Latest / Contractor Business Builder Podcast / The 6M Sweet Spot: How Builders Hit 7-Figure Profit Without Scaling Too Fast – Kurt Hegetschweiler

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The 6M Sweet Spot: How Builders Hit 7-Figure Profit Without Scaling Too Fast – Kurt Hegetschweiler · Contractor Business Builder Podcast

• 0:03
  Welcome to another exciting episode of the Contractor
• 0:07
  Business Builder podcast. Today we have the honor of of
• 0:10
  having Kurt Haggett Schuyler, founder of Builders Coach Kurt.
• 0:15
  It was one of the first to specializing coaching builders
• 0:19
  in Australia. Now 20 plus years later, he's
• 0:21
  helped over hundreds of builders reached the elusive 7 figure
• 0:25
  club and he's not stopping there.
• 0:27
  In this episode, we dive deep into what it really takes to get
• 0:31
  your business running like machine and why becoming
• 0:33
  $1,000,000 Builder is about who you become, not just what you
• 0:37
  earn. How you doing today Kurt?
• 0:40
  I'm very good. Thanks, Derek.
• 0:41
  Thanks for having me, man. Looking forward to the
• 0:43
  conversation. Definitely, you know, decades
• 0:47
  wealth of experience helping builders grow and scale and be
• 0:51
  profitable at the end of the day.
• 0:52
  So can you give us a little bit of of your background and and
• 0:56
  and the work that you do with the with builders?
• 1:00
  Sure. So mine sort of Batman origin
• 1:02
  story. I've had a renovations business,
• 1:05
  remodeling business myself here in Sydney.
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  I've also launched a a national building franchise as well.
• 1:13
  Absolutely love learning and you know, it was always coaching
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  started back in 2004 and when I initially started as a business
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  coach, I worked, you know, generically with a few other
• 1:24
  builders. But my dad was a tradesman, so
• 1:26
  resonated towards trades and builders in particular.
• 1:30
  And um, yeah, I just at some point decided this is what I
• 1:34
  want to do, get a real buzz out of helping people go through a
• 1:38
  positive, a positive transformation and and optimise
• 1:42
  profit, cash flow workflow. So our sort of point of
• 1:44
  difference in the market, it is really about optimization and
• 1:47
  peak performance, which is where the the leadership and mindset
• 1:50
  comes into play. And yeah, as, as we both know,
• 1:55
  we're talking about before the industry needs a lot of help.
• 1:57
  There's a lot of people suffering unnecessarily
• 2:01
  financially with profit and cash flow.
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  And really it's exciting times. There's never been a better time
• 2:06
  to be in business. It's never been better sharing
• 2:09
  of information, the fact that you're not having this
• 2:10
  conversation and there's a there's a lot of overlap in
• 2:14
  terms of our values and how we see areas for improvement and
• 2:19
  you know, first principles, thinking, strategies, process,
• 2:22
  all that sort of thing. So it's, yeah, it's just, it's a
• 2:25
  case of spreading the word and and the impact as much as
• 2:29
  possible to, to help more builders.
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  Yeah. Take control, yeah.
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  Definitely, yeah, there's more information, tools,
• 2:36
  opportunities more now than ever for sure to to really build an
• 2:41
  amazing business. That's not to say it's, it's
• 2:43
  easy, but the you know, there there is help and and a lot of
• 2:47
  these resources available. So for you, what what does it
• 2:51
  mean to you or what does it take to build, you know, A7 figure
• 2:54
  contracting business? What?
• 2:56
  What do you see? Yeah, so the the the Seven
• 3:00
  Figure Club or $1,000,000 Builder, which by the way, title
• 3:03
  of my book here. Just shameless plug.
• 3:05
  This is my second best selling book.
• 3:07
  Yeah, $1,000,000 Builder 2.0. It's available everywhere,
• 3:10
  Spotify, Audible, paperback copy, Kindle, whatever your
• 3:14
  preference is. But I've had some, some young
• 3:17
  goth side of me. I've got a guy I'm working with
• 3:20
  now. He's yeah, it's just a little
• 3:21
  inside joke with us where he came on a call like this with me
• 3:24
  and he said, hey, nice click back.
• 3:26
  You know, because you jump online these days, there's all,
• 3:29
  you know, $1,000,000 first billion dollar that, but it
• 3:31
  actually happened organically. It's it's $1,000,000 net profit.
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  And that's one of our builders achieved.
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  So we work with residential builders, right, custom home
• 3:41
  renovation builders between sort of two and 10 mil turnover, you
• 3:44
  get outliers, but that's sort of 8090% of our builders and the
• 3:49
  sweet spot for the $1,000,000 net profit.
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  And again, this happened with coaching, you know, and then a
• 3:55
  guy achieved that result. And it's as you would know, you
• 3:59
  know, if you, if you get your gross margin right about going
• 4:02
  down the rabbit hole of, of the specifics, but we work on a 25%
• 4:05
  gross margins, that's the, the, the profit, the gross profit on
• 4:09
  a job is gonna pay your overheads.
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  If that's 25% turnover, 6,000,000 say for the year, 25%
• 4:16
  of 6 mills, 1.5 million gross profit.
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  If you can cover your overheads with half a million including
• 4:21
  wages to the owner, then that you've got a 7 figure or
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  $1,000,000 net profit before tax, right?
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  And in the western world, if you making anywhere near that sort
• 4:31
  of profit, you've got a tax problem.
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  So you can either pay the tax, you know, like if you trust the
• 4:37
  government's gonna spend it wisely and, and you're a big
• 4:39
  fan, or you can, and this is the best business model we've seen.
• 4:43
  You can buy some real estate, you know, do some fixer uppers,
• 4:46
  buy and hold, you know, ideally find a specialty or niche within
• 4:50
  that, within that that's real estate space.
• 4:54
  And that's where you can create sort of generational wealth.
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  But that's where the $1,000,000 builder sort of concept came
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  from, happened organically. And then we sort of found that
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  sweet spot of the six mil. So a lot of Gaza come to me now
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  come to me wanting to get into the seven figure club or maybe
• 5:09
  just even half 1,000,000 bucks net profit and then make that
• 5:12
  sustainable because they can have a boutique business and
• 5:15
  then do 1 bond hold a year for 10 years and then that's it
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  that's set. So that's essentially that's
• 5:25
  where that's where the title came from is.
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  Fantastic. Yeah, definitely something to
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  aspire to. And I think a lot of business
• 5:33
  owners contractors when they get started, that's, that is sort of
• 5:36
  the goal, right Like to, to reach somewhere in that
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  $1,000,000 profit range. And a lot of them can go off the
• 5:44
  tracks really easily. And sometimes I guess the, the
• 5:50
  temptation is to just grow revenue and, and, and get as
• 5:54
  many jobs as you can. And you end up, you know, if
• 5:57
  your margins aren't correct or your, your business isn't in a
• 5:59
  good place, you end up scaling and realizing you just increase
• 6:03
  the amount of mess and problems you have instead of solving
• 6:07
  them. So what, what do you see as like
• 6:10
  signs or signals that someone is ready to kind of scale their
• 6:14
  business? Let's say they're doing that
• 6:15
  around, you know, 2 million in revenue per year.
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  And they, and they see this, you know, I've got to get up to, you
• 6:20
  know, 6 to 8 in order to, to releasing that profitability.
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  But what do they need to get in place first?
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  Or when do they know if they're ready to to really start
• 6:29
  wrapping things up? Yeah, sure.
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  So there's a few things to unpack there.
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  So first up, I have to say most, most builders don't strive to
• 6:37
  net 1,000,000 bucks like when we're not bringing it up.
