No Guarantees
by Randall Hilton
July 1, 2009
The business systems and ideas you implement only improve
your chances of success.
This month’s column includes a quick fix that
contractors everywhere have been searching for. How about a sure-fire, guaranteed
marketing plan that will deliver at least $1 million in sales during the next
12-month period? It doesn’t matter how large or small your company is, it
doesn’t matter when the next useless phone book comes out for recycling. It
doesn’t even matter how much television airtime costs in your area. We simply
guarantee to deliver a million bucks in sales over the next year or your money
back.
To take advantage of this sure-fire opportunity, simply send me a cashier’s
check for $1.5 million and we’ll take care of the rest. Within a year’s time we
will deliver at least a million dollars in sales. Soon, you’ll be scratching
your head, wondering why you’ve never tried our program before.
If you think your company is too small to handle that sort of volume, we’ll
also help you adjust your pricing so that even a one-man shop working part-time
can do a million dollars in sales — whether your chosen craft is plumbing, air
conditioning, electrical or even clock repair.
But wait, there’s more! Unlike most marketing and advertising programs, our
service offers complete scalability. Simply double your check and we’ll double
the offer – you’ll get TWO million in sales instead of just one. You could be
the first one-truck operator in town to cross the $2 million sales mark! What
are you waiting for? Send that cashier’s check today — $1.5 million for a
million, $3 million for two. Offer good while supplies last, so
hurry!
While this offer sinks in, let’s talk about something a bit more terrestrial.
The fact of life is that there is no business system that allows you to simply
write a check and start collecting revenues. In order to be successful, we have
no choice but to leverage our assets: We have to do
something.
For the past quarter century, Plumbing & Mechanical
magazine has provided a monthly trove of solutions and ideas for just about
every facet of running a successful contracting business. Marketing, sales,
flat rate pricing, advertising, recruiting, jobsite management, bidding, office
management — these are just a few of the business topics discussed in these
pages over the years. As a result of doing something with this information,
many a contractor has grown from a garage-based, hand-to-mouth subsistence
enterprise to a multifaceted organization throwing off millions in profits.
But there are no guarantees. Even after trying dozens of the great systems and
ideas you find in these pages, you can still end up with a mediocre business,
perhaps even a total flop. Flat rate pricing does not guarantee success.
Dynamite marketing techniques do not guarantee success. Knowing your cost of
business down to the paper clips per job ticket will not guarantee success. The
systems you implement will improve your odds of success, but they don’t
guarantee it.
Finding Your Passion
If your systems can’t guarantee success, is
there anything you can do to further improve your chances?
Start by looking at what makes you tick. Find your passion. Most of us aren’t
born with a particular passion, although our genes certainly influence it
(imagine Shaquille O’Neal riding in the Kentucky Derby). Instead, our passions
are formed and tweaked as a product of our culture, experience and
opportunities. But there is an additional and primary factor steering our
passion: decisions. Even though passion comes from someplace deep in our
psyche, it is still subject to our decisive guidance.
Why did you change your youthful passion from becoming the next Wayne Gretzky
to becoming the best steam boiler mechanic in town? For most of us, a change
like that occurs after a collision with reality. I can skate. I can swing a
stick. But can I skate and swing at the same time?
Some business people are driven to pursue wealth and prestige. Perhaps your
passion is a bit more altruistic, desiring to protect your clients from greedy
contractors who lust for wealth and prestige. Let’s say your passion is to
install the best, most reliable plumbing systems possible. Or perhaps you love
to resurrect heating systems that could have been installed by your grandfather.
Whatever your passion, you’ll need to temper it with reality or you’ll end up
like Don Quixote, whose impossible dream, in fact, was exactly that.
When Reality Collides With Passion
Regardless of your passion, it is what
ultimately defines your success. In order to fulfill your passion, you will
have to set measurable goals in keeping with your passion, but here’s where the
reality test comes. For example, if your passion is to build exquisitely
designed and executed plumbing systems, what will your goal be? Will you launch
a plumbing business that focuses on the finest installations and service? Or
will you be better off working for an already thriving company that does the sort
of work you love?
Finding that ideal company can, itself, be a major challenge, so you may think
that launching your ideal business will be the answer. Right away the assault
on your passion begins as you spend time selecting a color scheme for the truck
instead of installing elegant piping systems.
When reality collides with your passion, something has to give way. Reality is
what it is, so it makes more sense to tweak your passion a bit to match
reality. Let’s consider our pipe mechanic example. A passion for plumbing and a
passion for the plumbing business are two completely different animals, but
there are some common denominators. A good piping installation includes
good-quality materials that are properly sized for the application. It would be
designed for easy maintenance and probably accommodate
expansion.
It may be your passion to install systems like these, but what if you modified
your passion to build a business instead of a piping system? Instead of just
focusing on top-quality parts, you would focus on recruiting top-quality people
to serve your customers. Just as you would install carriers and hangers to
support your piping, you would launch marketing and advertising programs to
support your sales. I’ll leave further correlations up to you, but the easier
it is for you to translate your initial passion into a passion that works in
business, the easier it will be for you to build a
business.
It’s easy to know when a piping system is complete; you can flush the toilet or
heat up a towel warmer. Business success is a bit harder to identify. This is
where your measurable goals will serve as markers. You can have big, fuzzy
goals: Success is paying taxes on a double-digit profit. But it’s the
shorter-term, more measurable goals, such as call counts and sales dollars,
that help you get there.
Long before you celebrate the double-digit profit milestone, you’ll celebrate
your first “Two Water Heater” day. Measurable, short-term goals make the
journey easier since it’s much easier to take a single step than it is to walk
a hundred miles. But this doesn’t mean that the trip will be easy. Building a
business is challenging and often frustrating. An infinite number of agents are
just waiting to derail your lofty plans. If your short-term measurable goals do
not support your passion, you could find yourself without the intestinal
fortitude required to work through those inevitable rough spots.
One last note about your passion and the way you use goals to fulfill it: Spend
some time on the mountaintop while pondering your passion. The worst thing you
can do is to invest your life to fulfill your passion only to find that it’s
not a very satisfying passion. For example, if your passion is to become
wealthy, then your quest for success may be endless since “wealth” is a
relative term often defined by what someone else has. If your desire is the
respect and admiration of your community or your peers, you may be thwarted by
a few crotchety old codgers who just won’t respect anybody.
Your true passion may not even apply to your business. Instead, your business
may simply be the pipeline of funds for your passion. Ultimately, it’s up to
you to decide whether you have succeeded in fulfilling your passion, so pick
wisely.
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