Your Boca Raton Expo recently came to a conclusion—it was an incredible event full of new information and insight to help you build even greater success in your business. Fortunately, you can catch up on most of the action in the coming weeks on your affinity website.
Although watching the sessions will certainly be helpful, nothing can replace the experience Expo provides. That’s why you’re urged make plans to join us at your next Expo in New Orleans, Lousiana, March 30-April 1, 2016! Expos are something that are best experienced—not watched. Being in the meeting rooms and around other contractors is the best and fastest way to become successful.
In the meantime, here’s a detailed synopsis on what transpired in Boca:
Pump Up the Volume: How to Amp Up Your Call Numbers & Drive Growth
SGI owner and member Gus Antos tackled a popular question that many ESI members ask: How do I get more calls? Gus quickly pointed out, before you can determine if you need more calls, how are you doing with your current calls? Gus broke down some simple math: If you have a $700 average ticket, a 15% marketing spend, and a 65% new-customer-booking rate, you’re paying $68 per lead. So, every time your phone rings, you’re paying $68!
Before you feel like you need more leads, there are some questions you must ask yourself: Are you booking 65% of new and 95% of repeat customers? If not, you have a call-center issue. Do you have an average ticket of $550 for all service calls? If not, you have a training issue. Are you charging a TFS charge and a dispatch fee? If not, you’re leaving tens of thousands of dollars of revenue on the table and should implement both.
But if you’re meeting all of that criteria and you still feel like you’re lacking calls, Gus explained what the issue(s) might be. The biggest: You’re not spending enough. To grow, you need to spend at least 15% of your projected annual sales. The second biggest reason: If you’re spending that much, but still don’t have calls, you have a marketing problem—you’re either not tracking or not responding to what the tracking information is telling you.
Gus offered some short-term fixes for your lack of calls: Contact your repeat customers with postcards and phone calls, especially following up on open, prior estimates. In fact, your CCR(s) should be acting as a call center when they’re not busy with taking calls. You should also be asking for referrals from customers as well as networking with other contractors. Gus also said you should be utilizing the long-time ESI tool, 10-Digit Marketing.
Regarding a long-term marketing fix, Gus said you need to fix your marketing. Leads should cost you about $50 each. To ensure of that number, you must be tracking everything. He said to negotiate as many pay-per-lead contracts as possible. Lead sources you should consider: Internet, Yellow Pages, Direct Mail, Valpak, Coupon Magazines, and Referral Sites such as Angie’s List and Yelp. Do everything and measure!!! Stick with the mediums that work the best.
When developing your budget, Gus offered this bit of wisdom: If you did $500,000 in sales and spent $75,000 on marketing, and you budget to only spend $75,000 the next year, you can expect to only generate $550,000 in sales the next year. If you want to plan for 25% growth in sales, you need to spend 15% to 17% of THAT projected amount on marketing to reach that number. Gus finally reiterated, whatever you do or spend, always be measuring—always!
Big-Ticket Bonanza: Insight into Presenting Big Tickets to Customers & Getting Them to Say “YES!”
Electricians often get nervous when presenting a large amount of work to a residential customer. The heftiness of that dollar amount can make them reluctant to present it. It’s a constraint many must overcome. During this session, a panel of super performing technicians and owner took the stage to answer questions many members had about presenting big tickets to people. The panel consisted of Kent Boll, Boy’s Electric; Andrew Davenport, OnTime Services; and Jeff Katz, Clinton Electric.
The panel answered a myriad of tough but interesting questions that you may have asked yourself, such as: What are you selling to have such large tickets? What’s your most frequent big-ticket item? Are you always doing inspections? What kind of add-ons are you offering, and how do you present them? What presentation collateral do you use to help you sell larger tickets? How much are you marking up more expensive materials? How do you approach a person with a huge number? Is your company flipping tech leads over? How do you handle financing? To hear all of these top-performer answers, we highly suggest you watch the video captured from Expo. It can be found on your ESI website.
Future of Training with SGI
Success Academy provided a strong foundation for many years for SGI members. But as the organization moves into the future and further away from Clockwork Home Services, a new training solution was needed and was revealed at Expo. Rebecca Cassel announced the formulation of SGI’s new training arm—Learning Alliance.
