Contractor Learns a Better Way!

How one contractor’s 5 year problem turns into profit just by making one little change in his construction business.

The other day I was talking to a contractor and he told me he has had one problem in his company he has not been able to get his hands around.

First off he is a small contractor doing about $500,000 a year and he does all the sales himself and has 4 employees that are 2 teams of installers.

His biggest problem for the past 5 years is that the installers never collect the check from there client when the job is completed.

Holy shit man I thought he was going to tell me something earth shattering or something. This was a no brainier for me.

See, after talking with this contractor I had to tell him he really had 2 problems not just one.

His first problem he has is that he works in his business not on his business. Now after 5 years in business the guy should be doing 2-3 million a year in his type of business.

But because he has the attitude that no one can do it better then him he has trapped himself into just getting by at $500,000 a year.

Once he sees the light now that I have opened his eyes to a better way of thinking and trust me this is all he had to do. He can work on his business and take off like a rocket ship with little effort on his part.

This cocky young contractor can change his life so easy just by thinking a different way because he already has the tools to do everything, he needs to buy nothing but just change the way he thinks. Yes it was that easy!

Can you believe he can double his sales overnight just by hiring one new salesperson? Plus our little cocky contractor would not need to sell at all if he choose not to.

Now let me fix problem 2 for him which will be easy to fix and will also save him money big time. The installers attitude is that we are here to install not collect the money, now I no what your thinking already? Hey they get paid to do the job and collecting the money is part of the job.

Well, not so in this case! My answer to this problem was pay the installer $25.00 to collect the check from the client. Here we go again I know what your thinking so stop jumping up and down with anger.

By doing this we really fixed 3 problems with one task and once I explain then you will also see how I saved our cocky little contractor a ton of money and at the end of the day everyone is happy.

See by paying the installers there $25.00 you now no your client is happy with the job and they are willing to pay. Were before our contractor would drive 30 minutes to 1 hour to collect the check only to find that the client is not satisfied and you need to send your installers back out to fix the job before you can be paid. Look at all the wasted time,gas effort and no check!

So the installers get there $25.00. The client is happy! And our cocky little contractor is out playing golf instead of chasing down money all day.

Everyone wins and everyone is happy.

So how is the new extortion plan working. Well they have installed 5 jobs this week so far and have received a check on every job and every client is very happy and even some have called the contractor to thank him for his job well done.

Plus this is what I call fantastic cash flow with minimum effort!

I must leave you with something to think about and are you working in or on your business?

Happy Selling

Glen Kohlenberg

Tagged as: Business, Cash Flow, Contractor