Getting Your Business to Work

Is Your Ship Sinking?

In good economies, a rising tide lifts all boats. Even business owners who weren’t following basic business fundamentals were making money over during the boom over the last 5 to 10 years. Now that the tide’s gone out, they are exposed and don’t know what to do. Now these business owners are stuck without sound financial tracking systems, a marketing presence, loyal customer relationships, trained people, operational systems, old equipment, or any cash left over to weather the storm.

Successful business owners adapted technologies and leveraged their competencies to seek new markets. Today you must re-think your business model and stop resisting change to survive. While many do nothing and hope the pain goes away or the economy to get better as they postpone decisions affecting their future until it’s too late.

A business that’s gone from $5 million to $2 million has to start over again from a $2 million operation, re-organizing sales, marketing, cashflow, and overhead. They need to try new markets, products, delivery methods and systems. And if you don’t have the expertise to move into new markets, you need to hire someone who does.

Think like a Fortune 500 CEO. They’ve got to make a profit every quarter regardless of the economy. Their top line has to grow as well. If it doesn’t, they get fired. Successful CEOs seek strategic alliances, partners, companies to buy, divisions to sell, joint ventures with other buyers and vendors to grow their business. They also weed out ineffective employees from effective ones and ask employees for input on improving the company.

You’re not in the business you used to be. You’re in the money-making business. What else can you do to make money? Perhaps you can add more services and become a full-service provider for your customers. You can’t make money by saving money. There are two kinds of business people: those who try to save their way to success by doing everything cheaper and those who invest in their future through marketing, training, customer service, and improving their image.

JOIN US In Orlando September 11 & 12

We will be hosting a special ‘Profit Builder Circle Academy’ focused on changing your business to work for you in a slower economy. We will include a session on finding new markets and customers, offering new services, and how to emerge stronger and more profitable than ever before.
Learn More

Webinar 

“How To Win More Jobs At Your Price!”

I will be presenting a 1 hour webinar on next month. Everyone is invited to sign-up and participate. You will be receiving a link and a registration form shortly. I am doing this in partnership with Hanley-Wood and the World Of Concrete.

Get Your Business To Work!

Thanks to all of you who purchased a copy of my new book on Amazon.com. With your help, it reached #7 on the small business books best-seller list. To purchase additional copies, I am now offering the book on in my bookstore at the discounted price of 2 for $30.00 or only $1.00 if you order 3 of the workbook cd sets. Check it out in our HardHat bookstore.

 

Rebuilding is sometimes the best thing to do.

If you could listen in on a seminar, you'd hear.....

"There is good news, and then there is really good news, said George Hedley at his recent seminar to a large group of contractors in California. “The worst days of the recession are behind us,” said George enthusiastically. “Now we get to rebuild and start over!” Despite the chuckles from the attendees, that last bit was the really good news. It may sound like it’s not, but according to George, now is the time to take a hard look at every aspect of the business, make some tough decisions, and create a written blueprint for success which will guide and focus each business owner in building a much more profitable business.

“Make a resolution that 2009 will be mighty fine,” George said with a smile, “and that in 2010 you will not be a has-been.” It all begins with having a blueprint for success. That does not mean having an idea in your head of what you want to accomplish. It means having a written plan. Business owners who have a written business plan are twice as likely to succeed as those who don’t.

The first thing needed for a successful plan is to know exactly what you want from your business. What are the reasons you decided to go into business in the first place? Included in the handout materials George gave each attendee was a fifteen point list of why people start their own business. On that list are personal goals such as attaining freedom, building personal wealth, and having more time for family and social events. “The only way you are going to get what you want out of your business,” George pointed out, “is if you know exactly what you want from it.”

In order for your business to succeed, as you rebuild it, you need three key things:

1. You need to know what you want.

2. You need a written plan to get there.

3. You need to monitor results to make sure you and your business are on target.

Once the goals and objectives of the company have been clearly defined and written out, the next step is to implement. That, according to George, means making some tough decisions. “As you redesign and rebuild your business, you need to make the tough decisions. Are you going to cut back your business to your comfort zone? Down-size and be stuck in the ditch, with your head down, working hard for the rest of your life? Or, are you going to grow your business? Get out of your comfort zone? What exactly,” George asked, “are you going to do different as your rebuild your business to make your company be exactly what you want it to be and give you what you want?”