For months, SGI has talked to members trying to gauge what their true training needs and desires are, and from that information, Learning Alliance was born. You spoke, we listened. Learning Alliance will offer a more holistic approach to training—instead of focusing only on soft skills like sales and communication, Learning Alliance will help members with those core focuses, as well as hiring, onboarding, development, management, organizational skills, and employee retention. Learning Alliance’s mission is to be of value to every single member, no matter what your size or success level.
Learning Alliance will also take a new approach to training. Success Academy relied upon a teacher-centered learning experience; the instructor truly dictated the quality of education you received. Learning Alliance will be learner-centered. The student has the power of choice in what they learn. They will be asked to conceptualize and apply what they learn and will be assisted by learning coaches and facilitators.
Rebecca introduced the two individuals responsible for leading the new Learning Alliance: Vice President of Learning & Innovation Jocelyn Silvio and Director of Training Programs Kelly Robichaud. The two ladies explained from stage that training will no longer be offered in St. Louis; instead, there will be campuses at SGI–member offices in six different regions of the United States to make training more affordable and easier to access.
Course enhancements will be done to all of the curriculum. In other words, Learning Alliance will be taking the best of Success Academy and combining it with a more complete, structured learning experience that includes preactivity work for students, as well as active learning, postactivity work, reinforcements, and measurable outcomes.
Training will still be provided in a workshop/classroom environment, but Learning Alliance will also expand and diversify its offerings. You will have the option of live, instructor-led interactive courses, virtual classrooms, online seminars, quick-reference visual aids, e-Learning, and m-Learning (mobile-based instruction). And Learning Alliance has vowed to shift and change as technology grows and so do the needs of you, our members.
Learning Alliance promises “Full Lifecycle Learning.” It will offer the SGI core training you will need to succeed. It will also continue to deliver exceptional, yet improved upon, service and sales training you’ve come to expect. You’ll also enjoy expanded operations-management training and access to a new technical training school, Total Tech, which was founded by SGI Owner and Member Jimmy Hiller. Lastly, Learning Alliance promises leadership- and career-planning content, as well as a new strategic-leadership alliance with the highly acclaimed motivational speaker and trainer Krish Dhanam.
Learning Alliance is ushering in a new and exciting chapter in SGI’s history. It is promising a refreshing look at training that will reach all types of people and their varying learning styles and capabilities. Stay tuned for more course information as it becomes available in the near future.
Develop a Strategic Vision for 2016 & Beyond
SGI President Rebecca Cassel outlined how you can develop a strategic vision in your business for next year and beyond. She explained that when you started your business, you imagined how it would one day look, and now it’s your job to take your vision and turn it into your reality. If not, your reality can be shaped by your employees and other outside forces. If you’re in a family business or have a partner, it is imperative all owners come together to define a unilateral vision.
Once you or your ownership team has defined your dream, it’s time to turn it into a goal. A dream is turned into a goal when you establish deadlines. A goal must also be in writing, so it can be read and reread over and over until it becomes a part of who you are. When writing your business goals, be detailed. As Rebecca explained, your goals must be Specific, Measureable, Attainable, Relevant, and Time-Based.
Rebecca offered several exercises at Expo to help those in attendance determine their goals. She asked members to write on index cards their purpose for being in business as it related to their finances, customers, employees, and community. She then asked everyone to write down what they would define as success as it related to their finances, customers, employees, and community.
To get your team to buy into your goals, Rebecca said you must keep open communication with your team. Have them help create your company’s Vision Board. The Vision Board defines your purpose for being in business; it includes four components: financial goals, customer goals, employee benefits, and community actions.
Once you have your company vision, it’s time to put the plan in place in order to attain that vision. Your business plan requires a marketing plan, a manpower plan, training plan, your priorities, a budget, and a beginning and ending organizational chart.
If you’ve never put these in place before, it’s time to bypass obstacles and find help in developing them. Rebecca stressed creating deadlines for each facet to create urgency. Prioritize what needs to be done by writing your tasks on index cards and reviewing them frequently—things that get written get accomplished. And always know, if you ever need help, your SGI team is always waiting to assist you in every way in developing each of the six elements of your business plan.
Build It to Sell It, Part 1: Grow It into a Valuable Asset
Lon Cassel has built and sold a number of businesses. In this first of two sessions, he explained how to turn your company into an asset worth acquiring. Before selling, you must first know what dollar amount you will need to comfortably retire; then, you must build your business in order to meet that number.
