WFCA - Premier Flooring Retailer Magazine D3'23

The official magazine of the World Floor Covering Association

Premier FLOORING RETAILER

The Power of Employee Feedback

It’s Vital and Effective

The War on Non-Competes

Are They Enforceable?

Introducing High Margin Products

Featuring Technology

Installation Shortage Crisis

Ways YOU Can Help Cybersecurity Risks in the Flooring Industry

The official magazine of the World Floor Covering Association

Premier FLOORING RETAILER

Floor Covering Education Foundation Partners with Go Carrera for Long Term Funding and Recruit Placement Services

Stacy Eickhoff, Sr. Vice President, Risk Strategies and Allen Blount, Cyber Team leader at Risk Strategies

The Power of Employee Feedback: Why It’s Vital & How to Make it Effective Freida Staten, V.P. of Marketing, Communications & Membership

The War on Non-Competes: Are They Enforceable?

Jeffrey W. King, Jones Walker, LLP, Outside General Counsel for the WFCA

Concrete Moisture Testing for Residential Flooring

Jason Spangler, Wagner Meters’ Flooring Sales Manager

Lewis Davis, Senior Director of Technology and Research

Jeanette Chasworth, ASID Certified Interior Designer, author, and color expert

32 Branching Out: Considering Alternative Revenue Sources

Chad Ogden, President/QFloors CFO

How Smart Leaders Use the 10x Rule to Clarify Everything in Their Business 44

The World’s Best Carpet Cushion

Scott Humphrey CEO, WFCA

Seeking Excellence as Leaders

Thismonth the WFCA launched a pilot of the first industry wide leadership certification. SEAL Certification stands for (Seeking Excellence As Leaders). I believe it may be one of the most important endeavors the WFCA ever undertakes. Through the years I have found it is impossible to change the world around us without changing those who lead.

Many seem to think that leaders have arrived and no longer need to invest in their own growth, but Randy Gravitt of InteGreat Leadership, the company with whom we are partnering to provide SEAL Certification, notes that “all true leaders are learners.” Just as successful businesses allocate money for research and growth, serious leaders must commit time, effort, and resources to their own personal and professional development. This willingness to continually invest in oneself is vital for personal growth and is required for leading others in a manner worthy of being followed.

Leadership is often talked about, written about, and presented, but in today’s world of rapid change, uncertainty, and complexity make the need to stay sharp greater than ever. The challenges we face as leaders are complicated and demand a willingness to think outside the box. In this environment, true leaders must be learners with a strong sense of self-awareness. This can’t be learned in a once and done manner, but requires consistent investment in yourself over time.

Let’s look momentarily at the alternative. Chances are you have worked for or with a leader who thought they had arrived at their peak of knowledge and skill. It is like the “Emperors new clothes” — the story about the emperor who paraded naked through the streets believing he was wearing clothes made of such fine material that only the truly elite could see them. Everyone knows when the leader quits learning before the leader. Not only is the learning journey a lifelong one, but the best leaders readily admit that they have not arrived. By committing to continuous growth, leaders remain relevant.

An often overlooked advantage of continued leadership training is adaptability and resilience. Lifelong learners are better equipped to navigate challenges, change course quickly, and help their team through challenging times of change.

Another reason to invest in your own leadership is the example you set, Leaders are more than simply decision makers; they are role models. A leader who is a learner sets a strong example for their team, their community, their children, etc… This creates a culture of inquisitiveness, growth, and learning. When employees see their leaders embracing new challenges to continue their growth, they are more likely to do the same.

An often overlooked advantage of continued leadership training is adaptability and resilience. Lifelong learners are better equipped to navigate challenges, change course quickly, and help their team through challenging times of change. The ability to adapt quickly without going into panic mode is one of the most admired traits

So why would the WFCA launch SEAL Leadership Certification for the flooring industry? The leadership journey is ever changing, and the need to invest in yourself to adapt to that change is non-negotiable. When you commit to lifelong learning, you are showing your commitment to personal and professional success, and influencing others to do the same. Just as good sound financial investments pay a dividend over time, there is a compounding effect for those who commit to stay the course as a learner… on leadership effectiveness, influence, and ultimately on impact! ■

magazine of the World Floor Covering Association

Premier FLOORING RETAILER

A Special “Thank You” to all the manufacturers and their marketing departments who provided outstanding editorial to make this publication a success.

Publishing Staff

Margo Rodgers Locust, Publisher

Karen George, Managing Editor

Stan Michelson, Communications Director

Toelke Associates

Ron Toelke, Creative Director

Amelia Toelke, Project Designer

Editorial and Advertising Offices:

Fabulous Floors Magazine, LLC

Phone: 678-761-5002

Email: Margo@pfrmag.net

This Issue’s Guest Columnists

Allen Blount, Cyber Team leader at Risk Strategies, where he guides businesses on navigating cyber risks such as ransomware attacks

Jeanette Chasworth, a.k.a “The Color Whisperer,” color expert and designer based in Southern California

Contributing Writers

Chad and Trent Ogden, QFloors

Jason Spangler, Wagner Meters

WFCA

Scott Humphrey, Chief Executive Officer

Freida Staten, VP of Marketing, Communications & Membership

Steve Abernathy, Chief Operating Officer

Kay Wiley, Executive Assistant to the CEO

Contributing Columnists

Lisbeth Calandrino, Lewis Davis, Scott Humphrey, Tom Jennings, Jeffrey King, Stacy Eickhoff, Freida Staten

The World Floor Covering Association (WFCA)

Phone: 855-330-1183

Email: wfca@wfca.org

Premier Flooring Retailer is a joint initiative of the World Floor Covering Association and Fabulous Floors Magazine, LLC.

Copyright © FABULOUS FLOORS MAGAZINE and WFCA 2023.

All rights reserved. No portion of this publication may be reproduced in any way without written consent from Fabulous Floors Magazine, LLC or the WFCA.

Change of Address: in order to ensure the uninterrupted delivery of Premier Flooring Retailer, notice of change should be made at least 5 weeks in advance.

Premier Flooring Retailer is published quarterly in print and digital by Fabulous Floors Magazine, LLC located at 572 Main Street, Andrews, NC 28901 and the World Floor Covering Association located at 855 Abutment Road, Suite 1, Dalton, GA 30721.

Postmaster: Please send address changes to WFCA, 855 Abutment Road, Suite 1, Dalton, GA 30721.

Although every effort has been made to ensure accuracy and timeliness of information, Premier Flooring Retailer Magazine cannot be held responsible for discrepancies, typographical errors, discontinuance of product nor color reproduction.

Just as successful businesses allocate money for research and growth, serious leaders must commit time, effort, and resources to their own personal and professional development.

The official

Floor Covering Education Foundation

Partners with Go Carrera for Long Term Funding and Recruit Placement Services

Througha newly formed partnership, Go Carrera and the Floor Covering Education Foundation are expanding efforts to recruit and train new installers while simultaneously ensuring that these new folks track their progress, build their skills, and are able to easily connect with flooring and installation companies in need of skilled labor.

The FCEF’s mission is to bring awareness to the opportunities in the flooring industry, recruit new talent, aid in the funding of student education, and facilitate job placement for individuals interested in becoming a flooring installer.

Go Carrera is a labor management platform that provides software solutions to manage quality, productivity, scheduling, communication, lien releases, and payments. With a robust and growing network of independent flooring installers with verified skills and experience, each installer on the network is scored in each of the major flooring disciplines using Go Carrera’s patent-pending Hammer Rating System.

To facilitate this connection between flooring and/ or installation companies to the new recruits, Go Carrera developed Jumpstart — a dynamic job board that allows Go Carrera’s Hammer-Rated network of flooring installers to browse-then-hire from a pipeline of new recruits as they come into the industry… at no cost. This new feature (coming mid-year 2023) will be available to any independent installer on the Go Carrera Network that holds a minimum Hammer Rating in one or more of the major disciplines, as well as any subscribing flooring contractor using Go Carrera to manage their own installation operations. Jumpstart provides the on-ramp for a new recruit’s proper placement as well as tracking their training progress — now and into the future of their flooring career.