The number one reason why businesses fail is that owners won’t change. “Great generals have great lieutenants, and good companies have good employees,” George pointed out. Every business needs four basic types of people: a visionary leader, excellent managers, quality accountants, and superior workers. If you, as the business owner, are the superior worker, than, George says, “you will never get rich because you have your head stuck in the ditch.”

Knowing how to do the work is not the same as knowing how to make a business grow. No one is great at everything. Having a great team to support the business is critical. “Know your strengths and weaknesses,” George advised the group, “and then replace yourself in those areas where you are weak with strong employees who will make each of the four aspects of your business shine.”

As part of the seminar, George covered the eight critical business-builder success factors. One of those factors is having a “passionate purpose and inspiring vision.” Another is having “clear written targets and goals.” But, the most important of the eight factors is for your business to be “different, unique, focused on your delivery system, services or products.” “If you are not offering something different or better,” George said, “then you are just selling price, and you can’t build wealth selling price.” Finishing up his seminar, George gave business owners this bit of advice: “Spend more time with your customers, and less time stuck in the muck.”

Jack Be Nimble, Jack Be Quick, Jack Change Your Business Plan Before It's Too Late

In a slower market, when you continue to do what you’ve always done, you’ll find it eventually doesn’t work and won’t deliver the same results you are used to achieving. So it’s time to let go of your past and face the fact that the future will be different. And only the nimble, quick, and strong will be successful. Look at the car manufacturers trying to change their business plan. Too late. It’s over for them as they have done it for 50 years or more. You must change how you do business to thrive in the years ahead. Golfers know what ‘mulligans’ are. They are second chances to re-hit your shots. But in the real world, you don’t get a second shot. Every day you face reality of a slower economy and tougher business climate. Either improve your swing and try something new, or continue to hit your shots into the rough and your score won’t improve and you will lose the game. The booming economy handed out lots of mulligans when many companies delivered average or mediocre performance and poor results. It gave them a second chance with their customers, clients, and contract requirements. But now companies won’t get any mulligans for a long time. This is the real deal, no “take-overs! You must get it right every time on the first shot every time. Welcome to the PGA tour where you can’t rest on your past performances to pay your bills, keep fans coming back wanting more, and keep you at the top of the money list. To survive, you will have to work harder, smarter, more, get organized, stay in control, try new ideas, and work different than you have in the past. To work differently, you’ll have to improve how you operate your company and change how you work with your customers, implement your marketing plan, sell your products or services, deliver your projects, and elevate your level of quality and service. To get a freecopy if my new e-book entitled: $ure $trategies To $urvive A $lowdown! Send me an email: gh AT hedleycontruction DOT com

George Teaches Business Owners How To Make More Money Using Marketing & Sales Strategies That Work

“I have never received a thank you note from a subcontractor, vendor or supplier” said George Hedley at the beginning of his seminar on selling more than price last Friday morning. “All I ever get are invoices and change orders from my subcontractors,” he continued. “But now that the economy is slow, a lot of contractors, vendors, and suppliers are calling and looking for work. And do you know what I ask them?” he questioned with a smile. “I ask them: where were you when I needed you and you wouldn’t return my call?” Ongoing “Drip-Drip-Drip” marketing and sales must be done all the time, every day. Not just when the amount of work on your books is lean. Maintaining good relations with customers is an continuous process, from thanking them with a personal gift or a handwritten card when they give you work, to building a trusted relationship with those who may be able to give you more work in the future. “Being a successful business owner,” said George many times during the 3 hour session, “is not about doing the work, it’s about getting the work.” To get more work, a company owner — no matter what the business — needs to build personal relationships with at least 24 loyal and potential customers. People prefer to do business with friends, and second, if a friend is not available, then they want someone they can rely upon. According to George, the things customers want and look for are, in order of importance: reliability (30%), responsiveness (25%), assurance (20%), empathy (15%) and last, quality and price (7%). What this tells us is that price is not everything. George’s research show that 80 percent of customers actually want convenience more than the lowest price. “Don’t sell price,” George repeated over and over during his talk. “If you want to be successful and if you want to be rich, don’t sell low price!” (Unless you are as efficient as Walmart.) Instead, find a way to differentiate yourself from your competitors. He provided, as an example of the Pink Plumber. When the garbage disposal at his home was broken, he called the Pink Plumber, whose motto is: ‘We Pamper You!’ His immaculate truck was pink. His clean uniform was pink. His pristine tool box was pink. He rolled out a spotless pink carpet from the door to the sink. He put pink booties on before entering my home. When he finished, he vacuumed his way back out to the front door. He thanked us for calling him and giving him the job. He asked if there was anything else he could do for us. It was a perfect experience, said George. The next time we have a plumbing problem we will absolutely call the Pink Plumber.

