Discussion
I would like to tap into the collective knowledge here and ask for advice on how to better develop my business improve myself to run a business successfully. A little about myself and current setup: I'm 32 and have been working in carpentry & joinery since 2004. Throughout that time I have taken on all sorts of jobs as long as it involved timber in some way or form. I'm fortunate enough that I don't have to advertise for work, and have a good customer base which keeps me very busy. My father & I work together regularly but run separate businesses, other than that I work alone. I am currently involved in projects involving extensions, loft conversions, bespoke fitted wardrobes & UPVC windows. Things have always been a delicate juggling act of balancing finances, completing jobs & customer expectations. I know there is a better way to manage things but this is the knowledge I am lacking. I keep thinking of starting some sort of side hustle to try and help out financially but I've realised that time will be better spent in sorting out my current position rather than adding another layer of complexity.
Over the Christmas break I've given a great deal of thought to how my current approach to work will continue and where it may see me in 5/10/20 years time. I've come to the conclusion that I do not want to be in the same position I am now at all 3 of those points in my life and want to make changes. What I don't know, is how to go about making them. I will be starting a longer term contract very soon which will last for around 10-12 weeks. As I am subcontracting I will be going to work, doing my hours and going home. I would like to use this time to start rebuilding my business from the ground up, to start a business which can scale & be profitable.
Here are a few of the things which I think I haven't done right or could/should do differently:
I am the business, when people want work done they want me to do it and not my business. I would like to have a business which will run just as well with me on the other side of the world as when I am right in front of it.
I struggle to find the time to organise jobs properly and always find myself chasing my tail, forgetting something small which requires a return visit. This leaves me with a constant snagging list of things to do which I can never seem to get on top of.
When I am on a job, something crops up which wasn't planned for or have to head off to another job to sort something.
My cash flow consists of money coming in and going out within moments, going from week to week trying to keep on top of things.
I don't have a business plan, I go from job to job which may mean one week making some bespoke wardrobes to the next week doing some tiling or plumbing. I say yes to work because I can do them and need the money and not just because I want to do it, I haven't been able to specialise in anything.
I try and do everything myself with the business and not sub out parts where I should. 2 obvious examples here are the book keeping which I do myself and building a website. I have started a website but never finished it due to lack of time. If I would have stumped up the money to have someone build me one things may already be different!
I have read some of the threads on here lately about tradesmen being good on the tools but terrible at the business. I put my hand up and say that I am currently one of those. I want to change that but I don't know how.
I feel like I would benefit from starting a course or something on running a business. Something which has structure and a format to it, which I can use to get my business moving in the right direction. If anyone here knows of any resources or has any tips which would be helpful I would greatly appreciate them. If you have read this far then I appreciate the time you have taken to get here. This post has turned out a lot longer than I had planned.
Thanks
Over the Christmas break I've given a great deal of thought to how my current approach to work will continue and where it may see me in 5/10/20 years time. I've come to the conclusion that I do not want to be in the same position I am now at all 3 of those points in my life and want to make changes. What I don't know, is how to go about making them. I will be starting a longer term contract very soon which will last for around 10-12 weeks. As I am subcontracting I will be going to work, doing my hours and going home. I would like to use this time to start rebuilding my business from the ground up, to start a business which can scale & be profitable.
Here are a few of the things which I think I haven't done right or could/should do differently:
I am the business, when people want work done they want me to do it and not my business. I would like to have a business which will run just as well with me on the other side of the world as when I am right in front of it.
I struggle to find the time to organise jobs properly and always find myself chasing my tail, forgetting something small which requires a return visit. This leaves me with a constant snagging list of things to do which I can never seem to get on top of.
When I am on a job, something crops up which wasn't planned for or have to head off to another job to sort something.
My cash flow consists of money coming in and going out within moments, going from week to week trying to keep on top of things.
I don't have a business plan, I go from job to job which may mean one week making some bespoke wardrobes to the next week doing some tiling or plumbing. I say yes to work because I can do them and need the money and not just because I want to do it, I haven't been able to specialise in anything.
I try and do everything myself with the business and not sub out parts where I should. 2 obvious examples here are the book keeping which I do myself and building a website. I have started a website but never finished it due to lack of time. If I would have stumped up the money to have someone build me one things may already be different!
I have read some of the threads on here lately about tradesmen being good on the tools but terrible at the business. I put my hand up and say that I am currently one of those. I want to change that but I don't know how.
I feel like I would benefit from starting a course or something on running a business. Something which has structure and a format to it, which I can use to get my business moving in the right direction. If anyone here knows of any resources or has any tips which would be helpful I would greatly appreciate them. If you have read this far then I appreciate the time you have taken to get here. This post has turned out a lot longer than I had planned.
Thanks
Where are you located?
In Scotland we have Business Gateway. They help small businesses get started and provide information and courses on all parts of running and expanding a small business, including stuff like, book keeping and marketing. I'm sure there will be similar organisations through out the country.
In Scotland we have Business Gateway. They help small businesses get started and provide information and courses on all parts of running and expanding a small business, including stuff like, book keeping and marketing. I'm sure there will be similar organisations through out the country.
