6 Steps in Building a Business!
The trouble of most skilled trade companies is that they are dependent on the owner. Most owners in the landscaping and construction industry did not start their business because they excelled in accounting, human resources, strategic planning or wanted to build a brand.
They started their business because they wanted a better life, wanted to control their own schedule, have more freedom, make more money, pursue a passion, be in control, or create job security etc.
However, so often I hear owners speak about their business as “Doing, doing, doing”. They are stuck in a hamster wheel and are getting more frustrated each year. Everyone in the residential market has seen a huge increase in demand in 2021 for their services. This is all good, but it does lead to other potential issues!
So how do we transition your business from being dependent upon you, the owner and transition it to a systemized business? Having personally experienced this with Gelderman Landscape Services, I know that it takes focus, passion, vision, and grit. There have been many times where I was ready to throw in the towel and just do the work myself. However, I am very thankful and blessed to have a great team around me that wanted the same results as me.Yes, my team wanted me to step back and give them the opportunity to grow and develop.
Here are the 6 Steps:
1. Be honest with yourself. Are you filling employee shoes or owner’s shoes?
2. What job functions/tasks should you stop doing, those that someone else could do?
2.1 Categorize the job functions in “buckets”.
- Staffing/HR, Marketing/Sales, Accounting/Admin, Operations
2.2 List each job function for each “bucket”. Here are some examples:
- Staffing/HR – Recruitment using Indeed. telephone interviews, conducting evaluations, etc.
- Marketing/Sales – IG/FB posting, qualifying new clients, estimating & quoting, project proposals, client presentations, etc.
- Accounting/Admin – Creating Invoices, paying invoices, payroll, bank reconciliations, scheduling, ordering materials, applying for permits, etc.
- Operations – Beginning of day checklist, 1st day on the project, fleet maintenance, paver installation, tree planting, framing, drywall & taping procedures, end of day procedures, quality control checklists, etc.
2.3 Determine the most effective way of doing these job functions.
2.4 Then document the process into a standard operating procedure (SOP). Create checklists that are understandable by your crews. Yes, this is extremely hard and takes focus.
3. Once documented, create a strategy of replacing yourself with someone else. (Yes, hire somebody). That person will follow the documented process/SOP of doing the job exactly the way you have done it in the past.
4. Have your new employees manage the system/process/SOP and allow them to have the ability to improve the system/process/SOP (Note: this is extremely difficult to allow, but very rewarding in the end)
5. Repeat this process whenever you find yourself acting as an employee rather than owner (at first this will be difficult, and you will make excuses that you can be faster and better at doing it).
6. Learn to distinguish between ownership work and employee ship work every step of the way!
In summary, a company that is called a business is based on people and systems. If you have reliable systems in place, anyone in your company can be taught the system and do the work without the owner doing everything!
If your goal is to build a business, you need to work on your business! To build a turnkey system that delivers exactly what you promised every time!
“If your business requires your presence, you don’t have a business, you have a job” Michael E. Gerber
If you are DOING! DOING! DOING!, and want to stop, contact me directly.