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  Some of them, you know, they, they, well, I think it's, it's
• 6:44
  BS or marketing or click bites. And for for many, it's, it seems
• 6:50
  like a pop dream because I've never really made much profit.
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  And you know, around 90% of businesses, not just in our
• 6:56
  industry, in any industry, don't make net profit, right?
• 6:58
  That make maybe a good wage. And you know, most entrepreneurs
• 7:03
  are unemployable, right? That's why we work for
• 7:05
  ourselves. I personally would rather live
• 7:07
  under bridge than work for someone else, right?
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  So I think that's the case. I heard recently that I think
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  it's less than 4% of people on the planet have ADHD, around 50%
• 7:21
  of business owners, especially in our industry, ADHD very
• 7:24
  impulsive and quick for decision making and all that sort of
• 7:28
  thing. But yeah, so most don't really
• 7:31
  think that's possible and that's OK.
• 7:33
  Like and mindsets another whole conversation.
• 7:36
  So. So I'll just start with that.
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  But then to answer your question, you know, what does it
• 7:41
  take? You have to turn it over 2 mil.
• 7:43
  Yeah, most guys like again, I'm gonna try.
• 7:47
  I'll try to keep this, this answer short and on point.
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  We gotta chase the margin, then the revenue, OK.
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  That's the crucial thing is, is you know, get the margin first.
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  So identify, you know, what market, what type of work, what
• 8:07
  niche is there in your location where there's going to be an
• 8:11
  opportunity for for bigger margin.
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  And then position yourself as that builder, be the specialist
• 8:19
  cardiologist, not the GP. And then within that, identify
• 8:23
  an ideal client persona as well, because the type of client you
• 8:26
  work, what's really important. So that's a good starting point
• 8:29
  to get the margin up above at least 20%, ideally 25% margin
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  and then scale from there. Then scale the volume of work
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  slowly. The overhead should always be
• 8:43
  around 10% of turnover. So 2 mil your other heads or
• 8:48
  running costs. You know there's accounts use
• 8:50
  different terminology for the same same thing.
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  And that's just your expenses that you can't allocate to a
• 8:55
  job. So like your office rents,
• 8:56
  marketing, business coaching, printing, printing, whatever it
• 9:01
  is all that office admin office admin wages.
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  What most guys don't realize is that their site related labour
• 9:09
  carpentry that the labour and and very importantly, and this
• 9:13
  is the if, if no one, if someone hasn't been listening, they need
• 9:16
  to listen to this. This is this is a critical
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  distinction, right? Like it's small hinges that
• 9:21
  swing big doors. This is one of them.
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  Supervision and project management need to be costed in
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  as a cost of sale. Like, you know, bricks, lumber,
• 9:32
  steel sort of thing. So that's the thing I'll see
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  most girls don't do. So if they're not doing that,
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  they'll have a margin. They go, yeah, my margins are
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  already 25 or I've got 30% margins, but that's that.
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  That's not a true margin because they're not costing in things
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  accurately. And then you know beyond that
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  you need an accurate gross margin to calculate your break
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  even point because the break even point equation is overhead
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  divided by gross margin. So you know you need to know
• 9:58
  where you're breaking even at, you know what volume of work at
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  what gross margin to cover overheads.
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  Beyond that point the gross becomes net.
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  And then so if you can find the margin and hold 25 as you and
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  then you can price it, hold it on delivery of the work as the
• 10:16
  volume of work goes up and you approach 5 or 6 mil, there's a
• 10:20
  hockey stick effect with the net profit.
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  So we work on a 251015 and I'll talk about it in the book again,
• 10:32
  shameless plug. Yeah, this is a great resource
• 10:34
  for all the details. And look the great thing about
• 10:38
  the numbers and you to test the stearic like we live in a world
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  where there's just so much biking switch and yeah, people
• 10:46
  talking bullshit. And the thing that really gets
• 10:49
  yeah, under my skin is the the people online that are OK, you
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  can do this. It's easy.
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  It's quick and easy like this. There is no shortcut to making
• 10:58
  money. There's no quick and easy way to
• 11:00
  get fit and healthy, right? Like, you're gonna have to do
• 11:02
  the cardio, you're gonna have to do the weight training.
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  You're gonna have to say no to sugar.
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  Like there's no take a pill and everything's gonna be fine.
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  All right. So some of your business.
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  So you need to do the work. You need to apply yourself.
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  But if you get the numbers right, yeah, maths doesn't lie.
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  It's very black and white. So those are, yeah, 25 gross
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  margin, 10% overheads to turnover, 15% net.
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  If you look after the first two, take care of the third one and
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  yeah, you just gotta you gotta follow the process consistently.
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  And again, we, we, you know, we help guys implement best
• 11:39
  practice process in the raw sequence.
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  There's another little distinction because when you
• 11:44
  look at all the the processes that are involved in a, a
• 11:49
  building company and you'd know like the preconstruction phase
• 11:53
  is the most important one. Everything that you're planning,
• 11:56
  the decision making, the selections, the costings, the
• 12:00
  positioning of the of the clients and the subcontractors,
• 12:03
  you do that exceptionally well with good quality documentation,
• 12:07
  then the build process is smooth and more efficient and more
• 12:10
  profitable. But it's, yeah, it's
• 12:13
  implementing those processes from first inquiry all the way
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  through to, to after maintenance.
• 12:18
  And again, there's a particular sequence for putting those in
• 12:21
  place quickly and well. And then overlay, overlay that
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  with a dream team ideally. And in order to build a dream
• 12:29
  team, you need leadership that warrants that you're always
• 12:34
  deserving of building quality leaders underneath you.
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  And that's where the leadership and mindset part comes into
• 12:40
  play. Yeah, for sure on the same page
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  there where you need to get your numbers right in your margins
• 12:47
  and they're in the right place before you start to grow your
• 12:51
  business because it's not you're just going to compound the
• 12:55
  effects. If you're already you know
• 12:56
  within on numbers or wondering where the money is and it's not
• 12:58
  in your bank account and you start to grow, you're not going
• 13:01
  to magically get more money out of out of nowhere.
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  If your margins are are low, you need to be able to sell jobs at
• 13:08
  a high enough value and margins in order to to have that room
• 13:13
  for, for growth. Definitely.
• 13:16
  And as far as like the, the mindset you mentioned leadership
• 13:21
  getting your, you know, your, your dream team in place.
• 13:25
  Can you speak to that as as far as what, what mindsets or, or
• 13:28
  you mentioned some key concepts already, but what sort of key
• 13:31
  things that people need to understand if they're going to
• 13:34
  take this on? Well, that's a great question,
• 13:37
  man, Because so, so everyone's different, Like, yeah,
• 13:43
  especially as it relates to sort of mindset.
• 13:45
  We all have different upbringing, different DNA.
• 13:47
  You get nature and nurture. You know, 50% of our, you know,
• 13:51
  attributes could be from, you know, from just from our DNA,
• 13:55
  whether you extroverted or introverted or more of a numbers
• 13:58
  person or people person or whatever it is.
• 14:01
  So, so there's that component to it.
• 14:03
  So a big part of leadership is above all, know yourself.
• 14:07
  And then ideally, you know, play to your strengths, employ your
• 14:10
  weaknesses. But I just want to go back to to
• 14:12
  the numbers. One of the things that just
• 14:16
  before we jump into the, the leadership side, which I know
• 14:18
  you want to talk about, but I've never had a bill to come to me
• 14:23
  with accurate numbers, right? So getting that right is, is so
• 14:28
  freaking important. It is, it is just unbelievably
• 14:30
  important. And, and, and that's a day one
• 14:34
  conversation with all our clients, right?
