Being Profitable

Being profitable even during COVID - 19

Every Monday morning, The Profit Constructors’ social media posts are routinely filled with something akin to an Irish blessing. They vary slightly week to week, but typically they look like this, “May your coffee be strong, your influence be ever-growing, and your week be profitable.”

It is that last portion of the “blessing” we’re discussing today. That part about being profitable – because it never varies. Those are the same words week after week.

Even during the Coronavirus pandemic, we wish profitability on our clients and social media followers. And we mean it! We’re not just sticking with the old words. We haven’t lost our minds.

Profitability wears many hats

One way most look at profitability can be measured in dollars and cents. You know that making more than you spend is how profits come into existence. But there are other ways to measure profitability.

For example, a genuinely profitable week would include personal growth. A week spent in strategic planning could prove to be very beneficial. Adapting to changing conditions while maintaining core values gives you the opportunity to show your customers, your employees, and the community at large your grit – and that is very profitable.

And of course, helping others without thought of gain gives an immeasurable profit.

Following is a six-point list of ways you can work toward profitable endeavors during and after the mayhem surrounding COVID – 19.

Remove “woe is me” thinking

Look around – see the big picture. Yours is not the only construction contracting company affected by the circumstances in which you now find yourself. It isn’t as if you’ve been singled out.

Plus, you may find it useful to look at history. Here is a list of some well-known construction companies that are in existence today that made it through the ten years known as the Great Depression (1929 – 1939) as well as other ups and downs in the economy.

  • Sundt Construction, Inc. founded in 1890
  • Bechtel founded in 1898
  • Fluor Corporation founded in 1912
  • The Turner Corporation founded in 1902
  • Peter Kiewit Sons, Inc. founded in 1884

And, check out this list from Mental Floss about other Great Depression success stories.  

Use time wisely

Whether your pace has increased or slowed, maximizing the use of your time to accomplish much is imperative. (We know different states have taken different stands on whether or not construction workers are essential.) That means, for some, it may be making sure the crews have the correct PPE and are practicing proper safety measures. For others, it may be taking advantage of your time to create better-documented systems. For still others, it may be time to take an online class or to teach one.

You get the picture. Take the time to determine the best use of your time. Now do it!

Forget about safety – be daring!

Wait! Don’t think for a minute I’m talking about on-site safety. Keeping those guys and gals safe has never been more critical.

I’m talking about stepping out of the norm, being daring in ways you may not have thought of in the past. Things like:

  • Set up an appointment with a general contractor you may have formerly thought was out of your league.
  • Pivot – do something differently.
  • Create a new division that will take on the new opportunities afforded when the crisis is over.
  • Buy that piece of equipment you know will be necessary for your construction company’s growth in the future – especially when you find a good deal.

Note: I’m not saying that doing any of the daring things in the above list will make you more profitable. I am saying these are the types of things you should consider.

Write a book

Yes really. Do it. Hire a ghostwriter if you need to but write a book about how you not only survived COVID – 19 but how you flourished during and after the crisis. There is nothing wrong with a secondary income stream. And, even if you never see it in print, at least you will have thought of ways to accomplish it.

Advertise

Get serious about your mailing list. Call your past and present customers. Let them know what you’re doing and how you can help them. Use your social channels to help others. Let everyone (including the general public) know you’re here now and will be in the future.

Work together and help others

There is possibly no better way to create channels of profitability than to help others. Sharing the load, working through a dilemma, and resurging afterward are hallmarks of great business leaders who survive the test of time.

One last thing

May your week be profitable!

 

We desire to familiarize you with business concepts, which will make it easier for you to be a better commercial construction subcontractor through our blog posts. Some are new ways of looking at things, and others are refreshers. http://www.schulteandschulte.com/blog/

The Profit Constructors Provide Advisory Board Level counsel for small to medium commercial construction subcontractors.

So you can Run With the Big Dogs! Call us 866-629-7735

Building Castles and High Rises

Building company culture into your team.

Building streams

This report is going to follow two diverse streams which converge to make one river of thought. The first stream has to do with an encounter on a modern city sidewalk and the second with a look at the building of a medieval castle.

Building high rise office structures 

On Tonya’s and my recent trip to Salt Lake City, we had occasion to walk from the convention center to a nearby grocery store. Therefore, we passed through a covered sidewalk which was designed to allow foot traffic to pass safely by a project under construction. As we walked, we noticed three construction workers scurrying past us in the opposite direction. I, being that kind of tourist, asked, “What are you building?”

The quick response from the fellow in the lead was, “America, one building at a time!”

Kapow!

Both Tonya and I were elated with his answer.

In addition,  may I suggest if the people on your crew answer the same way, you’re likely doing something right.

Building an ancient castle in the twenty-first century

Castles aren’t easy to come by these days. Come to think of it, they never were.

For instance, there is this interesting project going on now in France. The folks involved are building a medieval castle with the tools and techniques of the 13th century. The building is expected to be completed in 2023.

An interesting finish date, considering the project first broke ground in 1997. Not bad for a project which, from its inception, was expected to take a quarter of a century to complete.

This castle isn’t to live in. This castle is a classroom in progress.

Guédelon is the world’s biggest experimental archaeological site – and some would say the most ambitious too.”

In other words, stonemasons, blacksmiths, carpenters, woodcutters, tilers, rope-makers, dyers, the builders of the castle seem to look at their part of the project in two ways. For the first way they discuss what they’ve learned. Then, in the second, how proud they are to have been able to contribute.

