Category Archives: Construction

Bug ‘Em Til They Buy Or Die!

I bet you hate to make cold calls. Thankfully, over the last ten years or more, you didn’t need to cold call, market, or sell much to win your share of contracts or profitable work. The phone just kept ringing and you stayed busy. You also like it when potential customers call you with jobs to bid or propose on. This ‘old school’ marketing plan of letting your reputation speak for itself and waiting for referrals to grow your business used to work. Now it doesn’t.

In today’s tough work environment, that old school marketing plan doesn’t work. So in the new normal of less work and more competition, you need to make outbound sales calls and implement a marketing system to keep your pipeline full of potential projects to bid. The following is my simple marketing system that doesn’t require cold calls. Instead, it’s more like a form of that Chinese water torture you saw in the old movies — Drip! Drip! Drip! I call it: ‘Bug ‘Em Til They Buy or Die!’

‘Bug ‘Em Til The Buy Or Die’ marketing system:
1. Create Awareness Of Your Company
2. Pique Potential Customer’s Interest
3. Stay at Top of Customer’s Mind
4. Generate Inquiry
5. Get Belly To Belly / Face To Face
6. Convert a Bid or Proposal Into a Contract
7. Develop Customer Relationships
8. Get Referrals

The 8 step ‘Bug ‘Em ‘Til They Buy Or Die’ marketing system is designed to move the prospective customer through all eight marketing steps without a single cold call. The goal of this system is to get potential customers TO CALL YOU versus you calling them.

The ‘Bug ‘Em’ system builds an AWARENESS of your company and what you can DO for customers over a period of time. Drip! Awareness is based upon the ‘Rule of Seven.’

The Rule Of Seven
You must have at least seven contacts with a potential customer before they:
– Remember YOUR NAME
– Feel they KNOW YOU
– TRUST you
– Will TAKE ANY ACTION towards you

To grow both our construction and speaking businesses, we use the trusted U.S. postal service to make potential customers AWARE of us. Drip! We mail something to everyone on our mailing list at least 4 times per year. Drip! Drip! Once is not enough and we don’t just mail any old boring piece of mail. We send creative, different, unique, fun, factual, caring, and informative articles, photos, postcards, white papers, mini-brochures, checklists, and guides. We use a professional design firm to keep our image consistent. Orange and blue are our colors. Everyone recognizes our orange hardhat or our blueprint background on every piece of mail we send out. Drip! Drip! Drip! Now you’re creating and building AWARENESS. Everything you send out must do one of three things:

– Pique customer INTEREST
– Create a Perception of VALUE
– Reinforce customer RELATIONSHIP

To pique customer INTEREST, you must send out something different, crazy, funny, eye catching, bold or unique. You want to stand out from the crowd and make a statement. Try to be clever, creative, and fun enough to create the ‘WOW!’ factor. Never send those same old throw-away pens, ball caps, and notepads like everyone else. If you send out cheap stuff or tacky give-aways, your potential customers will think you’re cheap, have low standards, and not financially strong enough to handle their work. Send professionally created materials that consistently reflect your image. Quality counts.

Match your mail-outs to your customer targets. We use a newsletter that looks like a blueprint for our construction customers. But to attract bank investors we use traditional white stationary with blue ink. On a mailing to lawyers we sent out messages on legal pads and when we mail to meeting planners, we use a theme based on helping them make THEIR meeting a success. To attract investors for real estate development projects, we send out aerial photos of the neighborhood along with pictures and renderings packaged in typical real estate folders. Potential customers respond to the familiar.

To peak their INTEREST we also rotate mailing out cartoons, jokes, small hardhats, mini CDs or DVDs, estimating grid notepads, paper clip holders, coffee cups with hammer handles, business card holders, post-it notes, golf tees, golf ball markers, and American flags on the 4th of July! Once we mailed envelopes full of nails with the banner: “When can we nail down your next job?”! Last year I sent postcards from Maui, Hawaii with the note: “Thanks to my loyal customers for sending me skiing. I appreciate your business!” The best things to mail are items that pack flat, play big, and will not be thrown away. Don’t forget to put your name and logo on all of your ‘Bug ‘Em Til They Buy Or Die’ mail.

