We know running a business isn't easy... but systems make it easier!
If you wanted a vacation, could your business run effectively without you being there? Or would your profit suffer because of it? Systems will always take time to build and implement, but in the long game, it will benefit you and your business!
Owning and operating a building company is more than just building houses, it’s about developing your business.
Key areas in your business to systemize:
1. Marketing:
Everybody says great product and quality service! So if you do say this, how do you demonstrate that why would people believe you? You gotta apply empathy in every aspect of your business but particularly in marketing and sales. Clients are not fools, they do research for what makes a good General Contractor… what gives you a competitive advantage?
2. Sales:
Do you have a documented sales process? If its not, it should be! I know what GCs are like, they think if they have all these systems they'll be off to the races - no! Having info is one thing but having implementation of the info is another. The reason we set up systems is that so you the owner can enjoy your life at a high level and eventually.
Everything from initial site visit, estimating process, qualifying, understanding how important it is to talk about budget, should be systemized and documented! If you’re building business at a high level, you can't possibly remember every conversation. So use a CRM system!
3. Operations:
Software is super important - streamline your operations using the software available!
For you as a builder, having checklists, having workflows - all you have to do is think about it once! - we have an estimating template… we build that once so that we dont have to think about that micro anymore and we can focus on other things and not miss any details.
As important as the systems in your business are, so is your company culture. You need to understand that developing and maintaining a good company culture and the impact it has on your bottom line. (Looking to have a better company culture, check this video out HERE)
4. Management (Financial & Construction):
You have to know your numbers and understand back costing and cost engineering. When you create a budget, you have to reconcile actual spend against budget to know where you did well or not - it’s like your report card!
Markup is the action, margin is the result!!! Too many guys blend those 2 together! Profit margin is where we want to focus most of our time - we want to revolve around percentage points, not so much around dollar value!
General Contractors tend to not like learning about finances, and the minute we start talking about it, it blood drains from our head but this is what yuou live and die off of… Your ability to organize your finances.
A truly high-performance building company will have good systems in place that are being run by even better human resources.
- Business for Builders Team
P.S. If you're ready to start systemizing, above is a great place to start!