Hey guys,
Been posting here for a number of years only under a new name now associated with the new business. Was self-employed as a contractor years ago and now I find myself once again self-employed.
My question is do you guys; whom I view as quite successful from my experiences here, have any real business model or do you just “take it as it comes”?
I’m just curious as I feel that my lack of a real gameplan and just waiting for the phone to ring years ago was the reason I never really made it. And of course in this new endeavor I want to make it happen and do this for the rest of my life…or at least retirement.
I know this is a vast, complex question but just wondered if you guys had any wisdom to share, good books you’ve read or other items you have found that gave you direction and keep you going?
I feel like I have a grasp on the technical parts of the job as I’ve had a license in Florida for years and have alot of training in the codes and good building practices…just looking for that motivation that convinces you this is the best job you’ve had even when the money may not be rolling in as much as you like.
Thanks for any input you might have.
Mike
Replies
Mike, writing a business plan will be the best thing that you ever did. If you had wrote one the first time, you probably would have succeeded. It will help you focus.
blue
anyone care to share a "real" business plan?
I kinda know what one would be ... as I have the books sitting right here on the shelf. But I've never bothered to "write one" ... I could probably tell ya mine if we were sitting at a bar ... but that probably doesn't count.
To take what Blue said ... I'd probably be farther if I'd actually taken the time to write one ... then again ... part of my mindset on the whole self employ deal is to not have a set plan, so to speak. Roll with the punches and roll where ever the most money at any given time is. If I had to sell that I'd call it "flexible" ...
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
I'll try attaching my business plan here. My business is similar to yours. The plan is a work in progress...as is the business.
For those who don't want to look at a download--here are the main Ideas in my plan:The Mission: To Delight Customers with Smart Designs and
The Finest Craftsmanship in the Home Improvement Business.Our Focus:• Quality Cabinet and Countertop Installation.• Kitchen and Bathroom Remodeling.• Fine Finish Carpentry.• Custom Closets and Storage.Key Elements of Our Vision:• Highly Skilled Employees
• State of the Art Methods & Materials
• Continual Improvement of Design & Execution
• High Quality Carpentry—On Time
• Target Core Kitchen Business
• Expand Into the LaCrosse, WI Market
Thanks.
I opened this thread one morning last week then looked at the clock and saw I had to run ... took me a while to get back and dig thru to find it again.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
I agree with Blue on the business plan though not on the "you probably would have succeeded" part since there is a lot more to the equasion than just having it in writing.
I did a business plan when I first started and the thing it really did for me was made me aware of my numbers early on. It also forces you to think through a lot of little decisions. I knew what I had to make in order to pay myself and make ends meet. It also gave me the information I needed to quote work at an amount that would allow me to make money. So that would be my first idea.
I am going to write a new one tommorow on another business venture I am looking at for the same reason. So I have a map and a solid idea of what my numbers are. I got my format from the local chamber of commerce. DanT
Agreed Dan-o
The most important part of a business plan in this industry is knowing your numbers. All of the "strategic vision", "mission statement" and other crap that the business plan books tell you that you need is a waste unless you've got plans to become a multi-million company.
If, however, you don't know what your numbers are, and therefore how much to charge from day one, you're heading down a bumpy road from the start.
Bob
My 'business plan' for getting work is simply this.
Get 'out there' and meet lotsa people who can send you work. Once contact has been made, keep making it.
Because of this I have never advertised. Never needed to.
Just finished a large job. Gave the architect a bottle of champagne as he gave me the plans to go over and put in a good word with the owners. I asked him to keep me in mind for any projects along similar lines in the future.
I do some work for a large prominent landscaper. The last 3 jobs via him have been 'just do it' work with nobody asking about cost.
Lots of bathroom refits from a plumbing supplies outfit. I call in on a regular basis to say hello, drop off something for the guys now and then etc.
Seems to work really really well.
Whatever it was.................I didnt do it.
Mike,
I never sat down and wrote up a formalized business plan---as such.
But I always had a basic premise----one over-riding goal, value, approach etc.---that could be summed up in one sentence
that let me measure all future actions against that goal( does this bring me closer to my goal or further away from the goal)
which in turn gave me the dicipline to weed out everything that wasn't bringing me closer to my goal.
It doesn't matter what your goal is---- but if you can't some it up in one sentence---- then it probably isn't clearly thought out yet.
Best wishes, Stephen
here.
[email protected]
It's Never Too Late To Become What You Might Have Been
Eric -
The plan format that you attached for an established business looks familar. I looked at about a dozen or so of these things last year when I started writing one (which I now cannot find on the new computer). May I ask where you found it?
Don K.
EJG Homes Renovations - New Construction - Rentals
SCORE. Find it and much more on their website.
I thought I had more to post but couldn't find them.[email protected]
It's Never Too Late To Become What You Might Have Been
Thanks for that ...
looks like I got homework.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Wasn't it you that was toying with the SCORE thing including hooking up with a SCORE mentor?
