Latest / Contractor Business Builder Podcast / 4 Steps to Turn Your Contracting Business Into a Well-Oiled Machine

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4 Steps to Turn Your Contracting Business Into a Well-Oiled Machine · Contractor Business Builder Podcast

• 0:00
  You never feel like your construction business would just
• 0:02
  fall apart if you weren't there just one day.
• 0:05
  You've ever had this happen to you?
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  Take a couple days off and everything's a mess.
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  This system is for you. This is the quick, simple 4
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  steps to getting finally organized and help your
• 0:15
  construction company become a well oiled machine.
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  This is the easiest step by step process that I've found to
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  create organization throughout your company.
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  So First off, how's your energy? Hope you're feeling well and
• 0:26
  excited to learn this amazing system.
• 0:29
  It's called maps. There's four steps.
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  As I mentioned, we're getting to you in a moment.
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  So my big promise to you is you're gonna get a
• 0:34
  straightforward method to systemize and organize your
• 0:37
  construction company. Why am I sharing this with you
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  today? I have 20 years of contracting
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  experience, systemized dozens, probably over 100 general
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  contracting companies by this time.
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  And we are really our company rappers, all creators, all about
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  leading a movement towards systems, leadership and
• 0:53
  generational wealth for contractors who have more than
• 0:56
  just staying busy. Just staying busy and making a
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  little bit of money is not what it's all about.
• 1:01
  So building a business, getting organized and creating wealth
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  that's gonna outlast you and and gonna give you that beautiful
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  life that you're looking for. So I want you just to start with
• 1:10
  the end of mind. Imagine waking up stress free
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  jobs, earning smooth, your team knows what to do and your phones
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  quiet. You're leading an organized
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  business and you finally have the time, money and freedom you
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  got into this for in the 1st place.
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  So this is where we're going and this is what this this system
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  that I'm going to help you go by step by step is going to enable
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  for you in your business. If you've ever tried to build
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  systems or that your, your business organized and it just
• 1:34
  hasn't clicked or hasn't hasn't worked out, you're probably
• 1:38
  missing one of these steps or not approaching it from the
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  right direction. So I see this all the time.
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  And from the first step you're going to realize why this is not
• 1:48
  necessary. So the silent struggle, I called
• 1:51
  the contractor struggle stressed culture.
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  You know, you're stressed, your team is stressed.
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  Maybe money's tight. Projects are, you know, running
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  over late projects, you're constantly firefighting, clients
• 2:01
  are frustrated, confusion on the job site, who's doing what?
• 2:05
  Why don't people know what they're doing?
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  Why don't we keep after fixing other people's, you know, stuff
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  that comes up, you have a high turnover of employees and, and
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  you just, you get to a point where you get burnt out.
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  So I'm sure you've had at least a number of these, if not all of
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  these happened to you at some point and maybe you're there
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  right now. So you're in the right place.
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  We are going to solve and fix all of this.
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  So this is an overview of the maps process that I'm sharing
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  with you. The first one is maps.
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  We're going to map out what does the business look like?
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  What is the landscape aligned? So get your team in alignment
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  before you start plugging and playing a bunch of systems and
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  new processes. You gotta make sure everyone on
• 2:40
  the same page prioritize so you try to do everything at once.
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  It's going to be an effective, it's going to take forever and
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  it's going to be a, you know, hot pot Steven shit and mess at
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  the end of the day and then systemize.
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  So after all those other like pre construction to building
• 2:54
  your business. Now we build systems because we
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  know everything is set up and where we're going.
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  So there's two components for mapping your business.
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  We want to know what do things look like?
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  Where do we stand? So the first one is going to be
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  an organization chart. And you may tell yourself, you
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  know, I've only got a couple of people in business.
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  Why do I need an organization chart?
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  I'm, I'm the boss. I've got some workers, maybe you
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  know, site manager or project manager, whatever.