Well, you are not alone on this.
Firstly, reading your post I would suggest that there is a lot of over-thinking going on. You may do well to dispense with a lot of the periphery stuff for now to allow for a little more clarity of thought and headroom to emerge. For example....
You say that you don't struggle to get work. Therefore, the need for a website is not a priority. Just one page with your contact details and perhaps a few pics of your work is all you need.
Ridding yourself of things like this will also allow you the time to properly plan jobs to avoid returns and the like, improving your efficiency.
The most significant thing you can do to step up is to take someone on and start the process of decoupling you from the day to day side of things. You are right that it is you that people appoint but for your business to stand any chance of growth, you need to become less important in it. This is a leap of faith. Pimlico Plumbers didn't grow as a result of Charlie Mullins doing more and more boiler installs himself and Amstrad didn't grow because Alan Sugar got really good at soldering.
Have you though about joining forces with another like you?
As for courses, it sounds to me like like you have little time as it is. Assuming you have an accountant, speak to them about offering a book keeping service as well, they take on the day to day financial management of the business so you can concentrate better on what you are really good at.
Beyond all this is to think carefully about what you want; are you happy aspiring to be a really good subbie or do you want to build a business?
Either way, good luck and HTH
Firstly, reading your post I would suggest that there is a lot of over-thinking going on. You may do well to dispense with a lot of the periphery stuff for now to allow for a little more clarity of thought and headroom to emerge. For example....
You say that you don't struggle to get work. Therefore, the need for a website is not a priority. Just one page with your contact details and perhaps a few pics of your work is all you need.
Ridding yourself of things like this will also allow you the time to properly plan jobs to avoid returns and the like, improving your efficiency.
The most significant thing you can do to step up is to take someone on and start the process of decoupling you from the day to day side of things. You are right that it is you that people appoint but for your business to stand any chance of growth, you need to become less important in it. This is a leap of faith. Pimlico Plumbers didn't grow as a result of Charlie Mullins doing more and more boiler installs himself and Amstrad didn't grow because Alan Sugar got really good at soldering.
Have you though about joining forces with another like you?
As for courses, it sounds to me like like you have little time as it is. Assuming you have an accountant, speak to them about offering a book keeping service as well, they take on the day to day financial management of the business so you can concentrate better on what you are really good at.
Beyond all this is to think carefully about what you want; are you happy aspiring to be a really good subbie or do you want to build a business?
Either way, good luck and HTH
I've been in the same boat for about 30 years and still haven't found the answer.
I'm sorry to say that if you're looking for a long term solution then there isn't one
I know that sounds very blunt and negative but in today's climate I don't think it's possible to expand your construction business properly certainly not in the domestic market.
Your business is only as good as the people you employ and there aren't enough decent people to go round, and if they are any good they're probably running their own businesses.
The ones that do expand end up going bust every few years in a continuous cycle.
If you've got a good team you should be able to do reasonably well but don't expect to make your fortune.
Pimlico plumbers has been mentioned as an example. Some people will pay high prices for good customer service and PP have very cleverly created this image (with the help of Max Clifford), as well as putting in the hard graft at the beginning. Their core business appears to come from the more affluent parts of London which gives them a distinct advantage.
There are a lot of people out there with the same ambitions as you and I can honestly say I've never seen it work out long term.
My advice would be stay small, find a niche market (or create one), charge a premium for a personal service.
With regard to having a mentor such as Business Link or the like, I'd make sure that you get one who knows your market.
I once had a visit from a local business advisor, set up by the council. He was a retired company director. He spent a considerable amount of time with me, looking at my accounts and asking questions but he didn't have a clue about my business and his only piece of advice was to try to build the bank reserves up so I've got a bit more working capital. Surely, that's the whole point?
I'm sorry to say that if you're looking for a long term solution then there isn't one
I know that sounds very blunt and negative but in today's climate I don't think it's possible to expand your construction business properly certainly not in the domestic market.
Your business is only as good as the people you employ and there aren't enough decent people to go round, and if they are any good they're probably running their own businesses.
The ones that do expand end up going bust every few years in a continuous cycle.
If you've got a good team you should be able to do reasonably well but don't expect to make your fortune.
Pimlico plumbers has been mentioned as an example. Some people will pay high prices for good customer service and PP have very cleverly created this image (with the help of Max Clifford), as well as putting in the hard graft at the beginning. Their core business appears to come from the more affluent parts of London which gives them a distinct advantage.
There are a lot of people out there with the same ambitions as you and I can honestly say I've never seen it work out long term.
My advice would be stay small, find a niche market (or create one), charge a premium for a personal service.
With regard to having a mentor such as Business Link or the like, I'd make sure that you get one who knows your market.
I once had a visit from a local business advisor, set up by the council. He was a retired company director. He spent a considerable amount of time with me, looking at my accounts and asking questions but he didn't have a clue about my business and his only piece of advice was to try to build the bank reserves up so I've got a bit more working capital. Surely, that's the whole point?