Only send what your customer:
1. Will READ
2. Needs TO KNOW
3. WANTS
4. WILL KEEP

Remember your goal is not only to create INTEREST, but to create the right kind of interest in YOU. Be sure that your mail creates the right perception of VALUE about your company ans how it does business. You have to tell your potential customers what you want THEM to REMEMBER ABOUT YOU. Don’t assume customers know what you know about you. To show potential customer targets we were more than a small “local” company, we sent out maps indicating our project locations covering a 100-mile radius. To show we were qualified in a new business market, we sent out photos and resumes of key managers with years of experience in this “new for us” area. To create the perception of fast service, we mailed out “On-Time Schedulers” and photos of projects with the headline: “Another Successful Fast-Track Project”. Decide what perception of VALUE you want to present to your customers and tell them about it – OVER & OVER & OVER! Continue reading

2 DAY INTENSE BIZ-BUILDING BOOT-CAMP

2 Day Intense BIZ-Building Boot-Camp
June 14 & 15, 2012 – Charleston, NC
July 26 & 27, 2012 – Newport Beach, CA

“HELP! I’m Stuck! I Want My BIZ To Work!”
Want To GROW Your BIZ In Tough Times?
Want More Bottom-Line PROFIT?
Want A Great Management Team?
Want Written Goals & Plans?
Want Organized SYSTEMS?
Want To Let Go & GROW?
Want New Customers?
Want To Make More $$$?

Stop waiting for the economy to turn around!
Let me help you get your business back to work!
Profit-Builder Circle Academy 2 Day Boot-Camp Outline

Day1: Get Your BIZ Back To Work!
How To Build A BIZ That Grows & Always Makes A Profit!

Most business owners work too many hours for the money they make. They’re too hands-on, stressed-out, out of control, over-worked and under-paid for the energy they put into their companies. They’re stuck, don’t know what to do next and need help!

Learn how to take your company to the next level, get organized and in-control, create a dynamic organizational chart and management team, develop operational systems, design a working marketing plan, develop streams of steady income, build equity, create wealth, and get your business to work for you.

George Hedley, professional business coach, author of the bestseller: “Get Your Business To Work!” and a “Entrepreneur of the Year” award winner will share how to implement his proven step by step system. You can get the results you want without your full-time hands-on, make-every-decision supervision by making sound decisions so you can enjoy the benefits of a growing company.

Upon completing this program, the participant should be able to:
1. Create a written business plan with targets and goals for growth, people, sales, systems, and profit.

2. Build a business that works, replace yourself with operational systems and build your company to meet your goals.

3. Develop written BIZ-Systems to always make a profit, market and sell, find and keep great people, get organized & in-control.

4. Create an organization and team that allows the owner to let go of control and focus on priorities that make a difference in the bottom-line.

Day 2: Grow Your BIZ!
Find New Customers, Win More Contracts & Stop Selling Low Price!

Being low bidder won’t win enough profitable work today! To develop a successful BIZDevelopment action plan to grow your BIZ, generate more sales and win more construction contracts, you’ve got to give customers better reasons to award your company work.

Learn how to improve your estimating and bidding strategy, set your company apart from the competition, differentiate, build loyal customer relationships, seek better opportunities, get on the right bid lists, find more viable leads, convert proposals into contracts, improve your professional presentations, develop an effective bid follow-up system, and track your bid-hit ratio.

You’ll leave with a winning marketing & estimating template and calendar to build loyal customer relationships, negotiate more work, offer more than low price, and get in front of decision makers to win more work.

Upon completing this program, the participant should be able to:
1. Implement a winning BIZ-Development, marketing, sales, proposal, estimating and bidding strategy to win more profitable customers and contracts.

2. Develop an action plan, template and calendar to find new customers, markets, projects,and value-added services to win more work.

3. Get in front of decision makers, negotiate to win, present professional presentations, and follow-up to win more negotiated work.

4. Build loyal customer relationships, set your company apart from the competition & offer more than low price.

5. Add more services to generate ongoing steady work.

Don’t Be Left Out!
Sign-Up Today To Get The 
50% Discount!
Expires May 21, 2012 

Email me for more information, a complete brochure or the registration form:
Email: GH@HardhatPresentations.com

Hire the Right Players Now!

If you were the owner of a NBA basketball team, one of your top goals would be to have the best players on your team. With only five players on the court at any one time, every one of them is critical to winning. If you don’t do a good job hiring the right players, your team won’t win many games. And eventually the fans will stop coming out and spending their money on tickets. In other words, the success of your winning team is to have the right players on the floor at all times.

Business owners tell me they can’t find any good help. But how much time do they actually spend finding the right players? What you get is a direct result of your priorities. When you don’t take enough time to find, cultivate, and train new players, how do you expect to grow a winning team? Professional sports teams have a full time executive in charge of player personnel – finding the right players, managing their contracts, and keeping them happy. But most small companies don’t spend more than a few hours a year making sure their roster is balanced, robust, and excellent.

