At various times I have stressed the importance of reviewing a profit & loss statement at least monthly. Let’s take a look at one that is just about right, submitted by a good friend and fellow PHC contractor with a six –truck service firm. Items #15 and 16, flagged with bold capitals, ate the only areas that I take issue with, which I’ll explain afterward. This P&L statement covered a nine-month period. Take a look and then continue on with my article. Continue Reading »

This is strictly a service & repair company – no new construction work. This is a “C” corporation and at the end of the year the company was six years young. They employed three persons in the office, one of whom was part time. There were six full-time service technicians and installers. The owner worked 500-600 hours in the field – in addition to another 3500 hours or so being the “boss.” Field technicians were paid for 9,634 payroll hours at a rate of $13/hour, including mandatory fringes. (Base wage rate was actually in the area of $8.40 an hour.) The company used a flat rate program with a retail labor rate of $65 factored in. (Obviously not enough.) There was no profit sharing or medical plan for the owner and his faithful associates. (This sucks.) The owner joined Nexstar and is now in the process of transforming his former “slug” company into a model of success. The owner is a wonderful student and gentleman – a Blau “cult” member whom I have a lot of love and respect for. He’s going to make it big time. After the owner gets it all together, he wants to learn how to play golf so he can pick my pockets! Continue Reading »

In this country, in these times, we have access to everything we need to be healthy, wealthy and wise. So…what’s getting in the way? Maybe you are. The stumbling blocks on the road to success are of your own creation. I’ve listed the most common ones below. Recognize any of them? Continue Reading »

When you decide to go into business for yourself, you may have had a vague idea of what a day in the life of a successful entrepreneur might be like. For some people, it’s breeze through the door at 10:00 a.m., chat a bit with the office staff and then troll through the service department inspiring the adoring dispatchers and service techs. Then, after a heavily martinied lunch, comes a leisurely round of golf. Your evening would be spent at some exciting social event, rubbing elbows with the rich and famous. A typical day for the owner of a contracting firm, right? Continue Reading »

My friend, Bubba decided to enter a bike race. Though I wasn’t entering, he asked me to ride along side and pace him. “I gotta beat the competition,” he said. “I gotta beat Junior, Scooter, and Delbert.” Bubba got off to a wobbly start. “I thought once you learned how to ride a bike, you were never supposed to forget,” he muttered.Finally, he got enough forward motion to get moving. He was working hard to try and get his speed up. “Why am I riding this bike,” he grumbled. “I could walk faster.” “Hang on Bubba,” I said. “This is like marketing and advertising. It’s always a little hard to get it going, but once you get some momentum, it will get easier. You’ll see.” Continue Reading »

You are sick and tired of being a slave to that disaster you call a business. The one that pays slave wages and lousy benefits to employees and little or nothing to yourself and your spouse. The business that is sustained only by the patience of your vendors, who don’t get paid for 90 days or more when times slow down. Finally, you are ready to make a change for the better. You purchase the Frank Blau “Business of Contracting Kit”- from ShuBee. You have become a numbers cruncher. For the first time in your life you’ve learned what it really costs to run a business, and what you and your employees are worth in the way of compensation. You make the decision to run a business as it should be run – in a way that takes care of you, your spouse, your employees and your customers the way they deserve. Continue Reading »

(Macon, GA) Did you think you would be further along in your business than you are now? Business can be a path to prosperity and freedom. Or it can be a grind - too much to do for too little to show for it. Are you ready to get focused, get going and get profitable? A simple, flexible business plan – and an easy way to implement it – can help you realize the dream that caused you to “hang up your shingle” in the first place. That’s why Small Business Expert, Ellen Rohr is hosting her powerful and popular webinar series The Challenge, starting September 18th, 2011. Continue Reading »

Can you identify the 20% of management efforts that make 80% of the difference in your business? Some of the best contractors in the plumbing, HVAC and electrical home service industries have documented successful strategies from creative ways to measure employee performance against expectations to tips on holding daily huddles to track revenues. They’ll share their practical and tangible tips for high impact management with contractors at Nexstar’s Super Meeting in Nashville, TN, October 13-15, 2011. Continue Reading »

Life in the Ozarks has a unique flavor, and the Southwest Missouri Farm Fest offers a plateful. One weekend every October, Hot Rod sets up a booth at the Empire Fair Grounds, right between the State Conservation Corps and a John Deere collectables dealer. He always likes to have some attention-getting invention on display. This year, Hot Rod unveiled a portable solar shower. Here’s the concept: A photovoltaic panel sends electricity to the circulator. A garden hose hookup provides the domestic water. A closed loop system delivers hot water from the thermal solar panel to the indirect tank. Open the shower valve, adjust the temperature and enjoy. It’s a mini-version of a system he installed for a commercial carwash business. The whole system fits neatly on a small trailer, and folds up for aerodynamic transportation. Continue Reading »

I speak with plumbers all the time. The biggest question I ask is what are you doing differently to grow your business? Maybe when starting a business the most important consideration is the technical aspect of getting the job done and doing it right. That remains to be an important aspect in business, however as the business grows and matures many other aspects become equally important. Sales, Marketing, advertising, brand identity; Fleet Management, etc just to name a few. It reminds me of a restaurant I went to once. It had just opened and the food was great! The next time we decided to go there, it had closed. We never saw any local ads, coupons, etc. That just goes to prove, you can have the best {fill in the blank}, but if no one knows about it, the business will not grow. In summary having a great technical skill is just one aspect of running a business. Continue Reading »