Contractors Education

I received a call today from Tamryn Doolan owner of Surface Gel Tek (specializing in concrete graphics called Flattoos) regarding how the Contractors Education Guide applied to her manufacturing business increased revenue 45% during the past 12 months.

How about that. A success story in a disastrous market.

The Contractors Education Guide to Profits in Niche Markets applies to manufacturers, contractors and basically every business. The basic idea is to be highly specialized and don’t deviate from your target market.

Specialization accomplishes many things.

1. Specialization enables you to become excellent at what you do.
2. When you get good at one thing you are the professional. You have branded your business or at least started to.
3. Specialization enables you to know the economics of your business. You learn where the profits are. You learn to be efficient and continue to improve.
4. Specialization keeps you focused on your target market. Lack of a target market means you are not in control, you deviate easily and dilute your efforts. Your skills are dimininshed without a target.
5. Word Of Mouth marketing is the best marketing for any business. All the great websites, blogs, newsletters are meaningless unless you have a business worthy of Word Of Mouth marketing.
6. Specialization teaches that large markets are less profitable than small targeted markets. Relationships with people are critical to developing a pipeline of business. If you try and tackle a market that is too big people forget who you are no matter how good you are.
7. The internet has taught us the value of specialized niche businesses. Consumers do not look for generalists. When searching online consumers are searching with very detailed relevant keywords. If you specialize and use those keywords properly you will be found. The more detailed and relevant the keyword phrase the more valuable the consumer.  Specialists get targeted educated clients. That means sales go better and customers are happy.
8. The Contractors Guide teaches that when you specialize you know how to manage your inventory, your employees and your money. It’s a heck of a lot easier to deal with your accountant when you know your expenses.

Tamryn and I have been working on this for the past year. It’s also of critical importance to have passion for what you do. Tamryn would not have been able to stay focused without absolute commitment and belief in her business.

I think it’s very important to be aware that no matter what your business if you deviate and bounce around it’s because you don’t believe and have passion for what you do.  If you find yourself losing focus, if you don’t have a target market, it’s time to step back and anayze what you are doing. No matter who you are you will succeed like Tamryn if you are doing what you love and have passion for.

That is what I say right in the beginning of The Contractors Guide. If you don’t study it thoroughly and have difficulty reading through The Guide you will know you are not doing what you want. That’s a huge step in the right direction.

The Contractors Guide is is very different from any book you will read. It’s the ultimate contractors education, more of a roll up your sleeeves and let’s get serious workbook.

The whole point of Metrocrete is “How To Add Value To Real Estate” using the right products. Adding Value Stmulates the economy. So read on.