“As a part of our mission, FCEF is committed to providing job placement assistance to individuals that

have received scholarships to approved beginning level training programs.”, shared Kaye Whitener, Director of Operations for FCEF. “It is important that these new training graduates be placed with installation professionals that are not only properly trained themselves, but ones that will properly mentor them and reinforce the skills they were taught in class. Partnering with Go Carrera provides the FCEF with a valuable resource to promote and place recent training graduates with high-quality professionals.”

Additionally, as part of Go Carrera’s Giveback program, it is dedicating up to $100 per subscribing company per month toward the mission of the FCEF. “It’s a win-win for the flooring industry,” says Paul Stuart, Founder of Go Carrera. “The fact is, the $100 number is significant in more ways than one. Benjamin Franklin was known for saying ‘…when you are finished changing, you’re finished.’ We want to drive positive change in our industry by helping set new installers on a course of being ever-changing and growing — always improving. By partnering with the FCEF, we are doing just that.”

“We are incredibly grateful to Paul Stuart and the team at Go Carrera for their generous commitment

Spring 2022 graduates

to financially support the FCEF with a long-term sustainable plan,” shared Jim Aaron, Executive Director of the FCEF. The FCEF is a private industry foundation; meaning we are solely industry supported. We can only do the work we’re challenged to do on the installation labor crisis when we have funds to maintain operations and provide scholarships to new recruits. I thank Go Carrera for the innovative example they are setting for the rest of the industry to follow.” ■

A Strategic Partnership

The FCEF was established to support the floor covering industry in several ways depending on the current needs of the industry. The mission of the FCEF is to bring awareness to the opportunities in the flooring industry, recruit new talent, aid in the funding of student education, and facilitate job placement for these individuals into flooring industry careers. To learn about supporting the FCEF in their efforts to end the installer shortage and support the education and training of professional flooring craftsmen, visit fcef.org or flooryourfuture.com.

Go Carrera is a labor management platform that empowers independent installers and flooring companies to track work and perform their best with labor management tools and resources that are second to none. Want to help? Consider contributing to the FCEF’s mission directly. If you’re a flooring contractor or independent installer, join Go Carrera today.

By Stacy Eickhoff and Allen Blount

Cybersecurity Risks in the Flooring Industry

Flooring businesses rely on technology, but if you’re like most, you don’t consider yourself a technology expert. You’ve read news headlines about cyberattacks and know cybersecurity is important. Beyond that, you may think, “We’re just a flooring company. Why would cybercriminals be interested in us?” Unfortunately, these bad actors are targeting the flooring industry — in part because they assume we aren’t focused on cybersecurity.

Here are five important cautions:

1. Monitor your website continuously

Many flooring businesses, particularly smaller ones, build their own websites — sometimes with the help of a contractor, friend, or family member. With userfriendly “drag-and-drop” platforms like Wix or WordPress, non-technical people can build an attractive web presence for a reasonable price. Once the site is live and functioning smoothly, business owners tend to move on to other activities and may not give the website much thought.

Unfortunately, ignoring a site can open the door for cybercrime. Take WordPress, for example, which powers over 40% of the world’s websites. Of this 40%, over a quarter (or 10% of websites globally) have not updated to the most current version of WordPress. Businesses running older versions do not have the latest security patches.

Further, WordPress relies on “plugins” to provide various functionality, such as e-commerce capabilities. A simple website may have 10, 20, or more plugins to facilitate email, contact forms, online payment, and so forth. Each of these plugins can serve as an entry point

for a cybercriminal and requires regular updates.

The takeaway: Your website can become out-of-date and vulnerable quickly. Just as a car requires maintenance, so does your website. You need to “look under the hood” once a month or more often. In addition, you need a way to detect unexpected activity 24/7. If you’re not a techie, find an expert who can provide guidance.

2. Train your team to spot suspicious emails, texts, and calls

Several studies show human error contributes to more than 80% of cyberattacks. The Computing Technology Industry Association (CompTIA) puts the number over 90% . Common mistakes include clicking on a malicious link in a phishing email or falling prey to a social engineering attack. In the latter, a cybercriminal builds trust with the victim then tricks them into sharing data or sending funds.

If “phishing” and “social engineering” aren’t familiar terms, that’s a sign your organization is particularly vulnerable to cybercrime. All employees need regular training on types of cyberattacks, warning signs to look for, and prevention protocols. Further, you want to establish rules for handling sensitive requests and large invoices.

For example, cybercriminals engage in invoice manipulation. You think you’re paying a legitimate invoice, and your funds instead go to a criminal’s bank account. Establishing procedures for verifying invoices can prevent this type of financial fraud.

Similarly, if an employee receives a request to change a supplier’s bank routing information, what is your procedure for confirming the request is authentic?

About the authors Stacy T. Eickhoff, a risk management and insurance expert, has been advising the flooring industry and construction businesses for over 20 years. Allen Blount leads the Cyber Team at Risk Strategies, where he guides businesses on navigating cyber risks such as ransomware attacks. Before his insurance career, he practiced law.

3. Implement cybersecurity best practices

Imagine leaving your showroom door wide open at night so anyone could walk off with your products or equipment. Many flooring businesses are doing the equivalent with their cybersecurity. Practices that put you at risk include:

● Using short, easy-to-guess passwords such as Carpet123

● Utilizing the same password for multiple websites

● Sharing passwords with employees, instead of having each person create a unique, secure password

● Failing to update software (some businesses skip updates because they don’t want to pay for the new version; however, the old version doesn’t have the latest security features)

● Allowing guests to connect to the same Wi-Fi network you utilize for running your business

● Avoiding two-factor or multi-factor authentication because “it’s a hassle”

These are just a few examples of poor cyber hygiene, and criminals are waiting to walk through these “doors” you leave open. To protect your business and customers, learn and implement cybersecurity best practices. And stay current — the cyber landscape is ever-shifting.

4. Safeguard your business and personal electronics

Top line: Do not leave any electronics unattended in your place of business or other public settings. Second, do not use any public charging stations or peripherals of unknown origin (such as charging blocks, cables, or USB memory sticks).

In less than a minute, a cybercriminal can extract data from an unattended laptop in your flooring showroom. Or, they might place a “Ninja cable ” on your desk, where later, an innocent employee uses it and infects your network with malware.

At trade shows, avoid accepting (or giving out) flash drives, charging cables, and similar devices. If a mem-

ory stick arrives in the mail, treat it with extreme caution. If you’re not 100% sure you’re using a legitimate, known cable or memory stick, don’t risk it. If you feel a flash drive might contain important information, have an expert test it to verify it’s safe.

5. Recognize your responsibility for customer data

Flooring businesses often outsource payroll or other administrative activities involving personal information such as names, addresses, taxpayer ID numbers, and so forth. Even when you outsource to a trusted vendor, your business remains responsible for your customers’ and employees’ data.

Consider this example: Let’s say you own a Georgia-based flooring company that does extensive business in California. Your credit card processing vendor experiences a data breach. In California, the law “requires a business to notify any California resident whose unencrypted personal information was acquired, or reasonably believed to have been acquired, by an unauthorized person.”

Even though the cyberattack happened to a vendor’s system and not yours, your Georgia business may have an obligation to communicate the data breach to your California customers. If you learn of a vendor data breach involving your customers’ information, consult your legal counsel and cyber insurer for guidance.

The flooring industry can fight cybercrime together

Criminals target non-tech businesses, because they assume you don’t have strong procedures in place to protect your data. They view you as an easy target who is looking the other way. Let’s work together to prove them wrong. WFCA members can request a free cybersecurity assessment. ■

To learn more, contact seickhoff@risk-strategies.com

The Program

As WFCA’s newest endorsed partner, CHIPD provides cost-effective, and timesaving, state-of-the-art online payment solutions to leverage technology to accelerate payments, increase cash flow, decrease accounts receivables (AR), and reduce office interruptions and administrative costs.

www.ChipdPay.com

With over 20 years of experience in merchant payment processing, CHIPD understands how to navigate high transaction volumes, chargebacks and other factors affecting the flooring industry.

CHIPD Payment Gateway

Giving your customers different payment options allows you to accept payments easier and faster. This solution allows for payments at the front desk, over the phone, across

office locations, the ability to set up recurring payments AND customer payments from your website, allowing them to pay anytime, at their convenience, 24/7! The CHIPD Gateway also allows multiple businesses to have credit card processing funds deposited into separate checking accounts through one system. All your reports in one spot!

