Quick Roundup

Clarify Your Goals
The clarity of your goals will ultimately have a large impact on your ability to achieve those goals. Vague goals only lead to confusion, and often send us in the wrong direction. For example, a goal to spend more time with your family in 2009 is much different from a goal to achieve the financial position to be able to spend more time with your family. On the surface, they may seem the same, but the latter specifies the more fundamental goal. In other words, achieving a certain financial position makes more free time possible.

Brian Tracy addresses this in The Law of Clarity:

People with clear, written goals, accomplish far more in a shorter period of time than people without them could ever imagine. This is true everywhere and under all circumstances.

No matter our goal, we must identify the cause and the effect. And we must focus in on the real effect we want. That will often help us identify and clarify the specific steps we must take to achieve that goal.


What Was That Bump?
In working with other contractors I am often struck by how resistant they are to try a new idea. They seem overwhelmed by the potential for making a mistake or failing, and this fear stops them from attempting something new. For example, many contractors are extremely reluctant to raise their prices.

Certainly, nobody enjoys making a mistake or failing. But it is a part of life and business. As Dan Miller writes in Go Ahead--Make More Mistakes:

Here’s what Robert Kiyosaki (Rich Dad Poor Dad) has to say about “bad luck.” He says, “Making mistakes and becoming smarter is the job of an entrepreneur; not making mistakes is the job of an employee.”

An essential part of entrepreneurism is taking calculated risks. Doing what you've always done will continue to get you the same results. Getting different--better--results means doing something different, and that necessarily involves the risk of making a mistake or failing. Taking calculated risks won't eliminate mistakes, but it often reduces them to minor bumps.


Five Essential Skills
Michael Gerber's new book, The Power Point, lists 5 essential skills that every entrepreneur must possess. Mastering these skills, he says, is necessary to create a great business. The skills are:

1. Concentration--The inner force and energy that allows you to focus your attention.
2. Discrimination--The ability to choose upon what, where and who our attention (or concentration) is directed.
3. Organization--This is the ability to turn chaos into order.
4. Innovation--Innovation is that spark of genius that all entrepreneurs have and should be seen as an asset.
5. Communication--The ability to transmit ideas with clarity, precision, passion and purpose.

These skills are crucial to achieving our goals, no matter what they are. We must identify our goals (discrimination), prioritize those goals and the methods for achieving them (organization), focus our efforts on the goals (concentration), seek creative ways to accomplish the goals (innovation), and share the goals with the relevant people (communication).

Not only do these skills help us achieve our goals, they also help us clarify those goals and develop a plan that will minimize the risks involved.


The Two-Minute Rule
One of the biggest obstacles to achieving our goals is procrastination. While there are many causes of procrastination, they all result in delaying work on some task or project. We may write the task down, or swear that we will remember it, or whatever. But we delay doing it, and suddenly we can have a very long list of tasks. David Allen, of Getting Things Done, developed the Two-Minute Rule--if a task will take less than 2 minutes to complete, do it now. Here is a short video--it is only 2 minutes long--on how to apply the Two-Minute Rule.

Take What You Want, and Pay For It

I recently received an email asking how the owner of a paint contracting company should determine his salary. I have previously written that it is often recommended that the owner be paid 8% to 10% of the company’s revenues as his salary. As the emailer pointed out, if the company does $120K in a year, this means the owner’s salary would be $12K at most, which is not very good money.

At the risk of sounding flippant, the owner’s salary should be whatever you want it to be, so long as it is reasonable and fair. Of course, that raise the question—what is reasonable and fair?

To begin, the owner should be paid for each service he renders to his business. If he does sales and estimating, he should be paid for it. If he works in the field, he should be paid for it. As a general rule, the owner should be paid 8% to 10% of the company’s revenues, and he should also pay himself a commensurate amount as a sales commission. When he works in the field he should pay himself an hourly rate.

Doing all of this accomplishes several things. First, the cost of these expenses is built into the price. If the owner hires an estimator, that cost has been built into his price and he avoids a dramatic price increase. Similarly with paying himself for his field work. Second, the owner makes a salary that more accurately reflects his efforts. This allows him to live a reasonably comfortable life, save for his future, etc.

But this still does not tell us what the owner’s salary should be.

The 8% to 10% suggestion is only a guideline. Like the directions provided by Google Maps, one should take a look around to determine the accuracy of those guidelines. One should look at one’s personal and business finances to determine what is fair and reasonable.

The starting point is one’s personal finances. What do you need to make to pay your bills, have money to save and invest, and enjoy life? This is where you must be reasonable. It would be easy to say that you want to make $100K, but if your business is only doing $120K, this is clearly not reasonable. You must also be fair to yourself—you must make enough to pay your bills and invest in your future. If you don’t, then why own a business and endure the stress and headaches?

I should clarify one important point. There are three separate components involved in the owner’s income if he also does sales and works in the field—owner’s salary, sales commission, and painter’s wages. Each is separate and distinct, and the total is the owner’s income. But in one’s budget, and on one’s Income Statements, each item will appear separately.

Identifying your personal income goal is the first step. This number should then be used to determine what your selling price must be. If your income goal requires that you sell at a reasonable price—that is, a price that you can actually sell paint jobs at, such as $45 an hour—then your income goal is reasonable. If the calculated selling price is not reasonable—you don’t think you can sell at that price—you are faced with two options. You must reduce your income goal, or learn to sell at the requisite price. Unless your desired income is outrageous, I strongly suggest the latter.

This last point is particularly important. It is a fact that 90% of the contractors who started a business this year will fail within 5 years. The primary reason for that failure is the simple fact that they do not make any money. And the cause for that is not charging enough. There is no reason to endure the trials and tribulations, the headaches and stress, and all of the challenges involved in owning a business if you are not going to make a decent salary.

An old Spanish proverb states: “Take what you want, and pay for it”. That applies to the owner of a paint contracting company. Take the salary you want. You pay for it by learning the skills that are necessary.

The Winter of ‘08

This coming winter looks like it will be a rough time for painting contractors. Economic turmoil and the uncertainty of a new President have clients holding tightly to their money. Painting work will likely be tough to come by for many contractors.

I have regularly written, on this blog and elsewhere, of several crucial components to success in the contracting business. Those ideas remain true even in an economic slow down. Those ideas are:

1. Market constantly
2. Develop systems (including marketing systems)
3. Manage cash flow
4. Sell at the right price

In a recession contractors are going to be very tempted to cut prices. This temptation will be even greater if leads are not regular and consistent. Thus the need for constant marketing. If you are not getting sufficient leads and cut prices as a result, you will suffer other consequences. Cash flow will diminish—lower prices means less cash. You will have difficulty raising prices later—you will have a reputation as a cheap painter. Insufficient leads is a symptom. Do not treat it by cutting prices. Treat it by dealing with the disease—lack of marketing.

Systems are crucial to efficient operations and consistent results. Efficiency and consistently have side benefits, such as fewer crises, more free time, and reduced stress. Reducing stress will be important during a recession. Reduced leads and tighter budgets are going to potentially stress even the most successful contractors. Anything you can do to reduce stress—and developing systems is one of the most effective ways—will be beneficial.

Cash flow management is always important. It is more so during tight economic times. Eliminating debt frees up money, reduces expenses, and allows you to build a cushion. Cutting prices will not improve cash flow.

Selling at the right price is never more important than during tough times. During good times jobs can fall into our laps. Often, if we simply show up and offer a fair price the job is ours. But things change during tight times. Customers hold onto their money and spend more time shopping for value. Don’t think that tough times will turn all customers into price shoppers—it won’t. But they will be more cognizant of value, and it is your job to offer and communicate the value you offer.

Tough economic times are a challenge and an opportunity. It is up to each of us whether we allow the challenge to beat us down, or we rise to the occasion and take advantage of the situation.

A Change in the Blog

I had several motivations for starting this blog. One was to share some of the information I have learned over the years. Another was because I enjoy writing, and blogging provides an outlet for that. After more than 10 months of blogging and nearly 300 posts, I am finding this less fun than I once did. I find myself rehashing the same issues and it is getting harder to find fresh ideas.

Writing about business related issues is enjoyable, but it isn't my true passion when it comes to writing. Many years ago I was a free-lance writer focusing on current events and political issues. In the early 1990's I was actively involved in numerous local political issues. For the past 14 years or so my business has occupied much of my time and the writing I am most passionate about took a back seat.

That is no longer the case. Last year I was hired as a consultant to help fight a zoning ordinance in New Mexico. More recently I have revived the organization I founded in the 1990's to address local political issues. I started a blog-- Live Oaks-- to address those issues and have re-discovered my true passion.

This past week I have written about my desire to Get Out of the Office. My primary motivation is so that I can spend more time writing about topics that really excite me.