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  We don't need an org chart. The org chart is to give you a
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  representation of the complete roles of your business as well
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  as to know into the future, how are you going to grow or get
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  organized? Because if you're planning your
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  business just stay the same size forever and ever.
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  You still need an org chart. But essentially every business,
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  including yours, you're going to want to grow.
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  You're going to want to bring people in place so that you can
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  step out of the day today, so you can level yourself up as a
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  leadership, as a leader. The work charge is going to show
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  you leadership gaps. So as working with a client
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  recently who we built out their work chart and became very clear
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  that there was no real leadership in the administration
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  team and the office team with inside their company.
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  And just from that, like realizing that we could then
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  assign someone and give accountability to someone else
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  from a different department that was able to oversee the admin
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  team, I'll provide direction, overall leadership, and just,
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  you know, organize the company that much better.
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  You'll find that in team gaps as well.
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  And then opportunity opportunities will come up
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  because you'll be able to see what the organization looks
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  like. I'll be showing you an example
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  of an org chart just a bit. You know exactly what this looks
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  like. The second part to mapping your
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  business is you need to document the roles, responsibilities, and
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  tasks. All of these steps that are
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  going to be showing you until like the final systemized stage.
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  This is really not about getting super detailed and stuck in the
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  minutia. This is getting the big picture
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  in place so you know where to focus and where to get started.
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  So 4 roles. We don't need this huge
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  description. We just need to know what is a
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  project manager responsibilities, making sure no
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  budget clients are happy, schedules are on on pace and
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  things are done at a certain quality, right?
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  You don't need to like a huge document, just the basics of
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  like what are responsible for and then what tasks they do on a
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  daily slash weekly basis. And you're going to want your
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  people to do this documentation for you.
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  If you're doing a job yourself as the owner, then you will, you
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  know, fill out this roles, responsibilities task, but for
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  like a project manager, it's gone out.
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  Office admin, even you know, your workers on site,
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  potentially give them a document, tell them, just put
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  this in. It doesn't have to be anything
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  special. Not worried about grammar or her
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  completeness. You just want to get whatever
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  information you have onto a paper page document somewhere so
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  that it can be utilized later. So this is an example of a
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  construction company org chart. You're going to be at the top
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  CEO, president, head honcho, ruler of the universe, whatever
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  you want to call yourself. And then you're gonna have your
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  VP vice presidents or directors of, you know, your different
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  functions of the business. And if you're like, I don't have
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  any managers right now or I've just has a project manager, you
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  fill all those other gaps. So if you don't have a vice
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  president of administration or a leader there, essentially that's
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  going to be your role. Same with sales and marketing.
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  So when you're starting a company, you're going to fill a
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  lot of this chart and your job is to build out these roles so
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  you can then delegate, like just put a system in place and
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  delegate it to someone else so that you can then step out of
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  this role. And the idea is you'll slowly
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  work your way up, you know, this, this chain, if you will,
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  to where you're, you're more at the top in the management and,
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  you know, vice president, CEO roles and doing more of that on
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  a daily, weekly basis than taking care of the, the lower,
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  you know, runs of the ladder here, so to say.
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  So that's what a, you know, org chart looks like, and that's how
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  you would use it. So now you've got the train map,
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  you've got, you know, you know what the organization looks like
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  and you've got, there's a basic kind of roles description of all
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  the different roles of the company.
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  Now you're gonna align your people and your operation.
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  So typically you're gonna meet with anybody that's filled out
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  one of those papers. Or maybe if you've got a couple
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  people on a team, like you've got, you know, site manager and
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  a project manager, you get them together with yourself and
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  you're gonna ask them questions. You know what's confusing,
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  what's frustrating about the work that you're doing?
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  What are the issues? Is there overlapping tasks?
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  Maybe I've seen this before. Like I, I should say I've seen
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  this before. I've done this before, you know,
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  as a project manager, you know, going to site, it's like, oh, we
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  need to stand this wall or we need to get this framed out.
