# Top 5 Obstacles to overcome.



## Chap (Aug 19, 2007)

As a small contractor/ small business owner what are the top 5 obstacles that are the hardest to overcome? When I was doing it full time mine were as follows.



I wore to many hats (salesmen, project manager, book keeper etc...
Employees- finding, keeping etc.....
Sub Contractors- always having to hold their hands through the job, not showing up when they said etc....
Advertising/ Marketing- Cost was always a factor
Dealing with profit and margin.
Dealing with the wife because she said I worked to much. (funny but true)
These are in no specific order. It would be good to know what the rest of the contractors here think. And then maybe we could talk about each one specifically and come up with a solution for each.


----------



## wyoming 1 (May 7, 2008)

yep that pretty much covers it for me It's easy to identify the problems lets hear some solutions.


----------



## Chap (Aug 19, 2007)

wyoming 1 said:


> yep that pretty much covers it for me It's easy to identify the problems lets hear some solutions.


Well let's see what other have to say and then we should start talking about each of them. I would say the first on my list was I wore to many hats and ironically that is the first one I typed in. 
To start with I think we need to learn to let go of some of the responsibilities of wearing so many hats, It's not because we want to wear them it' because we don't to trust anyone to handle it for us. So is trust an issue with you guys???


----------



## nlgutters (Dec 18, 2007)

I would say they are.

1 cash flow
2 employees
3 employees


----------



## Kent Whitten (Mar 24, 2006)

nlgutters said:


> I would say they are.
> 
> 1 cash flow
> 2 employees
> 3 employees


Here, let me finish the list of 5 for you

4 employees
5 employees

There...I helped someone today :laughing:

BTW Chap, you listed 6 :w00t:

Fitting it in with Family Life
Personal Development
Business Development
Training
Employees


----------



## Chap (Aug 19, 2007)

framerman said:


> Here, let me finish the list of 5 for you
> 
> 4 employees
> 5 employees
> ...


I know, My wife saw me typing and said I should add that as well, and I always listen to my wife . BTW you brought two very good struggles to the table with Personal and Business development.
I think for a lot of Blue collar workers and Blue collar business owners don't worry much about personal & business development and I'm not sure why. If a person is not learning every day they are missing out. One of the things I did was I started reading again, and everything I read is about personal and Business development. Thanks for bringing that up....


----------



## Chap (Aug 19, 2007)

nlgutters said:


> I would say they are.
> 
> 1 cash flow
> 2 employees
> 3 employees


For some reason I did not struggle much with cash flow, but I know a lot of contractors that do. I know it's tough to do now, but could you get a business line of credit?


----------



## Winchester (Jun 29, 2008)

I also wear way too many hats. Luckily, I don't have so much of an issue with trust. More like I can't afford to pay other people to run things right now.

I would love to have someone do the selling for me though. How would I pay a salesman? A basic salary plus commission? i.e. he'll make just enough to eat kraft dinner if he doesn't sell anything?

Also my employees are great, and my subs are pretty good as well.


----------



## pcplumber (Oct 12, 2008)

*5 Most important things*

In order of priority

Marketing
Closing Sales
Delivery of service
Managing employees - keeping them happy - getting maximum production
Business operations, record keeping, payroll, etc.


----------



## critter (Nov 27, 2008)

1. Read and attend seminars - speaks to self-confidence and leads to customer confidence, not to mention better product.2. Stay in touch with your customers, be personable but professional, not their good old buddy - but a trusted pro.3. Practice writing well. Your proposals, in your absence, are you. Represent yourself well or get a good writer to proof read your proposals for you.4. Aim to become known as one of the best - not one of the cheapest.5. Work a lot, sure, but shedule absolute family time. You will always regret time missed with family no matter how successful you become. Trust me.


----------



## WilsonRMDL (Sep 4, 2007)

I've only been in business for a few years now but agree with you guys on most of the obstacles. My biggest problem is trying to be the entire company, and when I'm working for the same client for a long time I dont find the time to get the next customers lined up and jobs bid, etc. I also dont make enough money to pay any office personel. I guess I just explained the solution to myself by writing this post. thanks guys haha


----------



## Chap (Aug 19, 2007)

*So is CASH flow the biggest problem????*

SO can we come to a consensus that cash flow is at the top of the list??? If so, is it something we can address and find an answer for?? 
One good example would be to renegotiate any Marketing or advertising and start doing a lot of it yourself. You could also Start to renegotiate any lease on property you have or are renting for your business. I know a guy who just negotiated to pay no rent for 6 months on a building he is leasing, and I am in a fairly healthy part of the country. We are in a period that has not been seen in along time. Brush up on your negotiating skills, and put them to the test.


