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This newsletter series will give you insights and techniques to help you build a better business no matter how large or small yours is. I always say that success comes from working on your business as opposed to in your business. I want to share with you the systems and philosophies that have been successful for me over the years.
This is newsletter #30 in the series. If you have missed prior newsletters, and are enjoying the series, we encourage you to purchase the program. More information can be found by clicking on the coupon at the bottom of this page.
Before you estimate any job, you should always ask yourself—is this the most efficient use of my time, talents, and skills at this moment? Because of limited resources, such as energy, time, and money, you can’t estimate all jobs. You must become selective about which jobs you feel will better meet your financial goals. Look for the kind of work you can handle, in competition with companies that cannot outbid you because of their size or field of specialization. To be profitable, you need to be an efficient contractor, not the largest. Treat your employees and customers fairly and honestly. Check your labor budget to ascertain that you’ll have the manpower to do the work within the time scheduled.
If you want to be competitive in a market you’re not familiar with, find out how you can gain the needed experience. One way to gain experience is through the school of hard knocks, but maybe you can become more creative and find a way to educate yourself before you take that kind of risk. Talk to other contractors, attend seminars, read trade magazines, and watch training DVDs. Do whatever you can to reduce any kind of loss you might incur as a result of inexperience.
If you do not think you are going to make money on the job, do not bid on it. Remember why you are in business, and that it is better to be honest and up-front than to make excuses or pretend to be interested when you are not. Bidding on jobs you cannot win or on which you cannot make a profit just increases your overhead and will make you less competitive in the future.
If there’s work available that you would like to qualify for, be ready the next time it’s offered. Turning over dollars without expectation of profit is bad planning because you may tie yourself up when the opportunity presents itself to do the kind of work you know and can make money on. Your only reason for being in business is to make a profit, so guide yourself in that direction. Labor has a very short shelf life; it must be used up each day.
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The above content is extracted from Mike Holt's Business Management Skills Program.
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