Approval Process

CHIPD makes it as easy as possible to get your new account up and running quickly. Credit card processing is a banking product, therefore sponsoring banks and processors are required to meet certain federal mandates. As part of the USA Patriot Act, passed in 2001, banks are REQUIRED to get certain information, like social security numbers and financial information.

As a WFCA member, CHIPD offers you a payment processing program tailored to your business needs:

• The ability to accept credit, debit and mobile wallet payments

• Competitive processing costs

• Extremely competitive processing rates

• No long term contract

• 24/7 customer support

• Businesses can use existing equipment

• Cutting edge credit card hardware available to purchase or lease

• Variety of add-on services available including gift card and loyalty card programs

Savings

Members can save an average of $8,000 in fees per year.

Tom Jennings is a lifelong member of the flooring business. Since selling his family’s retail business in 2006, he has served the industry as an educator and speaker. He is a past board chairman of the WFCA and is currently the board chairman of WFCA Services, Inc. He may be reached at tomg.jennings@gmail.com

Feeling Secure

It’sno secret that employees both want and need job security. It is obvious to all that employees are more productive and loyal to their company if they feel that their contribution is important and valued. Yet in spite of this knowledge, it seems as if many owners and managers go out of their way to make their staff nervous about their futures. Let’s examine a few ways that sense of security can be built.

First, remember that a sense of security does not mean that things won’t change. Changes happen constantly in retail. The cruelest thing that any employer can do in the big picture is to minimize change. To do so means that the business is likely falling behind its competition. This cannot make anyone’s employment more secure over time since less competitive will surely mean less business. This in turn will mean fewer and less fulfilling jobs for all concerned.

Employees do, however, want to always know what changes are brewing and the thought process behind them. They need to trust that their management will keep them informed on topics that will impact both them and their fellow workers. Good managers nurture that trust by regularly communicating how things are going, not only in this business, but in the marketplace as a whole. The key is to always be honest with your staff. While you cannot, and should not, tell everything that you know — don’t misrepresent reality. When the inevitable changes do occur, your staff will realize that you are making considered responses to the business plan, and that they are not being victimized by a knee jerk reaction.

Employees will watch closely every word that you say, and every action that you take, on virtually any subject. They will notice how you speak about, as well as directly to, any fellow worker. Use this to your advantage. Never miss an opportunity to build up an employee’s value to the organization. Missing the chance to do so is regrettable, as negative remarks almost never have good consequences. As Homer Simpson so eloquently stated in the cult classic Simpson’s movie: Why is it that everybody that I whip runs away? While this was obviously said in jest, unkind or harsh comments when discussing employees can have the same effect. The tone in your voice can have a powerful effect on how your staff views their company. Be careful!

Tom Jennings

Retail Training Expert

Whether real, or imagined, your staff’s perception will be that they are constantly drawing the short stick. The more generous that you are with both your money and your praise, the less of an issue this will be.

It also stands to reason that employees feel secure when they see their management taking great care in managing the companies’ resources. No good employee wants to see the wasting of time or money on what they consider to be trivial matters. The attitude will quickly become one of “there’s plenty of money for that, but never any more for me!’ Very understandable.

I would also remind you though, that these same observations are being made regarding your personal lifestyle. Most floor covering stores are not big corporations. They are smaller operations where the personal lives of management are almost always intertwined with the business. This is not to say that you cannot enjoy the fruits of your efforts. You should. Involved employees will realize that you have an investment in both time and money that they have not made. I’m merely suggesting that management be careful not to give the impression that they are living life at a level that the majority of their staff cannot understand. Whether real, or imagined, your staff’s perception will be that they are constantly drawing the short stick. The more generous that you are with both your money and your praise, the less of an issue this will be.

Job security to most people usually boils down to their feelings about the management of the company that they have chosen to associate with. It is your job to affect these feelings in a positive way. Properly doing so will result in more content employees, thus ensuring your job security as well. ■

The key is to always be honest with your staff. While you cannot, and should not, tell everything that you know — don’t misrepresent reality. When the inevitable changes do occur, your staff will realize that you are making considered responses to the business plan, and that they are not being victimized by a knee jerk reaction.

ENGINEERED FLOORS

The Finishing Touch

Finishing Touch is an upscale LCL (looped cut pile) carpet from DreamWeaver Carpet. It is the perfect choice for those who want to bring updated design along with affordable luxury into their home. Finishing Touch features new tonal colorations using updated delustered fibers, which give it a soft, matte finish. It is available in 16 updated colorways, including simplified neutrals and earth tones.

The unique pattern design of Finishing Touch uses linear elements to complement the natural linear visuals of wood flooring planks. The linear elements in the carpet help to create a cohesive look that is both stylish and functional. This makes Finishing Touch a perfect complement to wood, LVT, and laminate flooring. It is a versatile, patterned carpet that can be used in a variety of rooms in the home, such as bedrooms, living rooms, family rooms, and hallways.

Finishing Touch is made of Engineered Floors’ industry-leading 100% PureColor® SD BCF polyester yarn. PureColor® is a premium yarn that is stain-resistant, fade-resistant, and pet-friendly. It is made with a unique manufacturing process that locks in the color, preventing it from fading over time. PureColor® is a great choice for any area in today’s busy household. ■

Finishing Touch features new tonal colorations using updated delustered fibers, which give it a soft, matte finish.

Freida Staten V.P. of Marketing, Communications & Membership, WFCA

The Power of Employee Feedback: Why It’s Vital & How to Make It Effective

Intoday’s ever-evolving business landscape, companies recognize that their most precious asset is their workforce. Attracting and retaining exceptional employees demands unwavering dedication and effort. As an employer, positioning yourself as a market leader requires more than just competitive benefits; it necessitates fostering an environment where employees genuinely feel valued and cared for.

Central to this pursuit of excellence is the power of employee feedback. Employees are hungry for feedback from their leaders, managers, and peers. They want to gain insights that advance their abilities and future potential. And more than ever, feedback is pivotal for engaging employees: Gallup’s Annual Workplace Survey reveals a striking connection between meaningful feedback and employee engagement. Employees strongly agree that when they received “meaningful feedback” in the past week, they were almost four times more likely than other employees to be engaged.

Feedback is an indispensable tool, guiding organizations toward success by illuminating blind spots and uncovering opportunities for improvement. When employees’ voices are heard, valued, and acted upon, it creates a profound sense of ownership and engagement that fuels innovation and elevates organizational performance.

Feedback doesn’t have the best reputation. It’s awkward and challenging, and the thought of it can leave you and your employee tense. But employee feedback, both positive and constructive, plays a critical role in understanding employee wellbeing, resiliency, and engagement.

However, with daily operations’ constant hustle and bustle, it’s easy to move on to the next task without investing time in meaningful feedback. But here’s the crucial truth: feedback doesn’t hinder performance; it fuels it.

As an employer, positioning yourself as a market leader requires more than just competitive benefits; it necessitates fostering an environment where employees genuinely feel valued and cared for.

The vital word here is “meaningful.” Not all feedback is created equal. Traditional lengthy employee-manager discussions with exhaustive performance ratings may have worked in the past, but in today’s fast-paced world, this approach is often impractical, ineffective, and difficult to execute.

A more meaningful — and approachable — way to give feedback is quickly and frequently. When feedback is easy and commonplace, everyone can feel at ease and walk away knowing what and how to improve. And as this process becomes part of the norm, a culture of meaningful feedback — the ultimate goal — will emerge.

Frequent feedback has several powerful benefits for organizations:

● Promotes agility by empowering teams to make real-time performance adjustments.

● Inspires excellence as employees feel more motivated to do outstanding work with daily feedback.

● Boosts talent retention by providing purpose-driven work and recognition from their manager, accelerating their progress.

In fostering a feedback culture, managers play a central and critical role. Gone are the days of one-sided performance reviews; today’s best managers have evolved to embrace a coaching mindset. They prioritize continuous listening, asking questions, and engaging in meaningful dialogue with their team members. Through ongoing conversations, these coaching aficionados deliver energizing feedback that celebrates successes and fine-tunes performance.

