Would be intellectuals often use poly-syllabic words during their pontifications. Eschewing celerity, they emit a plethora of verbiage couched in a façade of profundity. Harkening to a day when eloquent prose was esteemed, they issue forth an insidious conglomeration of words and punctuation that renders the most studious observer into a state of insipient confusion.
In other words, muddy waters appear deep.
Painting contractors often resort to a similar tactic. They overwhelm their customer with technical information regarding products—information that the customer neither understands nor cares about. The customer does not care about features. He cares about benefits.
Certainly some customers care about features, but primarily because they understand the benefits. For example, some customers understand the benefits of using a 100% acrylic latex. But the focus is on the benefits.
A cardinal rule of public speaking (and writing) is to known one’s audience. If I wrote about the Immanuel Kant’s influence on John Dewey, you would likely think I am crazy. That topic is not appropriate for a blog on building a paint contracting business.
Similarly with our customers. We must understand their context—their level of knowledge and their concerns. If we don’t, our words are little more than noise—they have no meaning. We may sound impressive in doing so, but we fail to communicate anything meaningful.
© BEP Enterprises Incorporated 2008
Monday, March 31, 2008
Sunday, March 30, 2008
Who Are You?
Potential customers will not call your company if they do not know you exist. And they won’t know you unless you make your existence known. The simplest method for making yourself known is signage.
Whether you are driving to the job, or parked in the driveway, vehicle signage becomes a rolling billboard. No matter where you go or what you are doing, your vehicle lets people know who you are and what you do. A vehicle sign can be seen by hundreds, if not thousands, of people each day.
Signage can be as simple as a magnetic sign or as elaborate as custom, permanent lettering. Regardless which method you use, signage is an important part of making your name known.
Job site signs are equally important. Many people are not home during the day. They may see that a neighbor is having his house painted but they never see your vehicle. Who is painting the Smith’s house, they may wonder. A job site sign will answer that question.
While your signage may be relatively simple (particularly job site signs) they should be neat and professionally produced. A crude, hand painted sign is likely to convey the message that your work is crude and unprofessional.
A recognizable logo helps tremendously on signage. A logo helps create recognizability and can brand your name into the minds of potential customers. Again, a professionally designed logo is well worth the money.
If you want people to call, they must know who you are. Show them a sign that you want them to know. Show them a sign.
© BEP Enterprises Incorporated 2008
Whether you are driving to the job, or parked in the driveway, vehicle signage becomes a rolling billboard. No matter where you go or what you are doing, your vehicle lets people know who you are and what you do. A vehicle sign can be seen by hundreds, if not thousands, of people each day.
Signage can be as simple as a magnetic sign or as elaborate as custom, permanent lettering. Regardless which method you use, signage is an important part of making your name known.
Job site signs are equally important. Many people are not home during the day. They may see that a neighbor is having his house painted but they never see your vehicle. Who is painting the Smith’s house, they may wonder. A job site sign will answer that question.
While your signage may be relatively simple (particularly job site signs) they should be neat and professionally produced. A crude, hand painted sign is likely to convey the message that your work is crude and unprofessional.
A recognizable logo helps tremendously on signage. A logo helps create recognizability and can brand your name into the minds of potential customers. Again, a professionally designed logo is well worth the money.
If you want people to call, they must know who you are. Show them a sign that you want them to know. Show them a sign.
© BEP Enterprises Incorporated 2008
Saturday, March 29, 2008
Charlatans, Plagarism, and Moral Courage
Yesterday morning the owner of a forum for painting contractors stated that he had visited a blog written by a “so called professional”. He went on to write that the author of the blog “has pretty much copied what I have written about why we can't price by the square foot floor area!” He further claimed that the author had copied the work of another individual. He called the author “a low life crumb”.
To the best of my knowledge, I am the only person who has a blog who has written on square foot pricing. To the best of my knowledge, I am the only person with a blog who has knowledge of the other individual whose work was “copied”.
I contacted the owner of the forum and bluntly asked if he was referring to me. He refused to answer. However, someone from his IP address visited my blog yesterday less than an hour before his post. While that is not absolute evidence that he is referring to me, it is highly circumstantial.
The following is my response (with certain names changed):
You have taken it upon yourself to publicly attack me, without the courage to identify me by name. You have refused to tell me if your post refers to me. However, given that an IP address matching yours visited my blog shortly before your post, the evidence is rather conclusive.
You claim that I have copied you and John. While I am uncertain what you mean exactly by “copied”, your intent is pretty clear when you refer to me as “a low life crumb”.
Such a claim is at best an exhibition of paranoia, and at worse outright dishonesty. Certainly I have learned things from you and John. I have also learned from hundreds, if not thousands, of others.
You imply that I should cite the source for every idea I express. This would be an exercise in absurdity. But if there is one thing I have learned about you, absurdity is to be expected.
Interestingly, I do not recall you citing the sources of your ideas. Are we to believe that every idea you express is of your own thinking? Are we to believe that you have not learned from others? Are we to believe that every statement you make is entirely original?
You claim that I copied your ideas on square foot pricing. I learned geometry in the eighth grade. I did not need you to figure out the fallacies of that estimating method. Are you so full of yourself that you think you are the only person who could reach that conclusion? And where did you learn it? Why don’t you give that person credit? And more to the point, why do you not give Euclid credit whenever you use geometry?
You claim that I copied John’s ideas. I paid his organization more than $25,000 over 3.5 years to attend conferences, send my people to book camps, etc. Would you expect that I didn’t pick up some ideas from that? What the hell was I spending the money for if it wasn’t to get ideas? Does that mean that I should cite John every time I use his ideas or express them?
Over the past 10 years I have written thousands of posts. I have written tens of thousands of words. I have written published articles on subjects far removed from paint contracting—child care, history, entreprenuerism, property rights, and much more. For you to claim that I am pretending to be creative flies in the face of the facts. But I would not expect the facts to get in the way of your opinion.
You have made a very grievous mistake. You have attacked my honest and integrity. You have attacked me on numerous occasions in the past, but your attacks were so pathetic that they did not warrant a response. I dismiss childish comments for what they are—evidence of the speaker’s ignorance. I will not dismiss this.
I will not speculate as to your motivation. I do not know if it is jealousy, simmering anger, wanton irrationality, or something else. I do know that it is ugly.
You may not have the courage to accuse me publicly. I however, will not shy away from making your accusations known. I do not fear the judgment of rational people. The judgment of the irrational, and you, means nothing to me.
© BEP Enterprises Incorporated
To the best of my knowledge, I am the only person who has a blog who has written on square foot pricing. To the best of my knowledge, I am the only person with a blog who has knowledge of the other individual whose work was “copied”.
I contacted the owner of the forum and bluntly asked if he was referring to me. He refused to answer. However, someone from his IP address visited my blog yesterday less than an hour before his post. While that is not absolute evidence that he is referring to me, it is highly circumstantial.
The following is my response (with certain names changed):
You have taken it upon yourself to publicly attack me, without the courage to identify me by name. You have refused to tell me if your post refers to me. However, given that an IP address matching yours visited my blog shortly before your post, the evidence is rather conclusive.
You claim that I have copied you and John. While I am uncertain what you mean exactly by “copied”, your intent is pretty clear when you refer to me as “a low life crumb”.
Such a claim is at best an exhibition of paranoia, and at worse outright dishonesty. Certainly I have learned things from you and John. I have also learned from hundreds, if not thousands, of others.
You imply that I should cite the source for every idea I express. This would be an exercise in absurdity. But if there is one thing I have learned about you, absurdity is to be expected.
Interestingly, I do not recall you citing the sources of your ideas. Are we to believe that every idea you express is of your own thinking? Are we to believe that you have not learned from others? Are we to believe that every statement you make is entirely original?
You claim that I copied your ideas on square foot pricing. I learned geometry in the eighth grade. I did not need you to figure out the fallacies of that estimating method. Are you so full of yourself that you think you are the only person who could reach that conclusion? And where did you learn it? Why don’t you give that person credit? And more to the point, why do you not give Euclid credit whenever you use geometry?
You claim that I copied John’s ideas. I paid his organization more than $25,000 over 3.5 years to attend conferences, send my people to book camps, etc. Would you expect that I didn’t pick up some ideas from that? What the hell was I spending the money for if it wasn’t to get ideas? Does that mean that I should cite John every time I use his ideas or express them?
Over the past 10 years I have written thousands of posts. I have written tens of thousands of words. I have written published articles on subjects far removed from paint contracting—child care, history, entreprenuerism, property rights, and much more. For you to claim that I am pretending to be creative flies in the face of the facts. But I would not expect the facts to get in the way of your opinion.
You have made a very grievous mistake. You have attacked my honest and integrity. You have attacked me on numerous occasions in the past, but your attacks were so pathetic that they did not warrant a response. I dismiss childish comments for what they are—evidence of the speaker’s ignorance. I will not dismiss this.
I will not speculate as to your motivation. I do not know if it is jealousy, simmering anger, wanton irrationality, or something else. I do know that it is ugly.
You may not have the courage to accuse me publicly. I however, will not shy away from making your accusations known. I do not fear the judgment of rational people. The judgment of the irrational, and you, means nothing to me.
© BEP Enterprises Incorporated
Friday, March 28, 2008
Act Like an Owner
Many painting contractors do not draw a regular and consistent salary. Such contractors generally pay themselves whatever is left after paying the bills. And when this occurs, the contractor really has a job, rather than a business.
An important step in owning a business, rather than a job, is drawing a regular and consistent salary. Mind you, there is nothing wrong with owning a job. But you should be honest to yourself regarding your situation.
A regular and consistent salary does several things:
1. It provides for stability in the business’ expenses.
2. It allows the business to generate a real profit, and thus have the funds to grow.
3. It provides stability for the business owner in his personal finances. He knows what his income will be.
4. It allows the business to operate like a business, and not simply an extension of the owner.
Operating like a business is not dependent on the size of the company. It does depend on the procedures and policies within the business and how they are implemented. It does depend on adopting sound business practices, which includes treating the owner as an owner.
The time to adopt and implement sound business practices is now. If, like many contractors, you believe that you will do so when your business gets larger, you might be in for a rude surprise. How will you grow your business without sound business practices? How will you manage that growth? How will you hire and train employees?
The time to implement sound business practices is now. The time to act like an owner is now. And you should pay yourself like an owner as well.