• 14:36
  Like most builders out there, anyone listening like you tell
• 14:39
  me whether you have to call your bookkeeper, your accountant to
• 14:44
  collate the numbers to then tell you how you've done financially.
• 14:47
  If that's the case, like you don't wanna run a business that
• 14:50
  way. You don't want to live your life
• 14:52
  that way, right? You should be able to, within
• 14:54
  seconds, access accurate numbers that tell you exactly how you're
• 14:58
  tracking. So you can check in on those,
• 15:02
  those 3 guiding lights if you like the 251015.
• 15:05
  So that's something that we set up quickly and well.
• 15:08
  And yes, you still need to have an accountant and you need a
• 15:11
  bookkeeper and you need to do work.
• 15:13
  And there's these complex, you know, financial reviews,
• 15:18
  assessments and algorithms and everything you can look at,
• 15:20
  which is great. But you need to have accurate
• 15:24
  controls, just like when you drive in a car, like you need to
• 15:27
  battle. When you look at the gas tank,
• 15:30
  you know, if it says you got half a tank of fuel it and you
• 15:33
  don't want it to have a lot. Yeah, almost empty.
• 15:35
  Or the, the Rev counter speedometer saying you're
• 15:37
  traveling in a certain speed. You're not, you know, so your
• 15:40
  gauges need to work. So that that's really, really
• 15:42
  important. So back to the mindset question.
• 15:44
  So everyone's different, everyone has A at its core.
• 15:52
  We all have a different self-image or belief system,
• 15:55
  alright, and you will never outperform yourself image.
• 15:59
  So there's a great book that I'd recommend everyone gets and and
• 16:05
  you don't tell me if you haven't.
• 16:06
  We spoke about this a last time. We had a conversation, but
• 16:09
  psycho cybernetics, Maxwell Mox. So 30 million copies of that
• 16:14
  book sold. It was written in the 191960
• 16:17
  like years ago, decades ago. But every peak performance, you
• 16:22
  know, person, whether it's sport or in any other field has either
• 16:26
  read that book or applies the principles in there.
• 16:28
  The great thing about cybernetics, it gives you a
• 16:31
  process and a structure for how to expand yourself image, which
• 16:35
  is a bit like a thermostat, right?
• 16:36
  Like, and it's important to understand that we have a
• 16:39
  self-image for every area of our life, like how you play golf,
• 16:42
  how you tell jokes, how you as a father, a husband, with
• 16:46
  marketing, with money. And again, if you have a small
• 16:49
  self-image, then you know you'll always default back to it.
• 16:53
  And This is why people self sabotage.
• 16:56
  You get, you get that term bandied around, But you know, so
• 17:00
  the question is, how do you measure it?
• 17:01
  Like you can't put a machine, I can't put a machine on you and
• 17:04
  go, oh, so yourself image for money is that is that is that,
• 17:07
  is that a healthy 8 out of 10? But you know, if you think of
• 17:09
  athletes, you think of a Michael Jordan, like his self-image
• 17:12
  around his ability, like it's, it's right on or beyond their
• 17:16
  capability. And it's important to understand
• 17:19
  as well that the upper end of, of, of human potential is
• 17:22
  untested, right? If you speak to psychologists,
• 17:24
  right? And someone like Michael Jordan,
• 17:27
  know what's his name, Jordan Peterson talks about that run.
• 17:32
  So if we're looking at money, so how do you measure it?
• 17:35
  So we're looking at money. A good thing to a good way to
• 17:38
  assess where your money mindset will be is look, look back at
• 17:42
  your family, look at your parents.
• 17:43
  So what was their money mindset that they have an abundance
• 17:45
  mindset or scarcity? Were they, you know, money is
• 17:48
  the root of all evil, maybe had a religious upbringing.
• 17:51
  And you know, so if that's the case, it's naive to think that
• 17:54
  you weren't impacted by your environment because our
• 17:56
  environments do shape us. And again, it's, you know, 50
• 18:00
  nature nurture. So you want to expand that
• 18:02
  self-image marketing, there is a lot of builders especially all
• 18:06
  the guys that I see it as self promotion that that sort of hold
• 18:10
  back a bit. They don't wanna optimize their
• 18:12
  marketing processes and and expand their reach.
• 18:15
  And you know, a monster, a quick and easy monster, it's shift
• 18:20
  around that is you. You're not trying to sell
• 18:22
  yourself because you know sells has got a dirty word.
• 18:26
  It's got a dirty name, OK. And he's a dirty word for a lot
• 18:29
  of people because they've had people trying to sell them
• 18:32
  things that they don't need. If someone's trying to sell your
• 18:34
  refrigerator, you don't need one.
• 18:35
  It's irritating. So if you're trying to market
• 18:40
  and marketing is just selling in advance and you don't like
• 18:44
  sales, it's gonna make it difficult for you to perform
• 18:47
  well because you got that, that image around it.
• 18:49
  That's a -1 right? So the way to flip the script is
• 18:54
  just see yourself as a solution provider.
• 18:56
  Like if you're, if you do renovations and extensions,
• 18:58
  you're providing that solution, right?
• 19:00
  You're not trying to sell it to anyone.
• 19:02
  You're just letting people know, hey, this is what we do.
• 19:04
  We do it. Well, we've got a portfolio of
• 19:06
  work and be like a lighthouse that just puts out that signal.
• 19:10
  It's, it's the same with us, right?
• 19:11
  Like I help builders make more money, take control of their
• 19:14
  business. And I know we're gonna get into
• 19:17
  it. The real reward is who you
• 19:18
  become, right? It's, it's the leadership, you
• 19:20
  know, skills and attributes that you develop and the character,
• 19:23
  character above all, that you develop in the pursuit of taking
• 19:28
  control of your business and optimizing your profit, right?
• 19:31
  That's the real reward And, and why?
• 19:33
  Well, you know, at some point we're going to die, right?
• 19:37
  And yeah, if you look at yeah, Marcus Aurelius and those guys,
• 19:41
  2004 thousand, how many thousand years ago they were talking
• 19:44
  about it. You know, it's just we have for
• 19:46
  a short time and then you're gone.
• 19:48
  You can't take your properties and and your money with you.
• 19:51
  You take your memories. Um, you could leave a legacy or
• 19:56
  people will remember you for the impact you had, the person you
• 19:59
  were. And, and even if you lose all
• 20:04
  your money and your wealth like that, which can happen, no one,
• 20:08
  no one can take your character away.
• 20:11
  And the things that you learn and when you internalize those
• 20:13
  like the, the, the, the freedom that you get from that is
• 20:17
  phenomenal. So I always maintain, I can't
• 20:19
  remember who said this, but that, yeah, you wanna enjoy
• 20:23
  life, right? Enjoy a rich life, get yourself
• 20:27
  and the money out of the way. So make enough money so money's
• 20:31
  not a problem. Because money is.
• 20:33
  It can be torturous. If you don't have it right, it
• 20:36
  can. Nothing messes with your head
• 20:37
  like cash flow problems, but most of us live in a
• 20:41
  self-imposed private prison because of the limiting beliefs
• 20:46
  and self-image that we have and then create stories around and
• 20:51
  have all these anchors, whether it's from upbringing or who
• 20:55
  knows what else. You know, I'm a bit of an
• 20:56
  armchair psychologist, but it's about cutting those three.
• 21:00
  Get out of your own way. Yeah.
• 21:02
  And make some money in in George Freedom.
• 21:06
  Wonderful. Yeah, thanks for unpacking that.
