Updated Web Site

We have updated our web site and now offer one convenient place for you to read our blog, articles, and more. Over the coming months we will be migrating our blog posts to the new web site, so check it out often.

Know When to Shut Up

I have seen lots of painting contractors who just love to talk about how great their work is. Now, I have nothing against touting one's skills and abilities, but sometimes this strategy is a very ineffective sales tactic. Customers seldom care about how great you are--they want to know how that greatness will benefit them. And before we can share that information, we must first know what benefits they seek.

As an example, consider your own decision making process in regard to a work vehicle. Some contractors prefer trucks, while others prefer vans. A number of factors goes into such a decision. Yet, if a salesman decided that he knows what you want, he might spend his time explaining how great his truck is, while you really want a van. No matter how great the truck is, it won't meet your needs and desires.

Our customers are not monolithic--that want and need different things from our services. Their expectations and motivations differ. Many factors can be involved in their buying decision, and price is seldom the most important. If we want to appeal to a particular customer, we must know what factors he will consider. And since we aren't mind readers, we must let him tell us.

New Web Site

For non-contractors who are interested in developing systems for their business, I have launched a new web site. This site provides articles, reports, and other information for small business owners interested in systematizing their business.

I Moved my Office

After 20 years in the same location, we moved our office this month. We only moved 6 doors down in the same building, but it seems completely different. We gave up most of our warehouse space, which we were no longer using, and now have more office space.

The move was bittersweet. Twenty years in one location is a long time, and there were a lot of memories associated with our office. Indeed, the process of cleaning out our accumulated junk brought back many of those memories, some good, and some not so good.

One of the more interesting aspects of the move was realizing just how much junk we had accumulated. Scraps of wood, old equipment, assorted building materials, such as gutters, doors, and windows, and personal items left behind by past employees made for a lot of trash to haul off.


The move also gave us an opportunity to re-organize our files. As with the warehouse, we had accumulated a lot of useless paper, and I ultimately filled several large trash cans with old files and paperwork. The end result will be improved efficiency and less clutter.

While I don't suggest moving as a means for cleaning house, I do suggest getting rid of unnecessary materials and paperwork. For years I said, "We might need that some day." And then I spent 2 weeks throwing away all of those things things. Life would have been easier if I had done so from the beginning.

When Times are Tough

It is hard to read a newspaper or listen to the radio without told how bad the economy is. Certainly, times are tough for many small business owners, painting contractors included. When times are tough, stress mounts. Leads slow down, customers hold on to their money more tightly, the bills seem to come in faster than revenues.

This can be a good time to assess why you own a business. If it is for financial freedom, you might be questioning that rationale. If it is to be your own boss, you might be rethinking that idea. No matter your reason, you should certainly enjoy what you are doing. Especially when times are tough.

Doing something that we dislike is never fun, and it can be even less fun when times are tough.

In the 24 years that I have owned a business I have been through several recessions. Each time I wonder if I care to weather another one. And each time I realize that I generally enjoy what I am doing. While that won't help pay the bills, it does help me when times are tough.

A Contractor Experience

I recently had the need to hire a contractor to repair a fence on one of my rental properties. The repair was not particularly difficult, but it was going to take more time than I cared to spend on it.

Several of the posts had rotted and the fence was beginning to lean. Since this is rental property, I did not care to spend the money for a brand new fence. Besides, the pickets and rails are in fine shape. I just wanted someone to add some new posts to stabilize the fence.

The first contractor I contacted didn't want to do that. He wanted to basically rebuild the fence, and his price reflected this. The second contractor suggested adding posts before I could mention that idea. His price also reflected that level of work.

Some of the pickets had to be removed in the process, but the intention was to re-use those pickets. The contractor later called and said that they had damaged quite a few pickets and he would have to charge me a little more. When I met with him to inspect the work, he informed me that he had spent $50 on materials but would only charge me $25 extra.

As a consumer, I welcomed this news. As a consultant to contractors, I cringed. He was paying me to repair my fence.