© BEP Enterprises Incorporated 2008
An important step in owning a business, rather than a job, is drawing a regular and consistent salary. Mind you, there is nothing wrong with owning a job. But you should be honest to yourself regarding your situation.
A regular and consistent salary does several things:
1. It provides for stability in the business’ expenses.
2. It allows the business to generate a real profit, and thus have the funds to grow.
3. It provides stability for the business owner in his personal finances. He knows what his income will be.
4. It allows the business to operate like a business, and not simply an extension of the owner.
Operating like a business is not dependent on the size of the company. It does depend on the procedures and policies within the business and how they are implemented. It does depend on adopting sound business practices, which includes treating the owner as an owner.
The time to adopt and implement sound business practices is now. If, like many contractors, you believe that you will do so when your business gets larger, you might be in for a rude surprise. How will you grow your business without sound business practices? How will you manage that growth? How will you hire and train employees?
The time to implement sound business practices is now. The time to act like an owner is now. And you should pay yourself like an owner as well.
© BEP Enterprises Incorporated 2008
Thursday, March 27, 2008
I Ain’t Got No Overhead
Many painting contractors believe that they have no overhead. They are simply wrong. To claim that one has no overhead means:
1. There is no advertising
2. There is no insurance
3. There is no equipment
4. There are no vehicles
5. There are no phones
6. There are no salaries
7. There are no office supplies
8. There are no accounting or legal expenses
9. And the list could go on
All of the above items are overhead. I’ve spoken to hundreds of contractors over the years, and I’ve yet to meet one who doesn’t have most of these expenses. And anyone who truly doesn’t have any overhead doesn’t have a business. They have a job and a delusional fantasy.
What is perhaps most interesting is the fact that for the typical small painting contractor, overhead comprises nearly 50% of the selling price. How then can a contractor overlook such a large part of his expenses and brazenly state “I ain’t got no overhead”?
I think the primary reason is financial ignorance—they simply don’t know what they don’t know. They don’t understand what overhead is. They don’t understand that overhead is an inescapable fact of owning a business.
The sad thing is, this ignorance is also a primary reason for the failure rate among painting contractors. After all, if you are not recovering half of your expenses, it is pretty hard to pay the bills, draw a reasonable salary, and make a profit. The money to pay overhead has to come from somewhere, and it is usually the owner’s pocket.
The truth is, if someone truly ain’t got no overhead, they ain’t got no business either.
© BEP Enterprises Incorporated 2008
1. There is no advertising
2. There is no insurance
3. There is no equipment
4. There are no vehicles
5. There are no phones
6. There are no salaries
7. There are no office supplies
8. There are no accounting or legal expenses
9. And the list could go on
All of the above items are overhead. I’ve spoken to hundreds of contractors over the years, and I’ve yet to meet one who doesn’t have most of these expenses. And anyone who truly doesn’t have any overhead doesn’t have a business. They have a job and a delusional fantasy.
What is perhaps most interesting is the fact that for the typical small painting contractor, overhead comprises nearly 50% of the selling price. How then can a contractor overlook such a large part of his expenses and brazenly state “I ain’t got no overhead”?
I think the primary reason is financial ignorance—they simply don’t know what they don’t know. They don’t understand what overhead is. They don’t understand that overhead is an inescapable fact of owning a business.
The sad thing is, this ignorance is also a primary reason for the failure rate among painting contractors. After all, if you are not recovering half of your expenses, it is pretty hard to pay the bills, draw a reasonable salary, and make a profit. The money to pay overhead has to come from somewhere, and it is usually the owner’s pocket.
The truth is, if someone truly ain’t got no overhead, they ain’t got no business either.
© BEP Enterprises Incorporated 2008
Wednesday, March 26, 2008
If You Choose Not to Decide
Life happens. The world moves on, whether we want it to or not. The seasons change, the tides rise and fall, and Presidential politics nauseate us. These are events that occur, despite our wishes, hopes, or desires.
As painting contractors, we face other inevitable events. Low priced contractors compete for business. The economy fluctuates. Customers don’t understand what is required to produce a professional paint job. While these too are inevitable, we have some control over their outcome.
As business owners we have many options: the market we serve, the prices we charge, the image of our company, our sales process, our company culture, and much, much more. And the options we select will ultimately determine the results of our efforts.
But a funny thing often happens on the way to the Forum. As we are being drug before the lions, we forget that we have a choice. We forget that the business we own, and virtually every aspect of it, is something that we create. And that creation is the result of our choices.
Too many painting contractors plod along, year after year, repeating the actions of previous years. I know, I’ve been there and done that. It is probably not a huge surprise, but if you do the same thing year after year, you should expect the same results year after year.
Aristotle identified the fact that all humans are born tabula rasa (literally, blank slate). We possess no knowledge at birth. Everything we know is learned. And what we learn is a matter of choice.
The information required to build a better business is readily available. It is up to you to seek out that knowledge and implement it. That is a choice that each of us has. But if you choose not to decide, you still have made a choice.
© BEP Enterprises Incorporated 2008
As painting contractors, we face other inevitable events. Low priced contractors compete for business. The economy fluctuates. Customers don’t understand what is required to produce a professional paint job. While these too are inevitable, we have some control over their outcome.
As business owners we have many options: the market we serve, the prices we charge, the image of our company, our sales process, our company culture, and much, much more. And the options we select will ultimately determine the results of our efforts.
But a funny thing often happens on the way to the Forum. As we are being drug before the lions, we forget that we have a choice. We forget that the business we own, and virtually every aspect of it, is something that we create. And that creation is the result of our choices.
Too many painting contractors plod along, year after year, repeating the actions of previous years. I know, I’ve been there and done that. It is probably not a huge surprise, but if you do the same thing year after year, you should expect the same results year after year.
Aristotle identified the fact that all humans are born tabula rasa (literally, blank slate). We possess no knowledge at birth. Everything we know is learned. And what we learn is a matter of choice.
The information required to build a better business is readily available. It is up to you to seek out that knowledge and implement it. That is a choice that each of us has. But if you choose not to decide, you still have made a choice.
© BEP Enterprises Incorporated 2008
Tuesday, March 25, 2008
Something for Nothing
About a year ago a painting contractor posted on several forums asking for a spreadsheet to track certain information. He received several responses that basically suggested he learn Excel so that he could create his own spreadsheets. The original poster didn’t take kindly to the suggestions, and said that he had little interest in learning Excel.
Over the years I’ve used a lot of different pieces of software, and Excel ranks as one of the easiest to learn. I probably could have constructed a spreadsheet to meet the above request in 10 minutes or so. The contractor would have what he wanted and all would be fine in the world. Or would it be?
The contractor would have invested no effort, no time, nothing. When he inevitably messed up the spreadsheet he’d be right back where he started—begging for someone to bail him out. And he likely would have cried like a little girl if nobody did so.
Part of the problem with this attitude is the sense of entitlement that underlies it. One believes he is entitled to something simply because he wants it. It’s up to others to provide that something, and if they don’t he will stomp his little feet and hold his breath.
Running a successful paint contracting company requires a breadth of knowledge. To demand the results—in this case a spreadsheet—while ignoring the cause—knowledge—is to demand something for nothing. And in the end, those who desire something for nothing will get exactly that—nothing.
© BEP Enterprises Incorporated 2008
Over the years I’ve used a lot of different pieces of software, and Excel ranks as one of the easiest to learn. I probably could have constructed a spreadsheet to meet the above request in 10 minutes or so. The contractor would have what he wanted and all would be fine in the world. Or would it be?
The contractor would have invested no effort, no time, nothing. When he inevitably messed up the spreadsheet he’d be right back where he started—begging for someone to bail him out. And he likely would have cried like a little girl if nobody did so.
Part of the problem with this attitude is the sense of entitlement that underlies it. One believes he is entitled to something simply because he wants it. It’s up to others to provide that something, and if they don’t he will stomp his little feet and hold his breath.
Running a successful paint contracting company requires a breadth of knowledge. To demand the results—in this case a spreadsheet—while ignoring the cause—knowledge—is to demand something for nothing. And in the end, those who desire something for nothing will get exactly that—nothing.
© BEP Enterprises Incorporated 2008
Monday, March 24, 2008
Ignorance is Not Bliss
We’ve all heard the expression that what we don’t know won’t hurt us. I beg to differ. Ignorance is not bliss—it’s a real nice way to get yourself in deep doo doo.
Too many painting contractors think that if they apply paint well they will be successful. They think the secret to success lies in being able to brush and roll. So they fail to educate themselves on marketing, sales, finance, and a myriad other topics.
I suppose it is possible to run a successful company and not know the difference between an expense and a hole in the ground (come to think of it, sometimes they are very similar). But why take that chance? Why gamble on the future of your business and your life?
I’ve had contractors tell me that they know they should learn some of these topics, but they don’t want to work all of the time. This is a silly excuse if I’ve ever heard one. First, you don’t need to work all of the time to learn to read an income statement. Second, if building a business were easy my cats would do it. Third, if you don’t want to work hard to build your business, get a job.
The problem with remaining ignorant on a subject is that you don’t know much about it. And what you don’t know can indeed hurt you. If you can’t read your financial statements, how will you know if you are making money? How will you make decisions? How will you plan your future?
Each of us is born ignorant. At birth, we know nothing. Successful people acquire the knowledge they need to be successful. Ignorant people don’t. Successful people read, learn, and grow. Ignorant people don’t. Successful people set goals and work to achieve them. Ignorant people don’t know how. In short, those who think that ignorance is bliss are simply ignorant.
© BEP Enterprises Incorporated 2008
Too many painting contractors think that if they apply paint well they will be successful. They think the secret to success lies in being able to brush and roll. So they fail to educate themselves on marketing, sales, finance, and a myriad other topics.
I suppose it is possible to run a successful company and not know the difference between an expense and a hole in the ground (come to think of it, sometimes they are very similar). But why take that chance? Why gamble on the future of your business and your life?
I’ve had contractors tell me that they know they should learn some of these topics, but they don’t want to work all of the time. This is a silly excuse if I’ve ever heard one. First, you don’t need to work all of the time to learn to read an income statement. Second, if building a business were easy my cats would do it. Third, if you don’t want to work hard to build your business, get a job.
The problem with remaining ignorant on a subject is that you don’t know much about it. And what you don’t know can indeed hurt you. If you can’t read your financial statements, how will you know if you are making money? How will you make decisions? How will you plan your future?