• 21:09
  Lots of, you know, gold Nuggets in there for sure on mindset
• 21:12
  and, and Oh yeah, just how much of it is your maybe limiting
• 21:18
  beliefs or the way that you view yourself essentially in these
• 21:22
  different roles or, or essentially you continue to do
• 21:26
  things the way you've always done or think this the way
• 21:28
  you've always thought. You're going to continue to get
• 21:31
  the same results and then be in the same place essentially that
• 21:33
  you are. So it's not an easy thing
• 21:36
  sometimes, especially when they're ingrained, like you
• 21:38
  mentioned from childhood and things like that.
• 21:39
  But, but that is some of the hard work that they need to have
• 21:42
  done sometimes is, you know, the internal work and, and realizing
• 21:46
  it, pinpointing it just to rewind to, to the bookkeeping
• 21:51
  and accounting, knowing your numbers and financials.
• 21:53
  You know, right on point there for sure.
• 21:55
  That's like first first call conversation.
• 21:59
  What do you know? Do you have access to your, to
• 22:01
  your books or books in order? Are they up to date?
• 22:03
  That kind of thing? You know, if you're, if you're
• 22:05
  out there and listening to this, do yourself a favor, talk to
• 22:09
  your bookkeeper, accountants, whoever you need to.
• 22:12
  You should definitely have access to your to your books
• 22:15
  anytime of day 24/7 and you should be able to run your your
• 22:18
  reports to know exactly where your financials are and they
• 22:21
  should make sense to you. You shouldn't have to call him,
• 22:24
  yeah. Yeah, because you, you can.
• 22:27
  You cannot run a successful business without understanding
• 22:30
  those things. It's just it all, most of the
• 22:34
  business decisions you're going to make stem from knowing where
• 22:36
  your numbers are at for sure. So you talked about margins, you
• 22:42
  got to make healthy margins getting to that, you know,
• 22:44
  elusive 1,000,000, you know, profit mark there.
• 22:49
  You also mentioned if you make $1,000,000, you're going to pay
• 22:53
  a lot of that in back into taxes.
• 22:55
  So how, how do, what do you suggest builders do with the
• 22:58
  profits that they make and and how do they they reach that that
• 23:02
  $1,000,000 builder mark? Hmm, great question.
• 23:06
  SO first of all, every, everything aside after this not
• 23:12
  financial advice, right, I'm just, but yeah, yeah, yeah,
• 23:15
  disclaimer. Yeah.
• 23:17
  But any, any of the the lawyers on the call, but straight on to
• 23:21
  profit first. You want to profit first man.
• 23:24
  So at day one conversation with our clients and, and by the way,
• 23:30
  I do, you know, we, we have one-on-one coaching and we do
• 23:33
  have communities and group coaching and I'll expand my
• 23:37
  reach through my my book. But I'm, I'm a big believer in
• 23:41
  in one-on-one interaction because of the mindset and
• 23:44
  leadership component while implementing best practice
• 23:47
  process. But they wanted numbers.
• 23:50
  We're going to get clear on the numbers, got to set up accurate
• 23:53
  financial controls and then cost tracking to move forward in line
• 23:58
  with the 251015. But the sorry, what was your
• 24:04
  question again? It was.
• 24:06
  Essentially, what to do with the profits of the?
• 24:09
  Business, yeah. So once we've got the financial
• 24:14
  controls cost tracking and and then we we set in the margins up
• 24:18
  so and then increasing the volume, so increasing the margin
• 24:21
  and the volume. So you sort of double dipping on
• 24:25
  the first thing on day one is, is a profit first conversation.
• 24:29
  So there's there's books written on profit first.
• 24:33
  Mike Mckillips, I think he is. I haven't even read the book.
• 24:38
  I just understand the concept. It's it's so simple.
• 24:40
  I'll explain it in under 60 seconds, right?
• 24:42
  And this is the most powerful thing, the most powerful thing
• 24:45
  I've learned in wealth creation, right?
• 24:47
  Like in my 20s, I could not save a dollar.
• 24:50
  I'm too impulsive, right? And there's a lot of people like
• 24:52
  that and a lot of people, you know, that our employees, they
• 24:55
  get an increase or a new job and they spend everything that they,
• 24:58
  they earn rather they just increase their, you know, they
• 25:00
  prove their lifestyle. So most people have income,
• 25:03
  whether it's a business or a job.
• 25:05
  And then they minus expenses. And then with what's left, if
• 25:10
  there's anything that take that and they save it, maybe a little
• 25:12
  bit of cash that buy some shares, some crypto Bitcoin,
• 25:17
  which I'd recommend, I'd recommend it.
• 25:19
  Not financial boss, but just hey, $50 a week, you know what I
• 25:22
  mean? And then leave it till 2033 to
• 25:25
  see what happens. And they'd real estate.
• 25:29
  And then, you know, you can stake your crypto so you can get
• 25:33
  some returns. You get interest on your cash, a
• 25:36
  little bit of interest. You can get dividends on your
• 25:38
  shares and you get rental income from your properties.
• 25:41
  And at some point, you know, he's generating passive income,
• 25:45
  make money while you sleep. And over time, that can
• 25:48
  eventually cover your living expenses.
• 25:50
  And that's when you break out of the rat race, as Robert Keepsake
• 25:53
  would say, become your chief financial independence, right?
• 25:56
  Which is great. The only problem is that doesn't
• 25:58
  work alright, So what does work is income minus profit equals
• 26:03
  expenses. So it's about direct debiting
• 26:07
  money out skimming and yeah, we have people like that, but I
• 26:10
  don't have much money now I'm just paying my bills if that and
• 26:13
  I could I don't care $20 a week. Just set up a direct debit into
• 26:16
  a cash account. In fact, if you can afford 150
• 26:19
  bucks, I'll go 50 into cash account, 50 into a micro invest
• 26:22
  in index fund, you know top 100 whatever companies and then 50
• 26:28
  into crypto. There's and there's apps where
• 26:30
  you can buy the $50 get split between Bitcoin, Athyrium and
• 26:34
  gold. OK.
• 26:35
  And then set and forget as direct debit is happening
• 26:40
  automated, put a note in your calendar six months from now and
• 26:44
  then don't look at them over the 69 until that date.
• 26:49
  And then have a look and see what interests you got
• 26:52
  dividends. Yeah, you, you got.
• 26:54
  And then what happened to the, the crypto on the golf.
• 26:56
  And then you're able to look back and go, Oh, well, yeah,
• 26:59
  yeah. Trump said this.
• 27:00
  And then that went up and that went down or this this war broke
• 27:03
  out or whatever. You know, you, that's how you
• 27:05
  going to learn. But you just automated dollar
• 27:07
  cost averaging, OK, not trying to play the market and the
• 27:11
  returns. You know, when you when you buy
• 27:13
  a little and the market goes up and you're buying, it goes down
• 27:15
  and you buy like they had, you essentially become like the
• 27:19
  bank. I think there's a 96% chance
• 27:21
  you're gonna get a positive return.
• 27:22
  I'm doing this for years now. And there's always, always make
• 27:25
  money. You just make you make money on
• 27:27
  it. It just, it's just the amount
• 27:29
  that varies. So that's my recommendation
• 27:31
  there. And then you increase those may
• 27:33
  eventually as when I work with my clients and as you work with
• 27:37
  yours, you helping them increase that in their profits.
• 27:39
  So they're stacking more and more cash eventually 2030% of
• 27:44
  the revenues getting stacked away into and it has to be in a
• 27:48
  separate country. You don't look at it as human
• 27:50
  beings, we can't see the money without our brains starting to
• 27:53
  spend it. So just heard it and you can
• 27:57
  gamify it as well. But eventually what happens is
• 28:01
  especially as you approach A7 figure club, the money that's
• 28:03
  left after you stacking cash is still substantial and your
• 28:08
  business is a money eating machine, right?
