667: 4 Blind Spots Preventing Contractors From Retaining Talent and Growing Profit
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Meet (Anad Rolyat) Construction supply business serving a local region (Anad Rolyat) Female owner, married with two children Retail and supply business serving a local region Been in business for 11 years Massive reputation for community engagement Working 6.5 days per week Thinking about work even when at home The bigger problem was this…when we reviewed her 2015 P&L…here is what it said… $5mm worth of sales… $50k of Net Profit (1%) 1%! $5mm worth of effort, work, marketing, sales, coordination, fear, worry, concern, frustration, stories, and people… $50k worth of Net Profit to show for it…she could go work for someone else and yield far more in far less time.   TO add insult, Anad’s employee turnover was similar to a Taco Bell… Employees coming and going, turning over like a car that just would not crank. Anad was suffering from a variety of ills that plague the majority of business owners.   Only 4% of businesses ever see their 10th birthday?   NO…#1 reason is = they get tired and pull the plug Tired of hoping that next employee hire will fix everything and then left feeling broken Tired growing sales and rarely seeing or enjoying the profit Tired of being blind sided by the constant details of their business Tired of showing up to events hoping for a silver bullet and realizing that the only silver bullet available is that is relentless implementation of the basic fundamentals how business operates. Everytime you feel momentum, you are short circuited by chaos lurking around the corner in your blind spot.   “But I don’t have a blind spot”  I didn’t think I did either. But you do… The human eye has a location that cannot pick up light even why the eye is wide open…google it. I want to reveal four business blind spots that we all suffer from, and what you can do to solve them so that you can… Find and retain talent Grow your CASH profit (not just your P&L) Be liberated from chaos to make time for what matters most FIRST blind spot is our unspoken commitment to chaos…chaos has almost become a defacto strategy in our day to day business “Scott, I’m so addicted to chaos I don’t know what I would do if things were slow and quiet!” Khaos = Chasm or a gaping hole. The sweat, effort, attention, and focus you give chaos is guaranteed to return very little long term.   SOLUTION #1 Commit to clarity over chaos.  How? Clarity comes by illumination, and illumination comes through light and understanding foundational things Many of us started a biz without even considering how the organism of a biz is built CONSTRUCTION OF A BUSINESS 5 Foundational Cornerstones Vision Mission Values Team Meetings Hiring Process Concrete Slab of documented processes 4 Systems (walls) of a business: Marketing, Sales, Operations, and Administration Stop obsessing over your product, and commit to building your process TRUTH: “Your product is not your product…your process is your product.” ACTION → write a clear and compelling vision of where your business is going is seven categories SECOND blind spot is micro-management We say micro-management, but no one has defined it. Even The Office tried to get it right, and here is how it sounded, (RIP AUDIO FROM THIS YOUTUBE (:00 to :13) (INSERT BLANK SLIDE) Why does talent fly fly away?   Is it because nobody wants to work anymore?  NO…millions of people want to work and want new challenges It is because they don’t want to be babysat, or left all alone…they want leadership, and leadership is not micro-management.  They showed the RPM’s of great leadership… Repetition - they did the right things over and over and over Predictability - they provided stability by doing those repetitive things Meaning - and they baked a professed meaning into the repetition and predictability I want you to think about you
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