Each of us is born ignorant. At birth, we know nothing. Successful people acquire the knowledge they need to be successful. Ignorant people don’t. Successful people read, learn, and grow. Ignorant people don’t. Successful people set goals and work to achieve them. Ignorant people don’t know how. In short, those who think that ignorance is bliss are simply ignorant.
© BEP Enterprises Incorporated 2008
Sunday, March 23, 2008
On the Beach
Imagine that you know that you will die in one month. How would you spend your last weeks on earth?
This is the premise of On the Beach, a movie made in 1959 starring Gregory Peck. The characters each wrestle with their pending death, and each makes interesting choices in how to spend his remaining time. One, for example, fulfilled his lifelong dream and became a race car driver. Others similarly pursue some activity they have long put off.
As I watched the movie I first felt sad. These people were finally pursuing their dreams, and now they were about to die. And then I realized that we are all in the same position as those characters. The only difference is that we don’t know the date of our demise.
So, if you that you would die in one month, how would you spend your last weeks on earth? And why are you waiting for those final weeks? Why not live your dream for years or decades? Why not start living your dream today?
Life is too short to spend our time doing things we don’t enjoy. (I am not speaking of those mundane tasks that are necessary in our lives and businesses.) Spending your days, weeks, and years doing something that doesn’t fill you with excitement is sad.
Each day we write the story that is our life. Don’t let your story be one of regret.
© BEP Enterprises Incorporated 2008
This is the premise of On the Beach, a movie made in 1959 starring Gregory Peck. The characters each wrestle with their pending death, and each makes interesting choices in how to spend his remaining time. One, for example, fulfilled his lifelong dream and became a race car driver. Others similarly pursue some activity they have long put off.
As I watched the movie I first felt sad. These people were finally pursuing their dreams, and now they were about to die. And then I realized that we are all in the same position as those characters. The only difference is that we don’t know the date of our demise.
So, if you that you would die in one month, how would you spend your last weeks on earth? And why are you waiting for those final weeks? Why not live your dream for years or decades? Why not start living your dream today?
Life is too short to spend our time doing things we don’t enjoy. (I am not speaking of those mundane tasks that are necessary in our lives and businesses.) Spending your days, weeks, and years doing something that doesn’t fill you with excitement is sad.
Each day we write the story that is our life. Don’t let your story be one of regret.
© BEP Enterprises Incorporated 2008
The Shotgun and the Laser
A shotgun is a relatively easy weapon to use. It doesn’t take great aim to hit your target. However, at a distance it isn’t very effective, as the buckshot is scattered over a wide area.
A laser takes more precision, but it allows you to hit a target with pin point accuracy. It hits only the target, and nothing else, and is therefore more efficient than a shotgun.
Marketing can take either a shotgun approach or a laser approach. Marketing can be broad, or it can be focused. It can be scattered over a wide area, or it can be targeted with pin point accuracy.
Certainly there is a place for both approaches. Some marketing, such as the yellow pages and the internet are available to a wide range of consumers. You can’t limit who will see your ad. Your ad may be seen by people outside of your market, both geographically and demographically.
Targeted marketing is much more limited. It is aimed specifically at your potential market. Direct mail and door hangers are two examples of targeted marketing. These can be directed explicitly to your demographic.
Targeted marketing can also be used in other ways. For example, advertising in the newspapers and magazines read by individuals in your demographics is targeted marketing. Advertising through the shops patronized by your demographics is targeted marketing.
Combining both demographically and geographically targeted marketing provides a powerful one- two punch. Your name becomes visible to potential customers through a variety of means. Your name becomes seared into their minds.
© BEP Enterprises Incorporated 2008
A laser takes more precision, but it allows you to hit a target with pin point accuracy. It hits only the target, and nothing else, and is therefore more efficient than a shotgun.
Marketing can take either a shotgun approach or a laser approach. Marketing can be broad, or it can be focused. It can be scattered over a wide area, or it can be targeted with pin point accuracy.
Certainly there is a place for both approaches. Some marketing, such as the yellow pages and the internet are available to a wide range of consumers. You can’t limit who will see your ad. Your ad may be seen by people outside of your market, both geographically and demographically.
Targeted marketing is much more limited. It is aimed specifically at your potential market. Direct mail and door hangers are two examples of targeted marketing. These can be directed explicitly to your demographic.
Targeted marketing can also be used in other ways. For example, advertising in the newspapers and magazines read by individuals in your demographics is targeted marketing. Advertising through the shops patronized by your demographics is targeted marketing.
Combining both demographically and geographically targeted marketing provides a powerful one- two punch. Your name becomes visible to potential customers through a variety of means. Your name becomes seared into their minds.
© BEP Enterprises Incorporated 2008
Saturday, March 22, 2008
The Sky is Falling
It seems that everywhere we turn we hear news about how bad the economy is doing. Gas prices are at record levels, foreclosures are soaring, and the financial markets are in turmoil. Depending on who you listen to, we are either in a recession or on the brink of one. The problem is, the latter is simply not true.
A recession is defined as 2 consecutive quarters of negative growth. The fact is, the economy is still growing, albeit at a slower rate. But why should the pundits let the facts get in the way—they have an agenda to push.
The state of the economy is a big concern for many painting contractors. New construction is slowing, and many contractors are turning to repaints. This puts additional pressure on those contractors in the repaint market. With greater frequency I am being asked what a contractor should do to survive this recession.
The first thing to do is to get a firm grip on reality, which is always sage advice. We are not in a recession. We may be heading towards one, but we aren’t there yet. So don’t panic. Take a deep breath and step away from the television set.
The second thing to do is to build a strong business, that is, do the things I’ve been talking about for years. Develop a strong marketing program, learn to sell more effectively, empower your workers, etc. Of course, these things take time. So if you have concerns you better get busy—starting yesterday.
Each year I am amazed at the number of contractors who start asking how to survive the winter slow down. They act surprised that winter has arrived, though even a casual glance at a calendar would have warned them. Mired in myopia, they plod along, ignoring the inevitable. Sadly, even birds and squirrels do a better job of preparing for the winter than many painting contractors.
Such contractors are in a constant reactive mode. Rather than build a strong business and be proactive, they respond to events as they occur. They constantly shift direction, zig zagging their way to the precipice. And when they reach the edge they start shouting for help.
I suppose that there will always be such contractors. I imagine that there will always be those who are happy that they have a job for today and give little thought to what happens next. For them, sooner or later, the sky really will be falling.
© BEP Enterprises Incorporated 2008
A recession is defined as 2 consecutive quarters of negative growth. The fact is, the economy is still growing, albeit at a slower rate. But why should the pundits let the facts get in the way—they have an agenda to push.
The state of the economy is a big concern for many painting contractors. New construction is slowing, and many contractors are turning to repaints. This puts additional pressure on those contractors in the repaint market. With greater frequency I am being asked what a contractor should do to survive this recession.
The first thing to do is to get a firm grip on reality, which is always sage advice. We are not in a recession. We may be heading towards one, but we aren’t there yet. So don’t panic. Take a deep breath and step away from the television set.
The second thing to do is to build a strong business, that is, do the things I’ve been talking about for years. Develop a strong marketing program, learn to sell more effectively, empower your workers, etc. Of course, these things take time. So if you have concerns you better get busy—starting yesterday.
Each year I am amazed at the number of contractors who start asking how to survive the winter slow down. They act surprised that winter has arrived, though even a casual glance at a calendar would have warned them. Mired in myopia, they plod along, ignoring the inevitable. Sadly, even birds and squirrels do a better job of preparing for the winter than many painting contractors.
Such contractors are in a constant reactive mode. Rather than build a strong business and be proactive, they respond to events as they occur. They constantly shift direction, zig zagging their way to the precipice. And when they reach the edge they start shouting for help.
I suppose that there will always be such contractors. I imagine that there will always be those who are happy that they have a job for today and give little thought to what happens next. For them, sooner or later, the sky really will be falling.
© BEP Enterprises Incorporated 2008
Friday, March 21, 2008
Pete and Earl
Pete is a plumber. Earl is an electrician. Both do high quality work and stay busy. But that is where their similarities end.
Earl drives a new van with professional lettering. Pete drives a 15-year old van with no lettering. Earl wears a shirt with his company logo. Pete wears whatever happens to be clean that day. Earl works 40 hours a week and spends his weekends with his family. Pete usually works into the evening and most Saturdays. Earl charges the highest prices in town. Pete charges the “going rate”. Pete complains about low-priced competition. Earl is unconcerned with what his competition charges.
Pete and Earl are friends. Neither can understand how the other operates. Pete can’t understand how Earl gets away with charging such exorbitant rates. Earl can’t understand how Pete manages to stay in business.
The differences between Pete and Earl go way beyond the obvious. The differences are fundamental. The differences go to the very core of how they view their business and the world. The differences are philosophical.
To Pete, his business is the means to pay the bills. He views the world as limited in opportunity. He operates much like everyone else in his trade. He finds comfort in the status quo and refuses to take risks.
To Earl, his business is the means to the type of life he wants to live. He views the world as full of opportunity. He continually looks for ways to differentiate himself. He believes that what was good enough yesterday won’t be good enough tomorrow.
Pete is afraid to stand out. He is afraid to act on his own judgment, and thus he embraces the status quo. Earl wants to stand out, to be different. He has confidence in his own judgment, and the courage to act accordingly.
Pete and Earl could just as easily be painting contractors. Indeed, they have many counterparts in the painting industry (actually all industries for that matter). Their outlook on life ultimately determines what they do with they lives. Those who dream and take action will achieve their dreams. Those who seek to learn and grow will learn and grow.
In the end, each of us gets to choose whether we will be Pete or Earl. Each of us gets to choose what our business will do for us. Each of us gets to choose what kind of life we will have.
© BEP Enterprises Incorporated 2008
Earl drives a new van with professional lettering. Pete drives a 15-year old van with no lettering. Earl wears a shirt with his company logo. Pete wears whatever happens to be clean that day. Earl works 40 hours a week and spends his weekends with his family. Pete usually works into the evening and most Saturdays. Earl charges the highest prices in town. Pete charges the “going rate”. Pete complains about low-priced competition. Earl is unconcerned with what his competition charges.
Pete and Earl are friends. Neither can understand how the other operates. Pete can’t understand how Earl gets away with charging such exorbitant rates. Earl can’t understand how Pete manages to stay in business.
The differences between Pete and Earl go way beyond the obvious. The differences are fundamental. The differences go to the very core of how they view their business and the world. The differences are philosophical.
