Systems and solutions that grow construction businesses.
Home | Forum | Member Info | Tell a Friend | Search | Member Area


Click Here to enter club
 About Us
Sales & Marketing Help
Production Mgmt Help
Financial Mgmt Help
Business Planning Help
Staffing Help
Track & Monitor Help
Member Info
Samples of Club Content
Test Your Business
Must Read Reports
Tell a Friend
About this Site
Site Map
Contact Us
 Other
Affiliates
Blog
Coaching Services
Our Guarantee
Privacy Policy
Terms of Use
Text Size
Affiliate Login
 Tools

Getting Started Tools
· Map For Growth













© 2010 USCTCA.com
back to: Home | Test Your Business

How Close You Are To Owning a Business That Gives You Financial Freedom?
Ron Roberts & Guy Gruenberg

1) How much of your work is negotiated?

_ Less than 10%
_ 20% to 50%
_ More than 50%

2) How do you generate the bulk of your leads?

_ Word of mouth.
_ Yellow Pages advertising.
_ Through a systematic prodding of referrals, relationship building, and targeted advertising.

3) How accurately do you predict the cost of work?

_ We almost always run late and use more hours than budgeted.
_ Individual jobs run long and short, but on average we do pretty well.
_ We rarely run over budget.

4) How thoroughly do you plan?

_ We live day by day.
_ We create an annual budget, project schedules, and two week activity plans.
_ For the most part, we create detailed marketing plans, financial plans, sales plans, and operations plans.

5) How much time do you devote to improving your company's systems and structure?

_ Very little if any.
_ Only during the slow season and not more than 20% of my time then.
_ Almost all of my time.

6) How much turnover do you suffer yearly?

_ Close to 100%.
_ 30% plus or minus.
_ Less than 10%.
 

7) How well do you understand your financial statements?

_ I don't.
_ I understand the income statement but not the others.
_ I understand them well and review them frequently to see how well the company is doing.

8) How big is your line of credit?

_ I don't have one.
_ Less than 5% of my annual sales.
_ I don't need one because I receive all my money within 30 days.

9) What do you do when one of your workers fails to perform his job correctly?

_ Scream at him, then fire him if he does it again.
_ Complain about him to my staff.
_ Sit down with him, explain my expectations, listen to his excuses, and try to coach.

10) How clearly have you established your employees' roles and responsibilities?

_ Nothing is written. I tell them what to do when I need something done.
_ We have written job descriptions but they are not very detailed and have never been updated.
_ Job descriptions are current. Employee responsibilities are reviewed and discussed frequently.

Scoring

Each first answer is worth 1 point. Second answers are worth 3 points. Third answers are worth 5 points.
Your Score ____________________

Here's where that puts you:

10 - 20 pts

Join the crowd. The vast majority of contractors are going to score in this range.
They have created a job for themselves and run it pretty close to the edge. Typically, they are going to suffer during a recession and will be emotionally and physically drained by the end of the year.

20-30 pts

Hey, you're doing pretty well. Probably far better than the average contractor.
You're probably running a profitable business that is very comfortable to manage. Most contractors that score in this range have figured the game out well enough to find their place and keep things running relatively headache free. They're usually not growing much, but keep chugging along in both the best of times and the worst of times.

30-50 pts

Congratulations! You've built a REAL business, or are darn close to it. You are well on your way to creating financial freedom. Keep it up.

Very few contractors reach this level of performance. Those that do usually grow consistently until they reach the $10 million to $20 million mark, or whatever point the owner loses his passion for growing the company.

For contractors scoring near 50, the sky's the limit. Here’s to you!

 Newsletter Signup
Name
email
[ view samples ]
 Discussion Forum

Compare ideas. Ask questions. Get feedback. Share horror stories. Brag about great projects.

You know...have fun talking to other contractors not in your market!

Visit Forum

Search Forum Posts

 TESTIMONIALS

"These guys get it. They truly understand the industry and the ups and downs of running a business. They know what it takes for us to succeed."

Jason Hogg,
Hogg Technology
Systems

"Some of the most practical, most common-sense advice available for contractor success."

Don Coleman,
Coleman Industrial Construction

"I opened my concrete construction business in 2000. Going from technician to business owner has been a huge learning experience. The information and tools you supply us with has really helped us grow."

Doug Bohn,
Procrete, Ltd.

"I have learned a great deal from the newsletter and have implemented their latest WIP categories into our business. For us, it was finally a way to accurately track job costs on a weekly basis."

Jack Carter,
Carter Glass

"I found this website while doing research for a class I teach called “101 Marketing Tips for Contractors”. Ron & Guy not only understand marketing, they understand how contractors think and what is important to them. I find their advice right on the money."

Pat O'Rourke,
Piedmont Virginia Community College

"Industry pros who captivate and motivate, while thinking about our bottom line!"

Mike Henry ,
Rose Paving

"It is so easy to get bogged down in the day to day operation of working in the business. Ron & Guy question or challenge you to take the time to work on the business. Keep up the good work guys."

Stan Wryn,
Western Accents