• George is not saying that you need to pick a color and make everything that color. He is saying that the Pink Plumber company had done everything right. First, they had a motto that reflected what the company could do for the customer, namely: We Pamper You!
• Next, their employees were dressed in clean uniforms. Their trucks and tools were spotless and showed their professionalism. The technician cleaned up after himself, and took extra steps to not make a mess in the home. At the end of the job, the customer was thanked, and was asked if there was any other work that the company could do for them — an important question that many of us fail to ask.

Figure out what it is that sets you apart from your competition, and then tell everyone, over and over and over again. Repetition is the key here. The Sell More Than Low Price seminar gave the attendees who packed the conference room practical marketing and sales strategies to find and keep loyal customers who will call and give you work, instead of just blindly bidding jobs and hoping a low price will win the day. If you did not attend the seminar, watch out, because your competition just got a lot more savvy about getting profitable work.

Business Bail Out

The election is finally over and we have a new President, lots of hope and changes ahead. Some good and some better we all hope. Regardless, now is the time for business owners and managers to do something about your future. Don't sit and hope the government will bail you out. Don't wait until you run out of customers, jobs, or cash before you make those tough decisions you know you need to make. Don’t stay in your comfort zone doing what you’ve always done – it won’t work. Do something different now. Make tough choices about your customers, employees, managers, business plans, marketing, and sales. Don’t sit and wait until it’s too late. Do it now! As a business owner, your choice is simple. Do what you know you need to do and do it fast, or die a slow death. When I speak at large conventions on how to get your business to work, most people in the audience are afraid to make tough decisions, try new ideas, and do business differently. So they continue to hope their outdated business strategy will keep working as they tread water, sink slowly, and wait for something good to happen. Even if survival is your goal, you past methods will not work. Running your company the same way you always have will result in failure. Thriving will take determination, a decision to change, realistic leadership, and difficult choices. There are no guaranteed answers, but the strong will make strategic quick decisions. While others do nothing new or different as their companies continue to struggle. Here is a list of decisions and things you must do right now. What tough decisions should you make right now? 1. What do you need to do to make a profit and grow? 2. What should you do about your cost of doing business? 3. What should you do to attract new or better customers? 4. What should you do with your management team? 5. What should you do different with your employees? 6. Where are you wasting or losing money? 7. How can you be more efficient, faster or better? 8. What suppliers, subcontractors or vendors should be replaced? 9. Which services, products or projects should you stop doing? 10. What should you start doing differently? You must do these 10 things right now: 1. Set 3 year goals for sales, overhead and profit now! 2. Cut your fixed cost of doing business now! 3. Preserve cash now! 4. Cut your poor performers now. 5. Go visit your top customers now! 6. Seek new customers and markets now! 7. Look for new business opportunities now! 8. Increase sales and marketing now! 9. Increase spending on technology now! 10. Seek struggling companies to buy now! Don't forget why you're in business or go to work everyday: Your family, friends, freedom and fun. Take more time off (at least 2 to 5 extra days) this upcoming holiday season than you usually do. Relax, spend quality time, and find something new and exciting to try or experience. HAVE A SIGNIFICANT HAPPY EVERYDAY! George Hedley ************************************ HELP! I need book endorsements! My new book is at the publisher for editing, layout and typesetting. It is starting to build momentum as it is scheduled to hit the bookstores in June 2009. I am looking for well known people like Tom Peters, Donald Trump, or Bill Gates who will write an endorsement for me on the cover. If you have a suggestion or an introduction, let me know.