To Pete, his business is the means to pay the bills. He views the world as limited in opportunity. He operates much like everyone else in his trade. He finds comfort in the status quo and refuses to take risks.
To Earl, his business is the means to the type of life he wants to live. He views the world as full of opportunity. He continually looks for ways to differentiate himself. He believes that what was good enough yesterday won’t be good enough tomorrow.
Pete is afraid to stand out. He is afraid to act on his own judgment, and thus he embraces the status quo. Earl wants to stand out, to be different. He has confidence in his own judgment, and the courage to act accordingly.
Pete and Earl could just as easily be painting contractors. Indeed, they have many counterparts in the painting industry (actually all industries for that matter). Their outlook on life ultimately determines what they do with they lives. Those who dream and take action will achieve their dreams. Those who seek to learn and grow will learn and grow.
In the end, each of us gets to choose whether we will be Pete or Earl. Each of us gets to choose what our business will do for us. Each of us gets to choose what kind of life we will have.
© BEP Enterprises Incorporated 2008
Thursday, March 20, 2008
Brains versus Brawn
It is not uncommon for a painting contractor to claim that the quality of his work gives him a competitive advantage. “I don’t need to advertise,” he will boast. “I get all of my work by referral.”
While such claims may be true, they make a very revealing statement about the speaker. He believes that the physical work he performs is the most important, and perhaps the only, factor that matters. He believes that the values offered by painting contractors are limited to the physical realm.
It doesn’t take a degree in economics to understand the fallacies within such a view. All it takes is a conscientious look at reality.
The values created by physical effort—brawn—are limited. A man can only apply so much paint in a day. He can only fell so many trees or dig so many ditches. When an individual relies solely on his physical abilities, his output—i.e., the values he can create—are necessarily limited.
The opposite is true of intellectual effort. A man who expends his time in the same business pursuing intellectual solutions opens up almost unlimited possibilities. If he uses his mind he can greatly increase the number of houses his company paints each day.
This isn’t to say that there isn’t a place for painters. There obviously is—somebody has to put paint on the walls. But if an owner wants to truly grow his business, he must recognize the limitations of his brawn. He must embrace the almost unlimited possibilities of using his brain.
© BEP Enterprises Incorporated 2008
While such claims may be true, they make a very revealing statement about the speaker. He believes that the physical work he performs is the most important, and perhaps the only, factor that matters. He believes that the values offered by painting contractors are limited to the physical realm.
It doesn’t take a degree in economics to understand the fallacies within such a view. All it takes is a conscientious look at reality.
The values created by physical effort—brawn—are limited. A man can only apply so much paint in a day. He can only fell so many trees or dig so many ditches. When an individual relies solely on his physical abilities, his output—i.e., the values he can create—are necessarily limited.
The opposite is true of intellectual effort. A man who expends his time in the same business pursuing intellectual solutions opens up almost unlimited possibilities. If he uses his mind he can greatly increase the number of houses his company paints each day.
This isn’t to say that there isn’t a place for painters. There obviously is—somebody has to put paint on the walls. But if an owner wants to truly grow his business, he must recognize the limitations of his brawn. He must embrace the almost unlimited possibilities of using his brain.
© BEP Enterprises Incorporated 2008
Wednesday, March 19, 2008
All Roads Don’t Lead to Rome
During their heyday, the Romans built such an elaborate system of roads that it seemed every road eventually led to Rome. In time the cliché “all roads lead to Rome” came to mean that whatever path you take will ultimately get you to your destination. In other words, all actions produce the same results.
This is hooey in the Nth degree.
Consider the implications within your painting business. If all roads lead to Rome, the level of prep really doesn’t matter. The type of paint you use really doesn’t matter. Obviously this is not true. But the issue goes deeper than that.
If all roads lead to Rome, showing up on time really doesn’t matter. Respecting the customer and his property really doesn’t matter. Doing the agreed upon work really doesn’t matter. Again, this is obviously not true.
If all roads lead to Rome, having systems doesn’t really matter. Having a marketing plan really doesn’t matter. Budgeting and planning really doesn’t matter. Once again, these items do matter.
In short, all roads don’t lead to Rome. The actions you take have a direct bearing on the results you achieve. And if you don’t believe me, try spitting in the face of the next customer you meet for an estimate.
© BEP Enterprises Incorporated 2008
This is hooey in the Nth degree.
Consider the implications within your painting business. If all roads lead to Rome, the level of prep really doesn’t matter. The type of paint you use really doesn’t matter. Obviously this is not true. But the issue goes deeper than that.
If all roads lead to Rome, showing up on time really doesn’t matter. Respecting the customer and his property really doesn’t matter. Doing the agreed upon work really doesn’t matter. Again, this is obviously not true.
If all roads lead to Rome, having systems doesn’t really matter. Having a marketing plan really doesn’t matter. Budgeting and planning really doesn’t matter. Once again, these items do matter.
In short, all roads don’t lead to Rome. The actions you take have a direct bearing on the results you achieve. And if you don’t believe me, try spitting in the face of the next customer you meet for an estimate.
© BEP Enterprises Incorporated 2008
Tuesday, March 18, 2008
Dancing with the Stars
Dancing with the Stars has become one of televisions most popular programs. And for very good reason.
The program shows a group of celebrities competing in a dance contest. Each celebrity is paired with a professional dancer. Each week they must learn a new dance, and they practice up to 6 hours a day to prepare.
The celebrities are usually very clearly out of their comfort zone. Many look like they have never danced before, but they approach their task with the same zeal and passion that made them stars in their chosen profession. Witnessing someone get out of his comfort zone is both fascinating and inspiring.
But there is more to the show than that. Unlike some reality shows, there is a tremendous camaraderie among the contestants. They share a common value—learning a new skill—and support and encourage one another. They demonstrate, in words and actions, that individuals can compete against one another while remaining friendly and considerate.
The entire spirit of the show is one of benevolence and enjoyment of life. The judges provide expert critiques of each dance, but do so with humor and grace. They openly voice their admiration for the challenge undertaken by the celebrities.
In an era when depravity and decadence fills the airwaves, Dancing with the Stars presents a refreshing change. The participants act with civility and respect. They share their excitement and celebrate their achievements. If that is not worth watching, I don’t know what is.
© BEP Enterprises Incorporated 2008
The program shows a group of celebrities competing in a dance contest. Each celebrity is paired with a professional dancer. Each week they must learn a new dance, and they practice up to 6 hours a day to prepare.
The celebrities are usually very clearly out of their comfort zone. Many look like they have never danced before, but they approach their task with the same zeal and passion that made them stars in their chosen profession. Witnessing someone get out of his comfort zone is both fascinating and inspiring.
But there is more to the show than that. Unlike some reality shows, there is a tremendous camaraderie among the contestants. They share a common value—learning a new skill—and support and encourage one another. They demonstrate, in words and actions, that individuals can compete against one another while remaining friendly and considerate.
The entire spirit of the show is one of benevolence and enjoyment of life. The judges provide expert critiques of each dance, but do so with humor and grace. They openly voice their admiration for the challenge undertaken by the celebrities.
In an era when depravity and decadence fills the airwaves, Dancing with the Stars presents a refreshing change. The participants act with civility and respect. They share their excitement and celebrate their achievements. If that is not worth watching, I don’t know what is.
© BEP Enterprises Incorporated 2008
Breaking Through the $250,000 Barrier
For years trade magazines have conducted surveys of their readers. Year after year those surveys find that 75% (or more) of painting contractors have annual revenues less than $250,000. It would be easy to explain this statistic by saying most contractors are happy at that level. But I’ve been around a few years, and I’ve met few contractors who don’t desire to grow their business.
So what does explain this phenomenon? What keeps contractors from breaking through?
The answer is systems, or rather, the lack thereof. The typical painting contractor begins as a craftsman, and as his business grows he must learn and implement new skills. He must learn to market, sell, and manage. He must maintain quality and customer satisfaction. These place tremendous demands on his time.
Without systems these demands become daunting. They force the contractor to make a crucial decision: get back in the bucket and rid himself of these demands, or expand his knowledge and skill set. The size of most painting companies tells us which decision most make.
With systems the contractor can begin to delegate. If he identifies the desired results and the methods for achieving those results, he no longer must baby sit his crews. He empowers his employees, and in the process, himself. He frees up his time to focus on the business.
Breaking through is not an easy accomplishment, but it is well worth the effort. It can reduce stress, increase income, and allow one to build a real business. But then, if it were easy, more than 25% of painting contractors would be able to break through the $250,000 barrier.
© BEP Enterprises Incorporated 2008
So what does explain this phenomenon? What keeps contractors from breaking through?
The answer is systems, or rather, the lack thereof. The typical painting contractor begins as a craftsman, and as his business grows he must learn and implement new skills. He must learn to market, sell, and manage. He must maintain quality and customer satisfaction. These place tremendous demands on his time.
Without systems these demands become daunting. They force the contractor to make a crucial decision: get back in the bucket and rid himself of these demands, or expand his knowledge and skill set. The size of most painting companies tells us which decision most make.
With systems the contractor can begin to delegate. If he identifies the desired results and the methods for achieving those results, he no longer must baby sit his crews. He empowers his employees, and in the process, himself. He frees up his time to focus on the business.
Breaking through is not an easy accomplishment, but it is well worth the effort. It can reduce stress, increase income, and allow one to build a real business. But then, if it were easy, more than 25% of painting contractors would be able to break through the $250,000 barrier.
© BEP Enterprises Incorporated 2008
Monday, March 17, 2008
The More Things Change
I’ve been active on various paint contractor forums for 8+ years. During that time I’ve seen changes within the industry. And I’ve also witnessed several constants.
The most glaring constant has been resistance to sound business practices. The resistance is expressed in numerous ways—“You don’t understand my market”, “That won’t work in a small town”, “Nobody around here does it that way”. All of these claims have the same hidden meaning: The principles that successful businesses use all around the world simply do not apply in a given town.
This is akin to claiming that the law of gravity doesn’t apply in Topeka, that supply and demand only works on Wall Street, or the sun sets in the east in Laredo. Despite the absurdity of such claims, they persist year after year.
Another constant through the years has been the parade of names associated with these claims. Refusing to embrace sound business practices, the claimants invariably go out of business, only to be replaced by a new group of ostriches.