• 28:09
  It's just going to keep consuming.
• 28:11
  So if you're stacking it first and it's automated and you're
• 28:14
  not seeing it and look, a good way to start is 2% of each
• 28:18
  progress payment and then get it up, up, up.
• 28:22
  And then, um, so you're building buffers almost like your own
• 28:26
  overdraft, but that money starts self perpetuating.
• 28:29
  You know, I've had like 23 of these accounts at one point and
• 28:34
  and the confidence you get from that going back to mindset is
• 28:38
  like, you know that because it's not a matter of if it's went,
• 28:41
  something's gonna happen. Like you either a toxic clients
• 28:44
  going to slip through, someone's going to trust you.
• 28:46
  You're going to have some unforeseen things, some Black
• 28:49
  Swan event. And you know personally, it's
• 28:52
  definitely going to happen. Someone's going to get sick or
• 28:55
  worse. And I've had it happen.
• 28:57
  It happened to a family member like a sibling and then you know
• 29:01
  that one dire straits, but I was able to throw, you know, 30 or
• 29:04
  40,000 at them without breaking stride or blinking or decide
• 29:09
  impacting me, which which made me feel good as well, you know
• 29:13
  so so yeah, profit first massive so and then put channel it into
• 29:20
  all those areas. But as you get to the seven feet
• 29:24
  type, to answer your question, real estate is the thing.
• 29:28
  So our goal with our clients, again, the outcome objective is,
• 29:34
  is optimization with yeah, profit, cash flow, workflow,
• 29:37
  those are the three metrics that we move the needle on the most
• 29:42
  and, and the principle that we follow otherwise 8020, which I
• 29:45
  know you, you familiar with as well, Prado principle, 20% of
• 29:48
  the things you do give you 80% of your results, right.
• 29:51
  So we know where those 20% are, get those better down.
• 29:54
  Most people don't realize there's a further extrapolation
• 29:57
  where there's a 20% of the 20%, which gives you a 464.
• 30:01
  That is 4% of the things you do give you 64% of your results.
• 30:04
  And those are those those critical distinctions that
• 30:06
  hinges that really, you know, it's charging for quotes, value
• 30:10
  management, eliminating the tender process, all that sort of
• 30:13
  thing, which we won't get into now.
• 30:15
  But yeah, so profit, We've spoken about cash flow.
• 30:20
  You've gotta have money. Money's gotta come in before it
• 30:23
  goes out. You cannot finance your jobs.
• 30:25
  And that's another issue where, you know, sometimes the banks
• 30:28
  don't like it and they push back.
• 30:30
  But having a payment schedule that's legal, but cash flow
• 30:33
  positive takes that box. But now what about the workflow?
• 30:38
  How do you guarantee and and by the way, like in business and
• 30:43
  and you know this as well, like risk mitigation is key.
• 30:46
  So all of this like marketing risk mitigation over we overbook
• 30:49
  the flight. Like the airlines get more in
• 30:50
  the pipeline than you could service, pick and choose,
• 30:53
  prioritize, you know, put people in a holding pattern, but you
• 30:57
  want that sushi train of work. But even if you do that
• 31:01
  exceptionally well, there will come a time where at the 11th
• 31:05
  hour someone signed a contract job starting in two weeks.
• 31:09
  They get sick, they lose their job, they go through a divorce
• 31:13
  or worse, right. So that's happened to everyone.
• 31:15
  So what are you doing in that situation?
• 31:17
  Well, if you land banking, if you've got some properties, you
• 31:19
  know, maybe you've got a fixer upper or you've got a, you know,
• 31:22
  you're going to build a specky, you're gonna just, you've got a
• 31:25
  set of plans. You just thought one of your own
• 31:27
  projects and that keeps your crew nice and busy and
• 31:32
  everything's fine. And I highly recommend that you
• 31:35
  do it in a, a controlled way. Don't overextend yourself.
• 31:40
  And This is why profit first is great because you're building up
• 31:42
  buffers. And then at some point, like if
• 31:45
  you're starting with some caching crypto and some, some
• 31:50
  shares, there might be an opportunity present itself where
• 31:54
  you could buy some real estate because the market just is ripe
• 31:57
  and ready. Then yeah, you might NT out
• 32:00
  those accounts to purchase something, but because they're
• 32:03
  all on direct debit, they just replenish and then while you
• 32:07
  work on the on the property. But property is, is the, is the
• 32:11
  main area and we've run, you know, full training workshops to
• 32:15
  make sure that they struck because you've got to structure
• 32:17
  things in a way through creative accounting to make sure that
• 32:22
  you, you, you still wanna pay tax for service stability, but
• 32:27
  you know, be able to offset the, the cost to build on any of
• 32:31
  those properties through the business for the, there's a,
• 32:34
  there's a way to do that. But that is the best business
• 32:37
  model I've seen is a consistent flow of quality, high margin
• 32:40
  client work with a developer normal, if you like a real
• 32:44
  estate arm. And then some of our guys just
• 32:47
  to wrap this one up, when they come to us, they go, OK, 7
• 32:51
  figure club that's have a crack and then they're building their
• 32:56
  operations manual for the client work.
• 32:58
  And then they'll put a young 32 year old guy in there once it's
• 33:02
  completed to run the business doing through profit share or
• 33:05
  giving them a 25% share in the business, which you could buy
• 33:09
  through salary sacrifice or whatever else.
• 33:11
  We're putting some money in. And then they just focus on the
• 33:14
  development on and and tinker with that and and do that into
• 33:18
  their twilight years as opposed to retiring.
• 33:21
  And she's just like, I must be torture.
• 33:23
  It's torturous. I know for most entrepreneurs
• 33:25
  like just an outdated concept, right?
• 33:28
  Yeah, how wonderful. I love how you, you laid that
• 33:31
  all out and the profit versus system.
• 33:34
  Definitely the, the, the beauty of it is that it is so simple
• 33:37
  and but yet so extremely effective.
• 33:40
  And essentially you're going to have a couple of different bank
• 33:43
  accounts and you're making sure that as you mentioned, any, any
• 33:46
  money that comes into the business, there's a percentage
• 33:49
  that's going directly into a profit account somewhere,
• 33:51
  ideally somewhere where you can't touch it or, or see it too
• 33:54
  well. And then that profit is being
• 33:56
  rolled into some sort of investments, whether that's, you
• 34:01
  know, crypto or, or stocks and, and, and, and real estate and
• 34:06
  things like that. And you get that, that wonderful
• 34:09
  compound interest and compound, you know, wealth working
• 34:16
  definitely. I think it was what's the
• 34:19
  investor Warren Buffett who said if you, if you can't make money
• 34:22
  while you sleep, you, you'll never become wealthy.
• 34:24
  And you know, very, very true in that regard.
• 34:30
  I mean these are strategies example.
• 34:32
  Yeah, I made this mistake when I was early on too, was like, I'll
• 34:35
  just grow my business, right. Like I'll go from a million to
• 34:38
  to 5 million or 10 million and then I'll be I'll be rich and
• 34:41
  wealthy. But it really starts like you
• 34:43
  need to get your money and your mindset right when you're
• 34:45
  smaller in order to, to reach those higher levels without kind
• 34:49
  of crashing and burning, which which can definitely happen when
• 34:53
  your, your business outgrows you to, to some extent to your
• 34:56
  leadership abilities. You've mentioned like best
• 35:00
  practices or best processes a couple of times.