Do You Compete On Price?

Well I finally got our August 31st fiscal year end corporate taxes done. Unfortunately Uncle Sam got shorted this year as the economy and real estate market reduced my income. Think about the billions of dollars the banks hurt the economy by not qualifying borrowers the prudent way they should have. This caused the country to head into a recession and millions of people have less money than they need to get by. And as a result Uncle Sam will not get enough tax money to cover expenses. So I'm sure they will cut spending like you and I have to do to cover our rising costs and shrinking revenues. Or will they? I recently spoke to a very diverse group of audiences including modular building manufacturers, steel fabricators, spray foam contractors, art dealers, and the sales force at Solo Cup. Everyone is facing the same pressure: too much competition and rising costs. Steel prices were significantly raised by the mills last week even though the market is heading down. Who can figure? But the key to success in any business is to offer more than low prices. When you compete on price, you'll never make enough money to meet your goals. The Fortune magazine most admired companies list came out a few months ago. Guess what? The companies who top the list INNOVATE and stay ahead of their competition by offering new and different products, services, and ways to deliver more value to their customers. And they are making record profits. How about your company? What do you have to do to be better than your competition? Go visit your competitor’s place of business. Are you really any different than they are? If you had a choice, would you buy from them or your company? If all else is equal between what you offer and your competition, the only differentiating factor is low price. And you can’t make any money selling low price in a shrinking market. Need ideas, visit my website @ hardhatpresentations.com and look for one of my 100 articles to help your business grow. George Hedley CEO Hedley Construction & Development Inc.

The Economy is Slower....Now What?

Every day the financial institutions and banks get worse. Oil is up. Oil is down. Home prices are falling off the cliff. The government is running out of money. Taxes will go up. Consumers will stop spending and have maxed out their credit cards. The government has bailed out the banks. And Wall Street still doesn't know what to do. Do you? As I travel around the country speaking to business owners, they keep telling me it is different in their market area. They say: 'The economy isn't that bad and we are still busy.' 'I hope we don't have to change the way we are doing business.' 'I hope it doesn't affect me!' Get real! If you aren't planning for a 25 to 50% slowdown in your business over the next 2 to 3 years, you will go broke! (unless you are in alcoholic beverages, medical care, gasoline, or government services business.)

• Lenders have shut down all loans on every kind of real estate project. Get it? - NO NEW DEVELOPMENT PROJECTS.

• Consumers have stopped buying since they can't refinance their homes. Get It? - Retail sales growth is dead.

• Homeowners can't qualify for a new home loan. Get It? - No new homes will be built and construction products will sit on the shelves.

• People can't lease cars. Get It? - Anything to make or service cars will be slower.

What's your choice?

1. Stay put, do nothing, spend all your money and eventually go broke.

1. Decide to make drastic decisions about how you will operate your business.

Take a few days off and figure out what you need to do. Make a plan. And then make it happen. Thanks to the 100's of you who took part in our survey. Based on your input, I have added: “The Economy's Slower! Now What?" to my list of speaking topics available. Some of my clients have learned the time is now to do something. A few weeks ago, I spent 3 days in Mexico at Copachisa Constructora, a $140 million commercial design-build contractor, by helping them implement management systems. I also worked with their marketing executives to develop a plan to obtain more work from USA companies building in Mexico. What a great time I had with professional people working to build a quality and profitable business. I also spent two plus days with the management team and owner of CC&D construction company from Shreveport, LA.. We worked on developing a strategic direction and plans for their management team. We developed management goals, systems, and communication reports to allow their company to grow. We finished our time with me speaking to the entire company on the importance of organizational systems as the company grows, followed by a fish fry of fried catfish and shrimp cajun style – a first for me!