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  We've got no one. And you got your project manager
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  like swinging a hammer or your, you know, your site manager
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  doing something that's like cleaning up at the at the end of
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  the day, it happens every now and then if you don't have a lot
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  of people, I understand, but you want to identify where those
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  overlaps because you're paying someone to do a certain job.
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  So if you're paying project manager wages, they shouldn't be
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  swinging a hammer. They should be managing projects
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  or finding people. I can swing hammers and do it
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  better or organizing the people or whatever it may be, right?
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  So that's just an example, but you're going to find where you
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  know where there are things that are overlapping as far as task,
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  who's accountable, who's responsible.
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  So most people kind of see this as the same thing.
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  You probably know the difference, but you've got to
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  make sure that your people also know.
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  So at the end of the day, a project manager is accountable,
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  but the projects done on on time, on budget and clients are
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  happy, right? As far as the responsibility of
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  who is to do things, that is probably the site manager or
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  Superintendent, you know, whatever you want to call it.
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  But the actual, you know, site management, who's responsible
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  for that, right? And then who's accountable.
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  Good example of this would be like a weekly update.
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  If you provide a weekly update to the client or to the
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  management team, I would say the site manager is responsible for
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  doing the weekly update because they're kind of closest to the
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  site, but the project manager is accountable to actually that
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  it's done and that it's correct and then providing that to the
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  client. So what are the differences
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  there? Communication.
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  How does communication happen in this role?
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  A good like litmus test for if you have a good process is if
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  you have to do this 1000 times, is this how you would do it if
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  you had 1000 projects? You know, would you want your
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  guys still writing down their hours on paper?
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  Would you want them communicating with clients in in
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  a certain way, right. So that really that question
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  will really hone in and define like what is the right kind of
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  process overall and, and the right way to approach this and
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  then brainstorm improvements. How can we improve this?
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  How can we change things? What can we bring in?
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  What can we eliminate? A good, good exercise is, you
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  know, what should we keep doing that's working well?
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  What should we stop doing that's not working?
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  And what should we just kind of leave as is because it's not
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  really harming anybody and we don't want to change it right
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  now. So brainstorm what can be
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  improved. Alright, so a little bit at
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  trivia here just to, to break things up.
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  So if you want to get our downloadable template for
• 9:44
  building systems in your business, check out the links in
• 9:47
  the description below. Click the link and go get signed
• 9:50
  up for the download. It is a spreadsheet that lists
• 9:53
  all the big functions of your business, similar to those roles
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  on the org chart. And then it has all the
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  different kind of systems, the main systems that you're going
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  to need in place for those different functions, as well as
• 10:04
  a scorecard to say what are we prioritizing and what you know,
• 10:09
  where we at as far as like how good our systems are.
• 10:12
  So huge resource, really powerful resource, one that I
• 10:16
  use with my clients to keep track of where things are AT and
• 10:20
  the systems we're building and everything.
• 10:21
  So go click the link below and get signed up for that and, and
• 10:24
  you'll be well on your way to utilizing this process and, and
• 10:28
  having that in place. All right, so now a little bit
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  of trivia. I've never gone to trivia night
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  and had a couple of beers or whatever.
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  It's nice to to learn a couple random facts.
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  This one not so random, though. This is from, I found this on
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  Autodesk, But what percentage of construction professionals time
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  is spent on non productive tasks?
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  So it's gonna be yourself. You're definitely a pro and
• 10:47
  maybe doing the pro work, but professionals, you know, anybody
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  kind of on the management side of your business, how much of
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  the time is it is being, you know, non productive or non
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  productive task? Do you think 2530 or 35 percent,
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  35%. So nearly 14 hours per week is
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  essentially wasted on non productive tasks.
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  And that's where those overlapping of tasks are Just
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  figuring out, you know, what is important and what's not for
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  each role can save you tons of time, tons of money, and make
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  you much more possible and efficient.