I can only shake my head when I see someone start making claims like the above. I’ve seen where that attitude leads. I’ve seen the outcome for those who refuse to learn business skills. I’ve seen it every year this decade, and I will continue to see it. The more things change, the more they stay the same. Plus ca change, plus c’est la meme chose.
© BEP Enterprises Incorporated 2008
The most glaring constant has been resistance to sound business practices. The resistance is expressed in numerous ways—“You don’t understand my market”, “That won’t work in a small town”, “Nobody around here does it that way”. All of these claims have the same hidden meaning: The principles that successful businesses use all around the world simply do not apply in a given town.
This is akin to claiming that the law of gravity doesn’t apply in Topeka, that supply and demand only works on Wall Street, or the sun sets in the east in Laredo. Despite the absurdity of such claims, they persist year after year.
Another constant through the years has been the parade of names associated with these claims. Refusing to embrace sound business practices, the claimants invariably go out of business, only to be replaced by a new group of ostriches.
I can only shake my head when I see someone start making claims like the above. I’ve seen where that attitude leads. I’ve seen the outcome for those who refuse to learn business skills. I’ve seen it every year this decade, and I will continue to see it. The more things change, the more they stay the same. Plus ca change, plus c’est la meme chose.
© BEP Enterprises Incorporated 2008
Sunday, March 16, 2008
Trimming the Trees
Last week I had my trees trimmed. It was an experience that shed some light on why so many contractors fail.
My estimate was given to me over the phone. It consisted of nothing more than a price. There was no written agreement and no deposit was paid. In fact, as I write this three days work was complete, I have still not paid a penny.
If I wanted to be a jerk—which I don’t—I could give this contractor a lot of grief. There was some minor damage to a few shrubs and a few other little things that I could complain about if I was so inclined. And since I still have all of the money, I’m in a pretty good bargaining position.
What could this contractor do if I decided to be a jerk? Put the limbs back on the trees? He’s left himself open to all kinds of shenanigans. I would find it very hard to believe that he has not fallen victim to such things in the past.
Unfortunately, many painting contractors put themselves in similar positions. They don’t collect deposits and progress payments. They don’t have solid, written contracts. They make little effort to set reasonable expectations. And then they get to the end of the job and the customer holds all of the bargaining power—the money.
There are certainly individuals who would take advantage of such a situation. And there are certainly contractors who allow themselves to be put in such a situation. They take a very myopic view of their business. They deal with problems when they occur, rather than try to prevent their occurrence.
It’s a classic example of being unable to see the forest for the trees.
© BEP Enterprises Incorporated 2008
My estimate was given to me over the phone. It consisted of nothing more than a price. There was no written agreement and no deposit was paid. In fact, as I write this three days work was complete, I have still not paid a penny.
If I wanted to be a jerk—which I don’t—I could give this contractor a lot of grief. There was some minor damage to a few shrubs and a few other little things that I could complain about if I was so inclined. And since I still have all of the money, I’m in a pretty good bargaining position.
What could this contractor do if I decided to be a jerk? Put the limbs back on the trees? He’s left himself open to all kinds of shenanigans. I would find it very hard to believe that he has not fallen victim to such things in the past.
Unfortunately, many painting contractors put themselves in similar positions. They don’t collect deposits and progress payments. They don’t have solid, written contracts. They make little effort to set reasonable expectations. And then they get to the end of the job and the customer holds all of the bargaining power—the money.
There are certainly individuals who would take advantage of such a situation. And there are certainly contractors who allow themselves to be put in such a situation. They take a very myopic view of their business. They deal with problems when they occur, rather than try to prevent their occurrence.
It’s a classic example of being unable to see the forest for the trees.
© BEP Enterprises Incorporated 2008
Saturday, March 15, 2008
Making a Million on Paper
It’s easy to make a million dollars on paper. I’ve done it a bunch of times. All you need is a spreadsheet and a good imagination. On the surface, this may sound silly. It may sound like a complete waste of time and a trip into fantasy land.
But the truth is, making a million on paper is not a waste of time. In fact, it is a crucial part of making a million in reality.
Any long-term endeavor requires a plan. It requires an identification of the goal and the specific steps required to achieve that goal. And for any plan to be effective, it must be in writing—it must be on paper.
Without a plan, life is like—as Forrest Gump would say—a box of chocolates. You never know what you will get. Without a plan you leave your business at the mercy of whatever happens. Without a plan you are simply wandering aimlessly, taking whatever action seems expedient at the moment.
So, making a million on paper is actually an important step. This doesn’t mean that we should engage in wishful thinking or idle pipe dreams. Our plan must be reasonable, carefully calculated, and then implemented. Without action a plan is useless.
Whatever your goal, you should develop a plan for its achievement. If you can’t do it on paper, you probably can’t do it in reality. If you can’t envision what you want and how you will get it, you will ultimately get whatever happens your way. A plan is a road map for your business.
Making a million on paper is not only an important part of planning, it’s also a lot of fun.
© BEP Enterprises Incorporated 2008
But the truth is, making a million on paper is not a waste of time. In fact, it is a crucial part of making a million in reality.
Any long-term endeavor requires a plan. It requires an identification of the goal and the specific steps required to achieve that goal. And for any plan to be effective, it must be in writing—it must be on paper.
Without a plan, life is like—as Forrest Gump would say—a box of chocolates. You never know what you will get. Without a plan you leave your business at the mercy of whatever happens. Without a plan you are simply wandering aimlessly, taking whatever action seems expedient at the moment.
So, making a million on paper is actually an important step. This doesn’t mean that we should engage in wishful thinking or idle pipe dreams. Our plan must be reasonable, carefully calculated, and then implemented. Without action a plan is useless.
Whatever your goal, you should develop a plan for its achievement. If you can’t do it on paper, you probably can’t do it in reality. If you can’t envision what you want and how you will get it, you will ultimately get whatever happens your way. A plan is a road map for your business.
Making a million on paper is not only an important part of planning, it’s also a lot of fun.
© BEP Enterprises Incorporated 2008
Friday, March 14, 2008
Marketing for Painting Contractors
Marketing your paint contracting business does not need to be complicated. It doesn’t need to be expensive. But it does need to be consistent.
Marketing should occur year round, rain or shine, in busy times and in slow times. Leads are the lifeblood of a contracting company. Without leads you cannot sell jobs. Without jobs you can’t bring in money. Without money you can’t eat (or market).
I hear many painting contractors claim that they don’t need to market. They say that they stay busy just through referrals. This may be true, but I believe that they are fooling themselves.
Referrals are certainly a good source for leads. But referrals can also be a bane. They can create a false sense of security.
Most referrals are of a passive nature—they depend on the actions of others, and can therefore be inconsistent. If one depends entirely on one source for leads, the business can be vulnerable when that source dries up. This is even more true when that source is passive.
Insufficient leads can have many consequences beyond the obvious. When leads become precious desperation can set in. Each lead can mean the difference between eating or not. The contractor becomes tempted to lower his price or take on jobs outside of his core competency. The results are often worse than simply passing on the job.
As with any activity, consistent marketing will create consistent results. Inconsistent actions create inconsistent, and unpredictable results.
© BEP Enterprises Incorporated 2008
Marketing should occur year round, rain or shine, in busy times and in slow times. Leads are the lifeblood of a contracting company. Without leads you cannot sell jobs. Without jobs you can’t bring in money. Without money you can’t eat (or market).
I hear many painting contractors claim that they don’t need to market. They say that they stay busy just through referrals. This may be true, but I believe that they are fooling themselves.
Referrals are certainly a good source for leads. But referrals can also be a bane. They can create a false sense of security.
Most referrals are of a passive nature—they depend on the actions of others, and can therefore be inconsistent. If one depends entirely on one source for leads, the business can be vulnerable when that source dries up. This is even more true when that source is passive.
Insufficient leads can have many consequences beyond the obvious. When leads become precious desperation can set in. Each lead can mean the difference between eating or not. The contractor becomes tempted to lower his price or take on jobs outside of his core competency. The results are often worse than simply passing on the job.
As with any activity, consistent marketing will create consistent results. Inconsistent actions create inconsistent, and unpredictable results.
© BEP Enterprises Incorporated 2008
Thursday, March 13, 2008
What Do You Want to Make?
It is not uncommon for a painting contractor to state that he wants to make $X per day. Let’s say $200 a day, which is $25 per hour. He believes that if he charges the customer $25 per hour, all will be fine and dandy.
I hate to be the one to spoil the fun, but it won’t work out that way. If he wants to make $25 an hour, he will likely need to be charging the customer $45 to $50 an hour.
If the only cost associated with a paint contracting company were labor, the above might work. But there are many other costs incurred by a business—insurance, advertising, depreciation, office supplies, etc. If these costs are not built into the selling price they will ultimately come out of the owner’s pocket.
Let’s say a contractor decides that he will charge $25 an hour for a particular job. He gets the job and everything goes smoothly. He winds up making his $25 an hour. And then what? He doesn’t have money for advertising—it’s not in his price. He doesn’t have money to pay his insurance (if he has it)—it wasn’t in his price. He doesn’t have money to maintain his equipment—it wasn’t in his price. The only thing in his price was his wages.
When these other expenses come due—and they will sooner or later—the money must come out of his pocket. Slowly his $25 an hour is lowered as he pays these expenses.
Some may say—but I’m only going to do this to get my business going. But how will you get it going if you don’t have money for advertising, insurance, etc.? How will you build your business if you are simply working for wages? The fact is, you won’t.
Your wages are only one part of the pricing puzzle. If you don’t understand that, and price your services accordingly, you are in for a very rude surprise. What you want to make, and what you actually make will be very different numbers indeed.
© BEP Enterprises Incorporated 2008
I hate to be the one to spoil the fun, but it won’t work out that way. If he wants to make $25 an hour, he will likely need to be charging the customer $45 to $50 an hour.
If the only cost associated with a paint contracting company were labor, the above might work. But there are many other costs incurred by a business—insurance, advertising, depreciation, office supplies, etc. If these costs are not built into the selling price they will ultimately come out of the owner’s pocket.
Let’s say a contractor decides that he will charge $25 an hour for a particular job. He gets the job and everything goes smoothly. He winds up making his $25 an hour. And then what? He doesn’t have money for advertising—it’s not in his price. He doesn’t have money to pay his insurance (if he has it)—it wasn’t in his price. He doesn’t have money to maintain his equipment—it wasn’t in his price. The only thing in his price was his wages.
