It happened again. A few months ago you had your annual meeting with your CPA and he or she told you the same thing they have told you year after year. “John, you had a great year. Your net profit was $88,000 last year, which you will pay taxes on.” Wow, that made you feel…
Many years ago, a good friend in the industry told me something I will never forget: “Never abandon what got you to where you are.” That statement can mean lots of things, but when it comes to being successful within the trades industry, the meaning is pretty clear. At some point in building your trades…
Most of us have heard the saying, “Do you have 30 years’ experience, or one year of experience repeated 30 times?” The other one we have all heard is the definition of insanity: “Doing the same thing over and over again while expecting different results.” The point is the same in either case. Are we…
If you have listened to Dave Ramsey, you know his initial step toward personal financial freedom is the creation of an emergency fund. The long-term objective is to have an emergency fund that will cover three to six months of income. The same principle applies to our businesses. We need an emergency fund as well….
For the past 29-plus years of working within the trades, I have noticed some pretty profound changes within companies in an effort to become more customer friendly. You will notice one item that is glaringly absent from the list. I have not listed the need, or desire, for top-quality work. The reason is simple: Today’s…
Remember Vince Lombardi, former head coach of the Green Bay Packers, for whom the Super Bowl trophy is named? He won many championships over the years, but he started every training camp the same way: teaching foundational principles. It didn’t matter if you were a 10-year All Star or in your rookie season. Everyone went…
If you had been married 25 years and were having relationship problems, would you schedule an appointment with a 21-year-old college graduate? I have a hunch the advice provided wouldn’t help a lot. On the other hand, suggestions from an older couple probably would. Last year, I spent three days providing free coaching sessions for…
I was the general manager of a trades company for many years. Salespeople would come by the office on a regular basis. Each would make their sales presentation, usually taking a significant amount of my time. At the conclusion of their presentation they would leave, often without asking for the sale. More than a few…
It’s an old topic but it needs to be revisited — again. Has your service department adopted flat-rate pricing yet? If not, it’s time to seriously consider the conversion. Most contractors have very strong opinions about flat-rate pricing, one way or the other. However, the reality is this: If you have actually sat down and…
We are all familiar with the definition of insanity: doing the same thing over and over again while expecting different results. So the question is, do you have 30 years of experience — or one year of experience repeated 30 times? Wise, profitable companies review past performance, make necessary changes, and move forward. 2016 is…
You’re driving your family on a road trip, back before GPS or Google Maps. It seems like you should have arrived at your destination by now. The kids are asking, “Are we there yet?” Your wife gently suggests you might be lost. What’s your reaction? “I’m not lost; we will arrive soon.” Twenty minutes later,…
A well-run service department should be making money, producing a 15 to 20 percent net profit. In fact, your service department should be the most profitable department within your company, but it’s usually not. There are two reasons most companies find service unprofitable. First, they are not priced properly. It costs a lot to run…