Monday, August 31, 2009

Learning by Spiraling

Learning seldom occurs in a linear line. For example, when we read a book, we might grasp the main points and a few of the minor points. But it is almost impossible to get every point in the book—it is too much to absorb at one time.

Spiraling involves re-visiting old ideas for the purpose of picking up nuances missed the first time. When we spiral we bring an expanded context of knowledge to the topic. We have integrated and applied certain information, and when we re-visit the topic we are able to see deeper meaning and wider application than we could before.

Even before I learned about spiraling, I often had the following experience: I would read something and think, “I get this.” Later, when I revisited the point, I would grasp it even better, and think, “Now I really get it.” And later still, I would see new applications and think, “Now I really, really understand.” The interesting thing is, no matter how many times I come back to these issues, it seems as if there is still something that alluded me before.

So dust off those old books and dive back in. You might be surprised what you learn.

Friday, August 28, 2009

Maintenance Programs and Differentiation

One of the easiest ways to differentiate your painting company is to offer a maintenance program. The most basic program involves an annual inspection to identify problems with exterior painted surfaces, and then a recommendation for solutions.

The benefits to the customer can be significant. A maintenance program can help them keep their home looking good while also reducing maintenance costs. For example, some areas--such as window sills and fascia boards--tend to wear more than others. Keeping these areas properly painted can avoid wood rot, and the costs associated with repairs. Rather than wait for a complete repaint, it might only be necessary to repaint certain areas of the home.

For the contractor, a maintenance program can keep you in front of your past customers. Such a program can provide steady leads.

Of course, for a maintenance program to work, the contractor must be honest with his customers. He should not recommend work that is not needed. If something is optional, say so. Don't try to maximize today's work at the expense of future work by taking advantage of the situation.

While the specifics will vary depending on architectural styles, building materials, climate, etc. a maintenance program can include an inspection for failing paint, storm damage, rotting wood, broken caulk joints, gutter cleaning, and pressure washing. Many of these services are required on a regular basis to keep exterior surfaces protected and looking fresh.

A more elaborate program might include a long-term schedule and budget. This helps the customer anticipate future expenses, and is a service that few contractors offer. It is a great way to differentiate your company.

Tuesday, August 25, 2009

Desperate Times

It seems that a lot of painting contractors are experiencing desperate times. Leads are down and they are not sure what to do. As their bank account slowly dwindles they are hesitant to spend money on advertising, but also know that without advertising their will not be any leads.

There is no easy fix, but sitting around watching Oprah isn't the answer either. If I were in such a situation, I would take two simple steps. First, I would contact past customers. Personally, I would (and do) use newsletters. These have greater shelf life, are more informative, and from my experience, are more effective than other media. A less effective option is to use postcards.

The second step I would take is to design and print fliers or door hangers and hit the streets. If I did not have a job, it would be my job to get one.

Handing out fliers is no fun. When I started I did it several times a week. But it works and it is inexpensive. You can target the areas where you want to work (assuming that fliers are allowed). More importantly, it is pro-active. Leads are not going to magically fall into your lap. If you want something, you must work for it.

Building a business isn't always fun. Sometimes it requires that we do things that we do not enjoy, or even hate. But sitting around crying in our beer isn't going to make the situation better.

And when you get a job, put 10% aside for future marketing. Develop a marketing plan and then implement it. Otherwise, you will find yourself back in the same situation at some future time.

Friday, August 14, 2009

An Excerpt from Getting Out of the Bucket: Systems

Every business will experience problems, no matter how carefully the owner plans. Every business will experience undesired results, no matter how rigorous the execution. Every business owner will experience frustrations, no matter how conscience his efforts.

Our goal with systems is to minimize the number and impact of these problems, frustrations, and undesired results. By developing and implementing systems we can achieve greater consistency in the results we experience, and greatly reduce stress and frustration.

Your systems should identify the most efficient means for achieving the desired results. In other words, if you want an employee to perform a task a specific way, document the steps involved. This becomes your procedure for that task.

Consistent results require consistent actions. When we identify and document the actions that will achieve our desired results, success becomes simply a matter of performing those actions.

A bottleneck is defined as anything that restricts or prevents us from accomplishing our goals. In general, bottlenecks manifest themselves in two ways.

Anytime we experience undesired results, a bottleneck is present. An undesired result may be as simple as not getting what we wanted or expected, or it may mean the development of a problem. In either case, the result is not what we desired. Examples include call backs, poor quality work, a project that goes over budget, and insufficient leads.