I will continue to post on this blog, but it will be far less frequently. My writing always has been, and always will be, primarily aimed at pleasing me. If others enjoy it, that is a bonus. But no decent writer can focus on his audience-- he must write for his own pleasure and enjoyment. And so, I will write about paint contracting when I find topics of interest to me.

Along a similar line, I have almost ceased visiting the various contractor forums I once frequented. I find little of interest, and those threads that have promise often decay into juvenile bickering. I may use the forums as a source for ideas for this blog, which is appealing because it will allow me to have my say without being subjected to the uninformed and insulting comments I often receive.

I thank you for reading my blog. It's been fun to do (for the most part).

Penny Wise and Pound Foolish

You have probably heard the phrase "penny wise and pound foolish". The phrase generally is applied to someone who pinches pennies and then turns around and spend exorbitantly. More essentially it means that someone is fretting over small details while ignoring the bigger picture.

I witnessed a humorous (at least it was humorous to me) example of this during a meeting with a general contractor. He was presenting several painting contractors with a very large project involving a national fast food company. He was giving us some general information about the project, which was going to occur in cities across the South. At one point he mentioned that we would be using Sherwin Williams' products, so we would not have problems getting the same products.

One of the contractors started asking which specific products we would be using. He wanted to know if we'd be using SuperPaint or ProMar, whether the walls would be flat or satin, etc. Mind you, this project was still in the planning phases and no products had actually been specified yet. The issue was not the product, but how we would organize production and insure quality control. The product was an irrelevant detail.

I recently read a similar story on Denise Landers' blog.

One former user of Paper Tiger software told me he’d wanted to recreate that product’s great functionality by setting up an Excel spreadsheet and doing keyword searches to find his filed documents. I suggested he just buy the software instead, and maybe putting a completed time management worksheet in his first new file.

“Do you think you’ve saved money by trying to do that yourself, instead of just buying the software?” I asked. “Isn’t your time really worth more than that?”

In other words, this person was going to spend countless hours trying to re-create something that already exists. All to save a few dollars. Not only was he being penny wise and pound foolish, he was also trying to re-invent the wheel. Both are a huge waste of resources.

I see a lot of contractors do this on a regular basis. They plod along, year after year, doing the same things. They vow that next year will be better. They keep looking for some magic marketing pill. They keep trying to hook up with a general contractor or builder who will overwhelm them with work. And they keep refusing to do the simple, proven things that will actually help them build a better business. That's more than penny wise and pound foolish, that's just plain foolish.

Communications Issues

At this point the biggest challenge I will face in Getting out of the Office is maintaining good communications with customers and field personnel. Our office is typically staffed from 8 AM to 4:30 PM by my wife. This allows us to answer the phones live, schedule appointments and jobs, relay information, etc. is an efficient and timely manner.

If we are no longer manning the office all day long, we will face some significant communications challenges. We are considering several options: forwarding all calls to a cell phone; using voice mail and checking messages remotely; hiring a part-time office assistant; or, using Virtual PBX.

Each has some pros and cons. Forwarding phone calls to a cell phone would mean that we are "on call" all of the time, which partially defeats our purpose. We could of course, allow calls to go to voice mail. Checking phone messages remotely would allow us to do so on our schedule, but it can be slow. Hiring a part-time office assistant will impose additional costs, but would likely be the most effective.

Virtual PBX is a service I have used for several years. This service provides us with several phone numbers that are routed to our office. We use this for the other contractors we sell paint jobs for. When our phone rings, Virtual PBX identifies which company the call is for, so we can answer the call appropriately. During off hours voice mail messages are emailed to a designated recipient, so there is no need to periodically check messages.

While this isn't an earth shattering issue, it demonstrates why it is important to identify and evaluate different options when you are planning to get out of the bucket. There is seldom a perfect solution to a problem, and sometimes the best solution may be a combination of several.

Stay tuned as we work on getting out of the office.

Identifying Our Options

Getting out of the Office presents us with numerous options. Some are more obvious than others. And some may take considerable digging to identify. To repeat yesterday's theme, that is why beginning with the end in mind is so important. If I know what I want to do, I can start looking for the best way to do it.

The Internet certainly makes it much easier to discover new processes, services, and ideas. It is such a useful and powerful tool that I sometimes wonder how I ever survived without it. But it is only a tool, and like any tool, its usefulness is ultimately determined by the skills and imagination of the user.

Search engines are a prime example. There are many keywords that one can choose when conducting a search. And, while most search engines are somewhat intuitive, they can only utilize the information entered. For example, if I enter "paint" in Google, the first page is primarily manufacturers. However, if I enter "paint contractor" I get entirely different results. This may seem obvious, but it has big implications.

Let's say I decide that my goal is to work from home. This is a pretty vague goal, and could mean virtually anything. Am I going to operate my own business? If so, what kind? Am I simply going to telecommute? If so, for whom? Am I going to stuff envelopes, or operate some kind of phone service, or what? I could do any of these and work at home. Because my goal is so vague, the options are almost unlimited.

But if I decide my goal is to write 30 hours a week, while operating my paint contracting business remotely, I have really narrowed things down. I now know specifically what I am shooting for, and the options also narrow.

But even with a very specific goal, I still need to discover what options are available for dealing with the myriad issues that will arise. For example, what options are available that will allow me to access customer information remotely? Which leads to another questions-- how do I find out?

While this example is relatively simple, it illustrates a bigger issue. It can be quite easy to limit ourselves to false alternatives, to give ourselves fewer options than really exist. The result may a solution that is inadequate, or worse, abandonment of our goal because the options do not seem realistic.

Begin with the End in Mind

Yesterday I mentioned the importance of identifying the goal of Getting out of the Office, that is, what we want the business to look like in the end. The same applies to Getting out of the Bucket--what do you want your business to look like when you are no longer painting each day.

Identifying the end is important in several respects. Most importantly, it provides direction and and gives us a destination. If we don't know where we are going, how will we know when we get there? Also, it provides us with a certain psychological motivation. If we can envision our goal, that goal becomes more real. In a sense, we get a certain experience of it, which can help move us forward.

For me, Getting out of the Office is the means to another end. I want to spend more time writing magazine articles, and perhaps a book. This requires large segments of uninterrupted time, which is hard to get sitting in an office with a phone ringing every 20 minutes. I would also like to do more traveling, both for pleasure and for researching writing assignments.

These goals necessitate the need to have procedures that allow me to spend minimal time communicating with customers and field personnel, while simultaneously keeping everyone informed. And I need to be able to do this whether I am working in my home office or I am out of town.

Identifying my end goals has allowed me to identify the issues that I must address. For example, how will phone calls be handled? How will appointments be scheduled? How will I access customer files remotely? How will we prepare job folders and schedule jobs if we are out of town? By beginning with the end in mind, I now have a better idea of how I will get there. And I will certainly have a lot fewer surprises along the way.

Getting Out of the Office

Last week I wrote about the Four Hour Workweek and stated my intention to spend less time on my contracting business in 2009. As I work through this process I will share how I address the issues that arise, the tools I use to do so, and some of the procedures and processes I develop. While my goal may be different from yours, the same principles apply to Getting out of the Bucket as to Getting out of the Office.

My wife works with me in the office, so Getting out of the Office applies to both of us. Doing so will require some changes in our business, such as communications with customers, accessing information, scheduling, etc. Addressing these issues, and developing procedures is our primary goal for the next several months.

We have several motivations for Getting out of the Office. The most important is that we would like to spend more time pursuing other interests. It is difficult to do this when tethered to an office.

We have considered selling the business but see no real reason to do so. We make a pretty decent income while working part-time. Maintaining a business that generates semi-passive income simply makes the most financial sense at this point.

As I mentioned, the principles involved in this are essentially the same as Getting out of the Bucket. In both situations there is a need to maintain operations while the owner is not omnipresent. This presents numerous challenges, and while the details of those challenges differ, the same basic approach applies-- develop systems and procedures.

Our first step in this process is identifying our end goal, that is, what we want to accomplish and what we want our business to look like in the end. In other words, we first need to know where we are going before we can decide how to get there.

Plato, Kant, and Dewey

As an Objectivist, I am accustomed to others disagreeing with my ideas. My ideas challenge the conventional thinking and this necessarily puts me at odds with others. I do not intentionally seek out conflict—it simply goes with the territory when one holds ideas that are outside of the mainstream.

Because my ideas are foreign to most individuals, it can be particularly frustrating when I explain my position on a particular issue. Both the content and the method of my argument is often misunderstood. It is not uncommon for my arguments to be dismissed out of hand, with my opponent saying something to the effect of “nobody could seriously believe that.”