• 35:03
  What do you see? Like besides what you've
• 35:05
  mentioned already, what are some kind of key systems or processes
• 35:09
  or or ideas that that contractor should be implementing in their
• 35:15
  business? So that's it's efficient and
• 35:17
  they're not having to do everything themselves.
• 35:20
  Absolutely. Yeah, there's we've we've got
• 35:23
  time to go through all of them. He's actually a chapter in my
• 35:26
  book in my in $1,000,000 bill, the 2.0 that goes through the
• 35:31
  20% of strategies that give you 80% of your results and it is
• 35:35
  check the chapter 480 twenty systems focus.
• 35:39
  So it's all in there, but I'll I'll touch on them in a SEC.
• 35:43
  I'll mention obviously the numbers come first.
• 35:46
  They're absolutely crucial. Just with the profit first, it's
• 35:50
  important for guys to know that they need to have provisional
• 35:53
  tax accounts set up if they don't already.
• 35:55
  So they should be taking a percentage of every progress
• 35:58
  payment and putting aside hopefully everyone's going,
• 36:01
  yeah, of course we do that, but some people need to do that
• 36:05
  first. So all the profit first that we
• 36:07
  were talking about is over and above a provisional tax account,
• 36:10
  which is the form of profit first thing as well and then
• 36:14
  important to invest outside the business.
• 36:16
  So in terms of best practice processes, so again, yeah, it's
• 36:22
  at 20% and then within that 20% because you know most guys that
• 36:27
  come to us, they struggling with time times a big thing often on
• 36:33
  that proverbial hamster world in 60 to 80 hours a week.
• 36:36
  So we need to, you know, put some things in place and
• 36:39
  processes in place quickly and well to free up time and money.
• 36:45
  So the biggest inefficiency in this industry is the pre
• 36:48
  construction phase or sales sales process.
• 36:52
  You know, we've got guys that the sales process and anyone
• 36:57
  listening to this, like ask yourself what is your process?
• 36:59
  Do you have a consistent process that you take people through
• 37:03
  when they when they contact you? So I'm assuming people e-mail or
• 37:06
  phone your business and inquire about doing whatever it is.
• 37:12
  Hopefully you're not a me too builder, no job, too big, too
• 37:14
  small, maybe. Hopefully you do have some sort
• 37:17
  of specialty. And, and, and then, yeah, the
• 37:22
  question is, what is your process?
• 37:23
  Do you, you know, ask them some questions, booking up a time to
• 37:28
  go meet with them? Because we've had guys do that.
• 37:31
  And then the question with that is, you know, what percentage of
• 37:35
  the people you meet with when you go to site, do you go, Oh,
• 37:38
  my God, I'm never going to work with these guys.
• 37:40
  But you spend the time anyway out of politeness because where
• 37:44
  you just, you're gonna leave. And maybe it's a lovely old lady
• 37:47
  who, you know, you just, you spend the 45 minutes or an hour
• 37:50
  and you justify that time by saying, well, at least I didn't
• 37:53
  damage my brand. I don't want to be rude to
• 37:55
  people. And then they say, well, that
• 37:57
  guy, you know, don't work with them sort of thing, but you
• 38:00
  know, much better process. And we gotta, we gotta a well
• 38:03
  defined 6 step sales process where Step 1 is a, you know,
• 38:07
  questionnaire. It's a 2 minute conversation.
• 38:09
  Yeah, thank you for for making contact.
• 38:11
  You know, usually get someone in the office to do this.
• 38:13
  In order for us to help you best, we need as much
• 38:15
  information as possible. You need to understand Skype.
• 38:17
  It works. What are they want to build, how
• 38:18
  they built before, what's their budget, all that sort of thing.
• 38:21
  So we're going to send you some questions.
• 38:23
  Please answer them as best you can.
• 38:24
  And once you've done that, we will, we will give give us as
• 38:28
  much as you can. We'll give it to our specialist
• 38:30
  builder who will Sorbitol and then he will call you to have a
• 38:34
  meaningful conversation about your project.
• 38:37
  Now that does two things like someone who's a quality prospect
• 38:40
  because the space said once you stop marketing, there's gonna be
• 38:43
  a percentage of tyre kickers, right?
• 38:44
  People out of price checking or deer thieves, whatever else.
• 38:48
  That that first step right there, that's a critical
• 38:50
  distinction, you know, So let's look at someone who is a quality
• 38:54
  prospect. Somebody genuinely, you know,
• 38:56
  needs some help with the renovation that maybe they're
• 38:58
  not sure. Should we knock down, rebuild or
• 39:01
  renovate? What's it gonna cost?
• 39:03
  Sure. Yeah.
• 39:03
  All these thoughts and ideas and they want to bounce it off a
• 39:06
  specialist who can give them some real answers.
• 39:09
  Yeah. You know, what are they gonna
• 39:10
  think of that, that that first interaction and the question
• 39:13
  have been saying that. Well, so these guys are these
• 39:15
  guys. These guys sat down and thought
• 39:17
  of the best questions to ask me, to bet, to better help me.
• 39:22
  Alright. Plus, if I are we talking now on
• 39:25
  a Friday, it's nearly lunchtime. Well, I am, yeah.
• 39:28
  Are they busy professionals? They probably don't have 45
• 39:31
  minutes to go through a questionnaire on the phone with
• 39:33
  you right there and then 9:00 tonight when their kids are in
• 39:36
  bed, they can go through with that, can shoot everything
• 39:39
  across. Plus then the builder so so
• 39:41
  their first impression and you only have one chance at a first
• 39:44
  impression is that you professional, organised, process
• 39:47
  driven magic, OK and it's quick and easy.
• 39:51
  So it's a it's a law since to turn the taps on with the
• 39:54
  marketing as well. On the flip side, a tyre kicker
• 39:57
  coming at you. They've already got their
• 39:58
  builder, their brother-in-law's building the house.
• 40:00
  They just want a price check. Those are people that like, hey,
• 40:02
  I'm around the corner just come over this afternoon by the way,
• 40:05
  I'm all cash. You know they're going to say
• 40:07
  things to you to get you there and then you know after you've
• 40:10
  met with them, you don't hear from them again and they ghost
• 40:12
  you Really trying so. When you send them them a
• 40:15
  questionnaire, you'll, you'll sense the agitation.
• 40:18
  So that process is repulsive to them.
• 40:21
  But again, the best possible first impression to to quality
• 40:24
  prospect. And then the next step is not to
• 40:25
  go out and see them. It's a audition audit.
• 40:28
  We call it an audition call like this where you know, you gain,
• 40:33
  you spend and try and cover as much as you would on site on a
• 40:37
  zoom FaceTime call, even on the phone, just getting a, a real
• 40:42
  good understanding of the scope of works, what they want to do,
• 40:46
  when they want to do it, how much money they have.
• 40:47
  And then as well, because remember, there's the job type
• 40:51
  that there's also the client designer.
• 40:53
  So yeah. And if that, if that goes well
• 40:56
  and if you feel it's worthwhile, then you book a software and
• 40:58
  then in the lead up to the sofas that you send them information.
• 41:03
  And this is critical. There's, there's two bits that
• 41:05
  we send. There's the frequently asked
• 41:07
  questions document that explains the importance of getting the
• 41:11
  numbers right. OK, so there's a lot of price
• 41:14
  shock at the moment off the back of the pandemic.
• 41:17
  There's always been price shock, but it's it's typically worse
• 41:20
  now. So demonstrating that you have a
• 41:22
  process for accuracy, you know, there's a difference between a,
• 41:26
  you know, an estimate and a quote and just unpacking the,
• 41:30
  the, the complexity. We've got a 12 page document
• 41:32
  there. And then second to that is a
• 41:34
  capability statement or a hard copy brochure that gets sent in
• 41:37
  the mail that communicates, you know, your specialty and point
• 41:39
  of difference. And then an agenda the day
• 41:42
  before the site visit, just an e-mail reconfirming 2:00
• 41:45
  tomorrow. By the way, here's the agenda.