My suspicion is that he is looking for more business in the future. He knows that I am a member of a real estate group and probably figures that I will be buying more homes in the future. But that kind of thinking will get him into trouble. If he is leaving money on the table now with the hope of future work, why won't he do the same in the future? And more importantly, he may not have a future if this is a standard procedure.

When in Rome

It is often said that when you are in Rome, do as the Romans do. The point of this cliche is that you should adapt yourself to your surroundings. While there is an element of truth in this, for the most part it is poor advice, particularly when applied to a paint contracting business.

If we applied this advice to a contracting business, we would adopt the practices of our competitors. We would do things the same way as "everyone" else. We would do nothing to differentiate ourselves. And where would this get us? The same place as everyone else.

I don't mean to imply that we should never do anything the same as our competitors. What I mean is that simply because others are doing something doesn't mean that it is a good thing. As my mother used to say, "Just because everyone is jumping off of a bridge doesn't mean it is something that you should do."

The principle of "best practices" is a far better guideline. "Best practices" refers to those procedures and tactics that consistently lead to the desired results. For example, if you want to have a successful painting company, follow those procedures and tactics that are used by other successful painting companies.

There is nothing inherently wrong with doing as the Romans. But we must we careful which Romans we are emulating.

Jump Start Your Painting Business

Are you tired of making less money than your employees? Are you tired of working 60, 70, or more hours a week? Are you tired of saying "next year will be better"?

Operating a successful paint contracting company does not need to be complicated. It just requires good business practices. Do you need more leads? Implement a marketing plan that includes effective strategies like customer retention and proximity marketing. Do you want motivated and happy employees? Empower them and get out of their way. Do you fret over low priced competition? Learn to sell more effectively by focusing on consumer education.

The reason most businesses fail is because the owner does not have the necessary business skills. He gets what Michael Gerber (author of The E-Myth) calls "entrepreneurial seizure". A skilled craftsman decides he is tired of working for someone else and hangs out his shingle--now he'll make the big bucks. The problem is, this seldom works out well. A skilled craftsman does not necessarily make a good business owner. The skill sets are much different.

This 335-page manual covers virtually every aspect of the business side of owning a paint contracting company. This manual covers:

• Business Systems

• Finance and Accounting

• Marketing

• Estimating

• Sales

• Production Management

• Administration

• And more...

For readers of our blog, we are offering a limited time special. You can save $60 off of our regular price. Click here to learn more.

When the Customer Knows More than You

If you have been in business very long, you have likely run into a customer or two who knows more about painting than you do. Or at least, the customer thinks that he does. I used to get very annoyed with such people, buy now I simply find them amusing.

My company has painted more than 200 houses a year for the past 15 years. Since I get about 40% of the jobs I look at, this means that I have looked at about 7,500 paint jobs over the last decade and a half. I seriously doubt that a non-professional painter has even looked at the painting on that many homes, let alone tried to identify the various conditions and issues present.

But that certainly doesn’t stop some people from pretending that they know more than me. Apparently they believe that watching an episode on HGTV provides more experience and knowledge than years of actually painting.

I generally find that such people do not make very good customers. They tend to be very closed to listening to my advice and recommendations; they tend to have very selective memories and only recall what fits their preconceived notions.

This isn’t to say that every customer who has an opinion on painting is going to turn out bad. Indeed, I prefer customers who have done some homework and understand what should be considered regarding their project. But they also must be willing to listen.

I have said many times that sales is about communication, and communication is a two-way street. Just as a contractor should not assume that he knows what is best for the customer, the customer should not assume that he knows more than the contractor. Each must listen and learn.

Good in Theory

We often hear someone say, “That is good in theory, but it won’t work in practice.” The intended meaning is that some idea sounds logical, but in the “real world” it just won’t work. But the fact is, a theory that won’t work in practice isn’t a very good theory. Good theories make good practice. Ideas are our guide to action.

Many people—and contractors are certainly no exception—are loath to try new ideas. They get locked into a certain mindset and often refuse to consider new alternatives. They may not like the results that they are getting, but the comfort of the known is more powerful than the unknown of trying new ideas. When they hear a new idea, they are quick to reject it as “good in theory”.

