Many of you know of my accident this summer. For about 2 months I was relegated to sitting behind a desk or doing sales calls. Previously my company consisted of 2 guys and me. I worked during the day, sold at night and caught up on calls each afternoon. Stayed busy and usually had work booked a month out for all of us, sometimes 2 months out.
After the accident things settled down some 3 weeks later. I started learning the book keeping part of it and answering the phone. Suddenly we were booked 3 month out. I hired another guy to take my place and hired some temp help from a friends company to get me through it. We stayed booked three months out and the business kept pouring in.
I bought 2 trucks and hired another guy. Raised my prices 20%. Business kept pouring in. Stayed booked 3 months out. Started to struggle to keep up with paper work, books, payroll, and material aquisitions.
When I hired my second guy I had two competitors apply. Said they couldn’t keep a steady flow of work. Then I heard of another who was working at a golf course because he was slow. And another that laid off his 4 man crew for August. I began to realize that being available, accesible and getting to folks quickly was an advantage. But I was also out growing my own infrastructure. (me)
I know a guy in town that has an 18 man company that does commercial work. I asked if he had an hour and talked over what my next move should be. His suggestion surprised me but made a lot of sense. He said to hire a part time secretary just to do the time consuming stuff. Also hire a guy to be like a shop guy. Someone to run material as needed to the jobs, take care of the trucks (oil changes and grease, cleaning etc. No repairs) keep the shop in order and do a few small jobs if needed. This has really help production of the jobs as no one has to run to get something thus stopping work to do so.
I had a guy that simply didn’t cut it as a work alone guy. He can handle a faucet change or something simple but if the job takes more than three thoughts he is overwhelmed. But he is handy, multi talented and will do what you ask. He is also good with the trucks, trustworthy and cheap. So I offered to move him to the new position and he is now there.
I hired a retired woman that I had done work for. 4-4 hours days. Answers phones, straights up, inputs credit card reciepts, etc. Really helpful. I also started having a payroll service do the checks. I feel like I am back on top of it again.
Another interesting thing that happened. When I was doing my investigation of which direction to go I talked to my brother who works for me. I said I thought of trying to get back out to the field a couple days a week. He said he thought that was a bad idea. He said ” look, I like working with you and for you but things go a lot better around here when you are in the office and on top of it”. That was an eye opener for me.
Anyway I know this is long and somewhat pointless but I hope it might help some of you that are looking for a direction or experiencing growth of unusual proportions. DanT
Replies
Great news Dan!!!
Tough to give up the hands on, aint it???
I think that that is the major downfall for expanding remodelers....
not being able to let go of stuff they don't need to do...
I find my self pulled by both carpentry and handyman work.
have to remind myself that I can't do both full time...
it is nice to have handyman stuff to fill in with, but I don't want to do it full time (I'm not efficient enuf)
You got the "gift of gab', selling and customer relations seem to be second nature to you..
Go with it !!
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Dan
Its good to hear that your time is productive and things are going well for you.
One thing I noticed;
I like working with you and for you but things go a lot better around here when you are in the office and on top of it". That was an eye opener for me.
I say that all the time about the guy that I work for, he starts micro managing and actually gets in the way at times, not suggesting that you do that but the boss always has a different twist on things and often times its hard to work around/with the boss, maybe uncomfortable is another term and some people dont feel relaxed with the boss around.
Just my thoughts on it, not sure that it applies but.......
Doug
Dan-
It's nice to know you are on your feet again. Thanks for the thread.
I've found myself in sort of the same position - do I work with my hands or do I work with my head? For some of us, it's not so easy to stay in the office. If you can't find the right workers for the field, the office becomes secondary, quick. I've seen it both ways.
You've been bright enough to hit the right nails on the head, get the right jobs at the right prices and the people to get it done. Your verbal and mental abilities seem exceptionally important given the way things have grown. Good for you.
Don K.
EJG Homes Renovations - New Construction - Rentals
Hey Dan,
Your story sounds like it came right out of a book. I guess maybe that means I should pay more attention to all those books! I think it's a logical outcome to being in the office and on top of the business. Unfortunately it's kind of reminiscent of sending your kids off to colledge, or burying your favorite dog, You just don't want that carpenter part of you to be gone forever. I'm kind of on the edge at the moment, resiting as much as I can but slowly giving in to the inevitable.
Anyway, the reason I'm posting is to ask you a question. What is your marketing stategy? One of my biggest reservations is hireing a crew, and then running out of work. I Started my business about two years ago. So far I've never advertised, I've been working alot myself, doing several remodels and building three custom homes (mostly subs) I'm not sure if this wave of referalls will keep going, hopefully growing. But I know the responsible thing to do would be to get out there and sell myself a little bit. I'm just curious what your method is.
Thanks
Josh
I have advertised from about my second year on. (this is year 7) I currently run a newspaper ad every other day, a tv ad on the local cable company real estate channel, a few radio spots a day on a PBS style radio station and some misc. stuff. We will soon be on the tables of a local Mexican restraunt.
I try to hit the middle upper middle. I budget 1k a month for advertising. When it gets too busy I back off the newspaper add for a month or so and then fire it back up before traditional busy times. DanT
Congrats to you Dan!