Could say plenty, but I think you need to focus as has already been said and rid yourself of distractions so I'll stick to 4 points:
1) Get a bookkeeper and also a service like moneypenny to answer the phone and manage your diary. 2 big admin tasks off your 'desk'
2) Get an employee take them to all jobs. Get them started on jobs you trust them with while you go off and start another job, When you are confident sending them on a job on their own, get another sidekick to take with you and build up a team this way, rinse and repeat.
3) Give yourself a brand e.g. instead of being Joe Bloggs the carpenter who lives in Greenville a suburb of Somewhere Town just become something like:
JB Carpentry
Greenville Joiners
The Somewhere Town Joinery Company
i.e. simple and quick name, don't get clever about it, but it gives you and your customers a feeling that they are booking a company to do the work, not you.
4) Snagging, start to make a list of your snagging errors, are there any common mistakes you forget? If so start a checklist. It should seem like a list of the obvious and silly, but if it saves you repeat visits then nothing silly about it e.g. Are all the nails all the way in, do all teh parts work as they should e.g handles turn, locks work, lines are straight, have I asked the customer if they are happy, has the customer actually checked or are they being polite if they say yes. Get them to sign something to confirm happy. Give customer chance to check work while I'm out the room e.g. while loading van after job.
1) Get a bookkeeper and also a service like moneypenny to answer the phone and manage your diary. 2 big admin tasks off your 'desk'
2) Get an employee take them to all jobs. Get them started on jobs you trust them with while you go off and start another job, When you are confident sending them on a job on their own, get another sidekick to take with you and build up a team this way, rinse and repeat.
3) Give yourself a brand e.g. instead of being Joe Bloggs the carpenter who lives in Greenville a suburb of Somewhere Town just become something like:
JB Carpentry
Greenville Joiners
The Somewhere Town Joinery Company
i.e. simple and quick name, don't get clever about it, but it gives you and your customers a feeling that they are booking a company to do the work, not you.
4) Snagging, start to make a list of your snagging errors, are there any common mistakes you forget? If so start a checklist. It should seem like a list of the obvious and silly, but if it saves you repeat visits then nothing silly about it e.g. Are all the nails all the way in, do all teh parts work as they should e.g handles turn, locks work, lines are straight, have I asked the customer if they are happy, has the customer actually checked or are they being polite if they say yes. Get them to sign something to confirm happy. Give customer chance to check work while I'm out the room e.g. while loading van after job.
Mr Overheads said:
2) Get an employee take them to all jobs. Get them started on jobs you trust them with while you go off and start another job, When you are confident sending them on a job on their own, get another sidekick to take with you and build up a team this way, rinse and repeat
You make it sound so simple.Assuming you find a decent employee who's not working for themselves already, your first employee will reduce your time spent working because you'll need to keep an eye on them and think for them.
You'll probably find you need to go through a few before you find the right one.
Not only that, you'll have the added overheads to factor-in so you'll either need to put your prices up or take a wage hit.
Doubling your workforce doesn't double your output.
I’m a builder/ small scale developer.
It is not easy to build up purely due to the lack of skilled people to employ.
All advice is good but it’s only advice.
You will never be able to run a building business from half way across the world, that’s just the nature of the beast.
I’ve just found a Business partner after 20 years of looking who is as committed as I am.
I’ve had 17 lads working for me and now just 4. It’s about right now and any bigger and you will just fight fires.
My advice-
Put your prices up and only do the work you want to.
Go and speak to Architects. Get on their tender lists.
Always use a small works contract. I need to follow this advice myself!
Keep the site immaculate. Put a site toilet and skip on site.
Get a lock up and work from that.
Spell out exactly what is included in the price of the works and as importantly what is not included.
Don’t work weekends. Again I need to take this advice on board.
Get a book keeper.
Do your own house up and sell it. Do this every 3 years and you will have equity to invest.
Not all of the above can be done overnight but it should see you rise eventually but it’s not easy.
No guarantees and a friend of mine went personally bankrupt due to trying to build his business and messing with the VAT.
PM me and I will help where I can.
Good luck.
It is not easy to build up purely due to the lack of skilled people to employ.
All advice is good but it’s only advice.
You will never be able to run a building business from half way across the world, that’s just the nature of the beast.
I’ve just found a Business partner after 20 years of looking who is as committed as I am.
I’ve had 17 lads working for me and now just 4. It’s about right now and any bigger and you will just fight fires.
My advice-
Put your prices up and only do the work you want to.
Go and speak to Architects. Get on their tender lists.
Always use a small works contract. I need to follow this advice myself!
Keep the site immaculate. Put a site toilet and skip on site.
Get a lock up and work from that.
Spell out exactly what is included in the price of the works and as importantly what is not included.
Don’t work weekends. Again I need to take this advice on board.
Get a book keeper.
Do your own house up and sell it. Do this every 3 years and you will have equity to invest.
Not all of the above can be done overnight but it should see you rise eventually but it’s not easy.
No guarantees and a friend of mine went personally bankrupt due to trying to build his business and messing with the VAT.
PM me and I will help where I can.
Good luck.
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