In rugby, like most team sports, the coach has a basic decision to make when deciding how to play against a certain opposition. Do we play a defensive strategy, or an offensive one? The same applies in business, and especially now as we enter into this recession. Should you go conservative, or go for growth?
I have a guest post for you this time from Natasha Bozic, an interior designer in my network group. Builders in particular should consider adding in an interior design service to what they offer to clients in order to help differentiate themselves from competitors and also deepen the relationship with the potential client. Being married to a builder, Natasha knows the process and how best to fit in. Here’s her story.
How many times it has happened that instead of following your daily schedule and focusing on your construction work, you got caught in long discussions and questions from clients about what paint colour to choose, what is the best floor plan for a bathroom renovation, where to buy certain products for the renovation projects, what colour vanity to choose, what do you think about their tile selection etc? Read more….
The business issues suddenly faced by owners due to the Covid-19 pandemic and resultant recession is like a medical emergency in a disaster zone. Paramedics would follow a triage approach to prioritise patients and start on the most important issues first. This is a video guide on how to do a business triage. How to prioritise issues and what is the most important things to deal with first.
It’s been a week since New Zealand went into Level Four lockdown in efforts to stop the spread of COVID-19. As the owner of an independent tradie business, you might have spent the last week trying to sort out a new routine, or maybe you were able to catch up on some rest and family time after a busy summer working in your business.
Due to the impact of COVID-19, New Zealand and the world is experiencing an uncertain and disruptive business climate; now is not the time to hibernate and neglect your business, your staff and your clients. The truth is what you do in the next four weeks could make all the difference – will you be raring to go or scrambling up from the bottom?
I know the real and sad impact of business failure and I don’t want that to happen to you. That’s why I’ve put together a list of tips to help you manage the short-term business issues you are facing, and help you and your team get prepared and ready to go at full speed ahead once the restrictions are lifted.
Recent world events surrounding the Covid-19 pandemic has meant that economically we are quite likely to be heading into a recession. Technically that is when 2 consecutive quarters show negative growth. We are not there yet, but the economic effects of the Covid-19 pandemic mean that significant parts of our economy will be in free-fall over the next few months, particularly the service sector. No one knows how long it will last. We can only hope we manage to beat the pandemic within a relatively short space of time, like China has, and we can all get back to business as usual.
In the meantime it is prudent to plan for a period of lower business activity….
To quote Kermit the Frog, “It’s Not Easy Being Green” That may be so, and it made for a cute song, but it’s much tougher when you are red. By that I mean in the financial red.
With sustainability being a bit of a buzz word at the moment, I thought I would talk about another type of sustainability you should be interested in. That is your FINANCIAL sustainability. You owe it to your customers, staff and family to be around in the long term. Consistent profitability is vital to help you achieve long term survival.
The profit levels of many builders and larger construction companies are too low to sustain long term growth. Risks are high and statistics show that over time net profit levels are barely above break-even. The industry seems to operate like the not-for-profit sector. Do you know what profit you need to achieve for your long term success, or even survival?
I attended Geoff Hardy’s builder breakfast recently on the topic of retentions. Consensus was, they are a good thing to avoid (retentions, not the breakfasts), but in many commercial situations you can’t avoid them. Apart from having to wait months to earn your profit in the job in some case many sub-contractors are left with retentions unpaid when the main contractor goes under. This is caused by the retentions not being held in trust and are used to pay others (which is illegal).
Despite directors and senior management breaking the law in this matter, MBIE seem reluctant to bring criminal charges against head contractors. Perhaps because intent is difficult to prove. So what can you do as a sub-contractor to protect your self? Read on….
With the construction industry being in a fairly buoyant state at the moment the apparent need to focus on marketing does not seem to be a high priority. This may appear to be the situation on the surface, but ignoring it can lead to a roller coaster of leads coming in and result in a feast or famine of work in the longer term. Why not take the opportunity to proactively refine your marketing and provide a solid lead generation machine of your ideal projects? A corner-stone of this is the strategy of niche marketing.
Niche marketing, or specialization is used by industries of all types because doing a few things with a high level of expertise will bring recognition and a reputation of excellence quicker than doing many things well. Read on to see how you can choose a niche for your business and the benefits it brings.
One of my core values in what I do is to help my clients improve the profits that their business generates. This starts with some basic education into the various levers that you can pull on in your business to increase revenue and reduce waste in your business. This video starts to look at those levers and how they can be worked together to improve gross profits, and thus improve your life as a business owner.