OK … let’s all do a year end review.
What did you do right .. what did you do wrong.
Me first … wrong (so I can finish up feeling ok about the “right”)
Fell behind on a big job. ( expected that I would, thought )
Spent said big job profits before final accounting
Failed to listen to those who know better (myself included) and failed to spend the necessary time towards the end of said big job agressively setting up work for after the big job.
Relied on jobs being there when I was ready.
Didn’t buy the planned advertising when I had the cash on hand.
and again .. because it’s big enough to say twice … didn’t agressively pursue new work, and new contacts, while rushing to wrap up big job.
Condensed … got fat and lazy … just didn’t push hard enough to both finish one and set up another.
Right ….
when money was rolling in … resisted temptation and followed the plan to keep the old van one more year or so … spend a little money to get it back to looking and running good. One time cost vs new big payments.
Did everything I could to keep the big job customer 100% in live with me as a GC. ( I firmly expect a good amount of solid referals after all his holiday parties)
Only “wasted money” on things like tools and the van.
set up an investment plan even thought I got got no money. $20 a month is better than nothing.
Same with life insurance. All set to buy some at the moment … just waiting for final details and the paperwork.
Biggest Right … I finally did take the time .. seeing as how I was sitting at home watching all those expected jobs either fall thru or get pushed back till after the holidays … to get out and do the agressivepush for new work.
I’ve lined up work with a kitchen designer who was at the very top of my wish list.
I’ve also made contact with 2 other design firms that don’t need anything immediately, but will in a month or two and I’m already added to their “sub list”.
Plus … I contacted a coupla other places that have been in business since way back when my Dad did kitchens … and they both remembered my Dad, so I have to send them my contact info and I’ll be called in for a personal interview when they’re spring workload increases.
Who’s next?
Jeff
Buck Construction
Artistry in Carpentry
Pgh, PA
Replies
didn't want to make that first post too long ...
Here's what I did. Went online and searched Kitchen Designer for my area.
I looked for companies that had websites I could look at, figuring most of the high end places have sites to show off their work. I then sent those in the area I like to work an email introducing myself as a potential sub.
I then made follow up calls and set appointments or agreed to send them my info for a later contact.
I then drove thru the area I like to work ... and noted any companies I missed. Looked them up ... and asked who's in charge of hiring subs. Set up meetings or agreed again to mail and contact later.
Then ... I hit the yellow pages, doing the same.
Had as good of results as I could have hoped for.
Basically, I cold called.
I ended up getting a firm offer to start a job right after TGiving, from the one place I already knew about and really wanted to work with.
I plan on going forward with the proposed advertising right after the first of the year.
Jeff
Buck Construction
Artistry in Carpentry
Pgh, PA
I follow your order.
Bad move:
Moved from PA to VA to be employed with a company with good potential but a bad track record. Optimistic I guess.
Good move:
Left said company with their best employee to form an incorporated partnership. Currently working on finalizing licensing and building a client base.
Jon Blakemore
We have had a good year. But I will follow your lead.
Bad items:
Lost 3 long time customers due to price increases. I am unsure what I would do different as I have been trying to drive my rate to the point of profitability but I did like working with these folks and wish the relationship could have continued.
Again fell for the customer who had been burned by everyone else..........who then burned me. $370 lesson. Pissed at myself for allowing it to happen.
Hired a 3rd guy with little potential. Kept him 3 months part time. Should have saved the cash.
As with every September we had a 5 week slow period. I can't seem to find a combination that will allow me to book much more than one man hours worth of work in that period.
We have had a steady work year but I would like to move up a level and start focusing on work we want to do, not just whatever comes along that will fill the schedule profitably. Guess I shouldn't whine.
Haven't updated the web site in awhile. This week!
Good Stuff.
Did a 75k addition and remodel with the addition being 2/3 of it. Subbed it out to a childhood friend and just acted as support. Made good money for little effort. Both happy and agree to do it again given the oppurtunity.
Did a 40% overall increase in business this year. Hope next year is the same!
Bought tools but kept them to needed and a few wants. Not bad overall as I can really buy tools when given the money.
Paid off the work truck early and bought a new one this spring so we have 2 Spartan body trucks now. Good move as it was hard doing what we do out of a regular van.
Pushed the tub liner/bath remodel part of the business and increased advertising in this area.