I see this almost everyday. One of the most common examples is the claim by some contractor that his market won’t bear higher prices. “You don’t understand my market,” they argue. “My customers simply don’t have the money to pay $40 an hour for painting services.”

Such contractors often concede that they must charge $40 (or more) an hour to make a decent wage, but they refuse to consider methods for doing so. On paper (in theory) they agree that they can’t make money charging $25 an hour, but in real life (in practice) they can’t charge more.

Consider what this really means: The facts indicate one thing, but I am going to ignore those facts. I choose to cling to my old ideas, even though I am going broke. All of your fancy math formulas won’t change anything. Your ideas are good in theory, but they won’t work in practice.

If we consider the rate we charge in complete isolation of other facts (or consider only a few other facts), this might be true. But our selling price is not an isolated fact, divorced from many other considerations. Our selling price is a consequence of many factors; the market in which we operate is only one of those factors.

As an example, we have many options when it comes to buying a hamburger. We have McDonald’s, Wendy’s, Burger King, Jack in the Box, and other fast food restaurants. We have upscale burger joints like Fuddrucker’s. We might have local establishments as well. Each prepares their food differently, uses different condiments, and might even bake their own buns. In other words, each tries to do something different to differentiate themselves. If they didn’t—if their burgers were exactly the same—the price they charge would become the only difference, and consumers would make their choice solely on price.

But the fact that they offer something different adds another element to our choice. When choosing where to get a hamburger, we have other considerations, such as the flavor of the meat or the sides offered or the condiments used or the entire dining experience. We are willing to pay more for a burger at Fuddrucker’s than a burger at McDonald’s. And we expect more in exchange.

The same principle holds true of painting contractors and the prices we charge. If the paint job we offer looks just like the job offered by our competitors, price does become the deciding factor. If our company looks just like everyone else, then price is most important.

Now, you might think that this sounds good in theory, but the fact remains that your market simply won’t bear higher prices. But how do you know? Do you believe this simply because that is what others have told you? Have you truly tried to differentiate your company? Have you tried to become the Fuddrucker’s or are you stuck in McDonald’s mode?

The truth is, if you regard the theory as good, then you must put it into practice. A good theory leads to good results.

A Million Reasons to Fail

There is no shortage of people who can tell you all of the reasons why you will fail in accomplishing your dreams. But such pronouncements are really a confession—they are telling you why they fail in achieving their goals and dreams.

When I was a teenager I played on the high school basketball team. I had always been a starter on the team, but one year several “friends” began telling me all of the reasons why I wouldn’t be a starter in the upcoming season. I hadn’t grown enough, I wasn’t fast enough to play another position, I simply wasn’t good enough. Such negativity began to weigh on me and I started to believe it. Ultimately it had an impact on my performance.

Some people do not like the idea that others harbor big dreams. It is a slap in their own face, a reminder of their own failings. But rather than re-evaluate their own conclusions and make the requisite changes, they prefer to drag others down to their level of misery.

While we cannot change such people, we can take steps to reduce their impact on us. We can refuse to deal with them. We can recognize the fact that their failures are no reflection of us. We can reject their self-pity and rise above it. Most importantly, we can associate with people who are not jealous of other’s success, but admire and encourage it.

What are you Waiting For?

A recent “Thought of the Day” from the Napoleon Hill Foundation asks this question, and then points out:

Far too many people spend their entire lives waiting for that glorious day when the perfect opportunity presents itself to them. Too late, they realize that each day held opportunity for those who sought it out.

Waiting for the perfect opportunity is a futile endeavor—it will never arrive. As the quote states, every day holds opportunities, and the ones we take advantage of today will create additional opportunities tomorrow. A building—and success—is constructed one brick at a time.

There are countless ways in which contractors bypass opportunities. The most significant is not engaging in continuing education. Knowledge is a powerful tool—the more we know the more we can identify opportunities. And the more successfully we can take advantage of them.