It’s important to note that the number you must grow isn’t only revenue; it’s value! You will sell your business based on a value calculation. Only then will you find willing buyers.
How do you create real value? First and foremost, investors will look at your tangible assets, like vehicles, real estate, and equipment. Any liabilities you possess will greatly weigh down any valuation. Of course, an investor will be looking for earnings before interest, taxes, depreciation, and amortization.
Lon said that intangible benefits must be taken into consideration, as well. Your company name, unique selling proposition (USP), and reputation can add value. Investors will look for your presence online and in traditional mediums like Yellow Pages. They will want to know how many club members and future replacement and service opportunities you may have. They also will want to see the depth of the rest of your customer files, fully understand the power of your branding, and have proof of how many phone calls you take on a daily basis.
All of these components will ultimately help you determine a dollar amount to put on your business. In Part 2 of the “Build It to Sell It” session, Lon shared how you can find investors willing to pay your price and how to negotiate the deal.
Build It to Sell It, Part 2: Identify Potential Buyers
You’ve built your business, and you’re ready to sell. But one problem, SGI’s Lon Cassel explained: You need a buyer! Lon instructed that when you’re ready to sell, you should start the process of finding a buyer early—because it can take some time! There aren’t many people looking to spend millions on a contracting company.
The days of big consolidators gobbling up contracting companies is gone, Lon explained. You’re looking for private-equity firms. However, these firms don’t allow you to retire immediately with a big paycheck. Instead, you run the shop and help them repay the debt they assumed to pay you. You earn your way out.
When considering selling, Lon said you must realize that these firms want BIG companies. They’re worried about earnings before interest, taxes, depreciation, and amortization (EBITDA). And as your EBITDA grows, so does the multiplier with which they will use to determine your company’s value.
Other potential buyers are your competitors. But they come with challenges. Not every market has a competitor looking to buy. Also, they typically will want your company for nothing. And they may ask YOU to carry the paper—don’t do this!
Lon also shared that you could sell to your children or family. You should know that can come with challenges. It’s not simple. And emotions can run and cause a great deal of stress. Or you could grow your own buyer—an employee(s) within your company could be the one. That’s why it’s important you spend time developing your people in your business. The more successful they become and the more money they make, the higher the possibility they can purchase the company from you.
The Pros & Cons of Adding another Trade to Your Business
Not many contractors go into business with the eventual idea of branching into another trade. But as SGI’s Paul Riddle explained, it often happens. Lots of people have varying opinions if it’s smart or not. One thing is certain: If it’s not done properly, you can greatly restrict the growth of your company!
When contemplating whether or not you should enter another discipline, Paul shared that there are 13 things you should do. (1) Make sure it’s a strategic decision—not one rushed. You must decide what your long-range objectives are by entering a new trade. What’s your vision? Is it better to stay with one trade and become highly efficient and profitable?
Paul then asked (2) what’s your vision? Can you communicate it to your team? (3) What’s your marketing strategy and tactics? Are you only going to approach current customers or aim at acquiring new? How much will you want to spend?
(4) What’s the opportunity like for this new trade in your market? Have you capitalized enough in your CURRENT trade? Paul reminded you that there is a Marketing Analysis form available on each of your SGI websites. (5) You should also analyze your competition in the new trade.
If you decide to enter a new trade, you’ll need (6) a revenue plan to determine where your sales are coming from and (7) a sales model. You’ll need to determine (8) how you will leverage your club members, and of course, (9) you’ll need to ensure your pricing is proper to ensure you’re profitable.
Paul shared your biggest challenge will be (10) constructing a budget—specifically, decide how much operating expenses can be shared. You must have cash flow in your current business before considering a new trade! You’ll also want to consider how you’ll be impacted by (11) seasonality and (12) labor challenges. And do you acquire a company in that trade or be a start-up? Don’t forget the license(s) you’ll need, too!
Lastly, Paul shared that if you enter a new trade you must (13) determine if any cross-utilization is possible. Are there techs who can handle both trades? Who in the office can shoulder the responsibilities brought upon two industries? Most importantly, Paul said you need to know if your company culture is ready for such a challenge. If you can answer yes to that, and have a good answer to those other 13 points, you’re ready to expand.
10 Things You NEED to Know Before Making Your Next Hire
Hiring is the biggest struggle for most SGI members. To help ease this challenge, you had an opportunity to hear from Alfred Roush of Certipay. He explained the 10 things you NEED to know before making your next hire in hopes that you won’t make the wrong hire.