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  And by getting all these systems in place that we're mentioning
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  is going to get you well on your way to reducing this.
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  Make sure you're not one of those companies that is wasting
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  a lot of their their people's time.
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  Alright, I'm making quick progress here at #3 is
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  prioritize and plan. So maps we've mapped it out,
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  we've lined the people. Now we've got, we know where
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  things are at, but now we need to figure out where we're going
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  to start. What are we going to prioritize?
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  What are we going to plan? Everything may seem important,
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  but we want to really get through the really most
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  important thing so we can be very focused and your
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  pinpointed. This is how I work with all my
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  clients and how we get really rapid success.
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  And the reason you want to do this is because you want to make
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  sure you're working on the right thing first.
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  You're staying focused on it so you can get it done because
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  getting that first most important thing done makes the
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  second thing easier. And the third one is like a like
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  a domino effect and the system is just our rolling and your
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  business just starts humming along.
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  And once everyone's on the same page and they realize how things
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  are working, you get experience with it.
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  This can happen pretty quickly and make just a world of
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  difference. But if you do it in the wrong
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  order or try to do everything at once, it just becomes a mess
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  and, and most people give up or, you know, just throw up their
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  hands and like, we'll just go back to what we're doing before.
• 12:26
  So far as prioritizing, we've got this Eisenhower matrix here.
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  If you've ever seen anything like this, you know, it's pretty
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  common for a number of different things.
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  But essentially you've got importance and urgency.
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  What do you want to do to to prioritize is most to least
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  important. So what's the most important
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  part of the business that you want to systemize and what's the
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  least important? List those out by rules of that
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  org chart that we had. What is the most important?
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  Where is the least important? It's not the most important
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  necessity of the company like you think as a CEO, like I'm,
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  you know, the most important, but what is what is the most
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  important to where you want to go with your goals and where
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  should we focus 1st? And then you want to also that
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  same, you know, you've got that list now top to bottom, most
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  important to least. Then you're going to make the
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  same list with the same roles but with urgency.
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  What is the most urgent to least urgent?
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  So if you've got like 10 estimates waiting to get out to
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  clients and you're running low on projects, that is high
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  urgency. You need to be able to, you
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  know, get a better estimating system and make sure that you're
• 13:31
  getting more projects in the pipeline and people aren't
• 13:33
  waiting too long, right? If you've got tons of projects
• 13:36
  and you you don't have enough people and you, you're trying to
• 13:39
  like hire a bunch of people, then you're hiring system, you
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  know, would be high urgency. So you're just going to list
• 13:44
  those out and then you can have two lists, important and urgent
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  and anything that correlates that you're going to add the two
• 13:50
  together. So if one is like a one on on
• 13:52
  one list and a three on another list, add it together.
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  That would be a four. And then you know, whatever is
• 13:59
  the the lowest number is essentially going to more than
• 14:02
  likely be the thing you want to start with.
• 14:04
  But that should give you a really good indication of what
• 14:07
  is the most important and urgent of of everything to do first.
• 14:12
  Anything that is important but not urgent, you want to schedule
• 14:16
  out. So you're going to again,
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  you're, you're going to like, this is just getting what we're
• 14:20
  going to start on 1st, but you want make a list of things.
• 14:22
  You've got an implementation plan of how things are going to
• 14:24
  go down. Anything that is like very
• 14:26
  urgent, but it's not that important.
• 14:28
  You want to just kind of delegate that or leave it as is.
• 14:31
  Maybe you'll get to it someday. Anything that's not important,
• 14:34
  urgent, just delay it in indefinitely.
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  Eventually you may build it out, but it's, it's just not
• 14:40
  something that needs to be thought about at this point.
• 14:42
  And then once you've identified that, so let's say you've got
• 14:45
  estimating now, what are the components and tasks that you're
• 14:47
  going to need in your estimating?