Was a while ago, like last year sometime.
Eric[email protected]
It's Never Too Late To Become What You Might Have Been
Yup ...
filled out the application.
They are supposed to set you up with a retired guy in a similar business situation.
Waited forever ... finally got a call.
They said the first guy I was to be set up with died.
Second guy decided he didn't want take on anyone new ...
Finally got in touch with my third contact ... had absolutely nothing in common business wise ... no construction experience at all ...... just talked over the phone ... still decided to meet and see what it was all about.
We set up a meeting time and date ... I had to cancel that time to to meet with a potential client ... and he wasn't too keen about making a second appointment afterwards ... so I never followed thru.
I was kinda pissed ... I went and signed a contract that morning ... I'da thot a former businessman would have appreciated that ... but he was suddenly vague about our second meeting time ... so I dropped it ... and never followed up.
I'm sure it's all based on the local people ... and the actual people you talk to ... but I wasn't to thrilled with the place. I'll probably call back sometime to see if I can get on the list for a retired contractor.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Go to the SCORE website. They have dowloadable docs. there.
[email protected]
It's Never Too Late To Become What You Might Have Been
Hi Mike,
My last business plan was 80 pages... and it's not exactly a GC or Carpenter's plan.
Anyhow, here are a few elements we coach our guys to include in theirs.
Marketing Plan, even if it is primarily word of mouth/networking. We ask them to treat even those activities as a job--with goals and quotas.
Analysis of your competition.
Realistic analysis of your challenges and advantages.
The entire business plan should utilize feedback and opinions from people not connected, related to or dependant upon your business. Important to get impartial advice when hatching a plan.
Economic Expectations. What if interest rates shoot to 15% (a reality not that long ago), or a prolonged war were to happen, or terrorists attacked your city? How would your business cope and thrive? Disaster scenarios are a useful exercise. Things like that will go a long way towards increasing the confidence of you as well as your lenders.
Your business plan can contain many things that most other folks don't include... get creative.
L
GardenStructure.com~Build for the Art of it!
Thanks guys...I really like the input. Still doing some research on how to make things work.
Mike
Don't really have a plan, as I just do some remodeling, cabinets, and occasional furniture. Not high-end.
Have learned one thing. Make sure the HO or customer understands everything about the upcoming job. I remodeled my own kitchen with the kind of unique cabs and storage ideas that I can bring to their home. Ditto with furniture. If they see it in action, they will give you less grief when and if problems arise.
Business plan...KISS.
To me, the most fundamental part of the plan is determining what it is you actually want to do. Find (and understand) your niche & then exploit it. Before I hung out my sign a year ago I did some homework; in my area anyone with a toolbelt calls themselves a 'builder' - everyone else is working for beer money on the side. There was/is no one in the middle taking on the smaller jobs (1 day to 1 week kind of work). So, that's where I've focused my business - someplace where there's little to no competition yet there's a real need.
Once you've determined your direction, an hour with a lawyer and accountant to get your business properly structured is essential. Don't be afraid to ask them for any leads or introductions to other people they think you should meet.
Join the local Chamber of Commerce and go to the monthly networking events. Bring business cards and get your 30 second 'elevator pitch' down cold. Nothing quite as embarrassing (or that raises a big red flag) as when someone asks you what you do and you stumble thru a response that it's everything from from fixing a door knob to building a house. Follow-up with a 'good to meet you' note to everyone you met. Don't be afraid to ask them for leads or introductions.
Once you know your niche (let's say, the small stuff) call the bigger, reputable builders in the area and ask to stop by just to meet them - no agenda - give them your 30 second 'elevator pitch' so they know you're not looking to swipe their jobs (or waste their time). If you're meeting them at the job site bring a couple dozen donuts for the crew. Tape your business card to the boxes. Maybe the homeowner or one of the subs will grab it and call. Again, follow-up is key and don't be afraid to ask for other leads.
Enough of the rant. Even if you don't do the full business plan you need to have a sales/marketing plan to get you going. As you excute on the sales and marketing side you'll learn more about what your business should/could look like. All this will help you get to the numbers and the financial side of the equation.
-Norm
>>>>>>>>>>>>I'm just curious as I feel that my lack of a real gameplan and just waiting for the phone to ring years ago was the reason I never really made it. And of course in this new endeavor I want to make it happen and do this for the rest of my life...or at least retirement.
I had a business model from before day one. About day 86 I had changed it and years later I'm constantly changing it as the market changes and competition increases. I tend to try to specialize in something few others can do and approach it (and sell it) differently from my competition. Above anything else, I try to keep what I'm doing to something I enjoy. It is work, but life's short, and most days I'm not ready to quit at quitin' time.
Birth, school, work, death.....................
http://grantlogan.net/