While such casual dismissals are disturbing, I do find them somewhat understandable. Few individuals have studied philosophy or explicitly identified their ideas and the validity of those ideas. Most individuals have absorbed their ideas over their lifetime, accepting an olio of ideas whose source and validity are often unknown. (This is not intended as a slam, just a statement of fact.) For example, few individuals have heard of Immanuel Kant or John Dewey, yet their ideas are widely accepted. Few individuals are familiar with the ideas of Karl Marx or Plato, yet their ideas are widely accepted.

I see the influence of these men and their minions on a daily basis. “That may be true for you, but not for me” came from Dewey. “We can’t be certain of anything” came from Kant. “Corporate executives are overpaid” came from Marx. “We need to protect people from themselves” came from Plato. These clichés and many more like them are often uttered with no understanding of their true meaning or their implications.

You might think that this is a bunch of useless theory and it has nothing to do with real life and operating a painting business (you got that from Dewey). You might think that my ideas work for me, but you run your business differently (you got that from Dewey as well). You might think it’s admirable to be so principled, but I’m not being practical (another idea from Dewey). You might think I’m an egoist jerk for insisting that I am right and most everyone else is wrong (Dewey again).

The ideas we accept as true ultimately determine the choices we make and the actions we take. It does not matter whether we know the source of those ideas, whether we have consciously considered them or not, or whether we understand their implications. The power of ideas is an inescapable fact of human life.

I recently witnessed this in action in a very interesting fashion. Members of a popular forum for painting contractors were discussing illegal immigration. I commented that I found it interesting that such discussions seldom, if ever, included any discussion of the legitimacy of our immigration laws. I stated that our immigration laws are immoral because they violate an individual’s rights. I was quickly attacked and accused of knowingly and intentionally hiring illegal aliens. I was told that my arguments were simply an attempt to rationalize my behavior (he got that idea from Marx).

In another thread on that forum I was discussing compensation methods for production personnel with another contractor. At one point he stated that my ideas might work for me, but he runs his business differently (this idea comes from Dewey). I then started another thread in which I stated that sound business principles apply to all businesses, and only the details of implementation differ.

Before long the thread was hijacked into an inquisition into whether I hire illegal aliens. My comments regarding business principles were ignored and my character was attacked. I was accused of being overly sensitive when I pointed out these facts. I was accused of making statements that could be found nowhere in any of my posts.

At the end of the day the entire experience was rather amusing. It was also illuminating because it revealed the true character of my antagonists. They may not know the source of their ideas, and they may not understand the implications of those ideas, but they are responsible for what they regard as true.

Each individual is a being of self-made soul (I got that from Aristotle). We choose the ideas that will guide our lives. We can do so explicitly through careful study and thought, or we can do it implicitly by accepting the ideas that are tossed our way. In either case, the choices we make will determine our character. The choices we make will determine the nature of our words and actions, and thus reveal our soul to the world.

Building Tree Forts

When I was a child, it seemed that every kid in the neighborhood owned a few boards. I don't recall how this came about, but I seem to remember that we would beg our fathers for whatever scraps he had laying around.

During the summers we would often gather with our friends du jour and build some kind of tree fort. Most of these structures would surely be condemned by the local authorities, but being children we were unaware of the proper procedures to follow. But I digress.

Often we would spend the better part of the day "designing" and building our fort. And nearly as often, by the time the structure was complete a disagreement had erupted. It was not unusual for demolition to occur the same day as construction, as each of us took our lumber and went home, only to repeat the process a few days later.

In retrospect, the whole thing was silly for several reasons. One, we seldom got to enjoy our work for long. Two, I had one of the largest lumber supplies in the neighborhood and I should have exerted more authority over the proceedings. Three, you can only pound so many nails into a board before it becomes splintered and useless.

But a lesson was learned. On the rare occasions when everyone would cooperate for a prolonged period, we built some pretty fabulous forts. Well, they seemed fabulous to us at least. We would use the fort for a variety of purposes, such as hiding from the Indians who frequently attacked the neighborhood. Or, if the fort were perched among the lofty birch trees, we would use our position to lob various items at unsuspecting kids who were not "in" on that particular day.

As kids we could not get past our petty differences to see the benefits of working together. Instead, we would act like children (which I guess was appropriate) and stomp off, dragging a pile of 2"x4"s behind us. We all would have been better off to take a deep breath, talk about our dispute, and work together to our mutual benefit.

The same is true in our paint contracting business. As owners, we can easily fall into the mindset of "my way or the highway". While this makes for a pithy comment, it is seldom an effective way to build a business. That approach resulted in forts that did not last long. The same will happen to a business that adopts it.

Marketing Painting Services

Every new painting contractor (and even a lot of seasoned professionals) wants to know the best way to market his business. While there is no "best" way, there are certain principles that one must follow.

Joe Garcia of givetogetmarketing.com offers some insight on this issue.

People don't really buy products and services. They buy what the products or services can do for them. People don't buy quarter inch drills, they buy quarter inch holes.

People buy solutions to their problems. Therefore, all products and services must be the solution to a problem. The problem can be a relatively easy one to solve, like the problem of being hungry and going to a restaurant for the solution. Or it can be a major problem, like the problem of having a serious illness and going to a specialist for the solution.

In the context of a painting contractor, we don't sell painting services. We sell beautification and protection services. We add color to walls and protect surfaces from the elements. We enhance lives and protect asset values.

This has significant implications for our marketing. If we focus on painting, we look just like every other painting contractor. But if we focus on the benefits to the customer-- enhancing their environment, transforming a drab interior into a den of luxury, reducing maintenance costs, etc.-- we present an entirely different image.

About the only difference you may find between marketing products and services, is that services may require more personal contact between you and your potential buyers. This personal contact may be in the form of a face to face presentation, or a telephone presentation.

A face to face presentation allows you communicate the benefits to the customer. If you simply submit a price, the benefits of the products you use may not be understood. The benefits of using your company might be overlooked.

Marketing and sales are all about communications. What we communicate is just as important as how we communicate it.

Sitting in the Dark

Winter is soon approaching, and perhaps the first signs have even begun to appear in your corner of the world. With winter, leads begin to slow. The exterior season comes to a halt. Winter is the time of year when painting contractors often struggle to keep afloat. But it doesn't have to be that way.

Too many contractors view marketing like a light switch. They turn it on and off. The problem is, they wait until it is dark to turn it on. But unlike a light switch, the results are not immediate. So they sit in the dark, waiting for the phone to ring. They don't realize that if they had left the light on all day long, the darkness would never descend upon them.

Now more than ever, marketing will make the difference between success and failure. Consumers are holding on to their money more tightly and leads will grow more precious. You need to keep your lights on or you could find yourself sitting in the dark.

I've written many times that marketing does not need to be expensive. There are many relatively inexpensive, yet effective, methods for marketing. But they need to be implemented consistently, in good times and in bad.

Next week I am offering the first of several marketing workshops. The first-- Guerilla Marketing for Painting Contractors-- covers some of these inexpensive marketing methods that are often overlooked or neglected.

Guerilla marketing, according to its founder Jay Levinson, is an attitude. The Guerilla Marketing Handbook describes a guerilla marketer as one who thinks outside of the bucket (okay, that is my phrase for it), who challenges conventional thinking regarding marketing, who takes chances. This workshop will address creative methods for generating leads. Among the topics covered are the Sign Promotion, the Winter Coat Sale, Partnership Programs, and more.

Due to the response, we are now offering a second seating for our first series of marketing workshops. Sign up today before this series fills up.

Perception and Reality

Magicians often use diversions to distract us during their act. They will use noise or a dramatic movement to direct our focus to one place, while they perform their "magic" somewhere else. In other words, they make us see what they want us to see, and in the process create the perception of magic.

But in reality there is not magic. But when we only get a part of the facts, and we are being steered towards a particular conclusion, those partial facts can support that conclusion.

The recent turmoil in the financial markets is a case in point. We have been told, over and over an over, that there is a credit freeze, that businesses cannot borrow money, etc. This mantra was repeated so many times, by so many people, that it seemed like it had to be true. Like a magician, both politicians and the media directed our focus to what they wanted us to see.

But reality presents a slightly different set of facts. If there is a credit freeze, then why do I continue to receive credit offers on a daily basis? Indeed, one day this week I received 4 such offers at my office and 2 at home. This hardly seems like a credit freeze to me.

I won't claim that there aren't serious problems with our economy. But hysterical claims that are not supported by the facts are simply a diversion. And in this case, that diversion is being used to rob Peter to pay Paul.

Such tactics are limited to demigods or magicians. Our customers use them as well. Every painting contractor has probably been told, "I have a lower price" more times than he can count. But the perception and the reality of such claims can be quite different.