• 14:49
  So is it, you know, software and tech?
• 14:51
  Do you need new software? Do you need better technology?
• 14:53
  Do you need another person to come into there?
• 14:56
  What are the, you know, the steps inside there?
• 14:59
  Do you need cost codes? Do you need templates for
• 15:02
  estimating pricing databases? You know what what's all going
• 15:07
  into it? You're not building out the
• 15:08
  process yet, just what resources and things are going to need to
• 15:12
  kind of go into place for that thing that you're you're
• 15:15
  building a system for All right now my favorite step here is a
• 15:19
  systemized step. So we're all about systems.
• 15:21
  This will we help our clients with building out amazing
• 15:23
  systems. You can do this yourself.
• 15:26
  I would suggest you don't. It takes a lot of time and most
• 15:29
  people just don't know how to do it effectively.
• 15:32
  If you want help building out systems you want kind of like
• 15:34
  and for you and already prepared SOP's and training videos and
• 15:38
  all that stuff. We've done this repeatedly with
• 15:40
  many, many clients. So check out the links in the
• 15:42
  description below. There is links there to go to,
• 15:45
  you know our website or get some free resources.
• 15:47
  I highly suggest you reach out to us if you want help with
• 15:50
  building systems quicker, more efficiently, with a lot less
• 15:53
  frustration. But now that we've done all that
• 15:56
  kind of like preconstruction work to building your business
• 15:58
  and systems and organization, now we can kind of get into the
• 16:02
  meat and potatoes of it, which is systemized.
• 16:04
  So a great quote by Michael Gerber, who is the author of the
• 16:08
  Emeth Fantastic book that shows sort of the same process of
• 16:13
  building out systems in a business and a business that's
• 16:15
  not solely dependent reliant on the business owner.
• 16:19
  But what he said was systems permit ordinary people to
• 16:21
  achieve extraordinary results. Predictably, systems are not the
• 16:26
  end all be all business. You know, you you need good
• 16:29
  people and but a system to get good people and good people
• 16:33
  utilizing good systems make extraordinary results.
• 16:37
  So systems so integrally important to a good running
• 16:41
  business and enabling your people to be great and get great
• 16:45
  results. So the kind of the process for
• 16:48
  systemizing a function, if it's, you know, something like
• 16:51
  estimating software and resource setup.
• 16:52
  So you're going to need to set up the software or if it's like
• 16:55
  some sort of resources that you need set up if you're doing
• 16:57
  stuff on site like you know what what is the actual system could
• 17:01
  be tech, could be physical, you know, set up or whatever.
• 17:04
  After that you want to ask yourself, what can we automate?
• 17:08
  There's no use building an operating procedure or some
• 17:11
  large, you know, documented system if you can find some
• 17:15
  technology that can just automate this or even maybe like
• 17:17
  a third party where your team doesn't have to handle it or
• 17:22
  parts of it and get automated. Do that first so that you're not
• 17:25
  wasting your time when you build out the actual operating
• 17:27
  procedure. Once it's automated, then you
• 17:29
  want to create a workflow. And I'll show you what a
• 17:31
  workflow looks like in in, you know, just a moment here.
• 17:34
  Workflow is the big steps. What does this look like from
• 17:37
  the 10,000 foot view? What are the main 510 steps?
• 17:41
  And then how is it charted? What documents, how are things
• 17:45
  linked, What decisions need to be made?
• 17:47
  So this is a really good visual representation where you're
• 17:51
  going to lose a lot of people if you just give them a document
• 17:53
  like here's the operating procedure, go read through it
• 17:56
  right? It'll help and they should get
• 17:58
  it. But it doesn't really click
• 17:59
  unless you have a visual representation.
• 18:01
  So that's why I do the workflow next.
• 18:02
  Then you build the SOP. Now you got the workflow.
• 18:05
  Now you can build an SOP from that workflow.