Before the annual draft, every professional sports coaching staff makes a list of all the positions and their current players to analyze what they need to change or add to improve. In your company, the draft is now. To get started, make a list of all of your company positions, the talents required at each job, the player currently assigned each position, and then rank how well you think they are doing.

Player Personnel Ranking Chart
Position Talent Required Player Ranking

  • Estimator Knows accurate costs Jim B C+
  • Completes bids on-time Jim B A-
  • Maximizes sub-bid coverage Jim B B-
  • Presents company well Jim B B
  • Project Manager Manages budget Bill C+
  • Maximizes change orders Bill B
  • Keeps customer happy Bill A
  • Paperwork on-time Bill B-
  • Superintendent Finishes jobs on-time Dave A
  • Pushes crews to the max Dave B+
  • Safe jobsite and no accidents Dave C-
  • Coordinates subcontractors Dave B-
  • Foreman Manages crews and jobsite Sam B-
  • Brings jobs in under budget Sam C
  • Knows how to build quality Sam A
  • Follows company procedures Sam C-
  • Carpenter Can build per plans Joe A-
  • Hustles & works efficiently Joe B
  • Takes initiative & action Joe B-
  • Team Player & good attitude Joe D
  • Office Manager Completes tasks on-time Sue B-
  • Understands accounting Sue C+
  • Understands construction Sue B+
  • Team player & good attitude Sue A Continue reading

Fill The Seats Or Go Broke!

If you were the owner of a NFL football team, your number one goal would be to fill all the seats every week. To fill seats takes a multiple approach. You must put a winning product on the field and you must sell seats. Seats don’t sell themselves. It takes a huge effort to create sellouts at profitable ticket prices.

Over the last ten years, you didn’t have to sell very hard to keep profitable revenue flowing into your company’s coffers. If you put a mediocre team on the field, called the usual plays, and used an average business strategy, your customers would keep coming back for more, if your price was somewhat competitive. And because business was plentiful, you didn’t have to try to win over many new customers. You stayed focused on doing the same type of work for the same type of customers and your business grew. Because there was enough work, you also didn’t have to try different types of projects, customers, or contract delivery methods. In fact, you even prided yourself as a specialist in a very focused type of business niche.

Fast forward. Today it is hard to fill the seats, revenue is scarce, and customers are hard to find. Having a winning team doesn’t matter if they can’t find a game to play in. You’ve cut your overhead and reduced your expenses as low as you can to survive. You continue to bid more and more work against too many competitors at lower and lower prices. Now you are even calling on new and potential customers you really never wanted to work for. You’re trying to get on any bid list you can including public works, which you always avoided because of the paperwork and prevailing wage issues. You’ve assigned your office manager or estimator to cold-calling and emailing any lead they can find in hopes of a miracle. Nothing is working and getting new business at a reasonable price is next to impossible.

Now what? You’re thinking you’ve got to fill the seats with paying customers or go broke. If the sudden slowdown in the economy taught everyone one thing: ‘Putting all your eggs in one basket won’t work forever.’ Many contractors and business owners focused their efforts on doing only one kind of project and service for one type of customer. For example, to keep revenue and jobs flowing in, many focused on only building housing tracts, or shopping centers, or industrial parks, or custom homes, or office building interiors. Some focused on building for general contractors, developers, or home builders. Some expanded and did more than one type of project. But, most didn’t crossover into totally different or diverse types of work. And offering a service component to their revenue stream wasn’t even considered as they were too busy to mess with little jobs.

Multiple streams of income sells more seats!
A diverse business plan includes three types of revenue streams with many different types of projects per stream. For example, here is a partial list of the unlimited revenue and business opportunities contractors have to choose from:

Multiple Revenue Streams & Opportunities          

1. Contracts & Bids

Private Construction
Retail shopping centers
National chain stores
Industrial buildings
Manufacturing & factories
Metal buildings
Office buildings
Banks
Medical buildings
Hospitals
Self storage
Renovations
Interior Improvements
Utility Company Projects
Housing Tracts
Custom homes
Residential remodeling
Residential home upgrades
Residential replacement work
Site improvements

Public Works Construction
Schools
Offices
Hospitals
Facilities
Roads & highways
Transportation projects
Sewer & water projects
Storm drain systems
Plants

2. Service Work & Ongoing Accounts

Ongoing Monthly Or Annual Accounts
Property management
HVAC maintenance
Electrical maintenance
Plumbing maintenance
Landscape maintenance
Site service & management
Spring & winterization
Light bulb replacement
Roof service
Road and drainage repair work
Generator service
Energy management & controls