The customer may or may not have a lower price. Their claim may simply be a negotiating tactic. And even if they have a lower price, what does that mean? Rather than simply give in and match the lower price, or defend your price, engage the customer in a conversation. Seek to discover the real meaning of their words, rather than accept your perception of their meaning.

Opportunity Knocks

When Hurricane Ike slammed into the Texas Gulf Coast, he did more than wreck homes, knock out the power, and disrupt millions of lives. He also created opportunities .

Ike's winds created mountains of debris throughout the city. For example, I had a pile of limbs about 8' long, 5' deep, and 8' tall. We also filled about 50 plastic bags with twigs and leaves. The massive amount of debris presented the city and property owners with a challenge-- how to remove and dispose of this mess in a timely fashion.

The city responded by hiring hundreds of outside contractors. However, we were warned that it might be months before all of the debris was removed. Some enterprising people filled the void and began offering debris removal directly to home owners. They saw an opportunity and tried to meet it. As painting contractors, there are often other services that we can offer that will add to our bottom line and enhance the job for the customer.

Services such as wood repair, pressure washing, and radiant barriers can create win- win situations for both the customer and the contractor. For the customer, the need to find another contractor is eliminated, and for the contractor these services create additional revenue streams.

I don't mean that we should become a jack-of-all-trades. But there are services that fit well within our skill set that can be offered without compromising quality or pushing us outside of our core competencies.

We don't always know when opportunity will knock. When it does, we must be prepared to answer the door. Sometimes it might be an annoying solicitor. But it might be a friend with a 6-pack of imported beer.

A Family Affair

Many paint contracting businesses are family affairs. This can add to the complexity of the business, as the lines between our personal and professional lives get blurred. Unfortunately, many such businesses do not have clearly defined roles for each family member and the business is operated like a democracy.

While input from family members can be a good thing, too many chefs can spoil the soup. If each person is adding a pinch of this and a pinch of that, you can wind up with a rather nasty tasting soup.

As Erin Duckhorn writes on the E-Myth blog,

If you tell a child one thing, and your spouse tells them another, how does the child know what they are supposed to do? Mixed messages lead to trouble. The same thing goes for an employee, and it's especially important when the employee is reporting into a family situation. It's vital to have a clear management structure so your employees know exactly who they report to and what's expected of them.

A family business is no different from any other business, except that it can be more difficult to operate. A business should not be a democracy. Clear lines of responsibility should be drawn, as in any business.

Certainly, the emotions involved and the personal knowledge of family members can complicate matters. But family members must realize that when they enter the business door personal issues must be pushed aside. The success of the business demands it.

Tough Times

Tough times demand tough talk
Demand tough hearts demand tough songs
Demand...

Rush, "Force Ten"

It is no secret that we are in tough economic times. The stock market goes up and down faster than a roller coaster. Financial institutions are struggling with bad debt. Consumers are understandably uneasy, and that can translate to tough times for painting contractors.

So what is a small business owner to do? I don't think tough songs is the answer, but a tough heart might do the trick.

Weathering tough economic times can test the mettle of anyone. Selling skills can become more crucial. Leads can become more precious. Duct Tape Marketing offers seven suggestions for dealing with tough economic times. While all of these tips don't necessarily apply to the typical painting contractor, they do provide a good starting point.

More importantly, the advice offered applies to all economic conditions. The best time to deal with tough times is before they occur.

The Hurricane Experience

Having lived in Houston for 28 years, I have been through hurricane preparedness more times than I can count. Prior to Ike, I've only experienced one direct hit, and that was nearly 25 years ago. My wife had never experienced a hurricane, and was somewhat excited about the possibility.

The hurricane first made its presence felt at my home shortly before midnight Friday. Hurricane force winds continued for about 10 hours, and we had tropical force winds for many hours after that. We received about 8 inches of rain during the hurricane, and another 3 inches on Sunday morning.

It is hard to explain hurricane force winds, particularly when they last for 10 hours. The best description is to imagine driving 100 miles an hour with your head out of the window. There is a continual, loud roar which became almost calming at times, because when a gust blew through the noise was very eerie. That this was occurring in the dark certainly did not help.

When we were finally able to emerge from our house (which suffered about $20 of damage) we found that our neighborhood had been transformed. Limbs, branches, leaves, and other debris littered yards and the roads. At least a half-dozen trees in my neighborhood were uprooted.

In the days since, as we have cleaned up debris, tolerated the absence of electricity, and basically engaged in glorified camping, my wife has remarked that hurricanes are not quite as exciting as she had imagined. She had only considered the actual hurricane part of the experience-- the anticipation, the wind, etc. She had not considered the aftermath--the destruction, the inconveniences, and the disruptions. In short, she had not considered the consequences.

This is not a negative comment about my wife. To be honest, the destruction and inconvenience has greatly exceeded anything I anticipated. I knew that some would lose power. I did not expect the entire city to lose power.

Similarly with our businesses. We must do more than look at the short term impact of a particular action or policy. We must look beyond, and identify what will result further down the road. A short term benefit (like the "joy" of a hurricane) can ultimately lead to consequences that are less pleasant (like no electricity for days).

So if we don't market we get the short term benefit of saving money. In the long term we have fewer leads. If we don't develop systems, we cannot delegate. If we don't write plans, we blow around in the wind. And if those winds happen to be of hurricane magnitude, the results can be quite unpleasant.

Lessons from Ike

Some of the details may bore you, but my experience with Hurricane Ike provided a few valuable lessons. I will likely post on some of my experiences and the lessons learned over the next few days.

We had been aware of Ike for about 2 weeks. Living in a hurricane zone, we get frequent updates on tropical disturbances, storms, etc. that may develop into hurricanes. We have made some level of preparation at least 3 times this year, as hurricanes posed some threat to the Texas coast. This is a drill that is relatively commonplace for residents of the area.

Part of the preparation process is to secure water and food for at least 3 days. The food should be non-perishable, as power may be off. These are the steps that individuals are expected to take to provide for their sustenance while repairs are made and other supplies brought into the area. We are also encouraged to have batteries for radios and flashlights, candles, and other items to help us during the initial days after the storm.

The winds began picking up at my house shortly before midnight on Friday night. Hurricane force winds continued for more than 10 hours. Our lights flickered several times over the next few hours, finally falling into darkness at about 2:30 AM Saturday morning. Our power has not been restored as of Wednesday afternoon.

On Sunday we took a break from cleaning debris to listen to the radio. Less than 1 day after a major hurricane, citizens and "leaders" were complaining about the lack of supplies that were being brought into the area by FEMA. There seemed to be an endless stream of people complaining that they had no water or food. Those complaints have continued.

Within Houston, few homes were damaged beyond habitation. The complainers were not wiped out-- they had simply refused to properly prepare. They had refused to take even the slightest step in the direction of self-responsibility. Instead, they lined up to complain to radio reporters that others were not providing for them.

Such people get absolutely no sympathy from me. They had weeks to prepare. The preparations are not difficult-- a couple of bottles of water and a can of tuna fish would suffice for a day. This is not gourmet dining, but living through the aftermath of a major hurricane is not a fun time.

Those of us who took responsibility for our own well-being have no complaints. We had plenty of water and food. We also had plenty of gasoline (we were told to fill our gas tanks prior to the storm). Life has not been pleasant, but we do not spend our time driving around the city looking for water, gas, food, or ice.

I hasten to add that I am not claiming that every person who ran out of water, food, or gas acted irresponsibly. But those who apparently made no preparations were irresponsible.

The lessons from this apply directly to our paint contracting business. Those who blame the economy or illegals for their lack of work, or complain about the inevitable winter slow down are no different from those who refused to purchase bottled water. Operating a business, like preparing for a hurricane, requires foresight. It requires identifying what actions are required to survive and thrive, and it also requires taking those actions. A business owner, like those who live in a hurricane zone, must prepare for the future.

In the end, those who fail to prepare get exactly what they deserve (unless others protect them from the consequences of their actions). It is no fun stockpiling water and food, filling tubs of water to flush toilets, or devising plans to air out a stuffy and humid house. Nor is it particularly fun making cash flow projections, job costing, or developing marketing plans.

But if you wish to live in reasonable comfort after a hurricane you must take the requisite actions. It is no different when you own a paint contracting business.

Advice You Don't Need

On occasion I stumble across an article that purports to give good advice for starting a painting company. Last week I was pointed to such an article by a post on PaintTalk.com This article, like many of the sort, offered advice that was not just bad, but actually destructive.

The article begins on a very bad footing:

If you would like a service business that will keep you busy, house painting is the one! A truck or van, ladders, brushes and some drop cloths are the main mechanical needs; you are the other ingredient needed for a thriving business. This is a business where you can get by with the bare minimum investment at first, then build slowly as your business increases -- adding sir compressors, electrical paint rollers, and other fancy equipment as you need and can afford it.

