Your mind-set determines your success

By Richard DiToma

I am blessed to have, and enjoy, the opportunity to speak with many contractors across our great free country. I love helping them replace wrong strategies with sound business plans. By the time these calls are completed, most of those contractors realize that my theories and methods are based on logic and the fundamentals of mathematics. And, they come to understand and agree with my philosophy. In order to implement my techniques, they just have to properly alter their mindsets and give themselves an opportunity to reach their goals.

However, some erroneously think the business atmosphere in their area is unique. They think the remedies of which I preach can’t work in their area because of that misconstrued distinction. They feel that they don’t have the costs and problems of contractors in other areas. To this I often reply in one word, “BULL”!! I point out that the way they’re operating at present obviously doesn’t seem to work either. If it did, they wouldn’t be on the phone seeking my advice. I’m certainly not complaining that they called. I love the opportunity to help them. I’m just stating a fact in a conversation.

The common denominator of all areas is the fact that two plus two equals four in the big city as well as down on the farm. The common problem in the industry is that the numbers used for costs and arriving at prices are often incorrect. And, those flawed numbers lead to all the other problems contractors face. Geographic variables such as land costs that determine rent or the cost of living in any area can make dollar amounts of any line item operational cost different. But the line item they represent is the same within reason. You might not have the need and cost of a cooling system in Alaska as you would in Florida. However, you will have more heating costs.

It’s simple. Income - expenses = profit
And since, two plus two only equals four, it equals no less and it equals no more anywhere on earth. Contractors must pay for services and items they need to run their businesses. Putting aside the pricing practices of individual business enterprises they patronize, some costs like a gallon of gas, or the price of a new truck are often close to the same across our great land. But, even when the dollar amounts are not the same, there is some cost to the items needed to run a PHC contracting business.

The problems contractors face also are usually similar. As I sat down to pen this article, the concept of writing a letter from a contractor who represents a compilation of those who call me seemed like a good idea. Upon reflection I realized I would have to write two letters. One would be from the perspective of a one-truck operation which may consist of one person who does the technical labor and administrative duties and/or include a spouse who addresses the administrative duties. The other would be the thoughts of the contractor that has people working in his/her employ. In the interest of space I decided to confine both letters to one. In brackets after the thought I will put a “1” for one truck operations, an “M” for multi truck operations and both “1” and “M” for the thoughts which come from both types of contractors. Keep in mind, the thoughts I use in this hypothetical letter are from actual contractors like yourself or those you know:

Dear Rich:
I have been in business for several years. I’ve been reading your articles in Phc News and enjoy them very much. The reason I am writing is to express my concerns about my business and seek your advice in hopes of improving it. The best way I can think of doing this is to give you my thoughts as they pertain to my business. (The following is a compilation of contractor thoughts I have been told. They don’t all come from one contractor.)

1. I work many hours, yet, I don’t seem to get ahead.
2. I work many hours, but I can’t get, and keep, good help.
3. I work many hours, but could bring in the same money if I had another job. I’m already putting in more hours than two jobs.
4. My spouse is annoyed at the amount of time I spend working.
5. I don’t have time to enjoy my family.
6. My bills are paid. But, I am not making the money I should for the hours I work.
7. I’m having a difficult time getting the bills paid.
8. My wife (or husband) does the paperwork while I’m on the road doing the contracting work. She (he) thinks she (he) should be paid for doing the paperwork, answering the phone, etc.
9. My wife (husband) does the paperwork while I and my technicians are on the road doing the contracting work. She (he) thinks she (he) should be paid for doing the paperwork, answering the phone, etc.
10. I’m not sure that the prices I charge are right.
11. My customers don’t complain about my prices.
12. Customers complain about my prices.
13. We’re always busy, but, not profitable.
14. If I get more work, I’ll be able to bring in more money. But, since I’m already always busy I’ll have to get more help.
15. I can’t get good help in my area.
16. I charge people on a time & material basis.
17. If I charge consumers more, I’ll lose business.
18. Consumers don’t appreciate the value I deliver to them.
19. Consumers don’t like paying for my services.

Can you help me, Rich?
Sincerely,

A PHC contractor who knows the technical part of the industry and has come to realize I know little or nothing about business.

Did any of those sound familiar? The reason anyone would contemplate that any of those aforementioned thoughts pertained to their business is because their intelligence is telling them something is wrong. It’s the same reason you, as a human, feel pain. Your system is informing you that something is wrong. When you feel pain you seek to stop the pain. If it’s a headache, you may take medications that will relieve the pain. If you feel nauseous, you probably won’t eat until your nausea ceases. The act of not eating sometimes gives your system a chance to balance out. Sometimes you must take a medication that will assist the process. In all cases you must identify the cause before prescribing the protocol you will use to get better. It’s the same with your business.

In 99.99% of instances, you are the cause of your own problems and those that have become pervasive in our noble industry. The only way to solve problems is to:

1. First identify them;
2. Not deny their existence;
3. Seek solutions to the problems;
4. Correctly implement those solutions.

Hey, that’s me!
I try to write articles that will help you identify and/or solve problems. If you have any subjects you would like to see addressed, let me know. I am often told by readers that they thought I was writing about them in any particular article. That’s because the problems contractors face are the same. If you have any questions you wouldn’t mind sharing with others through my “Ask Rich!” column, I wouldn’t mind sharing my thoughts about solving those problems with everyone. And, you will not only be helping yourself; you will be helping the industry of which you are an integral part. This industry needs to be fixed.

If you have ever contemplated any of the thoughts of the aforementioned contractor compilation and do not change your mindset, you will forever wallow in the muck and mire of your own erroneous ways.

But, by correctly changing your mindset and implementing correct business procedures you will be able to earn the money you deserve for the value you deliver to consumers. You won’t have to look for good help because good help will seek you. By delivering excellence to your clientele instead of mediocrity, consumers will also receive a benefit. And, all those nasty aforementioned thoughts will become part of the past.

As an aid to help contractors solve their problems my Problem Solvers’ Club can offer confidential and cost effective strategies as part of my SOLUTIONS SUPPORT SYSTEM for contractors. Never fear! Help is a phone call or e-mail away; but you must take the first step.