But not all feedback is created equal. Based on Gallup’s science, frequent feedback is a game-changer in today’s workplace, driving better outcomes and growth. Here’s what sets it apart:

Frequent & Timely: Regular feedback, a few times a week, is crucial. Timely responses after actions reinforce positive behavior and address issues promptly.

Focused & Personalized: Tailor feedback to individuals, recognizing unique strengths and contributions. Clear expectations guide efforts toward goals.

Future-Oriented & Growth-Driven: Emphasize what lies ahead, learn from mistakes, and inspire improvement.

In conclusion, embracing the principles of frequent feedback can lead to a culture of continuous improvement and exceptional performance. When feedback is frequent, focused, and future-oriented, employees feel empowered to grow and contribute at their best. ■

When feedback is easy and commonplace, everyone can feel at ease and walk away knowing what and how to improve.

Gone are the days of one-sided performance reviews; today’s best managers have evolved to embrace a coaching mindset. They prioritize continuous listening, asking questions, and engaging in meaningful dialogue with their team members.

Jeffrey W. King, Jones Walker, LLP Outside General Counsel for the WFCA

Jeffrey King has more than 35 years’ experience in complex litigation with a focus on contracts, employment, construction, antitrust, intellectual property and health care. He serves as legal counsel for WFCA and other trade associations, and is a LEED Accredited Professional. For more information, contact him at (561) 278-0035 or jeffw@jkingesq.com.

The War On Non-Competes: Are They Enforceable?

Non-compete

agreements have become a common tool to protect employers from employees that leave and use what they learned to compete against their former employers. A non-compete typically prohibits a former employee from working for a competitor or starting a competing business for a set period of time (often six months to two years) in the area where the former employer does business.

A non-compete limits an employee’s future employment options, keeping them from leaving their current employer to seek a new job, start a competing company, or working in the same industry as their former companies. As a result, non-competes are often interpreted very narrowly and have been found unenforceable if they are too broad, cover too large an area, or are for an extended time period. The courts also often require the former employee to justify the need for a non-compete, such as protecting trade secrets or confidential business information.

In recent years, non-competes have been under increased scrutiny, with state and federal legislature and agencies questioning their enforceability. Four states, California, Minnesota, North Dakota and Oklahoma, have banned non-compete agreement, and New York recently passed a prohibition prohibiting non-compete agreements. Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington proscribe non-compete agreements unless the employee earns above a certain salary threshold. Other states, like Iowa and Kentucky, limit the use of non-competes for certain professions such as lawyers, physicians, and other healthcare workers, effectively banning non-competes for all other industries.

The federal government has also considered restricting non-competes. The Federal Trade Commission (FTC) has proposed a rule that would universally ban the use of non-compete clauses in employment contracts across all industries. The proposed rule, announced by the FTC in January 2023, is based on a preliminary finding that non-competes constitute an unfair method of competition. The FTC’s new rule would make it illegal for an employer to enter into a non-compete with a worker, or to enforce existing non-compete with a worker. The rule has yet to be finalized, and, if implemented, it will likely be challenged in the courts and implementation could be significantly delayed.

Moreover, the general counsel of the National Labor Relations Board (“NLRB”) issued a memorandum stating that “non-compete clauses; no solicitation clauses; no poaching clauses and other provisions” constitute an unlawful labor practice under the National Labor Relations Act unless they are “narrowly tailored to special cir-

* WFCA submitted extensive comments opposing the ban on non-compete agreements as an important tool to protect small businesses.

cumstances justifying the infringement on employee rights.” Like the FTC proposal, the NLRB limits the justification for a non-compete, and stated that non-competes on “low-wage or middle-wage workers who lack access to trade secrets or other protectible interests” are likely unenforceable. An NLRB general counsel memorandum is not binding law, but outlines the theories that the general counsel will pursue. Accordingly, all flooring retailers and contractors need to review their use of non-competes, whether in a state that prohibits non-competes, limit their application, or have yet to pass legislation restricting non-complete. By reviewing their non-competes now, flooring retailers and contractors will be able to make any necessary future adjustments if the proposed FTC band on non-competes is ever implemented or the dealer’s state imposes new restriction.

Recommendations for Employers

While many states still allow the use non-compete agreements, courts and governmental agencies are increasingly declining to enforce non-compete agreements if they are unreasonably broad or cannot be justified. Flooring retailers and contractors should consider taking the following actions:

Know The Law In Your State? Restrictions on non-compete agreements vary from state to state. Some states limit the types of employees or set a minimum salary, set a maximum duration, or what type of information that can be restricted. The states also vary when a non-compete can be imposed. Louisiana and Alabama statute provides that non-compete agreements may not be entered into before employment has begun, while other states, such a Colorado and Illinois, require a non-compete agreement be presented to the employee at least 14 days before employment begins. Similarly, some states, like Alabama, require the non-compete be in a separate signed agreement, while other states, including Illinois and Massachusetts, also require the agreement to include a provision that expressly states that the employee has a right to consult with counsel before signing the agreement. Other states do not specify the need for a signed written agreement. It is important to know these unique limits and requirements in each state that a flooring retailer or contractor operates.

Are You Protecting A Legitimate Business Interest? A basic issue raised in reviewing non-compete agreements is what legitimate business interests are being protected. Employers should be able to identify the business interests that require the protection of a non-compete agreement, such as a company’s confidential business information, client lists, vendor relationships, investments, product development, and other con-

Restrictions on non-compete agreements vary from state to state. Some states limit the types of employees or set a minimum salary, set a maximum duration, or what type of information that can be restricted. The states also vary when a noncompete can be imposed.

fidential information. It is key to check what limits are imposed by state law. Many states allow a non-compete to prohibit a former employee from soliciting customers during the term of the non-compete. In contrast, other states, such as Colorado and Montana, specify that the former employer cannot prohibit soliciting customers.

Which Employees

Need To Sign?

Employers should only use non-compete agreements with employees whose departure would actually pose a risk to the business interests protected. A court might consider whether the employee was a key employee, whether the employee possessed significant confidential information, or whether the employer invested significant expense or resources in providing education or training to the employee. You must also know what limits your state law may impose. For example, in the state of Washington, a non-compete cannot be imposed on employees earning less than $116,593.18. Similarly, the salary limit in Colorado is $101,250, and $108,575.64, in Oregon. Other states, such as New Hampshire set the limit based on two times the minimum salary, and Rhode Island sets it at 2.5 times the federal poverty level. In Nevada, non-competes are unenforceable against hourly employees, and in Massachusetts are limited to employees who are exempt from overtime under the Fair Labor Standards Act.

Is The

Non-Compete Limited in Duration?

Another common reason that courts refuse to enforce a non-compete is that the agreement restricts the employee from competing for an unreasonably long amount of time. The duration of the agreement should not exceed the time reasonably necessary to protect the employer’s legitimate business interests. What is considered reasonable varies according to the facts and circumstances surrounding the agreement. Some states set a maximum time limit. Oregon, for example prohibits non-competes that exceed 12 months, Washington presumes a term of 18 months is unreasonable, and Louisiana has a two year limit.

A court might consider whether the employee was a key employee, whether the employee possessed significant confidential information, or whether the employer invested significant expense or resources in providing education or training to the employee.

Other states limit when a non-compete can take effect. In Maine, a non-compete entered into after September 18, 2019, will not apply unless the employee was with the company for at least one year. Even without such a law, most courts will consider the duration is reasonable. As a general rule, six months is likely to considered reasonable, and any time over 2 years will be suspect.

Is The Area Reasonable? Non-Competes usually describe a restricted area in which the employee cannot compete, such a certain distance from the employer’s facility or in certain counties or towns. The geographic area covered in a noncompete agreement must not be larger than is reasonably necessary to protect the employer. Courts will not enforce a non-compete if it covers too broad of a territory. Whether a geographic limitation is reasonable will depend on where its potential clients or customers are located as well as on the locations where the employer is doing business. Generally, most courts will not enforce a noncompete that covers an area where the employer has no clients or business interests. Like determinations of a reasonable duration for a non-compete, the geographic restriction should be tailored to your business, and circumstances.