I've been in business for 22 years, and I do not know what a "sir compressor" is. But I suspect that it is some fancy equipment, like an electrical paint roller. Regardless, this article starts by essentially saying that anyone can paint. But don't take my word for it:

As long as you can take care of the paperwork, you can hire helpers to do much (if not most) of the actual painting. Consider hiring high school and college kids during the summer, and don't overlook retirees. One entrepreneur went to a senior citizen's club and found a group of retired men who would go out and paint his houses without supervision. They did excellent work, kept their own time records, and did the jobs for less than half what a painting contractor would have charged!

Now I have nothing against high school kids-- I used to be one-- or seniors-- I hope to be one some day. But this is just silly advice. Certainly such individuals could learn to paint properly, but the article says nothing about training.

More interesting (or maybe depressing) is that the seniors did the work for "less than half what a painting contractor would have charged!" So apparently the business being described is not a paint contracting business. Further, the author is advocating either low-ball pricing or ripping off the workers or something equally inane.

But it gets better:

One contractor sizes up his prospective clients and adds 10% to his bid for those he suspects will want a lot of modifications. When the job is completed, you will hopefully be paid in full. Here is where you can get into trouble! You have already paid for the materials and your helpers (or owe them), and the owner wants to pay you "next week." One or two cases like this will teach you to get a clear understanding of payment BEFORE you start the job!

Has this author ever heard of a change order? To arbitrary add 10% because a customer might want to modify the orginal agreement is simply horrible advice. If the customer modifies the agreement, you simply write a change order and charge accordingly.

Then, when you are done, "hopefully" you will get paid. I do agree that if you don't get paid you could be in trouble, and that is probably the only sentence in the article with which I agree. But rather than advocating requiring a deposit and progress payments, the author suggests getting a clear understanding of the payment schedule. In other words, ask the customer when he intends to pay you.

That's like asking the wolf to guard the chicken coop. A painting contractor should establish his terms and conditions and communicate those to the customer.

It's bad enough that there are low-ball hacks passing themselves off as painting contractors. But when someone writes an article encouraging people to open a painting business because it's easy, well it just makes me want to spit. Or write a blog post about what a disservice they do to our profession.

PDCA Standards

Due to Hurricane Ike appoaching Houston, today's post is short.

Every painting contractor should refer to Painting and Decorating Contractors of America standards in his contract, even if he is not a member. These standards provide objective means for assessing a painting job. You can download the standards here.

Estimating for Success

One of the most frequent questions asked by new painting contractors is how to price a job. Even seasoned veterans sometimes have estimating questions.

While estimating isn't rocket science, it can be approached scientifically. In other words, estimating does not have to be a guessing game.

An estimate is a projection of the labor and material required to complete a specific job. The most accurate way to do this is to use historical data. If it takes 30 minutes to paint a door at Mr. Smith's, it should take 30 minutes to paint the same style door at Mrs. Brown's. If you know your historical production rates, estimating can be a relatively easy task.

Out of the Bucket.com recently released Estimating for Success. This comprehensive manual explains how to determine production rates (sample rates are also provided), measuring, pricing the job, and much more. Estimating for Success is regularly priced at $69, but our Blog readers can save $20 by clicking here.

Special Customer Service

Painting contractors love to beat up on Home Depot, particularly their installation services and the Behr paint they sell. But when someone does something right, even if it's Home Depot, it is worth mentioning.

Bill Hogg tells a wonderful story about customer service:

It seems that a 6 year old boy wanted to get a part-time job, just like his older brother. Like many 6 year olds, he liked to build things, so he indicated he wanted to work at Home Depot. When his father suggested he write a letter he did, so his father dropped the letter off at the Customer Service desk. Dad thought he had heard the last of this.

However, about 6 weeks later they were in Home Depot and the son reminded Dad that they had not heard from Home Depot yet and insisted on checking on the status of his job. Needless to say, Dad was thinking his son was in for a big disappointment.

I won't spoil the story, but it is a good demonstration of customer service-- of identifying a unique way to do a little extra.

The story reminds me of an experience I had many years ago. We were painting an exterior, and the young daughter (maybe 5 years old) liked to watch us work. She was very precocious and the crew enjoyed her presence. Near the end of the job, I presented her with a company t-shirt. Her father later told me that she wore it to bed every night.

Planning for 2009

The third quarter will soon be ending and before we know it a new year will be knocking on the door. I typically spend a large portion of the fouth quarter planning for the coming year. I do this for several reasons:

1. Planning a a very effective process to idneitfy goals and the means for attaining those goals.
2. Spending 3 or so months on the process allows me to carefully think about the various issues without being rushed.
3. I can begin implementing my plan before the new year. For example, if I want leads to increase in January, I cannot wait until January to start placing new ads.

All of this planning might seem like a waste of time. You might take the Nike approach, and "just do it". But plowing ahead without a plan can waste a lot more time than it takes to formulate a direction to travel.

Consider a cross country car trip. I doubt you'd just hop in the car and take off. You'd probably look at a map and determine the best route to take. That process might only take 15 minutes, but it could save you hours on the road. The same is true in our business.

Dan Miller, author of 48 Days to the Job You Love, has a nice planning tool on his web site. You should check it out.

All Work and No Play

It's been said that all work and no play make Brian a very dull boy. Okay, that hasn't been literally said, but the general idea is true. While I work hard, I also have numerous interests outside of paint contracting.

If you have read my blog for long, you likely know that I like gardening. In some ways, gardening is much like running a business. You plan seeds, you nurture the young plants as they grow, and some time in the future you harvest delicoius vegetables and beautiful flowers.

I also enjoy writing, another fact you likely know. Recently I have been directing my writing towards a passion that I have long held-- defending property rights.

Back in the early 1990's the City of Houston proposed to implement its first zoning ordinance. I wrote OpEd articles gave speeches, spoke to City Council, was interviewed, and more. On my birthday in 1993 I received one of the best birthday gifts possible-- the ordinance was defeated in a binding referendum. In 2007 I traveled to Hobbs, NM to help defeat a similar proposal there.

Earlier this year it became apparent that zoning advocates will make another attempt in Houston. I launched a blog and resurrected the organization I had founded to fight zoning in the 1990's.

So, while fighting City Hall is not exactly play, it is something I am passionate about. It is something that gives me immense satisfaction, particularly when the good guys win.

The Little Engine That Could

The Little Engine That Could is a classic children's story that teaches the value of optimism. While larger trains refused to try, the little engine kept repeating "I think I can". In the end, the little engine succeeded.

Simply believing we can achieve a goal does not mean that it is possible or that we will achieve it. However, if we say "I can't" we will most certainly prove ourself correct. Brian Tracy has a nice little video on the subject. He applies it to sales, but the same optimistic attitude applies to virtually every area of life.



Self-confidence is a crucial part of sales success. If we do not believe in the painting services we are selling, that will be projected to the customer. If we do not have confidence in our price, that will be projected to the customer.

Saying "I think I can" doesn't mean that I can. It does mean that I will try. And before I can, I first must try.

Following Through

The following is from an email newsletter sent by Jean Moroney. I highly recommend subscribing to her newsletter. There is a link at the end of this article.

"I'm going to carve out an hour each morning to think about strategy." "I'm going to the gym tomorrow at noon." "I'm going to _________."

It's easy to say you'll do something, and not as easy to follow through. What often makes the difference is one crucial step. Do you think through, very concretely, how you'll do it? This step is more important than many people credit.

To think concretely about how you'll do something is not hard. You simply visualize exactly where and when you will do the task, what you'll need for it, what might get in your way, and what to do then.

For example, when planning your strategy session, you might ask yourself "How will I prevent interruptions?" and "How do I ensure I get to my desk at 9:00 a.m.?"

This thinking process raises "obvious" issues. For example, you might note you should let voicemail take your calls. Or to exercise at noon, you observe you should bring your workout clothes to the job, and keep your schedule clear.

But the point is, although these issues are obvious if you think about them, they aren't obvious if you don't. The logical connection between your goal and the concrete facts of your workday don't get made unless you figure them out. When you skip this step, you hit obstacles and wind up saying to yourself, "I should have thought of that." A more precise lament would be: "I should have taken the time to think through how I'd do this, and if I had, I would have likely thought of that."

Thinking concretely about "obvious" issues has another benefit. It plants mental reminders that help you follow through. The reminders trigger as needed. So, when the phone rings, a little internal voice says to you "let voicemail take that." Or if you're asked to a meeting that might conflict with your workout, the voice asks, "will it be over by noon?"

These internal reminders are vital to success. They give you an alert at the exact time you need one. And you set that reminder by visualizing the concrete circumstances in advance.