When these other expenses come due—and they will sooner or later—the money must come out of his pocket. Slowly his $25 an hour is lowered as he pays these expenses.
Some may say—but I’m only going to do this to get my business going. But how will you get it going if you don’t have money for advertising, insurance, etc.? How will you build your business if you are simply working for wages? The fact is, you won’t.
Your wages are only one part of the pricing puzzle. If you don’t understand that, and price your services accordingly, you are in for a very rude surprise. What you want to make, and what you actually make will be very different numbers indeed.
© BEP Enterprises Incorporated 2008
Wednesday, March 12, 2008
Where is Your Seed Corn?
I grew up in a rural area. Our nearest neighbor was a working farm. The oldest boy was my age, so I frequented the farm to ride horses, feed the cows, and assorted other activities.
One day the farmer was taking the kernels off of a load of harvested corn. He had usually stored the corn on the cob, so I asked about this activity. “This is my seed corn,” he said. I still didn’t understand. “Next spring I will need to plant another crop of corn. If I don’t save some of my harvest from this year, I won’t have anything to plant. These are the seeds for next year’s crop.”
So it is with a paint contracting business—if we don’t save some of today’s harvest, we won’t have any seed corn for next year.
In the case of our business, cash is the seed corn. Cash allows us to advertise, to purchase and maintain equipment. Cash allows us to invest in training and provide benefits. Cash allows us to grow our business. Just as a farmer can’t grow a crop without his seed corn, a business can’t grow without cash.
The farmer gets his seed corn from today’s crop. The businessman gets his cash from today’s job—but only if it is built into his price. If his price does not include tomorrow’s expenses the cash will not be available. If he does not anticipate tomorrow’s needs he will not be able to meet tomorrow’s expenses.
The farmer plants more corn than he needs today. The excess becomes his seed corn. The businessman must charge more than he needs for today’s expenses, and the excess becomes his seed corn.
If you do not have seed corn built into your pricing, where will the seed corn come from? Where will you get the cash to build your business? How will you be able to plant a crop tomorrow?
© BEP Enterprises Incorporated 2008
One day the farmer was taking the kernels off of a load of harvested corn. He had usually stored the corn on the cob, so I asked about this activity. “This is my seed corn,” he said. I still didn’t understand. “Next spring I will need to plant another crop of corn. If I don’t save some of my harvest from this year, I won’t have anything to plant. These are the seeds for next year’s crop.”
So it is with a paint contracting business—if we don’t save some of today’s harvest, we won’t have any seed corn for next year.
In the case of our business, cash is the seed corn. Cash allows us to advertise, to purchase and maintain equipment. Cash allows us to invest in training and provide benefits. Cash allows us to grow our business. Just as a farmer can’t grow a crop without his seed corn, a business can’t grow without cash.
The farmer gets his seed corn from today’s crop. The businessman gets his cash from today’s job—but only if it is built into his price. If his price does not include tomorrow’s expenses the cash will not be available. If he does not anticipate tomorrow’s needs he will not be able to meet tomorrow’s expenses.
The farmer plants more corn than he needs today. The excess becomes his seed corn. The businessman must charge more than he needs for today’s expenses, and the excess becomes his seed corn.
If you do not have seed corn built into your pricing, where will the seed corn come from? Where will you get the cash to build your business? How will you be able to plant a crop tomorrow?
© BEP Enterprises Incorporated 2008
Tuesday, March 11, 2008
Starting a Painting Business: Business Skills
In the E-Myth Michael Gerber talks about “entrepreneurial seizure”-- someone is good at something, and believes he should start a business. Far too many painting contractors have fallen victim to entrepreneurial seizure.
Such individual believe that the quality of their work will keep them busy. They might even think it will make them reasonably wealthy. They are wrong.
Running a successful business requires a great deal more than good painting skills. In fact, running a successful painting business doesn’t require good painting skills. I’m not a particularly good painter. Never have been, and never will be.
Running a successful painting business requires a myriad of skills and knowledge—marketing, sales, accounting, management are just a few. Without these skills the best painter in the world will be, well, the best painter in the world. But he won’t be a successful business owner.
A successful business requires good business skills. Everything else can be hired. Just as you can hire an accountant, lawyer, graphics designer, etc., you can hire good painters. But you must guide the ship. You must make decisions. You must plan and manage. And all of that requires good business skills.
The great news is: those skills can be learned. At one time every great business leader started at the same place you started—as a babbling, pooping baby. They learned the skills that made them great, and so can you. It just takes effort, determination, and a plan.
© BEP Enterprises Incorporated 2008
Such individual believe that the quality of their work will keep them busy. They might even think it will make them reasonably wealthy. They are wrong.
Running a successful business requires a great deal more than good painting skills. In fact, running a successful painting business doesn’t require good painting skills. I’m not a particularly good painter. Never have been, and never will be.
Running a successful painting business requires a myriad of skills and knowledge—marketing, sales, accounting, management are just a few. Without these skills the best painter in the world will be, well, the best painter in the world. But he won’t be a successful business owner.
A successful business requires good business skills. Everything else can be hired. Just as you can hire an accountant, lawyer, graphics designer, etc., you can hire good painters. But you must guide the ship. You must make decisions. You must plan and manage. And all of that requires good business skills.
The great news is: those skills can be learned. At one time every great business leader started at the same place you started—as a babbling, pooping baby. They learned the skills that made them great, and so can you. It just takes effort, determination, and a plan.
© BEP Enterprises Incorporated 2008
Monday, March 10, 2008
I Don’t Remember His Name
Several times a month I will meet with a customer who tells me that she had painting done within the past 2 years. “He did a good job,” she will say, “but I can’t remember his name.” In other words, even though the customer was happy with his work, he won’t be getting another call from her.
It’s too bad that he didn’t use one of the easiest forms of marketing—customer retention. Well, too bad for him, but good for me.
Retention marketing means marketing to past customers. Such marketing can be as elaborate as a newsletter, or as simple as a letter. The goal is to stay in front of your customers and remind them that you want their business. The goal is to not let them forget your name.
You should be contacting past customers at least 4 times a year. You may think that they will remember you, and they might. But why take that chance?
Marketing is not a passive activity. It requires specific actions aimed at specific results. If you want your past customers to remember you, and call you again, you must continue to market to them.
Since I began doing a newsletter 10 years ago I have had many, many customer call me after 4 or 5 years had passed. They frequently cite my newsletter as the reason. Regular contact with these customers keeps my name in front of them. When they need work done, they will likely call me.
It’s not enough to just do good work. If your customers don’t remember your name, they can’t call you. And if you remind them, they likely won’t forget your name.
© BEP Enterprises Incorporated 2008
It’s too bad that he didn’t use one of the easiest forms of marketing—customer retention. Well, too bad for him, but good for me.
Retention marketing means marketing to past customers. Such marketing can be as elaborate as a newsletter, or as simple as a letter. The goal is to stay in front of your customers and remind them that you want their business. The goal is to not let them forget your name.
You should be contacting past customers at least 4 times a year. You may think that they will remember you, and they might. But why take that chance?
Marketing is not a passive activity. It requires specific actions aimed at specific results. If you want your past customers to remember you, and call you again, you must continue to market to them.
Since I began doing a newsletter 10 years ago I have had many, many customer call me after 4 or 5 years had passed. They frequently cite my newsletter as the reason. Regular contact with these customers keeps my name in front of them. When they need work done, they will likely call me.
It’s not enough to just do good work. If your customers don’t remember your name, they can’t call you. And if you remind them, they likely won’t forget your name.
© BEP Enterprises Incorporated 2008
Sunday, March 9, 2008
I’d Love to Take Your Money
Last week I met with a customer who was getting the required 3 estimates. After we talked for a while and walked around her house, I remarked that I really didn’t think she needed to have her house painted. A few areas needed some attention, but 90% of the house was in fine shape.
“I’d love to take your money,” I said, “but I would prefer to wait a few years for the time your house really needs painting.” To me, this attitude is nothing remarkable. But the customer was visibly and vocally surprised.
“Several other contractors insisted that we needed our entire house painted,” she said. “Why would they tell me that?”
“I won’t speculate about their motivation,” I replied. “But as you can see yourself, you only have a few isolated areas with a small amount of flaking paint. If you want to paint your house, no harm will be done, except to your wallet. But you don’t need to paint your house. I’ll give you an estimate to address these problem areas.”
I’m sure many other contractors have similar conversations on a regular basis. And I’m also sure many contractors engage in a very different conversation—my customer told me so.
I won’t bad mouth other contractors to my customers. I don’t think it’s professional or wise. I gain nothing by doing so.
But I’ll bad mouth them here. I think contractors who mislead customers are dishonest scum. I think they are short-sighted, and put the “con” in contractor. I think they do a disservice to their customers (the few they get), their industry, and themselves. And in the long run I think they get exactly what they deserve.
I don’t tell this story to pat myself on the back. I don’t need that. I tell it to provide encouragement to those who may be tempted to take the easy way. The easy way is just a short cut to going out of business.
I’ve had conversations similar to the above many, many times over the past 22 years. I sleep well knowing that I treat my customers with respect. But then, maybe that’s why I’ve been in business for 22 years.
© BEP Enterprises Incorporated 2008
“I’d love to take your money,” I said, “but I would prefer to wait a few years for the time your house really needs painting.” To me, this attitude is nothing remarkable. But the customer was visibly and vocally surprised.
“Several other contractors insisted that we needed our entire house painted,” she said. “Why would they tell me that?”
“I won’t speculate about their motivation,” I replied. “But as you can see yourself, you only have a few isolated areas with a small amount of flaking paint. If you want to paint your house, no harm will be done, except to your wallet. But you don’t need to paint your house. I’ll give you an estimate to address these problem areas.”
I’m sure many other contractors have similar conversations on a regular basis. And I’m also sure many contractors engage in a very different conversation—my customer told me so.
I won’t bad mouth other contractors to my customers. I don’t think it’s professional or wise. I gain nothing by doing so.
But I’ll bad mouth them here. I think contractors who mislead customers are dishonest scum. I think they are short-sighted, and put the “con” in contractor. I think they do a disservice to their customers (the few they get), their industry, and themselves. And in the long run I think they get exactly what they deserve.
I don’t tell this story to pat myself on the back. I don’t need that. I tell it to provide encouragement to those who may be tempted to take the easy way. The easy way is just a short cut to going out of business.
