Increasing Your Average Invoice

 

We recently received a question from a contractor.  Here is the question and what our suggestion was for him:

Q:  My average invoice is too low.  How do I increase my company’s average invoice without my technicians thinking I’m just trying to turn them into salespeople that are just trying to take advantage of the customer?

A:  When one of your biggest expenses is the marketing you sent out in order to get calls, it’s so important to make the most of each of those calls.  That means your technicians need to be aware of their average invoice goals and you need to help them achieve that number.  Here are four quick steps for helping your technicians achieve a higher average invoice:

Step One:  Set Expectations – People have a tendency to do what is expected, so set expectations at the level you need for your budget and plan, and then communicate those expectations.

Step Two:  Track performance – What gets measured gets improved, so track your team’s performance every day.

Step Three:  Review and coach – Review each technician’s average invoice performance individually and provide positive feedback and methods for how they can improve that amount.

Step Four:  Review invoices – Review each technician’s invoices to see what they are recommending that homeowners aren’t accepting.  Then, coach the technician on how they can gain the customer’s approval on more of these repair recommendations.  If your technicians know that every invoice is going to be reviewed, you’re sure to see an immediate increase!

Step Five:  Celebrate your success – People love praise.  As your average invoice starts increasing remember to take the time to celebrate and recognize your technician’s success. 

Good luck!

 

Jan 22, 2013 | 0 comments View Post

Small Business Getting a Handle on Financial Statements

 

We recently received a question from a contractor.  Here is the question and what our suggestion was for him:

Q:  I’m a small business (just me and another tech) and I don’t have anyone in the office to keep my books.  I know I should have a better handle on how my business is doing financially, but I can’t afford to hire someone.  Right now, I gauge my business success on how much money I have in the bank.  Any ideas?

A:  You are not alone.  Many contractors have the same problem that you do.  Your financial statements are a very important tool that allows you to see the following:

  • How much revenue you are bringing in;
  • Where you spend your money;
  • How much profit you make;
  • Who owes you money;
  • How much you owe suppliers;
  • How much cash you have;
  • The amount of debt you have (loans, notes, etc)

Financial statements can identify challenges that you have in your business as well as assist you with knowing when and how to grow your business.  It is one tool that you cannot afford to go without.

So here is my suggestion:  Go to your Yellow Pages, or online, and look under bookkeeping service.  Find someone who you can outsource your bookkeeping to.  Most small businesses use QuickBooks-certified.  Make sure and ask for references and let the company know that you need to get timely information.  It will need to be able to do the following: record customer invoices and deposits made into your bank account, enter and reconcile accounts payable, reconcile your bank statement each month, and assist you with quarterly tax payments.  If they will also take care of your payroll, I highly encourage you to let them process payroll for you as well.  If they do not process payroll, look for a service such as ADP or Paychex to do it for you.  Payroll is one of the most error-prone accounting processes for small businesses.  And it can cost you thousands in penalties if you don’t process it right!

Jan 17, 2013 | 0 comments View Post
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