So, the next time you're tempted to say, "I'm going to do _______," delay for five minutes to do some crucial mental preparation. Identify, concretely, the most obvious issues that might get in the way. Then you can commit with the confidence that you have laid the mental groundwork to follow through.

Jean Moroney teaches thinking tactics to managers and other professionals grappling with the pace and complexity of business. When they get pulled in multiple directions or caught in details, thinking tactics help them concentrate, re-orient, and think through issues - so they can get a quality job done, on schedule. This article originally appeared in her free email newsletter. To subscribe, visit http://www.thinkingdirections.com or send an email with your name to subscribe@thinkingdirections.com.

Sales Bullies

High pressure sales tactics have been unpopular for several years. Yet, some die hards hold on to the idea that if you can't join them, beat them. They seem to think that if they talk long enough and loud enough they can sell ice to Eskimos, or in our context, paint jobs to anyone.

I've never been a fan of such tactics. I don't like it done to me, so I'm not going to do it to someone else. Seth Godin writes about these sales bullies:

Sales bullies describe their approach as ethical, because, after all, it's in
the best interest of the prospect to say yes. It's okay to be a sales bully when
you're trying to get someone to take their TB medicine, so it must be okay to be
a sales bully to get them to sign this contract.

Personally, I've never had to be a bully to get someone to take their TB medicine. I've never known anyone on TB medicine. Besides, if it takes bullying to get someone to take TB medicine, I would likely find better things to do with my time.

But the real point is that sales bullies try to justify their tactics by claiming to know what is best for the client. In some cases this might be true. For example, I've had customers who insist on using oil on their exterior siding. I know this is wrong and will ultimately create more problems. But rather than attempt to bully them, I simply walk away and refuse to submit a bid.

In general, it is presumptuous to assume that one knows the client's needs better than the client. And it's always wrong to be a bully about it.

Branding

I see a lot of painting contractors try to be all things to all people. They try to do high-quality work with low prices, do roof repair, landscaping, and more. They present a very confusing message to the consuming public. The problem is that they have no brand-- no image of their company that is consistent. It's a mish-mash of contradictory claims.

For most small painting contractors, developing a brand can seem like too much work for too little benefit. But no matter how large or small a company, developing a brand is a key part of effective marketing.

Michael Phelps will likely be facing some important branding decisions in the near future. His stunning and heroic achievements at the Olympics are sure to provide an overwhelming number of promotional opportunities. While he will undoubtedly make a lot of money no matter what he decides, his choices could have a huge impact on his long-term marketability.

Brand expert Laura Reis hopes that Phelps exercises extreme caution:

Phelps and his agent need to resist the temptation to cash in quick on his fame.
Too many endorsements for too many products will undermine his most valuable
asset his honesty. Phelps promoting Rayovac batteries, for example, would be
just as horrible for him as it was for Michael Jordan.

In other words, if he tries to promote too many products his credibility will be undermined. He might make a mint in the short-term, but his long-term endorsements will likely be less than if he takes a careful approach. If he tries to be all things to all products, he will send a very confusing message. His brand-- Michael Phelps-- will be a mish-mash of contradictions.

A painting contractor should clearly identify his target market. His image and his message should be directed at that market, and no other. A consistent message will result.

Magic Pills

All of us want to manage our time more efficiently, no matter what our personal goals. Yet, despite reading books, articles, etc. we often find it difficult to actually make better use of our time. Denise Miller addresses this in a recent blog post.

You see the words everyday: goal setting, time management, multitasking, organizing…. After diet and weight-loss books, these topics are high on the list of self-help tomes. I have worked with clients who owned more time management books than many bookstores stock at one time, yet they still need me to come into their offices and work with them. One of the reasons may be that many of the books are still shrink-wrapped, and the rest are in pristine condition.

It’s appealing to think that a book or a training session will resolve an issue, but there are some points that must be stressed when you sincerely want to improve your time management skills, which can include managing paper, email, and clutter as well as calendars.

I think too many of us look for some magic pill that will solve our problems, whether it is dieting, time management, or marketing our paint contracting business.

There is seldom a single magic solution that will fit all people and all situations. There are general principles that apply, but those principles must then be adapted to our particular situation. This takes effort-- mental effort. And I think that is what a lot of people are trying to avoid when they seek a magic solution.

The truth is, no matter what your goal or what the issue, action must be guided by thought. We must identify the goal the means for achieving it. In other words, accomplishing a goal is a combination of mental and physical effort. Thoughts without action are simply a waste of time, and action without thought is suicidal.

Burglars

Last week my wife walked in on a burglarly in progress in our home. Fortunately, there was no confrontation and the burglar left through the front door. He must have been in the house for only a few moments before my wife arrived, as nothing was disturbed, rifled, or taken. The only damage was 1 broken window.

Such events provoke several thoughts. One is intense anger that someone would be so brazen as to enter our home. He has no idea what might await him, or happen to him. He takes a huge risk in breaking into a home. But I doubt he has given that much thought--he wants something and he's going to go get it.

And that leads to my second thought. Burglars are simply taking the easy way out. Rather than learn a productive skill, they survive by victimizing others. Rather than trade value for value, they simply seize the values that they desire.

In some ways, this mentality is shared by a lot of painting contractors. I hasten to add that I am not calling any contractor a crook. But many contractors do not regard a paint job as an exchange of values. They view is as a confrontational activity between the client and the contractor, in which each tries to get something over on the other.

As an example, many contractors argue that customers always hire on price. They see no other value involved in the transaction. So they offer the most basic value they can--putting paint on the wall. They don't accept credit cards, have insurance, do color consultations, or offer any other value that customers will pay for. They simply put paint on the wall, and then complain that customers won't pay for quality.

I would argue that such an attitude is a form of theft. A contractor who believes such things is robbing himself and his family. By depriving his customers of the additional values that he could offer, he prevents himself from commanding a better price. And while his intentions may be better than the punk who broke into my house, I'd still like to slap some sense into him. What I'd like to do to that punk is a different matter.

© BEP Enterprises Incorporated 2008

Thoughts on Pricing

If you hang around forums long enough, you are likely to see some rather strange theories. Recently a post on PaintTalk claimed:

Painting on the other hand...especially faux or industrial is so subjective that
a lot of considerations are simply not relevant. Simply think about what the
client is willing to pay then double it.

This is some of the oddest advice I've read in a long time. How is one to know what the "client is willing to pay". Apparently, estimating requires some form of ESP, rather than a working knowledge of the trade. In addition, why just double that number? Why not triple it? Or why not multiply it by Pi? No explanation was given.

Here is another one:

When you own a company, profit (i.e. what you make after everyone is paid
(bills, employees, etc.) is essentially the same thing as your salary.

This is a particularly interesting concept, in that it reveals why 99% of painting contractors fail. The premise underlying this statement is that you first pay everyone, and whatever is left you get to put in your pocket. There are several things wrong with this.


First, the owner's salary should be a part of overhead. It should be a defined amount that is built into the price of every job. Second, in the above statement the owner isn't really drawing a salary--he is getting whatever crumbs happen to be left. I don't consider that very motivating. Third, profit is what is left after everything--including the owner--is paid.

I sometimes wonder what motivates such comments. I suspect that the writers simply don't know any better. But that is no excuse for positing oneself as an expert. Fortunately, such comments are usually challenged and corrected by others.


© BEP Enterprises Incorporated 2008

You’re So Purdy to Me

Because all work and no play make Brian a very dull boy, the following was written for my amusement, and now I offer it for yours.

From the moment that I held you,
And dipped you in the pot,
The truth was crystal clear,
A Wooster you are not.

Your hairs so soft and subtle,
Your handle hard and long,
If I could play the guitar,
I’d probably write a song.

You’re so Purdy to me,
I love to paint with you,
If you were a woman,
Oh the things that we could do.

I’ll use you in the latex,
No oil you will touch,
Please stay soft and subtle,
I don’t ask for much.

I promise that I’ll clean you,
Keep each hair squeaky clean,
Just keep on laying it on,
If you know what I mean.

You’re so Purdy to me,
I love to cut the walls,
If you weren’t a paint brush,
Oh we could have a ball.

© BEP Enterprises Incorporated 2008

Toads

We have a pond in our back yard. On occasion the neighborhood toads decide it is party time, and they congregate in and around our pond. Like obnoxious neighbors who think you want to hear their music at 2 AM, these toads seem to think that we are interested in their mating rituals.

I would have no issues with them if they simply went about their business. But their mating apparently includes croaking—males use this to “attract” females— at ear splitting decibels. A singular toad doing this is just a minor distraction. However, when a dozen or so are doing it, it turns into a symphony of irritation.

I’ve tried all kind of things in my quest to keep these little beasts out of my life. I tried throwing them over the fence, which provided only temporary relief. I tried flushing them down the toilet, which gave my wife quite a shock when they managed to crawl back.