I’ve had conversations similar to the above many, many times over the past 22 years. I sleep well knowing that I treat my customers with respect. But then, maybe that’s why I’ve been in business for 22 years.
© BEP Enterprises Incorporated 2008
Saturday, March 8, 2008
Illegals are Taking all of the Work
The other day I was talking to a former subcontractor. She had just moved back to Houston from another city because illegals are taking all of the painting work where she was at.
I found this comment humorous. The zip code in which I have my office has about 80,000 residents. Of these, I would estimate that at least half are illegal. The streets around my office are filled with day laborers from dawn to dusk.
My point is, I am at or near ground zero on this issue. And I laugh—albeit a sad laugh—at those who use illegals as an excuse. If it weren’t illegals, it would be something else—the economy, cheap customers, sun spots, the phase of the moon, or something equally ridiculous.
Despite the plethora of illegals in my area, I have serious doubts that they have cost me many jobs. Perhaps one here and there, but not enough to worry about. You see, the customers I market to and serve aren’t looking for the lowest price. I market to the value shopper.
Illegals, and those who hire them, do not offer the same values I offer my customers. In short, they focus on a different market. I seriously doubt that Lexus is concerned about what deals Yugo is offering. So why should I worry about the Yugos of our industry?
If you worry about what others are doing you will have no shortage of issues to occupy your mind. And the sad thing is, you really can’t do anything about what they are doing, except whine. And whining is neither pretty nor effective.
If you think illegals are taking all of the work, maybe you are in the wrong line of work. Maybe you aren’t offering enough value. But that’s not my fault, nor is it the illegals.
© BEP Enterprises Incorporated 2008
I found this comment humorous. The zip code in which I have my office has about 80,000 residents. Of these, I would estimate that at least half are illegal. The streets around my office are filled with day laborers from dawn to dusk.
My point is, I am at or near ground zero on this issue. And I laugh—albeit a sad laugh—at those who use illegals as an excuse. If it weren’t illegals, it would be something else—the economy, cheap customers, sun spots, the phase of the moon, or something equally ridiculous.
Despite the plethora of illegals in my area, I have serious doubts that they have cost me many jobs. Perhaps one here and there, but not enough to worry about. You see, the customers I market to and serve aren’t looking for the lowest price. I market to the value shopper.
Illegals, and those who hire them, do not offer the same values I offer my customers. In short, they focus on a different market. I seriously doubt that Lexus is concerned about what deals Yugo is offering. So why should I worry about the Yugos of our industry?
If you worry about what others are doing you will have no shortage of issues to occupy your mind. And the sad thing is, you really can’t do anything about what they are doing, except whine. And whining is neither pretty nor effective.
If you think illegals are taking all of the work, maybe you are in the wrong line of work. Maybe you aren’t offering enough value. But that’s not my fault, nor is it the illegals.
© BEP Enterprises Incorporated 2008
Friday, March 7, 2008
Do It Yourselfers
Painting contractors frequently tell horror stories of customers who attempted to tackle a painting project. The results can sometimes be a disaster. I blame the plethora of DIY shows on television for a part of this. They tend to make the most complex project look quite simple. Another reason is that many people believe that anyone can paint.
We know better. Painting may not be rocket science, but it takes certain knowledge and skills to do a project properly and with acceptable results.
Yet, many of the same contractors who decry home owners when they try to do it themselves turn around and do the same thing. These contractors insist on designing their own web site, writing their own contracts, designing logos, etc. Just as some home owners can paint very well, some contractors can perform these tasks very competently. But many homeowners make a mess of their project, and so do many contractors.
Hiring a professional is usually well worth the money. It can save a tremendous amount of time. More importantly it can usually result in a better final product.
There is nothing wrong with creating your own marketing materials. But you should be honest with yourself about your abilities. You probably laugh when you hear someone claim that “anyone can paint”. I suspect graphic designers do the same when they hear someone claim that “designing a web site is easy”. It’s easy to make a mess of a painting project. The same is true of marketing materials; however, the damage to your image and reputation can be much more difficult to fix.
© BEP Enterprises Incorporated 2008
We know better. Painting may not be rocket science, but it takes certain knowledge and skills to do a project properly and with acceptable results.
Yet, many of the same contractors who decry home owners when they try to do it themselves turn around and do the same thing. These contractors insist on designing their own web site, writing their own contracts, designing logos, etc. Just as some home owners can paint very well, some contractors can perform these tasks very competently. But many homeowners make a mess of their project, and so do many contractors.
Hiring a professional is usually well worth the money. It can save a tremendous amount of time. More importantly it can usually result in a better final product.
There is nothing wrong with creating your own marketing materials. But you should be honest with yourself about your abilities. You probably laugh when you hear someone claim that “anyone can paint”. I suspect graphic designers do the same when they hear someone claim that “designing a web site is easy”. It’s easy to make a mess of a painting project. The same is true of marketing materials; however, the damage to your image and reputation can be much more difficult to fix.
© BEP Enterprises Incorporated 2008
Thursday, March 6, 2008
Letting Go of Perfect
A frequent lament among painting contractors is that their employees do not perform the same quality of work as the owner. The owner finds himself frustrated and often gets rid of his employees and works alone.
While there is nothing wrong with having high standards, those standards must also be reasonable. And from a financial perspective, those standards must be profitable. It does little good to provide a perfect paint job and go broke in the process.
I hasten to add that I am not advocating poor quality work. I am saying that the quality and the price must mesh.
Few customers are willing to pay for a perfect paint job (if a perfect paint job is even possible). Fewer still would even notice the difference between a 10 and an 8. Yet, the man hours required to go from an 8 to a 10 are exponential. In other words, to get to a 10 might involve 30%, 40%, or more man hours than an 8.
If a customer is not willing to pay for these additional man hours, nor will they notice a difference, why do so many contractors insist on providing a 10? I suspect some of it is pride of workmanship. And I suspect some of it is poor business skills.
No business can be all things to all people. A painting contractor that specializes in apartment repaints is not likely to appeal to the owners of expensive homes. The markets and skill sets are different.
The market for perfect paint jobs is very small—both in terms of demand and willingness to pay for it. However, there is a large market for an 8. The contractor who provides an 8 and charges accordingly will have a large potential market and be paid appropriately. The contractor who provides a 10 and charges for an 8 will appeal to that market, but be underpaid.
If he continues down that path he will be forced to work alone or with a small crew in order to maintain his standards. He will likely be unable to grow his business. That is, until he lets go of perfect.
© BEP Enterprises Incorporated 2008
While there is nothing wrong with having high standards, those standards must also be reasonable. And from a financial perspective, those standards must be profitable. It does little good to provide a perfect paint job and go broke in the process.
I hasten to add that I am not advocating poor quality work. I am saying that the quality and the price must mesh.
Few customers are willing to pay for a perfect paint job (if a perfect paint job is even possible). Fewer still would even notice the difference between a 10 and an 8. Yet, the man hours required to go from an 8 to a 10 are exponential. In other words, to get to a 10 might involve 30%, 40%, or more man hours than an 8.
If a customer is not willing to pay for these additional man hours, nor will they notice a difference, why do so many contractors insist on providing a 10? I suspect some of it is pride of workmanship. And I suspect some of it is poor business skills.
No business can be all things to all people. A painting contractor that specializes in apartment repaints is not likely to appeal to the owners of expensive homes. The markets and skill sets are different.
The market for perfect paint jobs is very small—both in terms of demand and willingness to pay for it. However, there is a large market for an 8. The contractor who provides an 8 and charges accordingly will have a large potential market and be paid appropriately. The contractor who provides a 10 and charges for an 8 will appeal to that market, but be underpaid.
If he continues down that path he will be forced to work alone or with a small crew in order to maintain his standards. He will likely be unable to grow his business. That is, until he lets go of perfect.
© BEP Enterprises Incorporated 2008
Wednesday, March 5, 2008
Self-Esteem and Pricing
Many painting contractors express concern that if they raise their prices they will not be able to sell enough jobs to stay busy. They are probably right, but for reasons different than they think.
Selling is largely an issue of self-esteem. That is, selling requires confidence in the product or service one is selling. A lack of confidence is reflected in low sales and/ or low prices.
It requires a great deal of confidence to sell at high prices. One must be certain one is offering a superior value and can provide that value. Empty promises are nothing more than fraud.
Contractors who under price their services are probably not offering superior value. Certainly there are exceptions—there are contractors who offer great service and value, but still under price their services. Why? They typically respond that consumers simply won’t pay what they are worth.
I contend that the problem isn’t with the consumer. The problem is between the ears of the contractor. He is consumed by FEAR:
False
Evidence
Appearing
Real
The fact is, most consumers make their purchasing decisions on factors other than price. Convenience, durability, customer service, and trust all weigh in their decision. In short, customers look for value. The greater the value, the more they are willing to pay. But if 2 jobs look the same, they will go with price.
Superior value is only a part of the equation. You must also communicate that value and why it matters. This is the role of marketing and sales—to communicate your value to the customer.
Few contractors would dispute the necessity of being honest with customers. But many are not honest with themselves—they shift the blame for under pricing to the wrong party. They need to look in the mirror. Perhaps more importantly, they need to develop some self-esteem and begin charging what they are worth.
© BEP Enterprises Incorporated 2008
Selling is largely an issue of self-esteem. That is, selling requires confidence in the product or service one is selling. A lack of confidence is reflected in low sales and/ or low prices.
It requires a great deal of confidence to sell at high prices. One must be certain one is offering a superior value and can provide that value. Empty promises are nothing more than fraud.
Contractors who under price their services are probably not offering superior value. Certainly there are exceptions—there are contractors who offer great service and value, but still under price their services. Why? They typically respond that consumers simply won’t pay what they are worth.
I contend that the problem isn’t with the consumer. The problem is between the ears of the contractor. He is consumed by FEAR:
False
Evidence
Appearing
Real
The fact is, most consumers make their purchasing decisions on factors other than price. Convenience, durability, customer service, and trust all weigh in their decision. In short, customers look for value. The greater the value, the more they are willing to pay. But if 2 jobs look the same, they will go with price.
Superior value is only a part of the equation. You must also communicate that value and why it matters. This is the role of marketing and sales—to communicate your value to the customer.
Few contractors would dispute the necessity of being honest with customers. But many are not honest with themselves—they shift the blame for under pricing to the wrong party. They need to look in the mirror. Perhaps more importantly, they need to develop some self-esteem and begin charging what they are worth.
