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10 Simple Rules to Make Builders’ Lives Easier
Building’s a challenging game to play so we’ve compiled 10 simple rules to make every builder’s life easier (from hundreds of builders we interviewed)
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Rule 1. No Dickheads Policy
Whether they’re a client, subbie or consultant; permanently having to manage difficult people will drive you nuts.
Not only that, but they’ll probably annoy other team members/stakeholders that will just lead to distraction and frustration on site too.
Partner with people you feel share your values to save the grief.
It’s your business so own it!
Rule 2. Qualify Clients Properly
Working for any client who walks through your door can be painful, unprofitable and demoralising.
Instead, think of the clients you’ve loved working with, their project type, location and more.
For best practice qualification questions see 10 Questions Builders MUST Ask Prospects to identify the best clients for your business.
Rule 3. Cut-Throat Competitive Markets Will Kill You
If you’re operating in a market that’s fiercely competitive on price, there’s only one way to win the battle:
You MUST keep a competitive advantage by having a lower cost base than ALL your competitors.
If you don’t have the lowest cost base of all builders in that market, for your area, find another market – fast.
Move to another project speciality. Don’t bother competing in a battle you can’t win – it will kill you, your business, your health and possibly your marriage.
Choosing the right market for you will change your life (see rule 9).
Rule 4. Never Be Quote Fodder or the Price Checker
If you get the sense clients are just price checking, step back.
There’s a bunch of psychology around how builders should engage with clients, but the key point is that you MUST position yourself as a trusted expert to protect your margins and business.
For a quick study, read Trusted Expert or Just Another Builder?
Also, follow the steps in rule 5
Rule 5. Stop Selling & Charge for Your Engagement
Times have changed dramatically in the last few years and it’s all about value.
That doesn’t mean you should give anything away for free. Instead, you should be helping clients understand the value you bring just walking into their lounge-room for a chat about their project.
The easiest way to do this is to help clients answer their most burning questions. What we call the “BBQ stoppers”, rather than trying to sell your services.
We outline the top 5 questions you MUST in the article How to Charge for ProCalc Reports
Rule 6. Regularly Check Your Margins & Pricing
Builders don’t really share their margin or pricing information with one another.
So, when we interviewed hundreds of the builders, we were shocked at how few were staying up to date on their pricing.
The impact of this has played out recently with many builder going to the wall due to under-quoting.
If you’d like to test your pricing against market rates, book a free ProCalc trial
Rule 7. Engage a Business Coach
If you’ve never used a coach, it feels hard for you to quantify the value they bring.
Interviewing hundreds of builders, we’ve seen the dramatic impact coaching has on a builder’s bottom-line, mental health, retirement plans and outlook on life.
The key message is that a business coach will teach you in one year what will take you 10 years, alone.
Make sure they’re coaches who specialise in building, not generalists.
As a starting point, checkout Builders Business Blackbelt and/or Builders Coach.
Business coaches aren’t cheap but, from what we’ve seen, they pay for themselves several times over.
Rule 8. Quickly Assess and Implement Effective Technology
New technology for builders just keeps coming but the time and grief good technology can save you is off the charts.
The easiest way to assess new software is to spend an hour assessing it. Then, if you don’t feel confident about moving forward, walk away.
Use this method because good software should be easy to use as well as being useful.
Rule 9. Focus on One Specialisation
If you want to separate yourself from the pack, it’s important to position yourself as a specialist of one particular project type.
You might specialise in first floor additions, knockdown & rebuilds, inner metro renovations, granny flats or architectural builds.
It’s far easier to protect your margins as a specialist rather than competing with every builder going round.
Rule 10. Consistent Marketing
A huge pain point for most builders we interviewed was the feast or famine business cycle they experience.
Put simply, if you’re in the middle of a feast and you don’t have time to promote your business, a famine is inevitably on the way.
So, always set up marketing that will work – month after month or time your marketing for pre-planned bursts that occur easily when your busy feasting. Basically, plan ahead.
You Might Also Like:
- Builders, Get Your Pricing Right Every-time – No More Under-Quoting
- Transform Your Building Business in 43 Mins (webinar)
- How (& Why) to Charge for First Client Meetings
- Take a Free Trial of ProCalc
- Stop All Free Client Meetings – Charge Upfront
- Want more tips like these? Attend the Webinar: Work Smarter, Not Harder
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Richard Armstrong is a former registered builder who recently interviewed hundreds of experienced Australian builders to identify how they best manage clients, budgets and profitability.