On January 11, 2016 at 08:30, davet2020 said...
Here is the new business plan:
1. Finish up all the contracts that you have currently.
2. Raise your labor rates at least 50%. This will result in less jobs but the higher rates will bring in more money.
3. Work less hours because now you won't have as much work.
4. Learn to delegate key employees to take over your responsibilities on the job site when you are not there.
5. Most likely you will have to cut back on some staff. Keep the best who are willing to take on some of your responsibilities. Let the rest go. This will be the hardest thing.
There is something to be said for being the most expensive company. Many customers will often take the highest bid because they think that they will get the best job done. If you are referred by another customer then often those customers will not even get other bids
The amount of work your company is doing will drop. But the increased profit you make will compensate for doing fewer jobs. Because there is less work then you can assume more of a supervisors role. Just check in on the jobs each day and make sure that things are going to plans.
Schedule your work so that you are home each day by 5pm so that you can enjoy some quality time with the wife and kids.
+1000
It is possible he may not have to let anyone go. If he goes from 4500 hours per year to a more standard 2000, he may not lose anyone. Less overtime for his guys also.
Whether one man or ten, the same issues apply, it is just a matter of scale. A good client calls and is ready to go and just wants to know when you can start. A new client okays a nice job and asks the same question. You are afraid of losing the job by saying 90 days from now so you sign up for 16 hour days. You have to either price yourself higher so you don't get every job, or be honest about the time frame. If you work 16 hour days it is a management problem and you are to blame.
I speak from experience. I also know we are slow to make significant changes unless we are faced with tragedy, health issues resulting from overwork, or a crumbling set of relationships.
A wise man will look and receive instruction, as someone once said.
Last edited by tomciara on January 11, 2016 12:28.