• 18:08
  And then after the SOP is documented and dialed in, then
• 18:11
  you can create a training video, just do a zoom, you know, the
• 18:14
  screen share or something like that.
• 18:16
  If it's computer based, if it's site based, usually you can just
• 18:19
  find videos online. So if you're training your guys
• 18:23
  as far as like how to frame a wall, you don't need to, you
• 18:26
  know, create a bunch of internal training, you know, framing
• 18:29
  videos for your guys. There's probably ones on YouTube
• 18:32
  or wherever that you just find one that's like, yeah, that's
• 18:35
  good information. It's a training resource.
• 18:37
  It's not the end all be all. And I think that's another thing
• 18:40
  to remember is all these systems are continually getting
• 18:42
  improved, not the end all be all.
• 18:44
  There's still gonna be on site training and, you know,
• 18:46
  feedback. And it's gonna take them a
• 18:48
  little while till they get things.
• 18:49
  But if you can get them to like a 8090% proficiency before they
• 18:54
  step on site or before they start, you know, doing the
• 18:57
  process, their training is just going to be so much more
• 18:59
  quicker. And they're going to do it in
• 19:00
  the right way, which is the main, you know, reason to get
• 19:03
  this in place. So this is what a new lead, like
• 19:06
  a new lead workflow, just as an example.
• 19:08
  But essentially where the workflow you go to starting,
• 19:10
  it's going to go to the next step.
• 19:11
  So call, you know, lead comes in, we're gonna call the lead.
• 19:15
  Someone's gonna call them to be receptionist could be you,
• 19:17
  whoever you can ask them the qualifying questions.
• 19:20
  So were they located? What's their, their budget?
• 19:23
  You know, when are they thinking of buildings, all that kind of
• 19:26
  stuff to realize, is this a qualified lead?
• 19:28
  Do you even provide the service for them?
• 19:30
  Can you help them or not? And then those ones in purple on
• 19:34
  the top those that's like the actual SOP document.
• 19:37
  And then also like a form that either they can fill out or
• 19:39
  your, you know, admin person can fill out whoever's fielding that
• 19:42
  that call and those will have links as well.
• 19:46
  So that anybody who sees this workflow, they can then link to
• 19:50
  those other documents. So it's not only represents like
• 19:52
  how everything works for this process, but also like links to
• 19:56
  all the resources someone could need for the, you know, the
• 19:59
  video, the SOP, the forms, whatever kind of stuff they may
• 20:04
  need to actually utilize this process.
• 20:07
  And then typically you're going to have some sort of decisions
• 20:09
  depending what the process is. So qualified, yes, schedule them
• 20:14
  for, you know, home visit or you know, builders meeting,
• 20:17
  whatever. If they're not qualified, send
• 20:19
  them a little bit of a e-mail, tell them like, unfortunately,
• 20:23
  you know, we can't help you. Whatever, whatever your process
• 20:25
  is right. So I think you get it.
• 20:27
  This is this is like a a workflow that you want to put in
• 20:30
  place before the SOP and the training video.
• 20:32
  All right, so now with this maps press process, you've got a
• 20:35
  straightforward method to systemize and organize your
• 20:38
  construction company. You identify the roles, the
• 20:41
  tasks, any gaps in your organization, fix the confusion
• 20:46
  and miscommunication, and then build complete trainable
• 20:50
  systems. Trainable is the key thing.
• 20:52
  It's, it's good to have a system that you can operate or someone
• 20:54
  can operate, but you need like a system for training the systems.
• 20:59
  And that's that's where the magic happens.
• 21:00
  And that's where you know, a self running, self managing
• 21:03
  business really takes off. So now that you know this whole
• 21:07
  process, you're going to want to go check out this next video
• 21:09
  over here on how to actually implement the systems and get
• 21:13
  your people utilizing the systems.
• 21:15
  And after you build the system to make sure that it's being
• 21:18
  you're getting the results and it's getting used inside your
• 21:22
  your company.