And check state law to see if there are any restrictions. Louisiana, to illustrate, requires the restriction identify specific parishes, municipalities or other area and is limited to the geographic area where the employer conducts a similar business.

Did The Employee Get A Benefit? The courts will often consider whether the non-compete was simply imposed without providing the employee with anything of value in return. Generally, providing a job offer is sufficient consideration, but imposing the restriction on current employees can raise questions. Many state laws specify that continued employment is not sufficient consideration.

Is The Scope Reasonable? A noncompete agreement cannot be too broad. A prohibition for working for another local flooring retailer may be permitted, but prohibiting working for any retail in construction supply business may be too broad. Similarly, prohibiting an employee from working in the flooring industry would likely be too broad and unenforceable.

Consider Alternatives to Non-Competes

If in a state that outright prohibits non-competes or limits their use to specific industries, there are several alternatives that provide safeguards for a businesses. Even if in a state that has less restriction, flooring retailer and contractors may want to consider using these alternatives to avoid the concerns raised with non-compete agreements. If a non-compete agreement is ruled too board or otherwise unenforceable, the employer may have no protection unless it has included these alternative safeguards.

The geographic area covered in a noncompete agreement must not be larger than is reasonably necessary to protect the employer. Courts will not enforce a non-compete if it covers too broad of a territory. Whether a geographic limitation is reasonable will depend on where its potential clients or customers are located as well as on the locations where the employer is doing business.

Non-Disclosure Agreements (NDAs) And Confidentiality Agreements (CAs). NDAs and CAs are contracts designed to protect confidential business information, client lists, vendor relationships, investments, product development, innovative practices, proprietary software, and other confidential information. By signing an NDA or a CA, employees agree to keep such information confidential during and after employment. It is key that the NDA and CA clearly define what confidential information is covered. NDAs and CAs focus solely on protecting confidential information, allowing individuals to pursue their careers by working for competitors or starting their own ventures. As a result, the courts often are less skeptical of NDAs.

A key disadvantage of NDAs and CAs is that the employer will have to prove that the former employee used the confidential information. In contrast, to enforce a non-compete, all that needs to be proven is that the former employee is working for a competitor or starting a competing business in the area specified in the non-compete agreement. In addition, if clients follow the former employee on their own, NDAs and CAs may not provide any protection. As with non-competes, the flooring retailer and contractor needs to check the law in their states, as some states restrict what can be included in an NDA or CA.

Non-Solicitation Agreements. Non-solicitation agreements prevent former employees from soliciting the flooring retailer or contactor’s clients, customers, or other employees. Non-solicitation agreements safeguard the former employer’s interests without impeding employee’s changing jobs or starting a new competing business.

Non-solicitation agreements have limits. If clients, employees, or vendors follow the former employee on their own, a non-solicitation agreement may not provide any protection. The agreement prohibits the former employee from poaching client, vendors, and employees, not accepting business they did not solicit. And again, state restrictions need to be understood. Colorado and Montana, for example, do not allow agreements that prohibit soliciting customers.

“Claw-backs” Provisions. Claw-backs allow an employee to recoup funds they invested in an employee’s training or education if they leave the company within a specified period. The period and the amount recouped must be reasonable. A claw-back that required repayment of the full amount of the training costs after three years would likely be unreasonable. To avoid these issues, flooring retailers and contractors should consider specify the amount that needs to be paid back based on the

length of post training employment. For example, the agreement could provide the employer must pay 100% if they leave within 3 months, 75% if leave after 6 months, 50% at 12 months, 25% after 18 months, and 0% if stay for two years or more.

Forfeiture-For-Competition. This contract provision provides an employee who leaves to join a competitor or to start a competing business will forfeit a benefit, such as deferred compensation, future payments, incentives, and accrued vacation. This provision creates a consequence for competing, rather than prohibiting such competition. As with all contracts, state law needs to be reviewed to determine whether such a provision is permissible and whether there are any restrictions on such provisions. For example, a number of states do not allow the forfeiture of accrued vacation.

“Garden-Leave” Provision. An employer can pay a departing employee to not work for a period of months. While not as common in the United States, these clauses are used widely in Europe, where non-compete clauses often cannot be enforced.

Conclusion

As federal agencies, state legislatures, and the courts are increasingly becoming skeptical of non-competes, flooring retailers and contractors should review with competent legal counsel any non-competes it has with its employees to ensure the agreements are reasonable and meet state limits. Alternatives to non-competes may provide protection of a flooring retailer or contractor’s confidential business information. While a non-compete or alternative provision will not be needed for every employee, flooring retailer and contractor should consider the best means of protecting that its key confidential business information that is consistent with state law and will likely to be upheld by the courts.

The information contained in this article is abridged from legislation, court decisions, and administrative rulings, should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel. ■

It is key that the NDA and CA clearly define what confidential information is covered. NDAs and CAs focus solely on protecting confidential information, allowing individuals to pursue their careers by working for competitors or starting their own ventures.

As federal agencies, state legislatures, and the courts are increasingly becoming skeptical of non-competes, flooring retailers and contractors should review with competent legal counsel any noncompetes it has with its employees…

WAGNER METERS

Concrete Moisture Testing for Residential Flooring

When you install residential flooring over a concrete slab, there’s one step that is crucial to ensure a beautiful, long-lasting floor.

That step is testing the moisture condition of the concrete. Unfortunately, it can get overlooked in a residential setting. If you don’t do it before you install the finished floor, you risk a moisture-related flooring failure. And that means the possibility of unhappy customers, expensive callbacks, and even harm to your reputation.

So, let’s take a close look at:

Jason Spangler

Wagner Meters’ Flooring Sales Manager

Jason Spangler has more than 25 years’ experience in sales and sales management across a broad spectrum of industries. He has successfully launched a variety of products to the market, including the original Rapid RH® concrete moisture test.

Jason, who received an MBA from West Texas A&M University in November 2018, has extensive industry involvement, including the National Wood Flooring Association (NWFA), the International Certified Flooring Installers Association (CFI), and is Vice Chairman of Associations for The Flooring Contractors Association (FCICA). Call Wagner Meters today at (844) 533-9100 and ask for Jason or visit www.wagnermeters.com

● Why concrete moisture testing is so important

● Two common methods of testing for moisture in concrete

● How to use the results of your concrete moisture test

Why Is Concrete Moisture Testing Important?

Concrete can fool you. While the surface of a concrete slab may seem perfectly dry, the inside of the slab can tell a different story.

Never assume concrete is dry enough for floor installation simply by looking at it. Water is one of concrete’s three main ingredients, along with cement and aggregate. After the initial pour, the water within the slab will gradually make its way to the surfaces and evaporate. As the slab dries, a moisture gradient will form, with the levels of moisture deep within the concrete being higher than at the surface. This moisture gradient is the reason you cannot go by appearances. You must test for moisture to make the right decision about when it’s safe to install. Otherwise, you risk a whole host of problems. Excess concrete moisture will mess with adhesives, and in the case of wood flooring materials, it could cause issues such as buckling, cupping, and warping. It could even lead to the growth of mold or mildew.

So, what are your options for testing concrete moisture levels?

Never assume concrete is dry enough for floor installation simply by looking at it. Water is one of concrete’s three main ingredients, along with cement and aggregate.

Two Common Methods of Testing for Moisture in Concrete

In residential settings, you have two primary options for moisture testing. They are relative humidity (RH) testing and the use of a concrete moisture meter.

Relative Humidity Testing

With this method of testing, you drill holes to a specific depth and place RH probes in the holes. After waiting 24 hours, you can take RH readings for an accurate picture of the overall moisture condition of the slab.

When you install residential flooring over a slab, don’t overlook the crucial step of concrete moisture testing.

Hardwood floor problems: focus on cupping

Important tip: Always adhere to ASTM F2170 guidelines to ensure test results you can rely on.

The Rapid RH L6 system by Wagner Meters makes the RH test especially fast and easy to perform. With the L6 system, a smartphone app—the DataMaster L6—is also available to simplify the collection and storage of your RH data. Plus, other options and accessories can automate the entire testing process.

Testing with a Concrete Moisture Meter

For residential installations, you may prefer a handheld moisture meter over RH testing. It’s a fast and non-destructive way to learn about the amount of moisture in the slab. But keep in mind that you’re only measuring moisture in the top ½” or 1” of the slab, and the ASTM standards don’t recommend you use these measurements to make a final installation decision.