1. It always costs more to do it wrong than to do it right – That’s right. Stupid me. I refinished my garage floor with the wrong sealer just to save a buck. Now it’s peeling off the floor. It’s worse than before. Now I have to waste money to redo it. Think of all those nice dinners I could have gone out to. I could have stimulated the economy instead.
2. Cheap is frequently the highest cost – how many times have I hired the low bid and and it cost me 3 times more. I stimulated the wrong thing.
3. Don’t Step Over Dollars To Pick Up Dimes – If you can make 5 Dollars with $1.00 don’t spend 10 cents to make only 1 cent. Every penny spent in real estate should be approached like investing in stocks. Want to stimulate the market make sure your construction dollars are spent wisely. Invest in your property like Warren Buffet is looking over your shoulder.
4. What Would The Building Inspector Say? – Before you buy a property make sure you know code issues. I have to share this. I know a builder who built a 10,000 square foot spec house in …well I’m not to tell the town. Anyway it was going on the market for $7 million. Getting near the end the building inspector came down. Inspector and builder were in the awesome basement and the builder was bragging about the radiant heat. The inspector looking impressed started walking upstairs then stopped, walked back down, looked at the stairs and pulled his tape measure out. He measured the height from concrete floor to top of first step then asked, what are you putting on the floor”. The builder grabbed this beautiful Italian Tile and showed the inspector. The inspector took a look and said “How high will will it raise the floor?” “About an inch” said the builder. “That’s a code code violation” said the inspector, “you won’t get your C of O”. So you think you know Real Estate? Mistakes like that don’t stumlate the economy. There was a solution that saved about $500,000. You have to read through Metrocrete to figure it out.
5. Beware Of Properties On Cliffs With Beautiful Views – I bought and rehabbed an apartment building on this high cliff overlooking everything. Nice. Great old Victorian mansion with 12 units. I did a great rehab, used lots of products you’ll find here to turn into a high end classic building. Would you believe that the excessive wind on that cliff caused heating bills triple the norm. Cost me $200,000.00 in lost value. That did not help stimulate the economy.
6. Construction Is Not A Fixed Cost - Purchase price is predicatble, debt cost is predictable, sometimes sales price is predicatable. The only thing predictable about construction is that it costs more than you predict. That is unless you are really good. Now you could argue that overspending on construction stimulates the economy. However overspending on construction pales compared to the value you’re trying to create. Control construction costs and you will help stimulate the economy.
7. 40% Of Concrete In The World Is Consumed by China – If we can help get many of the products and technology mentioned here over to China that will help stimulate the economy.
8. Concrete Was The Main Contributor To The Growth Of The Roman Empire- Thanks to the great book by David Wells titled “The Roman Pantheon” I learned that the Italians in Rome mastered building with concrete. The Italians built cities with concrete which enabled them to develop an advanced social network and the ultimate power as a result. What was more powerful than concrete and a social network is what brought them down. Liberal politics, a big controlling government and high taxes. That’s A Fact Jack and that does not stimulate an economy.
9. Real Estate and Construction Are The Stimulus – I think Real Estate and Construction Education should be added. The more education, the more added value, less money wasted, equals more money stimulating our economy. Think about it. Before Wall St, banks, technology, cars and everything else people built so they could live. All else followed and benefitted. This is the stimulus.
10. Without Concrete We Would All Live In Tents – I had to say it, I mean Metrocrete is really a concrete and real estate blog. There is so much wasted money by misunderstanding the potential of concrete and the value in our lives. It impacts every property on the planet. It’s right under your feet now. Billions of dollars of economic stimulus are in this industry.

There. I said it. Now I’m warmed up.

Lets forget about the lousy economy, thats no excuse. As you stand there looking at your big pile of stuff think about those Golden Nuggets. They are yours, they belong to you. But where are they and how do you get them?

First you have to believe they’re in there. I heard a Donald Trump quote which was something like “if you don’t believe you’ll never work hard enough to get there”. So you better believe they’re their and that you want those nuggets or you’ll stop digging fast.

Here’s an idea, maybe you should get a friend to help. That will help the digging go faster. But why should your friend help? Give them a piece of your nugget then you’ll help them dig their pile and find their Golden Nuggets.

How about bringing on more friends to dig and their friends. Too bad, you’ll have to give up a lot of your nuggets to everyone. Not much left for you. Wait! You get a part of everyones Golden Nuggets. Guess what you don’t even have to do any digging anymore. You just organize the digging.

Seriously, networking and a laser focus is the solution to finding your Golden Nuggets. Think about your business. Is it all about you? How many people do you network with on a regular basis? Do you have a networking plan? It doesn’t matter whether you are a manufacturer, distributor, contractor. Who are your diggers, are you helping them digg their pile? If not you are digging your pile by yourself. It might take a long time to find your Golden Nuggets or you might just tire out and lose faith that they even exist.

Take a look at The Contractors Guide. It teaches you how to digg your pile and find your Golden Nuggets. Then contact me and I’ll help you. Though it’s The Contractors Guide it’s for manufacturers, distributors and contractors, we all work together.

Very few have a game plan. Most have difficult business lives as a result. It all comes down to FOCUS. As one business coach put it The first letter of each word in FOCUS stands for Follow One Course Until Successful.

I heard a great line from Donald Trump recently “you better find what you love or you’ll never work hard enough to be successful.”