----------



## callthefrog.com (Dec 18, 2008)

I agree it is cash flow. With out it you face no pay for subs, no advertising budget, vehicle and gas... thank God gas is somewhat reasonable. I got in a huge bind about 2 years ago. I had many jobs going at the same time, lots of subs wanting money before collections were due, one customer that couldn't pay on time. Wow what a mess. Since that time I have been chef, waiter and bottle washer! I sell, I furnish and I install... All me. No one to be accountable but me. I now find myself almost even, a little stress free. 100 percent committed to my clients with 100 percent satisfaction. However, I find myself not making 40 percent gross profit, no extra money for advertising and driving an old van. Am I on the right track? Or am I going backwards?


----------



## Chap (Aug 19, 2007)

callthefrog.com said:


> I agree it is cash flow. With out it you face no pay for subs, no advertising budget, vehicle and gas... thank God gas is somewhat reasonable. I got in a huge bind about 2 years ago. I had many jobs going at the same time, lots of subs wanting money before collections were due, one customer that couldn't pay on time. Wow what a mess. Since that time I have been chef, waiter and bottle washer! I sell, I furnish and I install... All me. No one to be accountable but me. I now find myself almost even, a little stress free. 100 percent committed to my clients with 100 percent satisfaction. However, I find myself not making 40 percent gross profit, no extra money for advertising and driving an old van. Am I on the right track? Or am I going backwards?


Well, I think there's a problem if your not making the profit you need to move forward. If you are 100% accountable for your actions as you say, then you are 100% the reason you are not making the money you want. 
I think it's time you take a good look at where you are now and where you want to be at the end of 2009, come up with a plan and some goals and work towards it. I'm not trying to be harsh, but this is the reality of life. I don't no for sure if you are going backwards but you may be stagnate.


----------



## Burby (Nov 25, 2008)

Chap said:


> SO can we come to a consensus that cash flow is at the top of the list??? If so, is it something we can address and find an answer for??
> One good example would be to renegotiate any Marketing or advertising and start doing a lot of it yourself. You could also Start to renegotiate any lease on property you have or are renting for your business. I know a guy who just negotiated to pay no rent for 6 months on a building he is leasing, and I am in a fairly healthy part of the country. We are in a period that has not been seen in along time. Brush up on your negotiating skills, and put them to the test.


I would think the greater problem would be combining family life & business life. 
Learn the important of each
Place each where should be in order of importance and business will be good & profitable. 
We become so involved in each, especially business life, because typically we take family life for granted, it should always be there. It's not always that way and to many in business find this out. So family life has to be # 1 on the list in my opinion. 
Family life is a combination of people working together, sharing task, enjoyment, good & hard times & time just being together. 
Business allows us to enjoy a better family life. 
With Business being just a notch below family life, (with time we put into it as well as importance), we have to apply productive time into our business. 
The value we hold & place into our family life will be reflected in our business. 
If you look at your family life, then look at your business life, (after years of each), you will see how each resembled the other. 

You see a business being operated with the left hand not knowing what the right hand is doing, you look into that owner's personal life and you will see his life, as a whole, operates in this manner. 
A well organized business, typically shows a well organized Owner in all aspects of his/her life. 
After years of of business and always trying to find time for my family without success, one day I stopped and looked at what is truly important to me in life. My family won out as # 1 thing. Business is what allowed us fluff things in life, not life itself.
From that day forward, business took 2nd row, I began to live for my family and business never was as profitable as it was from that day forward. 
My only regret in business is, that I did not learn this earlier in life. 
My only regret in 30 years of married life is not having another 30 years to enjoy together.


----------



## mnjconstruction (Oct 5, 2008)

:thumbsup:


callthefrog.com said:


> I agree it is cash flow. With out it you face no pay for subs, no advertising budget, vehicle and gas... thank God gas is somewhat reasonable. I got in a huge bind about 2 years ago. I had many jobs going at the same time, lots of subs wanting money before collections were due, one customer that couldn't pay on time. Wow what a mess. Since that time I have been chef, waiter and bottle washer! I sell, I furnish and I install... All me. No one to be accountable but me. I now find myself almost even, a little stress free. 100 percent committed to my clients with 100 percent satisfaction. However, I find myself not making 40 percent gross profit, no extra money for advertising and driving an old van. Am I on the right track? Or am I going backwards?