• 41:47
  Here's we're going to cover off turn up the text message an hour
• 41:50
  before the appointment for yeah, everyone's had a no show before.
• 41:55
  So make sure that doesn't happen and then turn up on time
• 41:58
  presentable with a run sheet and agenda that you lead them
• 42:02
  through and having a fit for purpose prelim agreement
• 42:06
  solution that best serves their needs based on the questionnaire
• 42:11
  and the conversation. And then that gets presented and
• 42:13
  they either going to convert on that or at that point they get
• 42:16
  ejected from the process. So I don't know if anyone
• 42:20
  listening, just watch that up against what you do.
• 42:22
  And if you have that consistent process, you come across really
• 42:25
  well. You convert the best clients so
• 42:27
  that there is an exit. That's a that's a process,
• 42:29
  that's a system. So systems isn't just your job
• 42:32
  scheduling tool, your financial controls.
• 42:34
  It's, it's the you're talking about go high level, it's your
• 42:38
  CRM system, it's your marketing lead tracking process to better
• 42:44
  understand where you know your best clients coming from and
• 42:48
  what channels you should invest your marketing spending, that
• 42:52
  sort of thing. But that that's one example that
• 42:55
  is what we would call or consider a game changer that
• 42:58
  sales process. Wonderful.
• 43:01
  Thanks for, yeah, clarifying that whole process and, and what
• 43:05
  you've seen work effectively. That is, as you've mentioned,
• 43:09
  kind of one of the key links in the business is you've generated
• 43:14
  a lead, no matter where it comes from, it should feel just like a
• 43:19
  walk in the park, if you will, or a conveyor belt where they
• 43:22
  always know when you're leading the way.
• 43:23
  And it just feels like a natural next step, next step.
• 43:26
  And you're always telling them, you know, what's the next thing
• 43:28
  to do? Fill out the form And then
• 43:30
  what's the next thing after that?
• 43:31
  We will, you know, review and contact you.
• 43:33
  And they, they always feel like they're never left hanging and
• 43:37
  it's just a natural process. And it's a normal thing that you
• 43:40
  do every day with it, with every client.
• 43:42
  And, and, and that's how you can really lead someone through that
• 43:47
  whole lead, like that initial lead, but then into some sort of
• 43:51
  preconstruction prelim agreement.
• 43:53
  And by the time you've demonstrated how professional
• 43:56
  you are and you've worked with them and they're, they're clear
• 44:00
  on the budget and everything, the, the construction contract
• 44:03
  then becomes a much easier hurdle to, to pass with that
• 44:08
  client because they've already been working with you and, and
• 44:10
  you've demonstrated your, your professionalism with them at
• 44:13
  that point. But you, you just hit on
• 44:16
  something there. There's absolutely pivotal
• 44:19
  because and yes, it's a it's an education based sales process,
• 44:23
  educating them on how you can most help them your solution
• 44:28
  provider. And I'm trying to sell, but you
• 44:30
  said lead them through. So you said that quite casually
• 44:34
  as if everyone does it. From my experience, most guys
• 44:37
  don't lead, you know, anyone through a process.
• 44:41
  And if I had to sum up sales again, dirty work for a lot of
• 44:45
  people in a in a word, leadership.
• 44:48
  So most builders, not most are percentage are sort of people
• 44:53
  pleasing, you know, maybe that you know, it's in their defence,
• 44:56
  in the builders of the defence, like they have clients with
• 44:59
  1,000,000 bucks, 2,000,000 bucks, like, you know, they can
• 45:01
  hand their money to to any of their competitors.
• 45:04
  And so the builder really wants to put their best foot forward
• 45:07
  and try and please the client. But what that does is, you know,
• 45:12
  the clients like feeling like they need to leave.
• 45:14
  What's going to happen Really, the builder needs to just see
• 45:17
  themselves as solution product, add as much value first
• 45:20
  principles of wealth creation is a value adding.
• 45:23
  So they need to again, be a specialist and then lead that
• 45:27
  client through those steps. And if the client tries to push
• 45:29
  back or if there's any challenges around that, they
• 45:32
  don't want to acquiesce to your process.
• 45:35
  And this really is it's about running business on your terms
• 45:39
  and people coming through your process, not theirs.
• 45:41
  Because people have a process for how they select a builder.
• 45:45
  They'll jump online, look at 10, speak to five, meet with three,
• 45:49
  get 3 quotes, pick one. Your process needs to be better
• 45:52
  than that. And you need to unashamedly
• 45:57
  follow your process as a builder, knowing that it's
• 46:01
  engineered to give your client the best possible result and
• 46:04
  outcome. So if they don't want to follow
• 46:07
  it, but like if you're a specialist cardiologist
• 46:09
  prescribing a solution for your client because you care and and
• 46:13
  they go, look, no, that's not pushing back, well, then they're
• 46:16
  not going to work with you, right?
• 46:17
  So, yeah, but it comes back to having these these processes in
• 46:21
  place. So leadership is crucial, I
• 46:24
  said, anyone listening, all you leading people through, OK, and
• 46:27
  if you're not, you gotta fix that.
• 46:29
  But while we're talking or what now that we've touched on
• 46:32
  leadership, what I've found just recently, just yesterday, I had
• 46:36
  two builders I spoke to their wives were on the call right And
• 46:40
  the woman were leading the conversation around business
• 46:45
  development. And I'm seeing more and more of
• 46:47
  that. I don't know if you are Derek,
• 46:48
  but you know, if any woman or listening man like we we ran our
• 46:52
  first woman in construction event.
• 46:54
  And when I say woman construction, this woman that
• 46:56
  built, but there's also a woman who are wives of builders and
• 46:59
  there are women who work in a building company in in an admin
• 47:02
  role or whatever else. Some of them are on site, but
• 47:05
  more and more of that happening. But woman read the play
• 47:09
  differently that bring a different skill set.
• 47:11
  It's mainly around empathy, the ability to communicate.
• 47:15
  They're more nurturing. We very and this is I'm just
• 47:18
  stereotyping. Our guys tend to be more
• 47:20
  one-dimensional, get things done.
• 47:22
  But there's a lot of women out there, especially when we have
• 47:25
  this event where they can see what their husbands need to do,
• 47:29
  but they're too stubborn and pigheaded the husbands to change
• 47:33
  and to seek help or get advice. And then again, the family
• 47:37
  suffering financially where I don't have to, they can just
• 47:39
  make some changes. So if there's any woman out
• 47:42
  there that hear this, like you need to rise up, you need to
• 47:46
  step up, You don't need to lead the business, but maybe you need
• 47:48
  to lead the business development and you can do it.
• 47:51
  You can put some challenges in place with sales prices, so
• 47:54
  marketing the financials and then let your husband lead the
• 47:58
  team on site if that's what he wants to do.
• 48:01
  But you can play a role in, you know, taking the business of
• 48:05
  positive transformation. Yeah, yeah, definitely.
• 48:08
  I've worked with some, you know, husband, wife teams, partners
• 48:11
  and it makes the business a lot easier.
• 48:14
  They both have their specialties and dynamics and, and they're
• 48:17
  able to kind of each have their, their role and their business is
• 48:20
  much stronger because of it. Definitely.
• 48:24
  Can you walk us through like a case study or like a client that
• 48:28
  you've worked with where they started some of the challenges
• 48:31
  they're having, you know why they, they were seeking help and
• 48:35
  the road map that you guys put into place and, and where they,
• 48:39
  you know what the results were for them.