For example, many painting contractors loathe sales. They know that they must sell jobs, but the entire experience leaves them filled with anxiety, dread, or boredom. They just want to paint. But each lead is an opportunity. Improving your sales skills allows you to take advantage of that opportunity and be more successful. Would you prefer to give 10 estimates to get 1 job, or get 4 jobs from the same number of estimates? Would you prefer to sell at the “going rate”, or get premium prices?

What we do today determines what we can or cannot do tomorrow. The bridge we build today can be crossed tomorrow. The bridge we burn today will leave us stranded tomorrow.

Dominated by Fear

Too often, we let our fears dominate our thinking and our actions. It is not uncommon to let the possibility of failure stop us in our tracks. And in the process, the possibility of success is also stopped.

Failure is a part of life. No action is guaranteed to lead to the desired results. But the failure to act will most certainly keep us from achieving the goals we desire.

An effective way to overcome fear is through planning. Planning allows us to envision the end goal and the means to achieve it. Planning allows us to project possible obstacles and the means for overcoming them. Planning builds confidence—it is a kind of test run during which we can “practice” the steps needed to achieve our goals.

To use a simple example, let us say that you want to run a marathon one year from today. You are currently a couch potato and the thought of running 26+ miles seems impossible, and it probably is in this context. But if you develop a training plan the goal seems much less daunting.

With the marathon 12 months away you can plan specific steps to build your endurance. You can research suggested training methods, diet changes, exercise regiments, etc. You can map out milestones, such as being able to run 10 miles in less than 90 minutes within 3 months. Armed with this knowledge, and a plan, you will be more confident that you can actually achieve your goal.

The same is true of business goals (or any goal for that matter). And the bigger the goal, the more important it is to plan.

Accountability

You have probably heard a lot about holding employees accountable for their actions. But how do you hold yourself accountable? After all, you make the rules for your business, and you can break them whenever you want.

One way to hold yourself accountable is to share your plans and goals with others. If you proclaim your intentions to the world, you are more likely to follow up on them. If you keep them “secret”—to yourself—it can be rather easy to let things slip.

It is quite easy to set goals and then promptly forget them. The details of running a business, not to mention life itself, can distract us or send us off course. We can make excuses and procrastinate. There is no shortage of reasons why we can’t actively work on our goals. And this is even easier when those goals reside solely in the inner recesses of our mind.

Many contractors start their business because they want “freedom”—they don’t want the restrictions imposed by a boss or large corporation. They want to be able to do what they want, when they want. But such “freedom” is not a recipe for success. Success is not gained by following one’s whims, but by setting goals and pursuing them.

Ultimately, we can only be responsible for ourselves. We are the only person who can decide what we want out of life and how we will achieve it. And that requires that we hold ourselves accountable.

We Get What we Expect

We Get What we Expect
Dan Miller has an interesting story about a recent handyman experience. He was installing some lighting and:

Twice in this process I recoiled with the stinging shock of electric power surging through my arms – but wait – there was no power yet attached. I hadn’t connected the line to the power source. Just the “anticipation” of power convinced me I had already “felt” a serious shock.

I have witnessed the same thing with contractors, particularly when it comes to dealing with a complaining customer. When the customer calls with a problem, they immediately jump to conclusions—“The customer is just picky”; or “The customer just doesn’t want to pay”; or “You can never please some people”. In each case, the contractor has a certain expectation that may or may not be true. But he will invariably act as if it were true, which can often be a self-fulfilling prophecy.

If we approach the customer with a negative attitude we are establishing a confrontational situation. This will certainly not help the situation, and will most likely lead to an actual confrontation. We wind up getting exactly what we expected.

I’ve had customers call up and claim that “all of the paint is falling off of the wall” or something of the sort. Knowing that this is very unlikely, it would be easy to conclude that the customer is going to be a problem. But if I’ve seen it once, I’ve seen it a trillion times—customers can exaggerate. They just paid good money for a paint job and the slightest problem can become a huge concern.

Rather than jump to conclusions or set up expectations about the customer’s motivation, the proper approach is that of Lt. Friday from Dragnet: get the facts. Then, and only then, can we deal with the actual situation, rather than the fantasy we have created in our own mind.

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.

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.

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.

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.

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.