Repairs & Service To Fix Broken Components
Plumbing & mechanical repairs & upgrades
Window replacement
Tenant improvements
Tenant relocation
Carpet and flooring service
Building damage repair
Clean-up and debris removal

3. Wealth Building & Passive Income

Own income producing real estate

Rental homes
Apartments
Shops and yards
Industrial buildings
Offices
Shopping Centers

Own income producing businesses
Rental equipment companies
Wholesale materials
Supplier
Services Continue reading

Do-Over #2: Diversify, Market & Serve Customers Sooner Than Later!

When business is steady with lots of bidding opportunities coming your way, it’s easy to keep busy working for a limited number of customers doing the same type of projects. This business model works during a good economy. Once you establish a few repeat customers, they continue to feed you work to bid on. You don’t have to go out and find new customers. You don’t have to market or sell. You don’t need an updated brochure or impressive website. And you don’t have to have a customer service or follow-up program. Work is easy to get: wait for the phone to ring, pick up a set of plans, and go bid the job. If you bid enough, you’ll get your share.

The second most popular “Do-Over” I hear from seasoned business owners is they wish they would have built up a broader base of customers, worked on many different type of projects, and developed a solid marketing and referral program that delivered diversified types of profitable work. Today I hear sad stories of underground contractors who kept very busy only doing private housing tracts for a few homebuilders. I also hear similar stories from contractors who didn’t want to mess with government jobs because of all the added paperwork. And I hear stories from companies who didn’t add any extra services like green technology, design-build, post construction services, or maintenance to attract and keep customers. These companies are now left without any customers. Continue reading

The Business Do Over!

In sports, the coach gets to start over every season. Winning coaches look at their past records and make positive decisions of what they need to drastically change and achieve better results. If they continue to play the game the same as they did last several seasons, they won’t continue to build and win. They have to look at how they play the game, players, coaches, methods, offense and defense, training, strategy, and tactics.

Now imagine it’s your turn to start a new season. You are the coach of your business and want to keep your job and make a lot of money for the owners. What should you do differently to win the game of business? What tough decisions should you make? What new plays will you call? What players should you replace? Where should you play the game and how? Will you keep doing what you’ve always done or decide to do whatever it takes to grow your business and make a profit? Below is the list of the top “Do-Overs” I hear from the many business owners I have surveyed.

Do-Over # 1: Invest Sooner Than Later!
When your business was busy, you didn’t have enough time to stop and look for investments. And you were growing, so most all of your cash-flow went to fund your company’s growth. The snowball effect was keeping you excited as your business got bigger and bigger. It was like a shot of adrenaline as you did more and more work. The more you grew, the bigger you wanted to get. Volume is addictive, so you bid work too cheap and never missed an opportunity to grow or gain a customer. Everyone thought this gravy train would never end. Continue reading

Low Bid Gets the Job In Public Work

In public works construction, the low bidder usually gets the job and there is little or no room for sales strategy or tactics. The best way to be the low bidder and awarded a contract is to have the lowest possible costs and the most efficient construction management and field operation possible. To keep your costs lower than your competitors, your field crews must be lean, productive, and well trained. There must be no downtime, job problems, quality issues, coordination conflicts, or mistakes. Your subcontractors and suppliers must also be supervised and managed tight without gaps in scheduling, productivity, conflicts, or quality. This can only be accomplished with diligent leadership, accountable management, and ongoing training focused on productivity and efficiency.

Now you are in the sales business!
In private work, it takes a lot more than just bidding and negotiating to win contracts. You’ve got to give customers a differentiating reason to hire your company. It’s not just about the price, inclusions, and exclusions. Now there are too many competitors who can do the same job as your company and will cut their bid below their cost to get a job. To win more contracts at your price, you must face reality. You are not in the construction business. You now have to also be in the $ALES business! Continue reading

Win More Contacts At Your Price!

Every construction company business owner wants to charge a higher price for their services and products. And especially today, I’m sure you are looking for the magic ingredient that will give you more jobs at your price. But why should customers award your company a contract? In this tough economy there are less jobs to bid and more competition. Many of your competitors are pricing jobs at prices lower than their costs. They are trying to keep their doors open and crews busy hoping something good happens soon. Ask yourself this question:

Why should customers award your company contracts at your price or higher than your competitors?