Set up a business line of credit. I work on a cash basis except for truck but figured the busier we got the more that might make sense.
Paid $29 for rewards program on my business cards. We are going to Hawaii in Feb. because of it. Good move. I pay no interest as I pay it off monthly so it is a real freebie.
Got set up to take credit cards. Managed to find a plan that is free of monthly fees. Still haven't used it but I got it.
Set up true business line and one line ad in phone book.
Found a group deal that will allow me to cut my comp rates by 90%!! And buy a major medical health plan for my employee. Won't save him much day to day but will keep him and family out of bankruptcy if a major deal or accident happens.
Pushed our rates from $40 to $50 an hour this year and it was a real benefit.
Continued doing some education and even got some vacation time in! DanT
PS: Jeff, in 1986 I started a savings program with $20 twice a month. I raised it a few time over the years but even up until 2000 it was still at only $75. It's worth 53k now. Some will always grow. Don't give up on it.
Did a nice kitchen remodel
"Continued doing some education and even got some vacation time in!"
Thanks, Dan .... I'd forgot about that one ...
in the good column .... shceduled and took a family vacation ... as scheduled.
Had work going on at the time ... last coupla years I would have vacationed around my schedule ... then .. if at all.
This year ... told the customer beforehand ... then just "reminded" them the week before. They weren't exactly thrilled ... but I was.
Best money spent in a long, long time. Memories to last a lifetime.
Plan on never missing another real vacation as long as the money's there.
If the money is available ... the time will be made.
The world will go on spinning and my customers won't die if I take a coupla weekends and a week thrown in between.
Jeff Buck Construction
Artistry in Carpentry
Pgh, PA
Got set up to take credit cards. Managed to find a plan that is free of monthly fees. Still haven't used it but I got it.
I've been set up to take credit cards for some time now. The scheme works by sending a text message on my cell phone, authorisation comes back in a few seconds.
I don't take credit cards any more, though, because of the 'charge back' thing. It's happened to other people I know. The customer says they didn't get the service they paid for, the CC company doesn't bother to investigate, simply takes the money back out of your account and leaves you to sort it out with the customer.
John
Interesting point. I have a few regulars that wanted to use theirs for points. And had been asked a few times anyway. I will watch that item.
Jeff, when my son was young if time and money allowed we would occasionally do a 3 or 4 day weekend deal. Just somewhere 3-4 hours away. We have seen 26 zoos, more childerens museums than I can count and a variety of old villages etc. Don't cost much, easier to work into a busy schedule and we all got an enjoyable break more often. Just a thought. DanT
All right, I'm in.
Bad-
Got so busy I didn't return any calls for the months of july-september. Totally blew off 6 estimates that I already had the details on. Looking at the possiblity of a thin couple of months for that but probably deserve it. (Still booked for 2-3 months but as you know that isn't too cooll)
Got jammed up so bad I didn't make it to some jobs already promised.
Had hoped to hire/expand crew size. Was unable to find any talent.
Failed to grow gross revenues anywhere close to what I had hoped.
Took some chances on hiring some subs and got a bit burned.
Bought new tools and forgot to lock my truck, bought new tools again.
Blew off a couple of regular customers(probably the mistake that causes me to lose the most sleep)
Good-
Bought new tools that impacted productivity and enjoyment of work.
Bought "new" truck for employee and definitetly helped grow my reputation.
Completed 2 really sweet remods and one addition
Had one house I worked on get nominated for a most improved award
Grew my net income numbers over 100%
Took some chances on hiring some subs and developed some profitable and enjoyable relationships
Managed to give my employee a good raise
Raised my hourly rate
Found This forum and already learned alot.
Managed to take a week off with the kids for vacation
Managed to take a week off for the birth of number 3(though the time away from work was unplanned and contributed to the problems above)
Edited 11/24/2004 2:11 pm ET by TMO
Edited 11/24/2004 2:17 pm ET by TMO
Dan .. those little trips were what were had been fitting in for the last coupla years ...
the last 2 I hoped to take the kid to Wildwood ... where I went ever summer as a kid ... figured he didn't miss much ... as he'd have been 6 months and 18 months old on the two trips we missed ...
But .... Man, what a difference a "real" vacation makes. Started at RhodeFest and continued down to the Jersey Shore.