The streams converge

Above all, what strikes me concerning these two stories is the pride these builders take in their work. Whether the answer is, “I’m building a castle,” or “America, one building at a time,” the question is always out there – what do you do? Where do you work?

Building the answer into your company culture, helping employees see how their contribution matters isn’t always easy. Yet it is worth it.

And, the key is to inspire.

As a result, this is where the river begins to flow.

It is a crazy idea which the folks naming military operations have used successfully for a few years now. Don’t get me wrong, it was they who got it wrong many times along the way until they began to understand how useful the nicknames they used for their operations could be. This article, Naming Military Operations is a War of Words, from the USO website is lengthy, yet quite informative concerning the power of a name.

Building great names to encourage your team

The simply corollary for you as a commercial construction business owner is to use the art of naming projects in such a way as to shape perceptions, boost morale, and reinforce policy objectives. It is a subtle yet effective way to encourage your employees to “own” the importance of each project.

Here are some examples, so you can see what I mean.

You could call your job building the new emergency hospital by the hospital’s name (and bore your staff) or you could use the name “Mission Life Saver.”

If your crew is providing work on the new Mercedes Benz dealership, consider naming the job “Project Hot Wheels.” Or, you might try “Mission Luxurious Rides.”

Did you get the grocery store contract? Think about calling it “Project Nourishment.”

3 ways to find memorable names

  1. If you’re into word play and developing great project names – do it yourself.
  2. Perhaps there is someone in your office or on your crews who would enjoy providing the names – give them the privilege. Do you have word-wise teens at home? Give them the task.
  3. Ask your team members for suggestions – then choose the best one. Or combine a few of the suggestions to come up with the top name.

Another way to use the nicknaming strategy

You can use the same strategy of nicknaming for your in-house projects.

Shop organizing day becomes Operation Thunder.

Documenting office systems can be given the nickname, Project LifeBlood.

And, choosing a new office or shop location might become Mission Possibilities.

You get the idea. The nicknames add an importance level to your various jobs as well as in-house projects.

Building Castles and High Rises and Everything Else

The work you take on in your construction contracting business is important! Be sure your team knows that.

 

It is our desire this article (among our growing library of construction-centric informational articles) is helpful in assisting commercial construction contractors build better building businesses.  

Providing Accounting, Contract Document Management, and Advisory Board Level counsel for small to medium commercial construction subcontractors.

So you can Run With the Big Dogs. 866-629-7735

Are Loyal Employees a Thing of the Past?

Are Loyal Employees a Thing of the Past?

Loyal to what?

In the construction industry, in 2018, the idea of loyal employees has taken a beating. Loyalty has gotten into the workforce ring and taken a severe beating – then been kicked in the ribs just for good measure.

Lest you be tempted to lay this no-loyalty scenario at the doorstep of any particular generation — stop. Look back at the late 1950s when the seeds were already being planted. The seeds of distrust which began unraveling the employer and employee social contract. The fear of being given nothing more than a gold watch and a fare-thee-well from an employer was real. Years of service may not even be considered in the final goodbye.

Move up a couple of decades into the 1970s and notice the employees who are being “let go” before retirement age in some kind of down-sizing maneuver. A maneuver which may have been made to cut the cost of labor by bringing in a younger (and cheaper) butt to fill the seat. Or, a maneuver which answered more to profit than to relationships.

Loyal to the trade?

Now, let’s jump ahead to 2007. Yep. You know what happened here. The following economic downward spiral caused a lot of construction workers to jump ship. It wasn’t at all about whether or not one would remain loyal to an employer. Many construction industry employers became former employers and were themselves out looking for a job – in other industries.

Therefore, only a decade later the construction workforce (in the vernacular) “just ain’t what it used to be.”

Which is only one of the many reasons why finding people willing to put on the boots and pick up the tools of the construction trades is a daunting task. Asking these people to also be loyal to a specific employer is . . . well, difficult at best.

Loyal to the employer?

Still, there is the hope for employee loyalty. There is the desire to find a great crew, train them to be even better, and grow a dynamic construction contracting business which will serve your clients well.

Expecting loyalty from your crew comes at a high price – your loyalty to them. And we’re seeing a resurgence of this very tactic at work in construction companies across the nation. From large, long-lived firms to small, start-up construction businesses there are bosses in-the-know. Bosses who are rising to the occasion and learning more about their employees as well as more about how to be loyal to them. We’ve touched on the idea ourselves in this post and in a three-part series found here, here, and here.

The folks over at Forbes have more to say on the subject of Where Have All The Loyal Employees Gone?

This article from Entrepreneur, Change Is Good. Now, How to Get Employees to Buy In, is another good source for learning more about how to achieve a level of loyalty from employees.

Loyalty in the end

In conclusion, it seems there is truly an opportunity for those who are willing to put in the time and effort to create a working team of loyal employees. It won’t happen over night. It can happen with well planned small steps leading to loyalty that is mutual.

Help your people see your vision on a daily basis.

Give your team reason to believe in you as well as in your company.

Allow as much autonomy as possible as soon as possible. (Trust is a two-way street.)

 

The goal at Schulte and Schulte has always been to provide the best service and most up-to-date information as possible to our clients. We know we’ve hung our hats on an industry which is cyclical. Therefore, we’re determined to do everything in our power to see to it that our clients stay the course.

We hope this article (among our growing library of construction-centric informational articles) is helpful in assisting our clients to build better building businesses. Want to know more about us? Get in touch here.