(1) You need to know what kind of people you’re seeking. What types of qualities are you looking for in an employee? Do you know what kind of people you currently have on your team? (2) You also must have Exit Interviews and Surveys developed. If someone is leaving—you should know why, especially if the person leaving is a quality employee. That way, you can make adjustments in hopes that you won’t lose any other top people. As Alfred pointed out (3) you must always remember that every individual while valuable is replaceable. Never be held hostage by an employee—it’s an awful feeling and unnecessary.
When hiring, Alfred stressed its important you (4) realize what your process or system is. Who are your best employees and why? Who hired them and where did you find them? Who are your difficult employees and what attributes make them difficult? Did you make them difficult by not clearly conveying expectations? You must also (5) analyze your past HR successes and reinforce those practices. Look as to what didn’t work well for employees and stop doing it. And improve the process if possible.
Once you’ve hired someone, the job isn’t over. You must (6) evaluate your onboarding process. Do you even have a process? If not, develop one to get a new employee off to a good start. (7) It is also imperative that before extending that offer to someone you do the appropriate filtering of your talent pool by doing background checks and checking references.
All employees, especially new employees, should (8) have available mentors within your company. They should also have training and development programs in place. And as the owner and leader of your company you must practice (9) consistency. You should have a consistent approach to promotion, discipline, coaching, and training.
Alfred finished by sharing his (10) Magic Quadrant. You will find that every employee you have will fall within one of the four quadrants: I need a mentor, I am a mentor, I’m an immediate risk, or I need training. You must constantly review your employees to determine where in that quadrant they fall.
Pushing Past the Million-Dollar Mark:
Growth Strategies for the Small Contractor
Pushing past the million-dollar mark in revenue is hugely important if you’re a contractor. Your compensation alone takes a massive jump, assuming you’re generating the appropriate amount of profit. At your last Expo, SGI’s Paul Riddle shared some key insights into surpassing the million-dollar barrier… In Boca Raton, Paul dove into this subject once again and offered some additional pearls of wisdom with the help of your fellow members.
Paul brought up Jeren Hamlin of AirTech Heating & Cooling to share his thoughts on the subject. Jeren emphasized having a clear plan, including a manpower plan where you have techs getting four calls per day. He said you need to set clear expectations, such as letting your team know they’ll be working on New Comp, they’re going to have the necessary calls to make a living, and they’re expected to train regularly to ensure tickets and their compensation are where they need to be. Part of that training is regular ride-alongs. Jeren’s biggest point was owners much replace their tools with a notebook; in other words, it’s time to listen, communicate, and manage—not work in the field.
Paul next brought Jamie Foster of My Professional Plumber on the stage to share his knowledge on surpassing a million dollars. Jamie stressed the 3 M’s: Manage your call count, manage your job count, and manage your manpower. If you manage those three important numbers, you’ll make more money. He also explained that your techs should concentrate on maximizing each call. Inspections must be done on every call, and if a problem exists, it should be identified and options to resolve it should be offered—every time. In order to deliver that type of service, your techs must slow down! By slowing down, customers are happier because they’ve been better served, techs are happier because they’re not running to 12 calls, and as the owner, you’re happier because you’re making more money.
Mike Scirocco from East Coast Air was the last member to grace the stage. Paul pointed out that Mike’s growth was all about sustainable growth. He advertises within a budget and does simple things like door hangers, magnets, local newspaper, and small neighborhood mailings, and as a result, he has built a very loyal customer base.
In surmising the session, Paul said to everyone in the room—no matter their trade—they should always sell service. Service opens doors to more opportunity in the future. Furthermore, club-conversion ratios are of the utmost importance. If you have big club numbers, those are clients who will use you when they have a heating/cooling, plumbing, electrical, and/or roofing need.
Getting Outside the Box: A Faith-Based Organizational Discussion
Dr. Dwayne K. Pickett, Sr., Pastor of the New Jerusalem Church in Jackson, Mississippi, spearheaded this enlightening session looking at how we as people have a tendency of underestimating ourselves and limiting our success. As he explained it, we struggle to get outside of our box.
