Mark-up versus Margin Confusion

Financial Management, Owner

One frustration I commonly hear from builders before we start working together on their business is, “Why don’t my job profits come out as high as my forecast?”

Sounds a simple question, but the answer can be complex and diverse. There are many forces at play between pricing the job and counting the money, but one issue can be a misunderstanding as to the required MARK-UP to achieve the required MARGIN in the job. Get this wrong and you have set the job up to fall short of what you need at the very start; the pricing stage.

Why is this? Read on to find out

Catch More Sales Leads

Marketing

When you are out fishing and only have one line over the side, you limit the number of fish you can catch in the time available.  The same applies when marketing your business.  Use only one marketing channel and you still may catch a customer, but if your channel goes unnoticed, you can come up empty handed.

The answer, just like when you are fishing, is to use several baited hooks in your marketing.  Also, make sure the bait is enticing and kept fresh.

Productivity Tips

Owner

Learn from one of the world’s most prominent and well respected leadership experts and productivity. Here is a list of 15 of Robin Sharma’s top tips on how to better organise your day so you are able to achieve more of the important stuff and are less distracted by the unimportant.

Innovate or Stagnate

Owner

A good question to ask yourself is “What am I doing to explore and implement new technology or new ideas into my business to make it more efficient and more effective?” While the market is buoyant it is easy to be lazy. You can get by okay with the way you have always done it.
I suggest you prepare for the leaner times now by finding ways to increase your competitive advantage in the marketplace. At worst you will improve your profits. At best you may revolutionise the way you conduct your business.

Invest in Yourself

Owner

Continuing to do the same things that you have always done may be enough to maintain your current position, but possibly not. If you want your 2018 results (or stress levels) to be different to where you are now, you will need to look at gaining some new ideas and some outside advice.
My clients who have joined one of my Construction Business MasterClass groups know this. New ideas, business tools and skills that help them move their business to where they want to go.

Motion Leads to Motivation

Financial Management, Owner

You know exactly what you need to do. You’re focused on all the positive outcomes that will result once you’ve finished that looming task. You’ve cleared your calendar so you can focus on completing this one thing.

And then nothing happens.

Why? Because you think you need motivation. You’re waiting on a spark, on inspiration to fly out of nothingness and smack you in the face.

Well, I hate to break it to you…but if this sounds like you, you’re going to be waiting for a long time. Possibly forever. Because here’s the reality—motivation, as you know it, is a myth. Here are three reasons why.

Can You Fly Your Business in Bad Weather?

Financial Management, Owner, The numbers

In aviation there is a rule around the weather and when a pilot is allowed to fly an aircraft. It’s called Visual Flight Rules, or VFR. The average private pilot is only allowed to fly their plane under VFR conditions, i.e. when you can see the environment around you with your eyes and you know where you are going.
The same thing happens in business. Average business owners are fine in good economic weather, but what if that changes? Can you fly your business in bad weather?

Thinking of Starting a Business?

Financial Management, Owner, Planning

If you are thinking of moving from working for someone else and starting your own business, I suggest you use this outline to plan your new venture. You might just avoid the pitfalls that many new business owners fall into. When you are ready to take the plunge, you might want to sign up for my Trades Coach Academy, online course for newer business owners. It’s packed with ideas, systems, tools and templates to help make your new business a success.

Become a Market Leader

Financial Management, Owner

No company can be successsful today if it tries to be all things to all people.

Rather, the most successful companies – the Market Leaders – select a unique value that they endeavour to deliver to their chosen market segment better than anywone else.

So says Michael Treacy and Fred Wiersema in their book The Discipline of Market Leaders which I read over summer. If you are really wanting to choose an over-arching strategy to set your company apart in the marketplace, this book might be a good place to start.

Protect Yourself With a Trust

Financial Management, Owner

Do you have your family home in a trust?

The building industry is a risky one. The chances of you getting into financial or legal problems are higher in the building trade than in most other businesses. I am not saying that will happen to you, but in view of the higher risk profile you should take all the necessary steps you can to protect yourself and your family. That includes putting your family home into a trust.