PROFIT BUILDING TIMELY TOOLS TO BOOST YOUR BOTTOM LINE! Tool #12 – Take Time To Plan Your Plan! By George Hedley
Imagine yourself stranded on an island trying to decide how to best get off be- fore you run out of food and die. Without any input, advice or ideas from others, it would be diffi cult to make the right decisions. Now imagine a business owner sitting in their offi ce alone trying to make all decisions how to run their company. These scenarios are similar. Without input from others, making decisions based solely on what you know and your experiences are no guarantees you’ll choose the right path. Your chances of suc- ceeding are less than 50 percent, or 20 percent, or perhaps ZERO! Not good odds when your com- pany’s future is at stake.
Can you do it all yourself? With the fun and excitement of running a construc- tion company comes much stress and strain. Over- whelmed with tough questions, no easy answers and diffi cult decisions; frustrated business owners delay deciding what to do about their future, man- agement team, customers, equipment, market- ing, profi ts, fi nancials and growth. And when you postpone decisions, you keep tolerating mediocre employees, poor results, inadequate systems, and struggle to make enough money. Eventually you realize you can’t do it all yourself and need to seek some help. Unfortunately, most never get off their treadmill to look for advice or make time for improvement. This is like delaying a trip to the doc- tor, even though you know that nagging chest pain must be treated before it’s too late and you have a heart attack.
Me, Myself and I The best advice you can get is from experienced unbiased professionals who know your business, can offer real steps to improve and are not afraid of telling you the truth. I founded my commer- cial construction company in 1977. After seven years in business, I had 150 employees doing $50 million in annual sales. I thought I was doing great (and knew everything there was to know about business) for a young 35-year-old. A friend suggested a company board of directors could help me take my company to the next level. So, I asked fi ve very successful businessmen to be on my board. At our fi rst meeting, I proudly present- ed my goals, fi nancials and plans for the future. I then asked for input. One by one they proceeded to rip me apart and ask questions I couldn’t an- swer. Their laser-like questions included:
8 METAL CONSTRUCTION NEWS December 2012
“Is that all the money you make for the risk you take?”
“ Why are you only doing that type of work?” “ Why is your employee turnover so high?” “ Why do you do so much of the work yourself?” “ Who’s on your management team and accountable for results?”
“ What’s your plan to improve profi tability?” “ What new customers and markets have you tried in the last year?”
“ Why are you afraid to delegate and let go of major decisions?”
“ Do you have a written strategic business plan?” These questions made me feel stupid and
about 2 feet tall. I thought I had done fairly well building a company as the sole leader. But my key management team consisted of me, myself and I. Plus, I had obviously missed the boat on most ma- jor strategies required to become VERY successful and VERY profi table.
Get some help! My advisory board recommended I hire a profes- sional business coach who specialized in helping construction business owners grow and profi t. They also suggested we write our strategic busi- ness plan before I made another dumb decision. After several days of mourning and shock from the reality of the board meeting, I took their advice and decided to invest in my company’s future and get some help. I hired a construction business coach who helped me with my leadership style and ana- lyzed our management team. He also reviewed and improved our operational systems, standards and procedures to get us organized, systemized and in control. He reviewed our numbers and gave us advice on what was required to make more money. He also facilitated our two-day strategic busi- ness planning retreat. I couldn’t have made all the changes I needed to make without the help, advice and pushing of an outside consultant whose only agenda was to make our company better.
Where do you need help? Every small business owner has internal challenges, threats and tough decisions to make. Some have long-time employees who’ve stopped being produc- tive. Many can’t decide what moves they need to take to fi nd better customers or improve bottom-line results. Some struggle with incentive compensation programs or basic ways to generate steady profi table
revenue. Without sound advice, owners don’t tend to make tough decisions they need to make and usually stay stuck doing what they’ve always done.
Take time to plan your plan. Taking time for a one- or two-day strategic busi- ness planning retreat with company owners and key managers sitting down with a professional facilitator or coach will help you determine the future for your company. Your written plan will include a vision, key success factors, goals, objectives, targets, strategy and action plans clearly defi ned and written. Your decisions will answer eight key questions:
1. What’s the owner’s purpose for owning the company?
2. What’s the business mission and vision? 3. How are we currently doing business? 4. What’s working and not working? 5. What threats or challenges do we face? 6. What additional opportunities are available to us?
7. What results do we want to accomplish? 8. What do we have to do to achieve our goals?
Invest in your future! Company leaders demand results and insist on posi- tive change to move forward. Taking time to face reality, getting advice, making decisions and draft- ing a strategic plan are proven steps to help your company achieve its’ goals. Are you up to the task? Are you willing to look in the mirror and face reality? Do you really want to make a positive difference in your future? Are you open to change and im- proved results? Are you ready to tackle your people, processes, systems, procedures, communication, customers, organizational chart, reporting, chain of command, delegation, accountability, methods, focus, direction and your leadership style? Stop postponing and take time to plan your plan!
George Hedley is a licensed professional business coach, popular professional speaker and author of “Get Your Business to Work!” available at his on- line bookstore. He works with contractors to build profi table growing companies. To request your free copy of “Profi t 101 For Contractors,” sign up for his free monthly e-newsletter, hire Hedley to speak, be part of his ongoing BIZCOACH program, or take a class at Hardhat BIZSCHOOL online university, visit
www.hardhatpresentations.com or email
gh@hardhatpresentations.com.
www.metalconstructionnews.com
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