Pastor Pickett shared a story from the Old Testament. It was the story of Moses sending his scouts to survey and report back on the condition of Canaan, the Israelites’ Promised Land. When the scouts returned, most of them focused on the tall enemy that populated the land; they feared that they would not be able to overcome them. However, two of the scouts, Joshua and Caleb, chose to focus on how bountiful the land was versus how they perceived the enemy. In fact, they felt they could overcome the enemy. In the end, the Israelites did not pursue the Holy Land. Instead, they wandered the desert for 40 years until a new generation confidently claimed what was theirs.
Pastor Pickett explained that the Israelites suffered from the Grasshopper Complex. The root of the term comes from the fact that grasshoppers eventually condition themselves to stop jumping if they deem they are unable to get out of a confined space, even if the opportunity appears to escape. Put simply, they limit themselves. And as the Pastor shared, so many of us do the same to ourselves.
To overcome the Grasshopper Complex, we must focus on the power we have been given as people, our strength, stature, position, and abilities. We cannot focus on the problems that hamper us, but rather, we must look at the possibilities. We must see the fruitfulness of what could be, versus dwelling on the negativity of potential failure. That’s what ultimately brought the Israelites to Canaan. They eventually believed in themselves, and they refused to compromise. Consequently, that generation and their families were blessed.
Winning with Radio:The Dos & Don’ts of This Highly Effective Marketing Medium
Radio has been a part of society for over 90 years. Yet many people feel the medium’s power is waning. That’s not so! In fact, it’s still one of the very best tools to attract customers to a service business. In this session, SGI’s Eric Spence delved into the topic of radio advertising, and he dispelled a number of myths along the way.
The first myth Eric cast aside was no one listens to radio. It’s not true. According to Nielson ratings, radio reaches more Americans than even TV and smartphones today, especially in that all important 35- to 49-year-old age bracket. When advertising in radio, Eric explained it’s important to budget for both reach and frequency. Eric also disproved that radio didn’t work in small markets. In fact, it flourishes in small markets.
When looking into radio advertising, everyone likes to invest in the stations they listen to. Eric explained that’s something you absolutely do NOT want to do. The goal isn’t for all your friends to hear your company name on air; the goal is to generate the best leads. Put your dollars into the stations that will address your reach and frequency goals. And don’t buy on stations just because their time is on sale!
One of the biggest myths Eric dismissed was you should allow the radio station to create your spots. Do NOT do that! You know your brand better than anyone. Work with a creative agency or person who understands your brand and can formulate captivating copy to best explain it to the public.
Eric also disproved the myth that you should expect immediate results and that radio is easy to track. Often, radio-branding advertising takes time. You must let consumers hear your message several times. When they need a service company, your name will immediately come to mind. It’s also why radio is hard to track. People may remember your ads, but they’ll tell you they found your number online or in a phone book. Yet, that’s not what truly developed that lead—it was your radio spots.
Lastly, Eric disproved the notion that your spots should be filled with special offers, coupons, and product pitches. Forget all that! Tell a story! Explain how you’re different. Make a spot that would actually capture your attention; one that you would listen to while driving. If your spot is something much different than what you’re hearing on radio waves these days, it’s likely it’s very good—and it will drive results!
Featured Guest Speaker: Major Dan Rooney
Major Dan Rooney founded Folds of Honor, a non-profit organization that has raised over $70 million and has awarded nearly 8000 educational scholarships to the family members of soldiers killed or disabled in combat. Dan opened up Expo with his stunning presentation. He shared his inspiring story of combat and serving others while highlighting the importance of faith, teamwork, accountability, and finding your life’s mission. His captivating stories were absolutely empowering. We are unable to record professional speakers’ presentations and broadcast them on our organizational websites. Seeing a man of character like Dan speak is all the reason to attend Expo in person.
Featured Guest Speaker: David Rutherford, The Froglogic Concept
David Rutherford served 8 years in the Naval Special Warfare Community as a SEAL student, Combat Paramedic, Operator, and Instructor. Since his honorable discharge from the Navy in 2003 he has continued traveling as a tactical-training and security expert for the US Government and one of the largest private security firms in the world. David has inspired special-operations units around the globe to push themselves past any and all known limitations. His masterful ability to motivate enables people from all walks of life to achieve success in any environment imaginable. Dan’s high-energy presentation is what closed down another awe-inspiring Expo. He stirred the audience with his high-impact, in-your-face delivery style and message. We are unable to record professional speakers’ presentations and broadcast them on our organizational websites. So, be sure to be at your next Expo, so you can be inspired by the next speaker your SGI team brings to you.