Get Business Before You Can Grow

Q:

With the slowdown and tighter bidding, I seem to be spending a lot of time out in the field supervising the crews to get them to get the work done. Plus, with all the estimating and administration duties, I am left with no time to get everything done. Any suggestions?

Bill Stone, Stone Contracting

A:

Now is the best time to find a great full charge office manager construction contract administrator. There are a lot of really well qualified people willing to help you for a reasonable price.

Make a list of all the duties that are bogging you down and taking you away from the priorities you want to focus on. Then look for the right person to fill the position. Run an ad in one of the online want-ads or Craigslist, interview the applicants over the phone, select three to have a personal interview with and then select the best candidate to help your situation.

When you delegate tedious tasks to a professional manager, things get done and you don’t have to worry about it. This will increase your effectiveness twofold.

Editor’s Note: The following is a reader’s response to George Hedley’s answer to a subcontractor in CBO’s February issue regarding hiring a commissioned sales representative vs. hiring one with a base salary.

Q:

George,

Your response was really catty and inaccurate. I am sixty-four years old and have spent my life in 100 percent outside commissioned sales and would never want a salaried position that limits my income potential and directs my activity.

When I retired from a listed Fortune 100 corporation, I presented a personal resume to a local roofing company to work for them on 100 percent commission and was paid on a 1099. The cost to my company is nothing since I pay for my own travel, vehicle, materials, tools, fuels, Yellow Page advertising, professional fees to local groups to promote my business and all other expenses. I earn 25 percent of the profit on each deal I create. Profit is what is left after all job expenses are paid and all collections are made.

I use the 1099 method so that I can write-off all of my considerable expenses that promote what in reality is my business. This cannot be done if I was paid on a regular salary. Plus, it saves the employer the costs of workers’ compensation, liability and other expenses to employ my services as an outside contractor. My employer only provides my business cards and location/site signs that promote his business.

When I came on board, the company was primarily doing work in only one county and had been doing well for years. Since I have come on board, I have designed a marketing and sales program, cut the company’s overall expenses by shopping suppliers and negotiating contracts with vendors and advertisers and virtually eliminating any collection problems. Remember, cutting these expenses increases the profit and, therefore, my commissions.

The business has now expanded to cover five counties, and we have added two more “free” sales representatives that I trained. Each year the company has a new record in sales and profits. Each sales representative has a protected territory (county) and all business/profit generated in that territory provides a commission to that representative. 

What I am saying is that a well-designed program to add sales people that are well-trained can profit a company at little or no cost while growing the business and base of ongoing repeat customers. Your response to the question was not well guided or constructive to the reader and was quite insulting with comments like “same old wishful thinking.”

Ken Alexander

A:

Thanks for your ideas. I am sure your program works well in your situation and is to be considered when designing a sales program for other companies. Thanks for your response.

Please be careful about hiring people and not withholding taxes from them. Check with your CPA to determine how to legally pay full time salespeople in your company.