Toads really have nothing to do with paint contracting, but they do have something to do with owning a business. They are presenting me with a problem, and I am uncertain as to how to solve it. Brian Tracy recently wrote: “Define your problems clearly in writing. Accurate diagnosis is half the cure.”

I can attest to this advice. Many times I’ve wrestled with a problem, only to discover that I really didn’t know what the problem was. That can certainly make a solution difficult to find. So hopefully the toads won’t return to my yard for a while, and in the meantime I can try to define that problem more accurately.

And if that doesn’t work, maybe I’ll buy a large snake to eat them.

© BEP Enterprises Incorporated 2008

Learning to Walk

A baby's first step is one of those events that parents treasure. It represents a milestone of sorts-- movement towards indepedence. For a painting contractor, learning to walk is also a milestone.

At one time or another, most contractors have an opportunity to bid a job that they think will result in a pot of gold. Maybe it's painting a large apartment complex, or an office building, or a strip center. And while any of these could be extremely profitable, they can also be a potential mine field.

Jobs with a large reward often also have a large risk attached. While you could make a lot of money, you could also lose a lot of money.

The excitement of a large job can sometimes cause one to put reason aside. With visions of dollars flashing through his mind, he fails to properly plan and manage the job. Problems develop and then escalate. Cash flow becomes a problem. The contractor gets stressed and starts putting pressue on his workers and his customer. It can become a very ugly scene.

This is not to say that big jobs cannot be done profitably. They can. But for someone who has not done so before, extreme caution should be exercised. And sometimes it is best to walk away. That is not always a fun thing to do. Losing a lot of money isn't fun either, and you will never lose money when you learn to walk.

© BEP Enterprises Incorporated 2008

Bullies and Second-Handers

I have been active on various Internet forums for 8+ years. I am aware of only 1 other person who has be regularly active during that period--whom I will call Harvey. During this time I have witnessed a very ugly side to the man. I quit visiting his board for a period of time. In early 2006 he contacted me regarding this and we talked on the phone. I explained that I did not like his approach and wouldn’t condone it. If he changed I would consider visiting his board. For a short while he was more civil, but when the civility began to disappear so did I.

In March of this year he posted on his board about "a so called professional's blog". Harvey went on to write that "he has pretty much copied what I have written about why we can't price by the square foot floor area!" Harvey proceeded to call the author "a low life crumb" for using the work of someone else "for their betterment, trying to make others think that they are creative!"

I was made aware of the post by a friend who questioned if the post referred to me. I suspected it did and contacted Harvey. He refused to deny that the post referred to me. He did however, remove his post. I then wrote an open letter that I shared with a small number of people, including Harvey.

Harveyresponded with several emails requesting that I retract the open letter. He ended one email by writing: “I can state with assurance that this would be your BEST chance at damage control.” I did not retract the letter, and heard nothing further from Harvey.

In August he joined a particular board and began to take pot shots at me. Several friends emailed asking why he was doing this. I was not certain, but suspected a lingering animosity. Desiring to avoid open warfare on the board, I wrote a post implicitly addressed to Harvey. He eventually responded. A few excerpts are included below, along with my comments:

Harvey: Just because you decide that somebody (me perhaps) has taken something out of context to somehow disprove your credibility doesn't make it so and I'll tell you that it ain't so.

I clearly established the context in which I was writing. I was referring to the markup of materials and its impact on the price. I gave numerical examples in addition to my textual explanation. This was the context that I established as the basis for my comments. To address my comments while ignoring that context is fallacious, and that is precisely what you did. I never denied that material costs could fluctuate.

Harvey: YOU are being consumed by your own philosophical BS. I find Ayn Rand to be somewhat of a mental case, personally and judging by your behavior and your secret squirrel topics, I probably ain't far off with my assessment.

Now we are getting closer to the real heart of the matter and the apparent source of your animosity and anger. You bring up Ayn Rand, which I had not done. Why do so when she was irrelevant to the topic? In doing so, you are resorting to an ad hominem attack—you are trying to refute my argument by reference to someone I admire. And then you engage in petty slurs against her in a very juvenile attempt to make a point. You might as well say that my mother wears army boots.

These comments are rather revealing, in that you make no attempt to address anything substantive. Phrases such as “philosophical BS”, “mental case”, and “secret squirrel topics” are simply childish. You make no attempt to provide evidence to support your claims. You just lash out in anger, as if that will provide a compelling argument.

This is in sharp contrast to my posts. When someone questions my position, I respond with facts and numbers. I explain why I reached my conclusion. I certainly do not respond with “I’ve seen it for years” or "you are a mental case" or "may family has been doing this for 50 years".

What is particularly interesting in the above is that you jump to conclusions about my mental state while simultaneously launching into an irrational and unintelligible rant. You question my behavior while simultaneously raising irrelevant issues. You suggest that I might have some issues while you demonstrate that you actually do have issues.

I will not speculate as to your motivation. But I have enough experience with irrational thugs to know the general ideas that underlie your type.

I’ve said before that you are nothing more than a bully. Like a little child who stomps his feet and holds his breath when he doesn’t get his way, you resort to personal insults and threats. Unable to provide a logical argument, you resort to the only tactics available to brutes. This has been your pattern for years, and not just with me.

The underlying premise to such actions is that reality is malleable to your whims. If you hold your breath long enough, or shout enough threats, others will appease you. That may work with some people, but it won’t work with me.

You exhibit all of the symptoms of a second-hander—a person whose self-worth is dictated by the opinions others have of him. A second-hander reacts to disapproval in one of two ways—he lashes out or he appeases. He typically oscillates between the two, depending on the circumstances and his emotional state at the time.

This has been your pattern for years. For example, you threatened to beat up Richard Kaller, and then quickly claimed that you didn’t mean it. One day you’d be his biggest defender, and the next a brutal enemy. You berated Paul Burns, and then gave him a forum on your board. You see-saw between outright hostility and transparent timidity.

You likely regard this as “philosophical BS”. Petty minds often do. But what you think is of little concern to me.

Harvey: Somehow, you seemed to position yourself here as the Guru of I don't know what but man, we all have something to add here and just because it our opinions oppose yours doesn't mean we're "out to get you".

If I am regarded as a Guru—a title that I have never claimed—then it would be by the evaluations of others. Assuming that such is true (i.e., that I am regarded as a Guru), I can only conclude that it is on the basis of the ideas I present and my manner of doing so. I present logical arguments for my positions. I cite numbers and facts. I do not threaten or berate others, even when they disagree with me.

According to Wikipedia, a guru "is a person who is regarded as having great knowledge, wisdom and authority in a certain area, and uses it to guide others." I did not explicitly seek such a status, but if I have attained it, I would not regard it as a bad thing. But why would that bother you? Does any success that I have attained threaten you?

I have never had an issue with someone disagreeing with me. However, I expect more than “you are wrong because I said so”. That is neither compelling nor factual. It explains nothing. And until facts are presented that refute my position, I will remain adamant in that position.

My position is not a matter of opinion. It is based on facts. You imply that all opinions have equal merit, an idea that I thoroughly reject. An opinion that is not founded on facts is just a fantasy.

Interestingly, you find it necessary to point out that those who disagree with me are not “out to get [me]”. Whatever would give you the impression that I think that? The fact that I have the courage and conviction to stand up for myself and my ideas does not mean that I think others are "out to get me". I can only conclude that you are projecting your own insecurities upon me.

You recently joined the board, and within a short time were attempting to assert your authority by reference to your family’s history in the industry. You repeatedly told us that your arguments are true “because you’ve seen it”. You claimed profundity for comments that others regarded as obvious. These are not the actions or attitudes of someone who is interested in learning and sharing. These are the actions and attitudes of someone who is trying to impress. When those tactics did not work, you resorted to childish and fallacious attacks on me.

I have largely avoided you for the past several years. I had previously told you that I did not appreciate or condone your tactics and I would not be party to them. For a brief period you behaved in a more civil manner, but when you could no longer resist your natural inclination to be rude and arrogant, I ceased visiting your board.

That was apparently unacceptable to you. You responded by attacking me on your board, but didn’t have the courage to name me. When I questioned you on this, you refused to deny that you were referring to me. You apparently thought that I, and others, could not see through your transparent and petty anger.

More recently you have taken the same approach on the board. Others on the board contacted me privately, asking why you were attacking me. You may be deluding yourself with your visions of grandeur and your underhanded methods, but others are not buying your silliness. Nor are they blind to the object of your hatred.

I do not know the source of your insecurities. But they are obviously deep and profound. Given your frequent reference to your family’s history in the industry, I suspect that therein lies some, if not all, of the answer. But that is speculation, and I will not claim it to be true.

