I was forced to sell my small plumbing business but did so successfully. Recently, I was forced to sell one home and buy another one, and that was done successfully. Both events happened before I intended them to happen because of my wife's — and well-paid business partner — Multiple Sclerosis, but both big changes were pulled off successfully because we had plans in place with “just-in-case” contingencies built in.
So what's the point? The point is, I can't take one damn bit of credit for any of the above, other than the hard work required. No, the success above came from listening to others, to be willing to learn, to plan, and to never think I knew it all — to stay humble.
The point is to make conscious choices, know the consequences of those choices, and have some kind of plan in place. I've laid out an easy plan to “grow,” and I use that word carefully; but my hope is you're doing something to relieve a stagnant existence, or one that will soon become stagnant if you think you know better than the multitude of folks who have travelled this path before you.
It's so damned easy to move forward if you're a one-, two- or three-person shop! There's no shame in staying small, no defeat, no loss of self-esteem, if that's your choice. The shame, defeat or loss of self-esteem are only truisms if you think they are, and I have not been talking about growth as getting bigger.
In fact, I've always believed that small is beautiful, which is an actual title of a book although it’s a little off the beaten path of subcontracting and more along the semi-spiritual path of leading meaningful lives in a simple manner — you know, the hippie-dippie Kalifornia weirdo ideas of helping the planet and using dwindling resources in ways that will leave something for our kids.
What I have been talking about is being realistic. Give it some thought. Your peers who follow the sage advice of those who've gone before are making enough money to buy such needed necessities as healthcare, long-term disability, even dental insurance. Yeah, you may be able to depend on the government for assistance if you drill a hole through your foot, but the optimal word here is may.
Have you thought about the above even if you don't have a family? What prompted me to write this? I just talked with two guys who used to work for me, and who I liked so much I encouraged them when the entrepreneurial spirit gripped 'em. I've never been afraid of competition so helping others has never been a problem (but more about keeping employees later because there are ways to tie folks so close to you most won't even want to leave).
One guy followed my advice and is doing terrific. The other has not and is miserable. Both have more business than they know what to do with, but the first has Flat Rate pricing more than double the second's T&M rate and is using some of his “extra” money for the necessities described above. The second ... well, the second guy makes me want to scream.
There you are — small, happy, and secure or small, miserable, and insecure. It's your &#@*'ing choice! Get into Flat Rate — it will help you stay small, profitable, and secure if done properly. It can also be done easily, and now it can be done electronically so you don't even have to worry about paperwork! Come on you Gen-Y nut cases! You multi-task electronically with everything but your businesses!
Why don't you use that same capability there? All the info is out there for free in CONTRACTOR magazine, or at little cost from the Service Round Table; or even from me. I'm talkin' low-cost because I have found a new passion to help now that I've got mine. At least call and pick my brain for free. Here's my new phone number: 530/878-5273; or e-mail me at [email protected].
Or are you scared? Hope to see a bunch of you for Comfortech in Nashville. Hell, go for the fun of it ... you may even learn something.
Best,
Ed
Ed O'Connell is the founder emeritus of O'Connell Plumbing Inc. He is the subcontracting business coach for smaller contractors and a Service Round Table Coach. He can be reached in Auburn, California, at home/office: 530/878-5273 or at [email protected].