Are you facing growing pains in your building company?
Recruitment headaches, inadequate systems, time management, cashflow.
It may feel like all your time is spent fighting fires, and it probably is.
But when you adopt these 5 principles, you take on a very different role in your building company...and become a leader.
In this article, we'll be revealing a simple 5 step process that you can follow in order to make better strategic decisions that leads to improved growth and profitability for your building company.
It’s simple to memorise, easy to follow and yet comprehensive enough to deliver results in both the long and the short term.
It’s called Plan, Delegate, Coach, Predict & Learn.
And if you follow it, you’ll see instant results in your building company.
Let’s start with:
Step 1 - Plan
Planning is the key to everything.
If we don’t plan our day, we react to other people’s agenda and spend time doing things that are not profitable. This wastes our most precious commodity, our own time.
It’s the same with finance, if we do not set budgets and forecast the future it’s unlikely we will remain profitable when the company grows and we’ll probably face cashflow issues.
Most staffing problems stem from a lack of planning. By not creating an induction process for a new employee, or providing them with standard operating procedures, we end up with inefficiencies in our business and poor retention rates.
You wouldn't build a home without plans, so don’t try and run a building company without proper planning. So regardless of what stage you’re up to in your own business, the first priority for each day is to plan.
And the first thing you need to plan is to do step 2....
Step 2 - Delegate
Let’s be honest here. You’re not the only builder in town are you?
There are other people that can do exactly what you do, not as fast and maybe not as well, but they can do it.
So why don’t you delegate more of your work?
There are 2 reasons:
Either you don't think you can afford to pay someone, or you can’t be bothered to systemise the job and give it to someone else.
I can’t help you with the second reason. I only work with builders who are driven to succeed and prepared to do the extra work required in order to get there.
But if paying someone is what’s holding you back then let me share a tip with you.
First, you need to value your time by calculating your hourly rate.
Once you know your hourly rate, anything below that amount should be delegated as quickly as possible as it is costing you money. If your hourly rate is so low you can’t even assign basic admin tasks to someone in the Philippines, you should not be growing your building company.
Instead you need to figure out how to make it profitable!
So, step 1 is to plan, step 2 is to delegate.
But what happens when you delegate and they are not as good as you?
That brings us to step 3.
Step 3 - Coach
Stop thinking of yourself as an employer and start acting like a coach or a mentor.
Encourage, inspire, reassure.
I tell you, it’s a lot easier to manage your team when you start mentoring them rather than constantly trying to train them. They will respond. They will take on more responsibility and they will GROW WITH YOU.
Every time there is a problem don’t jump in with the solution, coach your team to uncover the answers themselves.
Don’t allow them to be scared of failing. Instead, encourage them to learn from their mistakes and improve their own decision making process.
Once you start planning, delegating and coaching, your business will be ready for anything the future may throw at it...but it certainly helps if you follow step 4.
Step 4 - Predict
Predict the future. You don’t have to know the future. Just predict it.
What in your opinion is going to happen in your market over the next 12 months, 5 years or even 10 years?
- Will technology change the way the industry operates?
- Will consumers demand online access to information so they can track all their communication with you?
- Will there still be demand for your services?
- Is there another niche that could be more profitable?
- Could your processes be improved by implementing new software, new hardware or new suppliers?
- Does more of your work need to be outsourced, or could you improve margins by taking on some activities in house?
When we predict the future we uncover both threats and opportunities for our business. But before we take action there is one thing to remember…
Better information leads to better decisions…therefore we need to do step 5.
Step 5 - Learn
As a business leader you need be constantly learning. Learn about new software, new materials, new skills.
To invest in learning, is to invest in yourself.
The value of your knowledge is directly linked to your income, so invest wisely and regularly.
We recommend setting aside at least 2-3 hours a week purely for learning time.
Use it to learn about a new software program, attend a business training program or follow an online course. The time and money you invest in yourself will not only come back to you 10-fold, it will keep coming back to you over your business career.
By PLANNING to DELEGATE and COACH your staff every day, you’ll have time to PREDICT the future and LEARN the skills that will help you to take advantage of the opportunities that exist for your building company.
And let me assure you, there has never been a better time to be a builder than right now.
Don’t let this opportunity pass you by….
PLAN DELEGATE COACH PREDICT LEARN
Are you ready to invest in yourself and become a professional builder?
To acquire business skills required to take a building company to the next level is within the grasp of every residential builder that owns their own company.
Right now the Association Of Professional Builders is looking for builders to represent us in key areas across Australia, New Zealand, Canada and the United States.
If you want to discover the fastest, easiest way to grow a residential building company, click on the link below to watch the demo where you'll be able to take a look inside the Association Of Professional Builders Members Area.