Frank Blau
Contributing Writer
What you see in the attachment, my friends, is the bottom line of a 10-month P & L statement for Frank J. Blau, Jr. Associates, the corporation under which I conduct my seminar and consulting business. I lost money.
For those of you who have attended my seminars, shared my company’s financial data with me and have observed my PHC company in action, you know this is not the case with Blau Plumbing. I have no regrets losing money helping fellow contractors become true businesspersons. Maybe, just maybe, as a result of my efforts, this industry may be better off half a generation from now.
Nonetheless, losing money is somewhat embarrassing to me, because as so many of you know, for the last several years I have been preaching the gospel of profitability for and wide throughout this country. Losing money just doesn’t feel very comfortable.
I violated another cardinal rule – I didn’t pay myself a salary. I always tell contractors to build a nice salary for themselves into their overhead structure – as well as a salary for the spouse or other family members who work in the business. But I didn’t do that. What a hypocrite I am! I guess even preachers are not immune to sin.
Oh, I have a bunch of good excuses for not making any money. For example, last year I spent more than $11,000 providing those hand-size calculators that I give away as part of the workshop materials. I suppose I could tell the students to provide their own, or else let them work the old-fashioned way with pencil and paper. Also, I could look to reduce the $8,435 I spend on advertising my programs, or trim fat in a bunch of other costly line items, such as the $10,148 that went toward clerical expenses, or the $2,772 that I spent on my special “Golden Eagle” awards to people who go out of their way to promote business education in our industry.
Even better, I could fall back on the best excuse of all – the truth, which is that I’m not in it for the money. Yes, this is absolutely true. Because this industry has been very good to me for three and a half decades, my primary motive as an educator is to give something back to it by helping a new generation of contractors become successful businesspersons. Hundreds of contractors call or write to tell me things such as, to quote from one letter – “Frank, I just want you to know the only reason I’m still in business is because of you.” Comments such as these are my best reward.
Still, no matter how successful anyone might be, nobody likes to lose money. Moreover, I feel an obligation as a preacher of the gospel of profitability to do the things I sermonize about.
New Partnership: I’ve said on numerous occasions that many of you now in business for yourselves would be better off on someone else’s payroll. Industry surveys show that the average PHC contractor earns about the same income as a union-scale journeyman plumber or fitter. Many make much less. Yet they put in many more hours than the average journeyman. This is the lot in life for any independent business owner. His/her rewards should be commensurate with the effort and the value of services provided. If you can make the same amount of money or more working for someone else, why endure all the headaches and risks of running your own business?
That advice applies to me as well. I put a lot of time and effort into my consulting and seminar business, and it’s time to practice what I preach. I sought special partners dedicated to truly helping PHC contractors. Together we will spread the gospel of business management, profitability, marketing, salesmanship and professionalism.
I am happy to announce that Frank J. Blau, Jr. Associates and ShuBee have created a strategic alliance to offer even more tools and services designed for the success of residential service contractors.
ShuBee will now be filling orders for Frank Blau’s Valve Tags. These tags are a great marketing tool that help get and keep your name out in front of your clients and potential clients. They will also soon be offering products such as my book of articles published in Plumbing & Mechanical magazine from 1987 to 2007 – a treasure trove of valuable insights and The Business of Contracting DVD seminar taped live in New York City. These new business partners of mine will handle all the details. In this way, it will be possible to reach far more contractors who are desperately in need of help, before I “cash in my chips.”
I am excited about this new partnership. ShuBee holds a special place in my heart, both personally and speaking as a PHC contractor. To order these products and more contact ShuBee at 877.974.8233 or visit online at www.shubee.com.
10 Month P&L