• 48:41
  Absolutely. I'll, I'll give you a couple.
• 48:43
  So just so we can sort of cater for more people.
• 48:46
  So there's, there's a few sort of husband and wife team
• 48:51
  examples where there's one couple in particular, the wife
• 48:56
  sort of corporate X corporation, very articulate, well spoken,
• 49:00
  the gas very blue collar, more sort of builder tight.
• 49:04
  And she sort of run the office and was able to lead with the
• 49:09
  business development and implement changes from a
• 49:12
  marketing, sales perspective. And then he was sort of managing
• 49:15
  the the gas on site. He was able to put supervisors
• 49:19
  on and step back into more of a project management role.
• 49:22
  So there's more sort of overseeing them, but together
• 49:25
  they were able to increase the volume of look in the margins
• 49:27
  and they get the marketing working so that they had a
• 49:30
  consistent flow of Lisa's great husband and wife team with the
• 49:34
  two them both, you know, recognizing their unique
• 49:38
  abilities and then merging them. But she was leading the business
• 49:41
  development side. And then to give you some other
• 49:44
  examples where I had a guy sort of in his mid to late 50s and he
• 49:49
  almost got wiped out just with a real estate syndicate deal where
• 49:55
  the market turned suddenly and, you know, went bad.
• 49:59
  And he was looking at, you know, how much runway had left in his
• 50:02
  career. And he's like, he was almost
• 50:03
  resigned to the fact that, you know, maybe it's too late.
• 50:07
  But yeah, there's this $1,000,000 club or 7 figure club
• 50:12
  is achievable within three years at a walk, right?
• 50:14
  If you if you're going to implement things properly and in
• 50:17
  the right sequence with best practice and guidance.
• 50:20
  And he was able to do that. It took him probably 5 or 6
• 50:22
  years, but he's just turned 60 now.
• 50:26
  He's in the seven figure club. He's got two of his supervisors
• 50:30
  who are buying the business off him.
• 50:32
  So he's making a chunk of change there.
• 50:35
  And obviously you would imagine it's worthy of that because he's
• 50:39
  that's that 7 figure or $1,000,000 net profit results,
• 50:43
  not a one off thing. You don't wanna have a year.
• 50:44
  We make 1,000,000 bucks. Oh my God, great.
• 50:46
  Next year it all slips back down and it needs to be sustainable.
• 50:49
  You want to replicate that result for the next 10 years.
• 50:51
  So those structures have been put in place plus has got to
• 50:54
  develop an arm is able to purchase real estate and he is,
• 50:58
  he's a great example of older guys.
• 51:00
  Any older guys there? No, it's not too late.
• 51:03
  Even if you're 60 years old, you know, you can do a lot between
• 51:06
  now and you when you're 65 and 60 is the new 50.
• 51:09
  So here's a great example. And he's like a, he's like a, as
• 51:12
  you can imagine, like a raving fan.
• 51:14
  He's just a very grateful and, and, and it's not, it's, I'll
• 51:18
  just help guard him as you do. But they still have to do the
• 51:21
  work and he has to get through all the mindset stuff.
• 51:24
  So they get here, gets all the credit.
• 51:26
  And then there's a young guy who came to me.
• 51:28
  He's doing about half a mil turnover.
• 51:30
  So you know, I said between 2:00 and 10:00, this guys doing half
• 51:32
  a mil women apprentice. And then he was able to get
• 51:37
  himself up quite quickly had he was really good with building a
• 51:41
  team. He's strong leader, just natural
• 51:43
  leadership ability, even though he was in his late 20s, but the
• 51:47
  time he was 32 in the seven figure club.
• 51:49
  But the way that he got there quickly was through his office
• 51:53
  app and lady so employed this woman named Sam and she was just
• 51:58
  phenomenal. So when I work with my builders
• 52:01
  as as I'm sure when you work with yours, there's homework
• 52:04
  that gets set. So we set, we break it down and
• 52:07
  and drip feed the right information in the right
• 52:09
  sequence and then share examples and templates to help them
• 52:13
  easily one understand and to use them.
• 52:15
  And then we work on like a 12 week plan and then reflect
• 52:19
  Andrew over 12 weeks later, the track for the next 1.
• 52:21
  So there's four of those in a calendar year.
• 52:24
  And Sam was implementing these things.
• 52:26
  So she was building the operations manual, spending
• 52:29
  20-30 hours a week, sometimes with implementation.
• 52:33
  So that just accelerated results.
• 52:34
  And then he was building Dream Team as well.
• 52:38
  And then, yeah, I can join the process having a lot of fun.
• 52:41
  So there's, there's some, yeah, husband and wife team, older guy
• 52:45
  on without his wife involved and then a younger girl also about
• 52:48
  his wife, but with a with female leadership in the office just as
• 52:52
  an employee. It's great to see those, those
• 52:56
  successes and really, yeah, shows what what can be
• 53:00
  accomplished if you put your mind to it, follow, you know, a
• 53:03
  proven track and can stick with it And and look at the long view
• 53:07
  of, you know, three to five years as you grow older.
• 53:10
  It's it's not, doesn't seem, you know, as as long when you're
• 53:13
  starting out, it's like seems like a long time, but but
• 53:16
  definitely very much achievable with, with the right, so right
• 53:22
  mindsets and and frameworks in place and things like that.
• 53:24
  So fantastic to see that. So, well, we're gonna put a link
• 53:29
  to the Builders Coach website in the description of this video or
• 53:33
  audio. What's the best way for people
• 53:36
  to reach out to you, Kirk and Kurt and learn more about the
• 53:39
  Builders Coach and the work that you do?
• 53:41
  Builderscoach.com So builder with an S builderscoach.com Just
• 53:46
  go to the contact us and get in touch with me that way.
• 53:50
  If anyone's wondering, yeah. How to get started on the
• 53:54
  business development journey, Highly recommend.
• 53:57
  Grab a copy of this. I put my heart and soul into it.
• 53:59
  Took me two years, but everything's in there.
• 54:01
  There's a lot of resources. And I'll just finish up by
• 54:04
  saying that you don't need to understand how to do these
• 54:09
  things right. Like the, the, the, the most
• 54:13
  powerful thing you can do is seek out the right advice.
• 54:16
  There's a great book called Who, Not How by Dan Sullivan.
• 54:20
  It's not, it's not about, you know, how do I get this thing
• 54:23
  done? There may be guys, maybe older
• 54:26
  guys. Yeah, They they're not involved
• 54:27
  with Russian media, Instagram or house.
• 54:30
  Whatever it is, you don't need to know how to do it.
• 54:32
  You need to know who already does it exceptionally well, who
• 54:37
  could help set it up, and you could outsource it to them.
• 54:41
  That's how we get significant results quickly.
• 54:44
  Yeah, it's really about seeking out.
• 54:45
  There are people, and that's another whole conversation
• 54:48
  itself. Yeah, definitely great advice.
• 54:53
  As you mentioned with some of your success stories there,
• 54:56
  there's always a team involved and having that leadership
• 55:00
  ability to to find the right people, get them all, you know,
• 55:02
  pointing in the right direction and and really allow them the
• 55:05
  space to excel is is a big factor as well to to success.
• 55:10
  So thanks so much for coming on here court, sharing your wisdom
• 55:13
  and helping create some more, you know, $1,000,000 builders
• 55:17
  out there. So appreciate you coming on
• 55:19
  today. Welcome.
• 55:21
  Thanks, Derek. Thanks for having me.
• 55:22
  Appreciate it.