The combination of Focus and working your passion are 2 key ingredients to success.

I’m not sure which of the two should come first but they work hand in hand with any business.

Decorative concrete is like every business. It is critical to find your niche. Then stay focused and do not deviate from your plan.

Let’s talk about decorative concrete overlays as a business. I like decorative concrete overlays for many reasons here are 3.

1. Function – They work where many flooring products won’t. They are thin and solve a height issue at stairs and doors. Some overlays like self leveling concrete solve issues of uneven floors and also height issues at doors and stairs. They are exteremly durable.

2. Custom - They can be colored with integral color, stains and dyes. They can be scored to look like tile or any design. They have a unique look which is appealing

3. Price they are very competitive with other flooring and in many cases less.

They have unique selling points. People will buy them. Concrete floors everywhere have issues that concrete overlays solve so there is a potential business anywhere.

Everyone in the business has a unique passion for decorative concrete, like they caught the bug. However not everyone has a profitable business.

The difference between a successful decorative concrete contractor and one who is not successful is FOCUS.

I think FOCUS needs definition. Maybe not exactly a definition but an example or case study.

Let’s look at 2 small decorative concrete companies.

Both focus on application of decorative concrete overlays. They are are in adjoining markets, one in a city the other in a suburban market. Lets call them Cityman and Mr. Suburb.

Cityman has been at it for 6-7 years. Mr. Suburb has been at it for 4 years.

Cityman has a huge market and takes whatever lead comes his way. Mr. Suburb focuses on a single coridor along a highway that he can get to quick. Stays 20 minutes from his office. Focuses on retail stores, basements and garages.

Cityman uses lots of products and switches from product to product constantly. Mr Suburb uses only 2 products and has perfected his systems.

Mr Suburb has nice website, so does Cityman.

Mr Suburb has a great contract, knows the law of contracts and has a good relationship with an attorney who can advise him. He sticks to the contract and requires 50% up front and the balance upon completion with penalties for delays. Cityman takes whatever the client gives him. Sometimes he shows up to start a job without a contract.

Mr. Suburb provides a sample before job that client approves, so does Cityman. Mr Suburb always sticks with the plan, Cityman deviates from the plan and will use products different than the approved sample.

Cityman’s results are superior to Mr. Suburb’s. However Cityman is always struggling to complete his jobs, is always stressed out and takes 2-3 weeks to complete a job. Mr Suburb is done within a week always.

Despite the high quality of work provided by Cityman the clients lose faith in him because the job takes too long. When the job is finally done the clients are frustrated and unhappy and start finding fault with Cityman. As a result he frequently doesn’t get paid in full. Mr Suburb meanwhile has completed 2-3 jobs for every job of Cityman and he has been paid in full every time. Mr Suburb never has to chase down clients for final payment.

Mr Suburb also has a lot of confidence in his employees and lets them run with each project. He just manages each project focusing more time on new projects and managing finances. Cityman thinks he is the only one in the world who can do what he does. His employees are still doing all the grunt work. He is always worn out, finances are a mess, clients and employees are unhappy and so is he. He has become an energy drain to those he meets.

Mr Suburb is doing great. His business is a success, he is happy and upbeat and focuses on bringing in more of the same business that he succeeds at. Mr Suburb has money in the bank and is making good investments with his money for the future.

Cityman sometimes has money and sometimes not. Everyday he is thinking about some new way to make a fortune but never follows through.

This story can be repeated in probably every business. What it comes down to is FOCUS. This applies to every area of of a business, not just the sales transaction. It is critical to provide outstanding service, manage employees and give them the opportunity to succeed. Financial management is critical. Keeping the business simple is critical to growth. The more complicated the business the harder it is to teach employees.

Can you make money in decorative concrete? The answer is yes and lots of it. It all comes down to a written business plan and sticking with the plan.

Try driving somewhere you’ve never been without a map. The man with the Ferrari without a map will get there much later (if at all) as the man driving the Ford Pinto with a map..