Three Principles You'll Want To Consider When Starting A Building Business
Starting a business can be really hard! Fifteen years ago when I started The Successful Builder I had a great coaching system - but only a few clients! It was painful! Fortunately I quickly discovered that the handful of building clients I had at the time did really well in my coaching program.
So I stuck with them and built a solid coaching business by focusing on builders - who fulfilled certain conditions. Since then, I’ve had the privilege of helping heaps become successful business owners.
In the process I discovered three transferable keys to building a sustainable business, and I teach all my clients these three keys. Actually, it doesn’t matter what kind of business - the principles are the same.
1 Be a Specialist
Most builders I work with are above average tradespeople. They are resourceful people who can turn their hand to almost any building problem. Moreover, should they come across a new problem, they know where to go to find help.
So, when they present to a potential client they do so as an all-round building guy. However, almost every builder I have worked with has also had a preference for a certain kind of work.
Some love renovations and would do nothing else if they had the choice. Being the expert, solving unexpected challenges and having to rely on personal experience gives a real buzz. They love working with home-owners and helping them plan changes to their home.
Others prefer high-end architectural builds where cost is not such a huge challenge. They find fulfilment in working with good designers and engineers, and being part of a team building award winning homes and businesses.
Then others prefer building typical new homes, with the focus on speed and efficiency - organising the subbies and getting the job done in the best possible time.
The thing is, when you specialise in doing what you are really good at, you start to get a reputation as the expert in that area. That attracts better customers. Because I have specialised in builders for so long, I find there’s nothing I meet these days that I haven’t met before.
So what kind of building work do you prefer doing? What kind of work gets you excited the most? What kind of work are you really good at?
2 Fantastic Clients
Too few builders actually stop to think about the kind of clients from whom they get the best results, from whom they get the best references and from whom they get the best referrals. Yet these people are probably their choicest clients.
They are the people you just seem to “hit it off with.” They love what you have done for them and tell everyone they know about you. What’s more, you really enjoyed working with them. If you had a choice, all your clients would be like these people and what a fantastic business you’d then have! Wow!
But you can!
When I ask some builders who their favourite clients are, they look at me blankly. Yet if I ask them for their favourite truck I get an instant answer! Now, what’s more important? Having favourite clients - surely!
There is nothing worse than scoring a large job and then discovering part-way through that you are working with the client from hell! Impossible expectations and unrealistic time-frames. If only you had known that earlier you wouldn’t have bothered following up the lead. But you didn’t check out if they fitted your favourite client profile.
When I discovered that my ideal builder is qualified, has a great work ethic and integrity and loves delivering excellence, it made locating them much easier.
So, what’s your favourite client profile? How old is s/he? Where do they live? What are their preferences? What do they want?
And what are you doing to attract more of these?
3 Make Profit
The bottom line of any business is profit. You need to make a profit. Too often I hear the complaint that there are lots of dollars going through the business account but very little profit at the end of the day. Sad! All that work and worry and little to show for it.
The thing is, if the economics of a business are not right then it doesn’t matter what else might be right - great even - the business is not going to be sustainable. Economics do matter. Profit is important.
So when you are thinking about your next client and the next job ask yourself the following questions: Am I sure I can complete this job efficiently? Have I priced it correctly to ensure it generates my desired profit? Are these the kind of people who can afford to pay on time? Does this building contract protect me against unforeseen things? Can I make the same amount of profit with less risk?
When I realised that building businesses often have large turnovers, and small adjustments can make a huge difference to returns, finding my coaching fee quickly was not difficult. Another reason I chose building businesses.
So, what jobs are making profit for you? And where have you lost money? What difference would it make to your business if you only worked on profitable jobs?
Takeaway
Each of the above keys are important by themselves. But imagine if you had a business where all three were in play? Imagine your business where you are known as the specialist, where you are working only with clients you love, and on only jobs that made profit! Do you think your life might be easier?
P.S. Whenever you’re ready….here are 4 ways I can help you grow your building business:
1. Grab a copy of my free book
It’s a road map of a successful 15 minute sales call that’s guaranteed to increase your conversion rate. Click to download.
2. Join Trade Mates and connect with builders who are scaling too.
It's our new Facebook community where smart builders learn to get more income, time and freedom. View our free business resources for builders. Ask questions of like minded business owners and business coaches. Give your knowledge and expertise to help others. - https://www.facebook.com/groups/TradeMates/
3. Join My New Group
I’m starting a new group called “OnRamp” to kick start sales and marketing in your business. If this sounds like you, message me with the words, “OnRamp”, and I’ll get you all the information.
4. Join Loft Members
If you’d like help to get off the tools, make more money and get your life back...just message me at graeme@thesuccessfulbuilder.com and put “LOFT MEMBERS” in the subject...tell me a little about your business and I’ll get you all the details.