Be sure to use a meter that’s specifically calibrated for concrete, such as the C555 concrete moisture meter by Wagner Meters. The C555 can identify moisture “hotspots” for strategic placement of RH probes.

How to Use the Results of Your Concrete Moisture Test

The primary purpose of moisture testing, of course, is to inform your decision about when to install.

Many flooring manufacturers specify acceptable levels of concrete moisture for their flooring product. You’ll want to follow these specifications so you don’t risk a problem with moisture.

The results of your testing should also inform any necessary moisture mitigation measures if you find that moisture levels are too high. Alternatively, you could consider a different flooring material that’s less susceptible to moisture issues.

In a Nutshell

Whenever you install flooring over concrete, always remember to test for moisture. The RH test is preferred for accurate, reliable test results.

Some businesses without another option default to the concrete moisture meter. And though testing with a concrete moisture meter is not an accepted ASTM method, it may improve the probability that the moisture content is acceptable for the installation.

By carefully considering the moisture condition of the concrete slab, you will be able to avoid potential problems caused by excess moisture. ■

For more information about moisture testing in concrete, visit WagnerMeters.com or call toll-free at (844) 533-9100.

RH testing gives accurate, reliable results and is the preferred method for assessing the moisture condition of a concrete slab.

If you use a handheld moisture meter to test a slab, make sure that it’s specifically calibrated for concrete.

Lewis Davis Senior Director of Technology and Research

What Do I Need to Participate in fcB2B?

You’ve heard about fcB2B but want to know more about how to participate. Congratulations on taking the first step to becoming more efficient. Who can participate in fcB2B? Any company in the flooring industry that does business with another company. What do I need to participate in this program? That depends on your type of business. Let’s break down the requirements for manufacturers, distributors, and retailers.

Manufacturers and Distributors

To participate, you need to have a computer system that contains your products and prices. Having this information stored in spreadsheets will make participating in fcB2B a little more difficult. You will need a way to translate your data into the fcB2B EDI format. That can either be a commercial translator, custom written translator, or a third-party EDI service provider. The first 2 options will require people skilled in transforming data into the EDI format. The last option may lead to faster implementation but will require additional costs. Another option is to use the new Non-EDI Product Catalog. This is a fcB2B standard spreadsheet format that can be imported by customers using a flooring specific software package that supports fcB2B imports. This spreadsheet allows the same attributes as the EDI version but in a much easier format to create and maintain. Providing the product catalog is a huge benefit for your customers. Allowing them to submit PO’s electronically can be a huge benefit for both you and your customers. Just because a PO is submitted electronically doesn’t mean that you have lost control of this process. The same business rules that apply to your website order processing and your manual order processing can still apply to the fcB2B PO. Companies validate the PO prior to creating a live order and either suspend the order for someone to review, reject the order if it fails a validation, or create the order if correct. A PO Acknowledgement is created to convey the status and potential order number back to the customer. Providing ordering via your website may be beneficial for you, but your customer has multiple suppliers that they are placing orders for via multiple websites. This can be very inefficient for them to login and navigate through multiple sites just to place a single order. By making life easier for your customers, your sales may increase.

Allowing [your customers] to submit PO’s electronically can be a huge benefit for both you and your customers.

Retailers

To participate, you need to have a computer system that supports the fcB2B process. It can be the traditional automated process or an import process that supports the new fcB2B non-EDI product catalog. If you are using QuickBooks, you will need to upgrade to a true flooring specific software package. There are some packages that provide a stand-alone package for fcB2B process and allows QuickBooks to continue as your financial application. QuickBooks is a great application for what it does, but it’s not designed to support the level of detail that is provided by suppliers using the fcB2B standard. It also doesn’t allow you to generate PO’s using the fcB2B standard. Whether you are generating 5 purchase orders a week or 500, you may find that using fcB2B will simplify your back office and make you more efficient. fcB2B offers many business functions to streamline your entire business, from product and price changes to processing invoices to checking stock and placing reserves. Making your business more efficient can mean big savings to your bottom line.

Check the fcB2B website at https://fcb2b.info/connections/ to see if your suppliers are members. If your supplier is not showing to be a member, please complete this short survey (https://bit.ly/22fcB2Btps), so I can contact them about joining fcB2B to support their customers. You can also help by using the fcB2B Form Letter for Suppliers on the fcB2B website under the Resources > Files tab. This provides a template that you can download and send to your supplier or update to include a personalized note before sending.

Visit our website at www.fcb2b.info and click on the Resources tab to learn more about fcB2B. The Members > Connections tab has a listing of the members who support fcB2B.

Do you B2B? If not, why not? Contact me to find out how to be more efficient in your business.

Contact Lewis Davis at 706-217-1183 ext. 132 or via email at ldavis@wfca.org ■

Whether you are generating 5 purchase orders a week or 500, you may find that using fcB2B will simplify your back office and make you more efficient. fcB2B offers many business functions to streamline your entire business, from product and price changes to processing invoices to checking stock and placing reserves.

QuickBooks is a great application for what it does, but it’s not designed to support the level of detail that is provided by suppliers using the fcB2B standard.

Set Yourself Apart. Become CFI Certified.

MAY

Converse, TX

Hardwood / Laminate / LVP

May 11-12

Naperville, IL

Carpet Residential I Certification

May 17-18

Hardwood / Laminate / LVP

May 19-20

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May 25-26

JUNE

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All Levels Carpet Certification

June 2-3

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Resilient Residential I Certification

June 19-20

Wichita, KS

Carpet Residential I or Commercial I Certification

June 28-29

All Levels Carpet Certification

June 28-29

Carpet Residential I or Commercial I Certification

June 28-30

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Advanced Commercial Carpet

June 27-29

JULY

Wichita, KS

Hardwood / Laminate / LVP

July 13-14

Carpet Residential I or Commercial I Certification

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July 31-September 1

SEPTEMBER

Wichita, KS

1 Week Intro to Hardwood / Laminate / LVP

September 11-15

OCTOBER

Phenix City, AL

Hardwood / Laminate / LVP

October 5-6

Wichita, KS

Carpet Residential I or Commercial I Certification

October 18-19

All Levels Carpet Certification

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Huntington, IN

Master II Carpet Certification

October 26-28

By Jeanette Chasworth Author of the Amazon

The Magic of Color

Tips to help your customer choose a color palette

Thefloor is the foundation of the home’s color palette and should work with all the colors in the rooms where it’s used. Typically, people are more likely to have the same flooring throughout a home, as it provides some continuity.

The floor should not be the same color as the furniture but should provide contrast. Many of today’s flooring options have several different tones to provide interest, depth, and blend with more different types of décor. The floor should enhance the colors of the rest of the furniture. When one is creating the home’s color palette, it is telling a story as each color means something different. The floor should enhance all the other colors in the home. Ideally, one should create the look all at once but that is not always possible.

With so many flooring options to choose in wood, stone, tile, resilient, lvt, and carpet… the colors, textures and patterns are endless! Be cre¬ative with the patterns for something really unique.

Color is such an intrinsic part of the home and the flooring is one of the most important decisions. It is the foundation of the color scheme, and just like foundation makeup, it should enhance all the other colors that work with it. The home décor tells your customer’s story and should make them feel good. Help them select several colors and bring them home to try in order to make sure that they get the right flooring. This is a decision that will last many years so make sure it’s right. The floor is a big investment and a little help will reap many rewards. ■

Above left: Manuscript 8049 Ellis . Adventure II 5001 Canyon; above right: Manuscript 8224 Liberty . New Standard Plus 4022 Druidstone. Inspiration Boards courtesy of Engineered Floors

BECAUSE OF YOU,

We are making a difference.

Our associate members – manufacturers, suppliers, and distributors – are the backbone of our organization, making it all possible. Because of you, we are able to further our mission of transforming lives and passionately advocating for the success and profitability of our members and the industry as a whole. Your investment in the WFCA has enabled us to create a thriving community, paving the way for innovation, growth, and prosperity.

Click here to join or renew today.

The World Floor Covering Association is a nonprofit. How can you not support somebody as an associate member when their sole focus and purpose is the betterment of the entire industry?