When you attacked me earlier this year, I was content to limit access to my open letter. I gave access to less than 6 people and had password protection on the letter. You did not know this, and your emails pleading for me to remove the letter were further evidence of your second-hand nature. It was rather evident that you could not tolerate the idea that many people could be reading the truth about you.

You have again chosen to attack me publicly. Justice demands that I treat you in the manner that you deserve. This is my way of doing so. If you wish to make an ass of yourself, I will not stand in the way. I will however, document that fact and I will continue to share it when and where appropriate. I may also reveal your true identify, at my discretion, to those who ask.

© BEP Enterprises Incorporated 2008. Reproduction or distribution in whole or part, by any means, is prohibited.

Make a Date with Yourself

I hear a lot of contractors complain that they simply can't find the time to work on certain projects. They want to develop procedures, or tweak their estimating system, or some other task that will have long-term benefits. But they just can't seem to squeeze the time into their day.

In a recent blog post Brian Tracy offers some tips on how to make better use of your time.

Some people allocate specific 30-60 minute time periods each day for
exercise. Many people read in the great books 15 minutes each night before
retiring. In this way, over time, they eventually read dozens of the best books
ever written.

The key to the success of this method of working in specific time
segments is for you to plan your day in advance and specifically schedule a
fixed time period for a particular activity or task.

Long-term projects require a prolonged committment-- consistent steps in the right direction. By setting aside some amount of time each day or each week to work on a project you are able to make gradual, yet consistent progress. Painting a house requires a series of specific actions. So does the completion of long-term business tasks.

Many highly productive people schedule specific activities in preplanned time
slots all day long. These people build their work lives around accomplishing key
tasks one at a time. As a result, they become more and more productive and
eventually produce two times, three times and five times as much as the average
person.

Like many time management tips, this is easier said than done. The daily demands of owning a business, in addition to family, friends, and hobbies, can stretch our time very thin. Focusing on priorities, rather than the interest du jour, keeps us moving toward our long-term goals.

Cooking and Marketing

John Jantsch at Duct Tape Marketing had an interesting post last week comparing cooking and marketing. "People tell me I’m a pretty good cook," he writes, "and here’s my secret. I’m not afraid to take ingredients I like and throw them together and see what happens."

This, he says, is a lot like marketing. We know the goal we desire, and we know what ingredients to put together to reach that goal. And, while there are proven principles to follow when marketing, "I’m afraid there is no marketing cookbook just for your business, only a set of proven tools and ingredients."

Often I hear painting contractors ask about what marketing works best. They imply that there is some recipe that will start the phone ringing off the hook. But it simply doesn't happen that way. Door hangers might work great for me, but those results are based on many things-- the message on the piece, the timing of delivery, the neighborhoods I target, and much more.

All of these factors are the ingredients that go into your marketing recipe. We all of to play with these ingredients to discover how much of each will give us the taste we desire.

And sometimes ingredients that seem odd together turn out very well. I just love the combination of cinnamon and cayenne pepper on chicken. The first time I tried it I wasn't sure what to expect, but it turned out well. The same is true with marketing-- sometimes we need to experiment. The result may be something that we really like.

© BEP Enterprises Incorporated 2008

Keeping Focus

Many things can cause interruptions when we are working on a task. We often look at others as the source of these interruptions-- such as phone calls or questions from an employee. But as Denise Landers writes, "there is another one to add to that list. We interrupt ourselves frequently."

Whether the source of the interruption is internal or external, interruptions are a huge time waster. It can take as long as 20 minutes to regain focus, during which time another interruption can occur.

External sources can be difficult to control, though not impossible. We can shut the door, turn off the phone, etc. to reduce or eliminate these causes.

Internal sources-- such as boredom, procrastination, or simply habit-- can also be difficult to control. Landers suggests setting aside a small amount of time each day to focus on one project. "It may seem strange at first, she writes, "and you will find your mind wandering or your hand edging toward the email inbox. Fight the urge."

That might seem like a simplistic suggestion. But the fact is, keeping focus does require effort, and we are the only one who can exert that effort. Like many tasks that are difficult, it may be a struggle at first but will get easier in time.

© BEP Enterprises Incorporated 2008

Communicating with Employees

I've written a lot about the importance of communicating with customers during the estimating/ sales process for a painting job. We do this to: 1. learn what they want, need, and expect; 2. explain how we can meet those values.

But employees are "customers" too. We must communicate our vision to them, as well as how we intend to pursue that vision and their role in that process. Too often that communication involves little more than the owner pontificating. As Bill Hogg points out, "if it isn't two-way, it isn't communication. It's simply message distribution."

There is certainly a time and place for one-way communication. But if this is our modus operandi we become little more than benevolent dictators, imposing our ideas on employees. Now only does this deprive us of ideas that the employees might have, it can also lead to less acceptance of our ideas. As Hogg asks, "Do you have a process set up that stimulates a conversation or is your messaging primarily just being pushed out from the communications team?"

This does not mean that we should operate our business as a democracy. Employees want and need leadership. But they also want to feel like their ideas matter. And that can only happen if we talk with them, not talk at them.

© BEP Enterprises Incorporated 2008

Learning from a Customer

I found a customer service blog post that is quite interesting. The writer-- Bill Hogg-- was seeking to have some exterior painting done on his house. He called 2 of the student painting outfits. (I'm not going to comment on that part of the story.)

Company A provided an estimate quickly and with no hassle. Company B waited a week to return the original phone call. When they did return the call, Company B insisted that both the wife and husband be present when they inspected the job.

Mr. Hogg recognized what was going to happen-- high pressure, coupled with an incentive to sign on the spot. He cancelled the appointment.

"The lessons here are many, but the big one was they were in business for themselves -- not their customer," Hogg writes. "Their entire process and all the resultant issues that arose were because they were not thinking about my needs -- the definition of a customer-focused business."

Too many painting contractors project their desires, wants, and needs upon their customers. These contractors think that their values are more important that the values desired by customers. When a contractor starts thinking this way, he is headed towards problems.

Such thinking justifies being late for appointments-- it's only a few minutes. It justifies cutting corners-- nobody will ever know. It justifies one-way communications-- I'm the expert and the customer should listen to me. It justifies all sorts of attitudes that ignore the customer.

Customer service means servicing the customer. To do that, we must understand what they want, need, and desire. And that means focusing on the customer.

© BEP Enterprises Incorporated 2008

Interviewing Customers

Painting contractors often talk about pre-qualifying customers. They typically do this by asking a series of questions during the initial phone call. Their goal is to avoid wasting time looking at jobs they have no chance of getting.

I think this is a bad idea. The premise underlying this tactic is that the customer must give the "right" answers. Anything else disqualifies the customer. But business isn't a game show, and the "wrong" answer really doesn't tell us much.

This does not mean that we shouldn't interview our customers or be selective in who we work for. As Dan Miller writes, "...if you haven’t identified your goals, I can assure you you’re living out someone else’s goals for your life. If you don’t have a red velvet rope, you’ll have customers stealing your valuable time..."

The velvet rope he refers to is that barrier we often see at museums or special events. It restricts entrance to the facility. We do need similar restrictions with our business and our life. We need to limit who we associate with, hire, and work for.

I doubt that you select your friends on the basis of a single random phone call. I doubt you hire painters on that way either. So why select customers that way?

© BEP Enterprises Incorporated 2008

Bite Sized Pieces

Faced with the task of eating an elephant, one could easily be overwhelmed and give up. After all, who could possibly eat an elephant?

But in truth, eating an elephant isn’t all that hard, if you take the right approach—one bite at a time. Indeed, this is how we eat hamburgers, a bowl of soup, or anything else. The fact that the meal on our plate is much, much larger doesn’t alter the basic approach.

Many aspects of owning a paint contracting company can seem like eating an elephant—planning, developing systems, implementing training programs. Each can be a large task that seems overwhelming. This is true, as Susan Weber puts it on the E Myth Blog, "especially if—up until now—you’ve been focused on the day-to-day work of a Technician."

For someone who is "in the bucket", working on your business is a big step. You will most likely be out of your comfort zone. In addition, finding the time to take on this task might seem impossible. Susan recommends 3 steps: organize, prioritize, and book it. Identify what you need to work on, what is most important, and then schedule time to work on it.

While these are big tasks, they can be accomplished. You can eat the elephant if you take it one bite at a time. For example, developing systems might seem like an endless task. But if you develop one procedure at a time, concentrating on one area of your business at a time, you can gradually and consistently move towards the larger goal.

In short, eating an elephant requires that we focus on one part at a time. We break the task into smaller, bite size pieces. By focusing on these smaller pieces, we can overcome the immensity of the project.

© BEP Enterprises Incorporated 2008