© BEP Enterprises Incorporated 2008
Tuesday, March 4, 2008
The Price of Undercharging
Just between you and me, what do you make per hour? Be honest—nobody else can hear. I suspect whatever number you said is low—lower than you think, and probably lower than it should be.
Most people will answer with the number they charge for their labor while painting. But the fact is, a painting contractor spends many hours doing things other than putting paint on the wall. This includes:
Giving estimates
Working up estimates
Paying bills
Returning phone calls
Picking up paint
Doing payroll and taxes
Marketing
A painting contractor who is still in the bucket can easily work 60 or more hours a week. Of that, it is likely that at least a third and probably a half of his time is spent on tasks other than painting. So someone who is charging $25 an hour may actually be making only $13 to $17 an hour when the other time is included. (This “slippage” occurs no matter what you are charging, if you are still in the bucket and not properly charging for all of your time.)
If that’s not bad enough, working such hours also imposes certain costs on the contractor: less time with his family, less time to relax and pursue a hobby, less time away from work period. We all need time away from work, both physically and psychologically.
The above is not an unusual scenario. It goes a long ways toward explaining why 90% of all contractors fail within 5 years. They burn out and go broke. They simply work themselves into the ground, and for less money than they could make working for someone else. That’s the price of undercharging.
© BEP Enterprises Incorporated 2008
Most people will answer with the number they charge for their labor while painting. But the fact is, a painting contractor spends many hours doing things other than putting paint on the wall. This includes:
Giving estimates
Working up estimates
Paying bills
Returning phone calls
Picking up paint
Doing payroll and taxes
Marketing
A painting contractor who is still in the bucket can easily work 60 or more hours a week. Of that, it is likely that at least a third and probably a half of his time is spent on tasks other than painting. So someone who is charging $25 an hour may actually be making only $13 to $17 an hour when the other time is included. (This “slippage” occurs no matter what you are charging, if you are still in the bucket and not properly charging for all of your time.)
If that’s not bad enough, working such hours also imposes certain costs on the contractor: less time with his family, less time to relax and pursue a hobby, less time away from work period. We all need time away from work, both physically and psychologically.
The above is not an unusual scenario. It goes a long ways toward explaining why 90% of all contractors fail within 5 years. They burn out and go broke. They simply work themselves into the ground, and for less money than they could make working for someone else. That’s the price of undercharging.
© BEP Enterprises Incorporated 2008
Monday, March 3, 2008
Everybody Else Does It
When I was a kid, I often exhorted my mother to allow me to do something because “everybody else is doing it”. Her response was always the same, “If everybody was jumping off a bridge, would you want to do it?” (Fortunately for her, I was an adult when bungie jumping became popular.)
I had to hear that question many, many times before the message really sunk in. Just because everybody else does it doesn’t make it good, right, or the thing to do. All it means is everybody else is doing it. They could be wrong.
In the painting industry there are certain things that “everybody” does. Like bidding by the square foot (of floor space), believing that $25 is the top rate they can get, and going broke. The fact is, there are exceptions to all of these, and those who are an exception to the last are probably an exception to the first two.
Statistically, 90% of the companies starting today will be out of business in 5 years. (I know you are probably tired of hearing that, but it’s a fact that needs to be heard often.) So, “everybody” is going to be out of business soon. Do you want to be like “everybody”? Or do you want to be an exception?
If you want to be like “everybody” then do what “everybody” does. If you want to be an exception, then you must reject what “everybody” does and do something different. If you want to be an exception, what “everybody” else does just won’t cut it.
If you want to be an exception, don’t worry about everybody else, and worry about yourself. Worry about your dreams, your aspirations, and your goals. Everybody doesn’t do that. But then, everybody doesn’t succeed either.
© BEP Enterprises Incorporated 2008
I had to hear that question many, many times before the message really sunk in. Just because everybody else does it doesn’t make it good, right, or the thing to do. All it means is everybody else is doing it. They could be wrong.
In the painting industry there are certain things that “everybody” does. Like bidding by the square foot (of floor space), believing that $25 is the top rate they can get, and going broke. The fact is, there are exceptions to all of these, and those who are an exception to the last are probably an exception to the first two.
Statistically, 90% of the companies starting today will be out of business in 5 years. (I know you are probably tired of hearing that, but it’s a fact that needs to be heard often.) So, “everybody” is going to be out of business soon. Do you want to be like “everybody”? Or do you want to be an exception?
If you want to be like “everybody” then do what “everybody” does. If you want to be an exception, then you must reject what “everybody” does and do something different. If you want to be an exception, what “everybody” else does just won’t cut it.
If you want to be an exception, don’t worry about everybody else, and worry about yourself. Worry about your dreams, your aspirations, and your goals. Everybody doesn’t do that. But then, everybody doesn’t succeed either.
© BEP Enterprises Incorporated 2008
Sunday, March 2, 2008
One Bad Apple (Don’t Spoil the Whole Bunch)
I know this will date me, and perhaps raise a few eye brows, but I once saw the Osmond Brothers live, in concert. And I enjoyed it. (I was only about 10 years old, and it was the first “rock” concert I ever attended.) Their hit song at the time was One Bad Apple.
As Donnie so eloquently sang, “One bad apple don’t spoil the whole bunch girl.” (Lest I be accused of some kind of sexism, the same applies to boys. But I doubt Donnie would have had thousands of young girls screaming his name if he sounded like he was singing to another boy.)
I don’t generally look to Donnie Osmond for intellectual inspiration, but there is truth in those words. Simply because one apple is bad doesn’t tell us anything about the other apples in the bunch. Tossing them all out is potentially a waste of a lot of apples.
You may wonder what this has to do with painting. Since you asked I will tell you.
Many painting contractors like to categorize an entire group of people by the actions of a few members of that group. For example, they declare that lawyers are bad customers, or Asians hire only on price. In effect, they declare the whole bunch bad because of one (or maybe several) rotten apple. They are wasting a lot of apples that aren’t rotten.
Sure, you could “save” a lot of time by tossing out the whole bunch of apples. You wouldn’t have to go through them and identify which are good and which aren’t. If you toss them all, you won’t have to go through this effort. But how will you make a pie? You’ll have to go to the store and buy another bunch of apples. That takes time and money, so how much are you really saving?
Certainly some customers are rotten. But there are also some rotten contractors. We don’t like it when customers make blanket judgments about contractors, and it’s no better when contractors do it to customers.
© BEP Enterprises Incorporated 2008
As Donnie so eloquently sang, “One bad apple don’t spoil the whole bunch girl.” (Lest I be accused of some kind of sexism, the same applies to boys. But I doubt Donnie would have had thousands of young girls screaming his name if he sounded like he was singing to another boy.)
I don’t generally look to Donnie Osmond for intellectual inspiration, but there is truth in those words. Simply because one apple is bad doesn’t tell us anything about the other apples in the bunch. Tossing them all out is potentially a waste of a lot of apples.
You may wonder what this has to do with painting. Since you asked I will tell you.
Many painting contractors like to categorize an entire group of people by the actions of a few members of that group. For example, they declare that lawyers are bad customers, or Asians hire only on price. In effect, they declare the whole bunch bad because of one (or maybe several) rotten apple. They are wasting a lot of apples that aren’t rotten.
Sure, you could “save” a lot of time by tossing out the whole bunch of apples. You wouldn’t have to go through them and identify which are good and which aren’t. If you toss them all, you won’t have to go through this effort. But how will you make a pie? You’ll have to go to the store and buy another bunch of apples. That takes time and money, so how much are you really saving?
Certainly some customers are rotten. But there are also some rotten contractors. We don’t like it when customers make blanket judgments about contractors, and it’s no better when contractors do it to customers.
© BEP Enterprises Incorporated 2008
Saturday, March 1, 2008
Fun with Numbers, Epilogue
During the past week I have looked at several key numbers we can use in managing our paint contracting business. There are certainly other numbers that we can and should utilize.
The importance of knowing your numbers cannot be overstated. Numbers provide us with objective measurements of past performance, and a means for making realistic projections about future performance.
It is certainly possible to run a successful business without a comprehensive grasp of one’s numbers. But it is also possible to paint the entire interior of a house with a 2” brush. The fact that something is possible does not mean that it is efficient or wise. If you were going to paint an interior you would use the tools that provide the greatest efficiency. You should do the same in operating your company.
Effectively understanding and using our numbers requires that we capture specific data. The greater the amount of that data the more accurate our numbers become. Small samplings can be very misleading due to aberrations. Numbers do fluctuate, sometimes significantly. Large samplings even out these fluctuations.
For example, a particular piece of marketing may not generate any leads one week and 5 leads the next. If we looked at each of these weeks independently we would draw vastly different conclusions.
It takes time to collect sufficient data. The sooner you begin collecting that data, the sooner you can make meaningful evaluations. It is also possible to reconstruct data by reviewing your records.
Developing a system for collecting data will make the process efficient and more useful. A simple written form can suffice. A simple spreadsheet can be used to compile and analyze the data. In other words, this does not need to be a complicated process.
If you do not have the necessary data, the time to start collecting it is now. The future will arrive. Your numbers will tell you how you got there.
© BEP Enterprises Incorporated 2008
The importance of knowing your numbers cannot be overstated. Numbers provide us with objective measurements of past performance, and a means for making realistic projections about future performance.
It is certainly possible to run a successful business without a comprehensive grasp of one’s numbers. But it is also possible to paint the entire interior of a house with a 2” brush. The fact that something is possible does not mean that it is efficient or wise. If you were going to paint an interior you would use the tools that provide the greatest efficiency. You should do the same in operating your company.
Effectively understanding and using our numbers requires that we capture specific data. The greater the amount of that data the more accurate our numbers become. Small samplings can be very misleading due to aberrations. Numbers do fluctuate, sometimes significantly. Large samplings even out these fluctuations.
For example, a particular piece of marketing may not generate any leads one week and 5 leads the next. If we looked at each of these weeks independently we would draw vastly different conclusions.
It takes time to collect sufficient data. The sooner you begin collecting that data, the sooner you can make meaningful evaluations. It is also possible to reconstruct data by reviewing your records.
Developing a system for collecting data will make the process efficient and more useful. A simple written form can suffice. A simple spreadsheet can be used to compile and analyze the data. In other words, this does not need to be a complicated process.
If you do not have the necessary data, the time to start collecting it is now. The future will arrive. Your numbers will tell you how you got there.
© BEP Enterprises Incorporated 2008
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