Another sign of a bottleneck is frustration. Frustrations may result in the absence of an undesired result. For example, improper planning may result in a material shortage that requires an emergency trip to get more materials. We may still get the desired result—a satisfied customer and profitable job—but the shortage creates a frustration. Another example would be employees asking unnecessary questions.

Most bottlenecks have one of two fundamental causes: a lack of systems and procedures, or the appropriate procedure was not followed.

A system could be defined as an integrated whole, in which each part is interdependent with other parts. Together, the individual parts contribute to the overall function of the item in question. For example, an automobile consists of many individual parts. If a particular part fails, the entire automobile may not function. In a business, if a particular function or task is not performed properly, the business may not meet its goals. In other words, a bottleneck will result.

Systems will help us reduce, eliminate, and/ or prevent bottlenecks.

To learn more about Getting Out of the Bucket, click here.

Tuesday, August 11, 2009

Gurus and Experts

With the growth of the Internet and desktop publishing it has become quite easy for someone with a small amount of experience to instantly become a self-professed expert. For a painting contractor searching for help with his business, it can be difficult to identify the true experts from the pretenders. How can a contractor determine whose advice will be helpful and whose will be a waste of money?

There are many factors that go into answering this question. But one thing rings clear—there are no magic bullets. Simply purchasing a book or manual will not improve your business. No matter how clearly stated, extensive, and helpful an idea may be, it will not magically inject itself into your business. You must exert the effort to implement any idea.

Over the years I have spent tens of thousands of dollars on books, tapes, memberships, and other types of training. While some have certainly been more beneficial than others, one thing has stood out—the quality of the material could usually be determined before I ever made a purchase.

Many “experts” are quick to claim their expertise, but offer little evidence. They tell you how their book or program will make you tons of money, but give you no ideas that you can test—until you buy their book. Trust me, they say, and I shall deliver you to the promised land.

These “experts” may have good intentions. They may offer some good ideas. But if I am going to spend my hard-earned money on business advice, I want some evidence that it is actually going to be worth it.

I’ve found that those with the best information readily share much of it for free. Richard Kaller of the Certified Contractors NetWork was the epitome of this approach. He was a prolific poster on various forums, and the information he offered was extremely beneficial. He had such a wealth of information, ideas, and advice that he could afford to give away more than most contractors know.

I have tried to take a similar approach, though I would not begin to consider myself in Richard’s league. Through this blog and numerous forums I have written tens of thousands of words, explaining in my own words, the ideas that have helped me in my business. In short, rather than simply assert my expertise, I have tried to demonstrate it.

This is not to say that I have all of the answers. I don’t. But I certainly have a lot of them. And while some may take exception to that claim, only you can make that judgment as it pertains to your business.

Sunday, August 2, 2009

An Excerpt from Getting Out of the Bucket: Starting a Business

Starting a painting business is easy. Starting a painting business that will be successful isn’t.

There is much more to operating a successful painting business than putting paint on the wall. Issues such as marketing, estimating, sales, administration, and production management are all crucial components to success.

While each business owner will have different goals and expectations for his business, the basic principles necessary for success do not vary. Whether you want to have a one-man operation or a twenty man shop, sound business principles are a necessary component of achieving the goals you establish.

If I had to start my painting business all over again, I would take the following 5 steps:

1. Learn about owning a small business. There are many resources, including books, tapes, forums such as Paint Talk, and of course, Out of the Bucket.com.

2. Identify where I want to be in 1 year. For example, what kind of revenue, what kind of profit, what kind of income. And then I'd develop a plan for accomplishing this.

3. Invest in marketing-- signs, business cards, web site, and fliers/ door hangers. The bulk of the money would go into fliers/ door hangers and I would hand them out myself. I would invest at least $500, and more if I could afford it.

4. Learn to sell at the right price, which implies that I know what the right price is. I would learn more about the financial side of the business.

5. Develop some simple systems for the basics of the business. Such as, how will I prep an exterior job, how will I prep an interior job, etc. I would include some administration issues as well. And I would put this in writing.

These 5 steps do not exhaust the possibilities, but after 22 years in business I am confident that the above steps would save a tremendous amount of time and money.

There are certainly multiple paths to business success. It is possible to be successful and act in complete defiance of the above suggestions. However, the above steps are proven—they do lead to success. From my perspective, anything that makes the journey easier is certainly worth investigating.

To learn more about Getting Out of the Bucket, click here.