- Bob Fish VP and General Manager, Retail Sales, Cali Floors

Chad Ogden, President/QFloors CFO

Branching Out: Considering Alternative Revenue Sources

We’rehearing reports that residential replacement has slowed down a bit, and some retailers are considering branching out into different sectors. Diversifying can be a great way to build your business and fortify it against downturns. However, it can also come with some risk. Here are some of the pros and cons of each potential opportunity.

Sister Product Lines

This is undoubtedly the easiest way to expand. Adding new product lines to your offering can bring in new customers, or increase the ticket amounts from existing customers. For instance, if you’ve always specialized in soft surface, you can add hard surface products. Or perhaps a specialist in ceramic tile might consider adding LVT, LVP, etc.

Or you can look beyond flooring and offer companion products such as countertops, cabinets, lighting, or window coverings, just to name just a few.

Branching out in this way will require some overhaul of your showroom and website. Also, keep in mind that it’s very important that you include these new search terms in your digital marketing efforts as well.

Co-founders Chad and Trent Ogden.

Multi-Family Housing

Garnering clients such as apartment complexes, hotels, or college dorms can be a great way to build repeat business, as individual units need to be updated regularly. However, landing these projects takes a concerted sales and networking effort. It is very competitive. You’ve got to be very consistent in your outreach, and it sometimes takes time to get your foot in the door. But with persistent efforts, it may just be that when their current flooring provider screws up, the relationship is there and you are ready to step in.

One thing to keep in mind is that the margins for multi-family housing projects are typically much smaller, due to the competitiveness of the field.

Main Street Commercial is very similar in nature to Multi-Family Housing, in that you’re doing replacement on existing buildings. Here’s another opportunity for repeat business, as a landlord might own 5–6 buildings, and a strip mall might have rotating tenants with different flooring needs. As with MFH, it takes consistent marketing and networking efforts over time to build these types of partnerships.

New Construction and Designers

Getting work from custom home builders and interior designers provides another opportunity for diversification. As with Multi-Family Housing, creating the relationships to foster this kind of project requires conscientious, focused sales outreach. This category is typically quite competitive, and margins tend to be lower.

In addition, there is a bit of a higher risk with new construction because you don’t get paid as promptly. You often have to wait until the project or phase is completely finished, which is dependent upon many other factors. Delays in construction are common, and sometimes that can affect how soon you get paid. But if you’re okay with that caveat, new construction and designers can be great partners in bringing large, repeat business.

Adding new product lines to your offering can bring in new customers, or increase the ticket amounts from existing customers. For instance, if you’ve always specialized in soft surface, you can add hard surface products. Or perhaps a specialist in ceramic tile might consider adding LVT, LVP, etc.

Commercial

Bid commercial work (as opposed to main street commercial) is very specialized. It’s one of the harder segments to break into, because it requires a lot of expertise. The processes and skills required are markedly different than that of a retail operation. Commercial estimation and bids have a slim margin of error. If your bids are too high, you won’t ever win the jobs. If your bids are too low, you lose money.

In order to be successful in the commercial sector, you need to master several things. You must find ways to be aware of jobs coming up for bid. There are lists that you can subscribe to that will help in this effort. You must learn estimation software and the ins and outs of doing takeoffs. You must also become an expert in finding the sweet spot for bidding.

So expect to either hire a key employee with experience in all of those things, or commit to go through the learning curve yourself, which may require time and patience.

When creating bids and estimates, you’ll need to use a takeoff estimation software such as Measure Square. This can make a huge difference in how many bids you can complete in a day. Once you start to win those bids, the internal execution of these large commercial jobs can be difficult. The billing requirements

can be quite complicated (like AIA) and will require time and effort to master. QFloors offers specialized tools for the bidding, project management and billing to help manage these complex processes. Furthermore, unlike most other systems, QFloors allows you to do both commercial and residential replacement processes all within the same software.

Although commercial can be challenging to break into, it also brings many benefits. The jobs you get are typically larger and go on for a much longer period of time. So once you land the sale, you have ongoing steady work you can count on for a while. In addition, the likelihood of being paid on a monthly basis is very high with commercial. So it lessens the stress of worrying over what the next month’s revenues will be.

In summary, sometimes branching out is a great way to build your business. But it’s wise to think before you jump. QFloors is happy to be your partner no matter what your specialty. We have the tools to help you run operations efficiently within any of these segments and product lineups, and would love to help you grow and expand into new territories. ■

QFloors offers specialized tools for the bidding, project management and billing to help manage these complex processes. Furthermore, unlike most other systems, QFloors allows you to do both commercial and residential replacement processes all within the same software.

The World’s Best Carpet Cushion

100% HIGH DENSITY MEMORY FOAM CARPET CUSHION

Made of 100% high density memory foam, Healthier Choice Carpet Cushion offers the luxurious comfort you want while providing the support your carpet needs.

Healthier Choice Cushion’s dense, micro-cellular structure cushions every step by acting like millions of tiny shock absorbers, all owing your carpet to look newer and last longer.

NEVERCRUSH

The appearance retention warranty for any brand of residential carpet is instantly doubled when installed over Healthier Choic e Carpet Cushion.

The only carpet cushion to be awarded the UL GREENGUARD ® Gold Certification for indoor air quality as an extremely low VOC emitting product.

Healthier Choice Cushion is infused with Ultra-Fresh ® antimicrobial protection to prevent the growth of harmful mold, mildew and bacteria.

A revolutionary Breathable Moisture Barrier keeps liquid spills from penetrating down into the cushion while allowing moisture vapor to escape.

The only carpet cushion made with more than 50% soybean oil and natural minerals which reduces the use of fossil fuels while supporting sustainable alternatives.

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Our product is monolithic (all one substance), so it is 100% waterproof throughout and has a lifetime waterproof warranty.

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Matches most installed flooring to include tile, carpet, wood, or laminate without the need to build up substrate

Minimal floor prep required vs. SPC easy leveling, no telegraphing

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Limited Lifetime Residential Warranty

BUSINESS EVALUATION SERVICES

By Nick Sonnenberg and Carl Phillips

How Smart Leaders Use the 10x Rule to Clarify Everything in Their Business

This rule is a simple way to eliminate everything that won't work and hone in on what will.

Are you tired of striving for consistent growth, trying to figure out a hundred different ways to grow your business by 10 or 20 percent year after year? Well, here's a radical idea: What if I told you that achieving 10x growth might be easier and more straightforward than you think?

In a world with so many avenues for business growth, I recently stumbled upon a refreshing and truly profound concept in Dan Sullivan and Benjamin Hardy's latest book, 10x Is Easier Than 2x. I'll admit the title had me skeptical at first, but knowing that it was devised by Sullivan, considered by many to be the top entrepreneurial coach of all time, and Hardy, an acclaimed organizational psychologist and leadership expert, I figure I'd give it a chance.

And I'm glad I did. I quickly learned a simple mindset shift that every entrepreneur should consider--one which has the potential to revolutionize the way you approach the trajectory of your business.

The Infinite Dilemma of 2 x Growth

As an entrepreneur and efficiency consultant, I understand how difficult it is to grow a business, let alone 10x. On a personal level, I'd be happy to double my business— and that sure as hell sounds easier than growing it 10x.

But the problem with setting a goal of 2x growth or even incremental growth of 10 to 20 percent is that you're often met with an overwhelming array of possibilities. It's like trying to choose from an infinite buffet of tactics and strategies. As a result, your focus becomes scattered and your efforts diluted.

10 x Clarity

Now, imagine asking yourself, "How can I grow my business by 10x?" Suddenly, the noise clears and the answers become more apparent. You see, significant growth rarely comes from small changes or doing more of the same things incrementally. Instead, it stems from laser-focusing on one or a few game-changing strategies.

In his book, Hardy references the work of Alan Barnard, a leading expert on decision-making, who calls this phenomenon 10x clarity. By setting an audacious goal, you challenge your assumptions and open your mind to new, innovative ideas. With the noise filtered out, you identify the critical few actions that can lead to exponential growth.

