Learn How To Run A Construction Business From The Rich Contractor

When The Customer Is A Jerk

by Jeff

In my last post I detailed the benefits of providing great customer service, namely the financial rewards that your company will ultimately reap. But what about those rare instances where a client or homeowner is completely unreasonable with their demands or disrespectful to you or your employees? At what point do you stop taking it and start standing up for yourself?

I almost wish that every signed estimate for a job included clear terms about expected behavior from both me AND the customer, however impractical that might be. Specifically, it would politely request that they give us some space to work without constant over-the-shoulder surveillance (this presumes that we have not given them reason to doubt our skills), that they treat us with dignity and respect (presuming we have extended it to them), that they make and finalize all design specifications and special requests prior to the work being started (and really before the estimated price is agreed upon), that they make an effort to keep the lines of communication open at all times to prevent confusion or misunderstandings, and that they pay for services rendered in a timely fashion so that I don’t have to get ugly or send out a letter demanding payment.

Don't let a jerk bring you down to their level if at all possible.

Since setting expectations for your customers in writing is probably not wise from a business standpoint, you instead need to prepare yourself for that occasional nutjob that makes your life less than stellar. Note that I’m not saying that a homeowner with high expectations is a nutjob. They SHOULD have high expectations, and it’s our job to meet or exceed them. I’m talking about the homeowner that expects you to “throw in” two days of free labor because they changed their mind on design after installation. I’m talking about the homeowner who questions your every move and maintains such a close and constant watch over your shoulder that by the time you’re finished installing the wood floors, you can name what kind of gum they chew, what deodorant they wear, and how many times per minute they exhale. I’m talking about the homeowner that cusses out one of your guys and calls him stupid for something really petty, like parking in the wrong part of the driveway. Those of you that have been in the business for any amount of time know what I’m talking about.

So what to do in these situations? First and foremost, keep your cool. Don’t let some guy with an ax to grind get inside your head. If you have a meltdown just because he’s having one, you’re the one that stands to lose more. It’s your reputation and your business that’s on the line. Usually the best approach is just to suck it up, bite your lip, finish the job, and move on. Remind yourself that sometimes you’re going to run into these kinds of people but that you won’t allow them the power to get to your emotions, because even if they’re wrong and you’re right, if you don’t finish the job and finish it well, you can bet that they will spread the word in all directions that your company is a joke. Try to negotiate. Find middle ground. Do what you can to move the job forward to its completion, if not for the homeowner then for yourself and the future of your company. Reputation in this industry is key, and the further you can bend without breaking, the better! Part of learning how to become a contractor who is successful involves hardening yourself a little bit in order to weather the occasional lunatic. You have to train yourself not to get too caught up in the drama.

Now as for the guy that threatens you or calls you or your valued employee a (bleeping) idiot, it’s a different story. When things really get out of control and an annoying customer has become an abusive customer, you have an obligation to stand up for yourself and your people, even if it’s gonna’ cost you. Where that line in the sand is I can’t tell you, but chances are you’ll know in your gut when it’s been crossed. Ask the homeowner to calm down and/or apologize, and if they will not then gather the crew and your equipment, load up as quickly as possible, and don’t look back.

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Basic Decency Will Set Your Business Apart

by Jeff

Many in the contracting and construction industry are notorious for their indecent behavior. By that I mean that there are all too many that show up to a job-site late or not at all, that don’t return phone calls in a timely manner (anything more than 24 hours is totally inexcusable), or that treat their customers with a general lack of respect. Of course this trend is not exclusive to our industry, but it seems more widespread in our line of work than most others. How else do you explain the explosive growth of companies like Angie’s List?

The downside to all this is that those of us that DO show up on time, that DO return phone calls, that DO send a thank you letter to every customer, and that DO make a real attempt to treat every customer or homeowner with respect will nevertheless be lumped in with those that do not, at least intitially. In the eyes of many homeowners, contractors are guilty until proven innocent. This can make for some interesting and occasionally tense first meetings and estimates with potential clients who view us as being modern-day snake oil salesmen. But can you blame them? This business has a way of attracting some unsavory practitioners, and one can hardly open a newspaper or watch the nightly local news without seeing a story about how some poor widow homeowner got screwed by a contractor in one way or another. These are the kinds of people that give the rest of us a bad name, and that contribute in ultimately making our society one of increasing distrust and skepticism. But I digress.

The upside to all this, from the contractor-entrepreneur’s viewpoint, is that the bar of excellence has been lowered so drastically that any amount of general decency, competency, and professionalism on your part will almost certainly gain you repeat business, free construction leads, and tremendous demand for your services. In other words, if you want to become a contractor who is highly successful just know that it’s almost a GUARANTEE if you simply do what you say you will do and charge a price that is fair to both the homeowner and yourself. Of course nothing happens overnight, and this is certainly not the field for you if you are a get-rich-quick junkie or are expecting to make a lot of money without breaking a sweat, but with the right attitude and a good work ethic you’ll find that the playing field is heavily skewed in your favor. The Golden Rule applies here, and its daily application in your business will return plenty of “gold” back to you. What you put out there in the universe comes back to you ten-fold.

In contracting, as in life, those that show up to the game prepared, eager, and honest will be richly rewarded. Just be decent, and you’ll find that there’s virtually no competition.

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How To Become A Millionaire

by Jeff

Ways to become a millionaire:

Win the lottery. Not a likely scenario. Save your money.
Invest in real estate or the stock market. Both good ideas but this will probably take a long time before you can enjoy the proceeds.
Become a surgeon, lawyer, or high-level corporate executive. These types quite often do attain wealth-status, but what if you don’t have the time or money to attend college for 6+ years? And what if none of those professions seems appealing to you?
Start your own business. The most tried and true method for attaining staggering amounts of wealth in the United States. You don’t need a degree, a rich relative, or a secret formula. All you need is desire and a willingness to learn from your mistakes. Research your market and if there is a demand for your service or idea, go for it. Dominate your competition, expect quality from yourself and your business, treat people well, never grow complacent, and you could be shopping for a vacation home in Hawaii before your whiz-kid friend from high school has even finished med school.

It’s time to take your life and your finances to the next level. No more excuses. Are you ready? If so, then start by going through the 13 steps of how to become a contractor.

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