Masonry Magazine September 2011 Page. 53
ADVERTORIAL
It's Comeback Time!
CONTRACTOR TIP OF THE MONTH
Has this recession kicked you in the teeth like it has almost every contractor in the country? Have you hit bottom yet? And, where is the bottom?
There are plenty of horror stories out there about how bad each of us got slaughtered during the last three years. The bigger your company was, the worse you got drained. (That doesn't work out very well for a fellow like me, who has several companies as the world comes crashing down.) When this happens, you either move fast to make cuts and changes, or go out of business even faster. Many decisions I had to make weren't popular, but they had to be made. However, due to my open-book management approach and incentive-based pay systems, my managers were experiencing the down turn with me. That made it easier as they could see in advance we had to adjust to the changing times.
With the banks and bonding companies breathing down my neck - telling me they were going to stop extending credit and bonds to the construction companies, and due to the blood bath two of my companies were taking, it was like we were down 24-7 in the last quarter of a football game. One company, alone, had dropped from $10 million in sales to $3.6 million virtually overnight.
I remember the meeting during which I told my people we had to do the unimaginable to save that company. We were going to have to turn sales around, even though no one was buying. That's when a dose of reality hit me like a freight train: The bad economy was here to stay. The first thing I had to do was stop blaming the sales problems on the bad economy and learn to adjust to it. In other words, I had to find out what was still selling and adapt to it. I told my controller and CFO, "If that ship is going down, I am going to be on it as the captain always goes down with the ship." I was going to work hands on, daily, with this one company until we fixed it, or suffer the embarrassment of failure together with the managers of that company. It was time to develop a comeback plan!
The plan included making enough cuts and changes to drop our break-even point from $700,000 per month to $400,000- not an easy task to accomplish. On top of that, we had to take sales that had dropped from an average of $800,000 per month to $200,000, back up to $500,000 per month. It was unthinkable that we could pull it off, but I rolled out the plan anyway.
Now, I will have to admit that I had a hard time believing my own plan at the time, but I knew we had no choice but to make it work as the alternative was fatal, not only for this company, but also for my other companies. Everyone immediately got on board with the plan, and only three months after rolling out the plan, we brought sales to the $400,000 monthly break-even point. Not too bad, considering we had 18 months of continuous losses when the plan was rolled out. Then, eight months later, we started exceeding our new $500,000 per month goal and have made a nice profit during the last six consecutive months. Wow, talk about a close one!
Is it comeback time for you? If so, here are a couple tips. First, look at your situation for what it really is, while understanding that we are now living in a different economy that is most likely here to stay. Second, make a plan based on that reality, and carry it out. You may be surprised by what your people can do when they have a "comeback" plan and a leader bold enough to lead them through it.
Damian Lang is a mason contractor in southeast Ohio and inventor of many labor saving masonry systems and products. He also is the author of the book "Rewarding and Challenging Employees for Profits in Masonry." To order a copy of his book, or to network with Damian on these tips or tips you have and would like published, contact him at diang@langmasonry.com or 740-749-3512.
Provided by Damian Lang, President of Lang Massery Contractors, Inc., and EZ Grast Corp.
COACH GARY SAYS:
Seek wisdom from others.
Before our next pity party, let's all resolve to remember the teenage girl and the 20-something pilot, both surviving and navigating the worst that life can throw at them. Rescued by paratroopers and rescued at sea: They survived, met each other, and live now in California.
And when you think about keeping that business of yours afloat and wonder how you can possibly do it, think about Herb and seven other guys, bleeding and bobbing around in the water. Now, that's really hanging on and keeping afloat. By comparison, what we have to do is just about a piece of cake, isn't it? You can do this!
Well, in spite of my prejudice because I was not allowed to exercise it - I met two of the most fascinating people ever. I've been on lots of cruises and enjoyed them all, but let me say this without hesitation: That dinner was the best part of the entire trip, and I almost missed it.
Let me encourage you to not make stupid judgments before you know all the facts. Seek wisdom and encouragement from those who have gone before you. Who knows? You just might find yourself someday with a chance to sit at the same table with Herb and Margo, and what a shame it would be for you to miss that. IMAS
Gary Micheloni is a working project manager, speaker, author, consultant and coach. White him at FullContact Team@gmail.
Copyright 2011 Gary Micheloni
COACH GARY'S CORNER:
Need a little wisdom and encouragement for 2011? Be sure and protect the economic freedom of your family and business. Coaching will help you get there in less time, with more success. Want Coach Gary to speak for your group, or coach your company? You can at least ask! Go to www.FullContactTeam.com, and click on the links for the resources (below the arrows). The report is FREE; not knowing the info is very expensive! And, get FREE scheduling help from www.MicrosoftProjectClasses.com, so that you can enter public works contracting, Go there now.