Its a tough life being a contractor. I have been where you are now, and i got there the same way you did. It happend to me about 3 years ago. I had to much on my plate and i ended up hiring guys that didnt really have the skill level to complete the jobs right. I ended up with unsatisfied costumers and even a few call backs. I spent over a month going around and fixing things that were done wrong. i fired everybody and started doing everything myself. But i founf i was not making enough money! I searched for over 4 months before i found my first guy. Then serched for another. I now have 4 guys working full time with about 6 subs from time to time. I make a great living. everything is done right. Half the time I dont need to go to the job sites, my foreman is wonderful and takes care of everything for me. Although he is very expensive. 2008 he made 78k. its alot of money but he's worth it. You have to grow your company to make more money. But make sure you do it slowly and find those right guys. your men is what makes the company! good luck to you!


----------



## Chap (Aug 19, 2007)

Burby said:


> I would think the greater problem would be combining family life & business life.
> Learn the important of each
> Place each where should be in order of importance and business will be good & profitable.
> We become so involved in each, especially business life, because typically we take family life for granted, it should always be there. It's not always that way and to many in business find this out. So family life has to be # 1 on the list in my opinion.
> ...


 I agree 100%, if a person has a good and productive family life then they will probably have a good and successful business as well. I think that a lot of people, not just contractors have their priorities backwards. This hit me when I had my first child and my life has not been the same since.


----------



## Zendik (Sep 18, 2005)

Training.
So many times I see tradesmen how have been in the industry for years start a business without any business training. It's like once you get that license you have a blanket document that includes business training and supervision training. We all had to be trained to become tradesmen then why do we forego it when our trade changes.....
I'd suggest some business class at your local community collage along with some leadership classes, at least....


----------



## Double-A (Jul 3, 2006)

I would say the top 5 things to overcome in small business would be



Planning
Failing to plan
Not thinking about failing to plan
Not asking others about failing to plan
Costs

Each time I sit down with someone to discuss his or her small business issue, I ask them to do the same exercise. List five things they will get done today, tomorrow, next week, next month and next year.

That is a list of 25 things. Most of the new folks I work with can't list five things. The reason seems to be that they don't a very proactive approach to business. Instead they act like a addict of some sort, running from place to place working on what has their attention at the moment instead of considering things in the order they should be doing them.

Five questions to answer when planning

What am I planning?
Who does this affect?
Why am I doing this?
When is it over?
What is gained in the end?

When you honestly answer these questions, you start to put things in perspective. The small business owner seems to have a hard time with that. They are too busy dealing with day-to-day things of running the business instead of working on the business. 

If instead you spend 10 minutes of your day setting priorities and planning your work day, then you have the rest of the day to work you plan. A half hour each week spent on planning your week, and you know what's coming and when. An hour planning your month, and you know what bills are due when and how you're going to pay them. A day in retreat spent brainstorming for next year and now you understand how to build backwards to your day-to-day work life and how to structure it so that at the end of the year, you can set new goals for next year.

A life unmeasured might as well be empty. Set goals and make plans for your life and your business. If you don't, others will. Married folks, especially those with kids know this all too well. The best planned Sunday in the garage under the hood of the truck turns into a rushed run for school supplies or taking care of the kid's problems instead of your own.

Such is life, and such is business. If you don't commit yourself to what is important to you in your life, you can count on others to commit you to what they think is important.

Plan, execute, succeed. It really is that simple.


----------



## Chap (Aug 19, 2007)

Double-A said:


> I would say the top 5 things to overcome in small business would be
> 
> 
> 
> ...


You Double A are a very smart man. what you said in this post pretty much sums it up. Goals should play a major role in every ones life and business, along with priorities, discipline and a plan to obtain. 
Discipline is what you do when no one else is looking! It's being considerate of the other person. Having good personal habits- you are polite, on time, and take care of business with pride. We must be disciplined as individuals first, and then as a business owner.


----------



## pcplumber (Oct 12, 2008)

*I see several flaws in your theory*

I changed my mind and remode this post.

Thanks anyways


----------



## rustyjames (Aug 28, 2008)

Really, what's up with the concept of "writing your goals down" you always hear about from the "experts." I mean, how big can your goal's be if you have to have a hard copy?


----------



## Chap (Aug 19, 2007)

rustyjames said:


> Really, what's up with the concept of "writing your goals down" you always hear about from the "experts." I mean, how big can your goal's be if you have to have a hard copy?


I'm not sure what your trying to say.


----------



## rustyjames (Aug 28, 2008)

Chap said:


> I'm not sure what your trying to say.


 
I was just echoing a comment that PC made in the post before mine. Basically, it was in reference to the necessity of having to "write down" ones goal's.


----------



## Chap (Aug 19, 2007)

rustyjames said:


> I was just echoing a comment that PC made in the post before mine. Basically, it was in reference to the necessity of having to "write down" ones goal's.


Gotcha..


----------