I think I would agree that being being "available, accesible and getting to folks quickly was an advantage" is one of your keys to success but you forgot to mention one of your greatest assets: you are skilled, experienced and knowledgeable! When you combine your timeliness with your qualifications, you create a formidable sales team!
Another interesting thing that happened. When I was doing my investigation of which direction to go I talked to my brother who works for me. I said I thought of trying to get back out to the field a couple days a week. He said he thought that was a bad idea. He said " look, I like working with you and for you but things go a lot better around here when you are in the office and on top of it". That was an eye opener for me.
I think your brother was simply telling you that "Too many cooks spoil the broth." I felt the same way when I first figured out how to frame houses. I somewhat needed my mentor but not every day. If you talked to Frank today about this very issue, he'd tell you that things go smoother when I'm not around and sometimes he's right LOL! I do make an effort to be a good Indian, instead of a Chief when I go onto his jobs though. Sometimes it's hard, especially when I see them doing something really stupid or really inadequate.
Thanks for the insight.
blue
Our Skytrak is for sale. It has 500 hrs on it. We want 50k (you pay the freight) and we'll finance it. Drop me an email; it's a good buy.
"I think your brother was simply telling you that "Too many cooks spoil the broth.""
No, what he was saying is materials, customer issues business issues get handed down if someone isn't in the office regularly. When I am in I worry about them, when I am not they get pasted down. We rarely actually work together. Most of our jobs are 1 or 2 man deals. DanT
Thanks for the clarification Dan. I guess it shows us how important the superintendents job really is.
blueOur Skytrak is for sale. It has 500 hrs on it. We want 50k (you pay the freight) and we'll finance it. Drop me an email; it's a good buy.
sounds excellent Dan,
If You are the same DanT that posts on JLC, you have come along way since Jan 2004 when you were arguing with Sonny that you were satisfied at $27/hr, and probably couldn't get more. Sonny ripped you a new one and told you to raise your expectations. ( I read and re-read that thread because he could have been saying the same to me)
Anyway, regarding going back in the field, IIRC you had a busted up shoulder from your accident. Even if it feels well enough now, there is no telling whether it would hold up to the field work. Maybe you are doing youself a favor by staying out of the field.
Congratulations again,
Bowz
"you have come along way since Jan 2004 when you were arguing with Sonny that you were satisfied at $27/hr,"
Thank you for the humbling statement lol. Yes. I have proven myself wrong and Sonny entirely correct. We now bill at $50 an hour and the first hour on handyman work is a service call fee of $65. Amazing. DanT
Thanks for updating us on your situation. Glad to hear things are going well.
.
Regarding the part about being in the office - I think guys who are in the field tend to look down on guys who are in the office. Like we can't really cut it "out there" with them.
But nothing much is gonna go on if the guy in the office doesn't do his job right. The guy in the office can make your life easy, or make it miserable.
Both sets of skills are necessary.
A: One.
That's great Dan, glad to hear things are going well.
I've recently spent some time thinking of hiring a "shop guy". Someone who is less costly then our leads, could keep the shop in order (it never is) do the oil changes like you suggested, be an extra hand on the job when needed, but mostly be there to do the material runs...
I just can't seem to wrap my head around if the expense of the additional guy would be offset a gain in productivity in the field.
Again, it's good to hear you are doing well.
"I just can't seem to wrap my head around if the expense of the additional guy would be offset a gain in productivity in the field."
Yeah, that was an issue with me too. But when you start adding it up it isn't as bad as it seems. My guy costs me about 14 an hour with burden. So say 30k a year.
I pay for my trucks to be waxed and detailed once a year at 150 a pop X 6 + 900. I change oil twice a year in each truck so that is another 120 a pop. I pay 100 a month lawn care at the shop so that is 700 a year. I figure I lose 10 hours a week in personell going to get there own material at about $22 an hour. That is 11k on the conservative side.
Add in the fact the shop stays clean, the pony motors get run monthly and the building gets a little maintenance occasionally. I was going to hire a cleaning babe twice a month for the office so that is $720 a year saved. And.......now I don't have to empty out and clean rentals! (small personal advantage there)
This on top of the fact we can book 1-3 small jobs a week for him so he will make a few hundred a week too. So in round figures I figure he is costing me 14k a year including truck and upkeep. For that I don't have to screw with the rentals and he keeps improving the shop. The trucks stay cleaner and if we add another crew we will probably break even with him. Your milage may differ. Thanks for the kind words. DanT
You haven't been letting anyone use my office have you?
http://www.hay98.com/
Of course not.......well maybe once but he paid in cash and only pooped on the floor. Sorry. DanT
It'll be petrified by the time I get there.
Glad you got a good formula going. I'm always pulling for ya.
http://www.hay98.com/
DanT
I have read and reread your opening post. WoW! What an eye opener. I have been leaning that way for some time. Now we have real life experince to back up our ideas. Way to go!
"He said " look, I like working with you and for you but things go a lot better around here when you are in the office and on top of it". That was an eye opener for me. "
What? Yer surprised to find out yer a pain in the #### to work with?
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
you get a computer yet or are you still online in the lib.?