Now, Where Do We Go From Here?
Grab a cup of coffee and let’s find out.
Another week has passed since the last Builders Coffee. Several members of the group are already there before 10:00 this morning—Gene, David, Larry, Steve, Craig, and Bill from last week. They have their coffees and pastries and are already talking about some of the difficulties of running a business.
There’s a couple of new guys who join in the conversation: John Lavell, owner of Straight Line Construction, where David works, and Scott, who runs a company that builds pole barns.
As it gets closer to 10:00, the rest of the group from last week arrives—Mike, Doug, and Carl. Gene looks around and counts eleven people. “If many more people show up, we’re going to need a bigger place to meet,” he thinks.
At that, Gene interrupts the conversations and asks the group to take a couple of minutes for a quick introduction so they can get to the purpose of today’s meeting.
He starts out by giving his name and what kind of construction he does. As they go around the tables, everyone does the same. Then Gene asks,
“Do any of you struggle with knowing how to do the construction that you do?”
The group agrees that, for the most part, they do not.
“What about the business part? Do you struggle with that?
The group nods in agreement—this is where the challenges lie.
“That is the purpose of this time together,” Gene explains. “To figure out how to get control of the business side.
“Last week we talked about a disagreement over an estimate and the upset customers when additional work increased the final price to 50% more than planned. This lack of clear communication cost the builder $25,500. Steve, is that an accurate account of what happened?”
Steve nods.
“Have any of the rest of you dealt with anything like this?” Gene asks.
Everyone nods in agreement.
“How could this situation have been avoided?” Gene adds, posing the question that everyone was thinking.
Several ideas and thoughts are bantered about. Gene notices John is just listening quietly. After a few minutes, Gene asks John for his thoughts.
“I’ve been doing construction for a long time and dealt with issues like this before,” John explains, “I tried a lot of different quick fixes, but nothing worked until I took the time to understand the problems and then work on solutions.
“The main issue here was a lack of communication. Steve knew the additional work would add to the price, and the customer knew it too—but had no idea by how much.
“Look at it like buying a new truck. You wouldn’t order it based on an estimated price to be determined later, and then have extras added without knowing the cost. But that’s exactly what happened with this customer. So, it’s understandable why they were upset.
“That’s why I developed a proposal system to minimize these problems.
“It includes a fixed price based on a database I’ve developed over time. It provides a clear scope of work, so customers know what’s included in the project. It breaks the project into smaller pieces to help them understand the big bottom dollar amount. Then, if any additional work is needed, it’s handled through change orders.”
“That seems like a lot of work. I don’t have the time to do all of that,” says Bill.
“It is a lot,” answers John. “But let me ask you this: how much time did it take Steve to earn the $25,000 he lost because there was no system? Clear communication from the start would have saved everyone time, money, and frustration.”
The men share aha looks and heads nod around the table.
As the coffee shop owner tops off their cups, Doug gestures toward John and says jokingly, “I don’t know what kind of coffee he’s drinking, but I’ll have some of that.”
At that, everybody laughs.
“Seriously,” Gene says, “I want to learn how to build a better business, and I want some of what you have.”
John looks around the table, “Building a business isn’t simple. It starts with being aware of the problems, and I think you guys are recognizing them. Then you need to understand them. I think that’s what’s happening with this group. You’re trying to figure things out.
“The next—and most important—step is taking intentional action. This is the hardest but most important part. If you keep doing things the way you always have, nothing changes. You’ll just keep trudging back and forth along the same rut, making it deeper and deeper. You need to decide to get out of it and doing something differently.”
There’s a brief silence around the table before Gene asks, “John, would you be willing to share more about how you run your business?”
John smiles, “Absolutely. I’m happy to meet with anyone who wants to learn more about my business tools and processes.”
The group high-fives one another feeling energized now, not just by the coffee, but by the prospect of finding solutions for their businesses.
———
If you’re facing similar challenges in your construction business, you don’t have to figure it out alone. Join us for our weekly virtual Builders Coffee this Wednesday, February 18 at 10:00 AM CT.
Grab a cup, pull up a chair, and let’s talk through real problems, real solutions, and practical ways to build your business better.
You can also check out our digital Business BUILDing Toolbox or schedule a free 30-minute meeting to work through the specific challenges you’re facing in your construction business.
The coffee’s on, let’s get to work.