When you shift your thinking to 10x instead of 2x, Hardy and Sullivan say it becomes "absurdly and even comically obvious which strategies, relationships, or

behaviors won't work." And they're so obviously right. I've thought of hundreds of different ways to grow my business, but if I were to consider only those with the potential for 10x, the list gets smaller. A lot smaller.

Pushing the Limits

So, how do you achieve the seemingly impossible? It starts by stretching your goals beyond what you think is feasible. As we've seen, aiming for 10 percent or even 2x growth leaves room for endless possibilities, but 10x growth forces you to think differently.

Operating outside the bounds of past norms and assumptions is what allows true breakthroughs to happen. By daring to test the limits, you become receptive to groundbreaking approaches that were previously overlooked.

What you'll find is that, really, there are only a few ways to grow any business by 10x. They're typically big game-changing moves that will require significant time and effort from your team. It's going to be scary--but when you consider the potential upside, it's often worth the risk.

Unlocking Your 10 x Potential

Ready to unlock your business's 10x potential? Here are a few steps to get you started:

● Identify the one big thing: Analyze your business thoroughly and identify one or a few game-changing strategies that could lead to exponential growth. You may want to brainstorm this with your team.

● Create your roadmap: Figure out what would need to happen to make those strategies work, and map out the projects required to achieve them. This becomes your roadmap for the next few quarters or years.

● Set impossible goals: Implement a goal-setting framework like OKRs to clarify exactly what you want to achieve. Embrace the audacity of setting seemingly impossible goals. Push beyond the boundaries of what you think your business can achieve.

● Weed out distractions: Say no to anything that doesn't align with your 10x vision. Keep the lights on, of course, but push low-priority projects to the side and commit fully to your one big thing.

● Embrace the journey: Remember that achieving 10x growth is a journey, not an overnight miracle. Commit to sustained effort and focus on the longterm results.

See? I was a skeptic too, but when you break it down like this, 10x starts to seem a lot more reasonable than it sounds.

You can't expect a miracle overnight, but the premise is simple: Aiming for 10x growth is the best way to simplify and clarify your business strategy. By challenging your assumptions and setting audacious goals, you'll uncover the hidden potential that will drive your business to unparalleled heights.

And one more important reminder: Always stay connected with your customers. Regardless of how you think you product should perform, look, smell or whatever it's the customer's opinion that counts. We're here to help you with product launches, market studies, moving product off your customer's shelves or whatever. Give us a call, we'd love to stand in the shadows an watch you grow. ■

Business Evaluation Services, PO Box 507, Arroyo Grande, CA 93421, 888-300-8292

Stepping It Up

Technical School Programs

Making flooring education more accessible to students…one school at a time.

One of the contributing factors leading to the enormous lack of qualified flooring installers is the absence of any structured training program within the technical and community college systems.

Accessible Training for Tomorrow’s Flooring Craftsmen

One of the contributing factors leading to the enormous lack of qualified flooring installers is the absence of any structured training program within the technical and community college systems. Other trades, with which we compete for talent, have long been present in these vital community-based education centers. We at the FCEF strongly believe that the duplication of a viable and sustainable technical college program across the country will be essential in making long-term progress in mitigating the installation labor issue.

Our pilot program is operational now at Georgia Northwestern Technical College (GNTC). We partnered with GNTC in Dalton, GA to create a 10-week program introducing students to the four major categories of flooring and teaching them basic skills and techniques. That program has received accreditation and will be moving to a full semester program.

What’s Next?

The next step is to bring replicate this program in schools across the nation. We’re looking for FCEF Champions who can help us connect with these trade schools and get these programs started. We’ve already done the heavy lifting of creating a curriculum and have documented the resources needed.

If you’d like to help us connect to your local trade school, please consider signing up to be a Trade School Champion in your area. ■

We at the FCEF strongly believe that the duplication of a viable and sustainable technical college program across the country will be essential in making long-term progress in mitigating the installation labor issue.

One of the contributing factors leading to the enormous lack of qualified flooring installers is the absence of any structured training program within the technical and community college systems.

Our pilot program is operational now at Georgia Northwestern Technical College (GNTC).

Turning Pennies into Solutions

Penny Per Square Foot Partners

Supporting the FCEF and helping to grow your business with the availability of qualified flooring craftsmen can be as simple as one penny per square foot. We’re working with suppliers to make supporting FCEF simple.

Just One Penny….

The shortage of flooring installers impacts the entire industry from retailers to distributors and even the largest suppliers. FCEF is here to bring the industry together and work toward solutions that will have a positive impact on the entire industry. But, in order to do that, we need the entire industry’s support. A small donation of one cent per square foot may not seem like much, but those pennies add up, and when you think of the billions of square feet of flooring sold each year, those pennies start to make a lot of sense.

Just think, if every supplier created a penny a square foot program and all retailers and distributors participated, we’d have all the funding we need to spread awareness about flooring installation trades, scholarship new recruits, and help get more flooring installation education programs into schools across the nation.

With one penny donated per square foot to support the training and development of our flooring craftsman, we could:

Monthly Donation with FREE Awareness Kit

Your ongoing support helps FCEF fund more scholarships and awareness initiatives. Simply choose your monthly amount, set it and forget it! All monthly donations of $100 or more will give you access to our Digital Awareness Kit. You will receive an email after your donation with details on how to access the kit.

Thank you for your support!

• Scholarship training for thousands of new recruits to enter the flooring craftsman trade.

• Spread awareness to make sure that flooring installation is considered among those entering the trades.

• Develop flooring courses in technical schools across the nation.

• Bring more training opportunities to the communities that need them.

A penny a foot… makes a world of a difference.

How can we find solutions together?

The Floor Covering Education Foundation

855 Abutment Road, Dalton, GA 30721 Phone: (706) 529-8002 Email: info@fcef.org

FCEF is here to bring the industry together and work toward solutions that will have a positive impact on the entire industry.

WHAT WE DO - MEDICAL FINANCIAL ASSISTANCE

The Floor Covering Industry Foundation is a 501(c)3 non-profit that provides financial assistance grants to floor covering industry workers and their family members who are battling life-altering illnesses, catastrophic injuries, and other severe disbilities.

WHO WE HELP - FLOORING WORKERS + THEIR FAMILIES OUR GRANTS PROVIDE FUNDING FOR:

We help people who have a life-altering medical event, are experiencing financial crisis, and have worked in the floor covering industry for at least five years. Grants can provide assistance for up to six months of time, and recipients can re-apply every six months if they still meet qualifications. There is not an income limit to qualify, but applicants must be in financial need. The applicant does not necessarily have to work in the flooring industry, but a household family member must have worked 5+ years in the industry

LIVING EXPENSES

Home Updates for Accessibility

Rent / Mortgage

Transportation

Groceries

Utility Bills

MEDICAL NEEDS

Wheelchairs + Other Equipment

Prescriptions + Medication

Medical Supplies

Testing

X-rays

CARE + SUPPORT

Physical Therapy

Hospital Stays

Medical Care

Doctor Visits

Nursing Care

JOIN A GROW GROUP TODAY Capitalize on the Power of Your Peers

As a flooring business owner, you are faced with unique challenges and decisions every day. The best advice for tackling your most challenging problems often comes from peers. GROW groups allow our members from non-competing markets to connect monthly with like-minded professionals who share their values, understand their challenges, hold them accountable, and encourage them to reach their goals. Visit wfca.org to learn more.

Leadership

Led by: Scott Humphrey CEO, WFCA

Profit Matters

Led by: Steve Abernathy CFO, WFCA

Best Practices

Led by: Typhannie Harker Owner, Carpeting by Mike

Legal Issues

Led by: Jeff King General Counsel, WFCA

Technology

Led by: Lewis Davis Sr. Director of Technology & Research, WFCA

Installation for Sales People

Led by: Dave Garden Executive Director of Education, CFI

WFCA Benefits

Led by: Josh Young Engagement Specialist, WFCA

Insurance

Led by: Stacy Eickhoff, Senior V.P., Risk Strategies

Company Culture

Led by: Freida Staten, V.P. of Marketing, Communications & Membership, WFCA & Kathryn Baird, Owner, TK Fusion llc.

Supplier Q & A

Led by: Summer Turner VP of Sales, Huali USA

Women in Leadership

Led by: Michelle Winters and Lisbeth Calandrino

Women of the Flooring Business