n Shop Management

By

Coleman

One of the reasons owning a business can be so stressful is that it can be a lonely endeavour. It’s not always easy to talk to about it, particularly when problems arise or when there are plans to take the business to the next level. Imagine having a cash flow problem (an easy problem for most of us to imagine). Who could you talk to about it?

Friends can sympathize, but they don’t know what it’s like unless they have had that problem in their own business. They’re probably wondering if you’re going to hit them up for a loan. Sharing a cash flow problem with a spouse might garner some sympathy, but not a solution and why have them worry?

And your employees could be easily spooked. They’re looking for a leader, not someone they have to prop up, and they don’t like uncertainty involving their pay cheques.

Your suppliers may tighten up your credit levels. Maybe their pricing will creep up too. Your customers will also get nervous, thinking you cannot finish the work. They may be afraid to give you more work and may try to grind you down on pricing. Even worse, they may hold back progress payments and exacerbate the situation. Your bank is only interested when you have more security for them; otherwise, they might call your loan. Worse, they might take the extra security and then call your loan!

Lonely place

My advice is to find someone with whom you can talk freely about business issues and successes. Your external accountants can offer some advice. Paid consultants or the Business Development Bank of Canada (BDC) can also help. Don’t ever feel that you are in the minority with business problems and loneliness.

Your best options are to find a mentor or join a peer group. You will have someone with whom you can spend some time regularly, someone who understands and provides guidance.

When you watch tennis, it’s easy to see it as a “one-on-one” competition, but when you listen to the commentators, it becomes very obvious that the game is more than just those two players trying to defeat each other on the court. Behind those two competitors are teams of trainers, coaches and other support people.

Does it strike you as odd that the top players in the world rely on a support system? If they are that good, why do they need all the support or are they that good because they have all the support? If it works for them, wouldn’t it work for you?

You, like the tennis pro, can’t go it alone expecting victory and championships. You too need a support system.

Accountability

For example, when deciding whether to go for a run, I look at the weather. When it’s miserable outside, I won’t go unless I’ve committed to running with someone else. I don’t want to let my friend down, so despite the miserable weather (and a lot of muttering and whining), I run. Afterwards, I feel very pleased with the achievement — an achievement I would not have made had it not been for my commitment to another person.

Committing to a third party is a huge step in the right direction. It creates a level of accountability which will get you results. Commitments to others are far more effective than commitments made to oneself.

The right mentor can help you in so many ways, but they can be hard to find.

Another option that has been around for many years, but too few contractors take advantage of, is the use of peer groups. There are several variations on this principle.

Fundamentally, a peer group consists of a group of non-competing businesses that are doing a similar type of work and are of a similar size.

In order for them to be noncompeting, it usually means they have to be apart geographically — having at least one of them in a warm climate with a good golf course is a must.

A model for peer groups that I particularly like include four- to eight-member companies, meetings every two to three months, meeting at each company’s place of business on a circulating basis, and meeting for three days.

The focus of the meeting would be on issues that are very important to each member, but it would primarily be an audit of the host business.

Each company would prepare a binder for its own business and over a period of time complete the binder. There would be sections in the binder for all the major areas of the business — sales/estimating/marketing, finance and administration, human resources, operations, and succession planning.

During the three-day visit to the host company, the business owners would audit how the business operates (maybe over the course of 1.5 days) and then spend the last half-day writing their report (without the host business being represented). This is when you go through the review with the host business. Additionally, this allows time to discuss the previous host company’s progress. There must be a strong sense of accountability, fellowship, and commitment. Other members can also raise issues that are critical to them.

Outside help

Sometimes these groups bring in outside facilitators but usually manage the process themselves. The cost of the facilitator would be split between all the members. Individual members can always phone and email each other between company reviews. Researching software is often done by these groups to ensure getting the most suitable applications with the least cost and effort on the part of any one particular contractor.

Sources for getting into a peer group include talking to major suppliers about this concept or raising it at association meetings. HRAI has sponsored several of these peer groups for both commercial and residential HVAC contractors. Maybe you can convince a supplier to start a peer group among its customers. There are also groups like ClimateCare that offer these services to their members.

Don’t get involved with a peer group unless you are willing to participate actively. You will only get great results if you commit to the process. Do participate if you are serious about growing a successful business and creating your legacy. :