Paul Riddle
Contributing Writer
Success Group International
“It’s Tuesday morning at 1:45 a.m. I just finished work…I haven’t even eaten dinner…guess it’s too late for dinner anyway. I will try and call you tomorrow morning, but I’m not sure if I will be able to keep our meeting.”
This was an actual email sent by a client to one of our Client Success Managers (CSM) several weeks ago. The client was supposed to call the CSM for his weekly chat to discuss business, but as you can imagine, the CSM never got that call. On the bright side, at least the member was considerate enough to email, but that’s not the point…
Why was he working so late? Probably he had a deadline and the job just had to get done. He made a commitment to his client and he certainly would never let down a client. But why so late? The real reason is that he is not running his business… It’s that his business is running him!
I guarantee the next day he was exhausted and not nearly as productive as he could have been with a full night’s rest. If he was moving the next morning, it was slowly. He didn’t see his family or eat dinner. Is this why we get into business? Where is the glory in living this way? Unless he makes a conscious decision to change, and get out of this type of work habit, we can guarantee more 1:45 a.m. days. To break this absurd cycle we have to systemize our business and all of the processes around our business. It begins with a plan and a question.
What is the real purpose of your business? If you answer, “To make money” then why is that the focus? I don’t care what region you’re in or the state of its economy, what happens inside our own companies is up to us.
Here are 10 simple questions. If you know the answers, your business is going the right direction. If you can’t, then you need help.
- What is your Gross Margin?
- What is your Asset to Liability ratio?
- Do you have a written business plan for 2015 complete and ready?
- What is the real value of the inventory in your company?
- Have you negotiated your 2015 pricing with your suppliers yet?
- What is your direct labor percentage?
- What is your overhead or administrative percentage?
- Is your 2015 marketing plan written and ready?
- Do you have a daily report to track your company’s results?
- Do you have receivables? If you do are they less than 60 days old?
If you cannot answer these simple questions, you may have be destined to work until 1:45am. You need help and you need it fast.
It may be time to consider the real purpose of your business. A New Year is here. Take the time to start getting ready now. Then, hopefully, you won’t be the type of contractor working until the wee hours of the morning. Instead, you’ll have a fully actionable plan that is guiding you to a profitable year.
About the Author: Paul Riddle, Vice President, Success Group International
Paul Riddle has over 25 years of hands‐on experience as GM, COO, CEO, and owner of service companies specifically in the mechanical and restoration segments. Throughout his career, he has personally trained the owners and employees of hundreds of businesses, including several turnaround situations. His hands‐on training for owners and their employees has been in the areas of business planning, sales & marketing, and company culture. Paul enjoys applying his knowledge and experience working directly with business owners and their employees to increase profits, improve the company’s present value, and unlock the intrinsic value of the business when sold. Paul joined SGI in 2009 as the VP of Operations.