Got home ... unlike those little get aways ... really felt like we'd been away and gone somewhere. Not gonna miss that feeling again if I can help it.
Already have a couple "weekenders" planned for next year ... also have the week and a half at the beach planned too!
Jeff Buck Construction
Artistry in Carpentry
Pgh, PA
Then the IRS called from Columbus to remind you you had missed JLC live.Who Dares Wins.
Several years ago, I set up a deal where every month, money is automatically moved from my bank account to a mutal fund money market account, on the "pay yourself first" theory. It's not much, but it's nice to know that cushion is there if I need a little help getting over a rough patch.
Actually, money goes into two different accounts. One is for business, the other is for dreaming.
Al Mollitor, Sharon MA
Good idea Jeff. It's important that we all take a good honest look at our business' from time to time.
F-ups....
Should have trust my gut with two new hires this past summer. Felt "desperate" for some help with the looming workload. Found out that "bodies" don't mean "help". Expensive lesson considering I apparently had to take the course twice before it registered. Got better at letting 'em go with the second one though.
Got beat pretty good on bathroom remodel last winter by slightly underbidding because I was "hungry" and then not using written change orders as things progressed. Didn't help that I also got my first call back and it was on this job. Wasn't much $ around to cover warranty stuff by that point. Anyway... another valuable lesson learned.
Also learned the hard way about running a proper business. Was slammed in the beginning of the summer. A couple calls came in and I just never returned them. Bad business. One guy finally got ahold of me and lit me up good. I was pretty embarassed, but it forced me to change some things and has made me a better "business man" as a result.
Pro's...
Business expanded just the way I'd hoped it would in this year. I'm up to a fairly solid, well rounded, four man crew. My books are in order and the appropriate money is safely banked for the upcoming taxes and inevitable insurance audits. Made one major purchase for the company (5G cargo trailer) and lots of great upgrades. Replaced all the saws, framing guns, ladders, hoses and cords. Bought a new high quality generator (Wacker) and a big azz Rol-air compressor. currently talking to several different outfits right now looking to purchase a used Lull or similar. It fits the budget well. Resisted the temptation to trade in the truck for a Trademaster with a bigger monthly payment. Purchased wall jacks to save our backs.
Business is currently very steady and I'm fortunate to be finding the type of work I really want to do. Safety practices and equipment are getting better, slowly but surely. I've also developed three solid working relationships with local GC's to keep me in the work. Would like to have at least two more by this time next year. I think five quality minded professional GC's is the magic number to keep me in the work with a company my size. No plans to hire more.... just continue further training of my current employees. Really want to continue to stress the "team" concept and eliminate a pecking order amongst the crew.
Congratulations on the success of your business and thanks for asking about mine!
Edited 11/23/2004 11:00 pm ET by dieselpig
Good idea.
Probably best year yet, but not without it's oopses. Wrong-
Painting when it was too cold and I knew better. Subbing out stuff I didn't want to bother with, and thinking cost vs end result. It cost all right.
In the gray area, I took on work I'd been doing as a sub on a different basis. It used to be flat, now it's a percentage of gross. That one's a gamble, and it needs at least a year to play out. I think it's going to end up in the win column, but not substantially different than before.
My good column is better though. I didn't take any job I didn't feel like. I didn't advertise. I probably handed out 5 business cards all year. I'm busy and happy with that. I adjusted how I work numbers on bids; a lot of headaches went away, and by 1 Aug I'd already netted more than last year. I focused on what I like best, and the work came.
Bad - I got a little too casual with the business account for a couple of months, seeing it do so well and all. I dropped some dollars that, while they weren't wasted, I look back and think a more judicious use of things would have been prudent. If I weren't as busy as I am, it might have mattered. Incidentally, I've seen way too many people go down that road and regret it. So what bugs me most is I already had seen the potential for bad things and told myself I wouldn't do that, and did it anyway. Regardless of outcome.
Good - I started buying Festool stuff this year. Bad - I should have done it years ago.
Bad - I haven't done any charity at all this year. I'm usually good for trimming at least one Habitat house.
Gray - customer relations. Most of it good, and some great strides in reaching that "target" audience, but I still find myself lacking a tactful way to tell some people that my run away now meter is pegged at now. So that just translates into not calling, and then I'm one of those guys.
"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain