I spent three days recently cooped up in a room with the owners of nine different remodeling companies from around the country. Why? All of us were searching for the silver bullet to make their companies better. Over the course of the hunt, we dug through financial statements and marketing statistics, discussed hiring practices, and brainstormed about onboarding.
As we did, I attempted to pinpoint the one trait that all of these ambitious owners had in common: it wasn’t a sexy coastal marketplace like San Diego, it wasn’t years of experience owning a remodeling company, and it wasn’t the wages paid to members of the management team.
Revisit, Revamp, Repeat
The answer was ultimately simple: All of the companies shared a philosophy rooted in continuous improvement. As the days passed, current management philosophies, and the newest techniques for green building, passive house, and HVAC equipment all got tossed around the table. Most of the company owners worked with business coaches and all of them paid for top-of-the-line sales training. Overall, they averaged three to five hours a week studying and learning and exploring. And most spent between 45 and 50 hours a week working in and on the business.
Push Up Prices
Those newer members of the group questioned the above time commitment, “How can you spend so much time just reading and thinking?” they asked. The answer, again, is simple: Raise prices to allow yourself time to work on the company rather than in the company.
But however simple the answer, the execution can be a challenge. To help, I’ve provided the below step-by-step checklist to help you get started increasing prices.
- Take really good care of your clients.
- Write a personal and business plan outlining where you want to go as a company.
- Understand financial and job cost reports and build metrics for the business.
- Learn and practice good time management.
- Develop an excellent hiring/training process.
- Learn to sell—really well!
- Foster a team approach among all employees.
- Create (and follow) standardize processes for company operation.
As you execute on these elements of best practices you’ll be able to raise prices and spend more time improving your business.