It is what it is!
Perhaps you are starting to realize that it’s not what it was. The new economic reality is here to stay for at least 3 to 5 years. If it hasn’t hit you yet, get ready. Just a few years ago you could do a pretty good job and get lots of work from your customers. But today, your old sales strategies won’t get you enough work to stay profitable. It takes more than doing a good job, producing quality work, and bidding projects per plans and specifications to win contracts. Now, you must do more and offer something different than your competitors to win contracts. You need to renovate, innovate, change, improve, and upgrade your estimating systems, bidding strategies, proposal format, presentation methods, customer contact approach, marketing plan, and sales tactics to be successful today.

I started my construction company in 1977. At that time there was not a lot of competition and getting work was relatively easy. Through my business contacts, I could find a nice job to bid, call the customer, meet them, get a set of plans to bid, do the take-off, estimate the job, and then turn in my proposal with a reasonable mark-up on it. A few days later I would call to see if I could meet with the customer to review our bid. At the meeting we would negotiate the terms, inclusions, exclusions, and agree on a final price. Simple. 

Do your customers want more?

Joseph owns a residential landscape company doing new installations for homeowners. He mainly works on referrals from custom home-builders, architects, and past customers. Sometimes his company is busy and other times he waits for the phone to ring. By chance he was asked to do some hauling for one of his contractor customers. In the past he didn’t pursue this type of business because is was a nuisance and disrupted his operations. But this got him thinking about how he could expand his revenue sources.

Joseph decided to set up a new division that focuses on service work. He moved his chief estimator into the role of division manager to build the customer base, added a service manager, and put a bookkeeper in charge of managing the accounts. He started by asking his customers what other type of services they needed on an ongoing basis. His homeowner customers trusted his company, liked their work, and actually wanted his company to provide more ongoing maintenance for them as well. They asked for weekly lawn and garden service, annual weed removal, yearly tree-trimming, winterization service, and annual irrigation repairs. Some of his customers owned pools and also wanted his company to do their pool service, maintenance, and repairs. Some customers had young children and wanted swing sets and playground equipment installed. Some wanted new barbeques installed, fencing added, stables for their horses built, cages for their pets, and patio covers added. Some customers asked him if he installed annual holiday lights as well. Some customers even wanted his company to offer debris and junk removal and hauling. WOW! All that business and Joseph hadn’t even thought about providing it for his customers. Continue reading

Contracting is not just about construction!

How can construction companies increase their steady stream of ongoing reliable sales income regardless of the economy? What type of ongoing revenue can your company, employees, infrastructure, technical skills, reputation, equipment, knowledge, customer base, experience, or potential generate? Attendees of my two day Profit-Builder Circles come to learn how to get their business to work the way they want them to and then take them to the next level. As I look back over the hundreds of past attendees, the business owners who are the most successful are the ones who have two types of contracts, revenue sources, customers, and business models. They do both lump sum contracting work plus have a significant amount of their revenue come from steady ongoing service accounts.

These successful contractors don’t rely solely on bidding single jobs, one at a time, to generate most of their revenue. When you mainly rely on bidding or negotiating work to win contracts, your business becomes ‘fast and furious.’ Your business is either hot or cold, fast paced or dead, busy or slow, and you cant’ control your workload and your revenue isn’t steady or reliable.

‘Slow & steady’ business keeps your crews busy as the workload keeps on coming regularly over and over every month. You can count on a steady flow of work as annual service contracts provide ongoing revenue. With steady regular service accounts, you can plan your schedule, workload, and cash-flow.

Multiple types of income, contracts, and revenue sources compliment each other. This business model allows these type of companies who do both bid and service work, to become very efficient, generate steady workflow for their employees, and create wealth for the owners. But they require two different types of management, sales efforts, cost accounting, customer service, employee training, professional standards, and marketing efforts.

Steve is an electrical contractor who has two separate companies that work together. He has a new construction division that bids to general contractors and does commercial projects, large shopping centers, and office buildings. He has ten steady general contractor customers who typically give his company enough work to make a small profit during good times.

As an offshoot to his contracting company, Steve started an electrical service company several years ago that installs, services, and maintains back-up power generators for homeowners, commercial facilities, industrial plants, hospitals, government buildings, and offices. This company seeks annual contracts for all service work required to keep customer’s buildings electrified during power failures. This specialty service work includes design, engineering, preparing studies, permitting, new installation, repairs, maintenance, testing, fueling, implementing technology, and ongoing monitoring work to insure the generators will work when needed. This service business has grown as he has focused on acquiring new customers, providing excellent customer service, regular weekly employee training, and lots of sales and marketing to attract potential customers. Continue reading