Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Some dreams are just too good to pass up

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Running Head: SOMETIMES THE DREAMIS TOO GREAT TO PASS UP 1
WS5A5 Final-Hartman.doc
Sometimes the Dream is just Too Great t...
Sometimes the Dream is Just too Great to Pass Up 2
Steven King says in his book On Writing to always describe the weather....
Sometimes the Dream is Just too Great to Pass Up 3
to a one person organization? Others have succeeded, where did they win...
Publicité
Publicité
Publicité
Prochain SlideShare
The Chief Executive Officer
The Chief Executive Officer
Chargement dans…3
×

Consultez-les par la suite

1 sur 15 Publicité

Plus De Contenu Connexe

Diaporamas pour vous (19)

Similaire à Some dreams are just too good to pass up (20)

Publicité

Some dreams are just too good to pass up

  1. 1. Running Head: SOMETIMES THE DREAMIS TOO GREAT TO PASS UP 1 WS5A5 Final-Hartman.doc Sometimes the Dream is just Too Great to pass Up Jerry Hartman Indiana Wesleyan University MGT302 Management and Leadership January 29, 2013 Dennis Stull, Professor I have read and understand the plagiarism policy as outlined in the syllabus and the sections in the Student Bulletin relating to the IWU Honesty/Cheating Policy. By affixing this statement to the title page of my paper, I certify that I have not cheated or plagiarized in the process of completing this assignment. If it is found that cheating and/or plagiarism did take place in the writing of this paper, I understand the possible consequences of the act/s, which could include expulsion from Indiana Wesleyan University.
  2. 2. Sometimes the Dream is Just too Great to Pass Up 2 Steven King says in his book On Writing to always describe the weather. It was cold and snowing beyond the insulated glass witnessed from a booth inside at the Brentwood Panera. The great falling of white death that was predicted would fizzle out to an un-measureable dusting. One may wonder why discuss the weather in a paper for business management but the outside cold and dark was reflected in the resident of the booth. Michael known as the Man in Charge of American Renovations LTD., a window and door contractor, a renovator of damaged houses back when mortgage money was available, and a expert in fenestration, was facing a blizzard all his own. We shall not dwell into the personal issues facing him but peek at the professional conflicts that were blowing like a freezing wind through his mind. Michael was a grandfather with over forty years in the remodeling and building materials. His friend Jay was going to quit his employment and start his own business in sporting goods; not basketballs and bats but gym and fitness equipment like the moveable basketball backboards found in schools and YMCA gyms. Jay was the supplier and installer of the equipment so in Michael’s thinking they were both contractors facing the same challenges and problems. Jay, who held a bachelor’s degree from Bowling Green University, was a young father with the second on the way. Michael was infected with a melancholy from small voices in his head silently screaming, “What makes you think that you can help anyone you looser? Remember the Window King? Bankrupt. Brand manager for Kolbe Windows, blew it didn’t you? Think you can teach anyone management skills? Ha.” Michael knew that if he was going to attempt his own company again he needed to learn from those mistakes because mentoring others was part of his core values. The central thought that infected his thinking was how an owner of a small remodeling company engages modern management techniques to build a successful business? What help is available
  3. 3. Sometimes the Dream is Just too Great to Pass Up 3 to a one person organization? Others have succeeded, where did they win where Michael felt he lost? What actions should someone who wants to be an entrepreneur before having business cards printed and start developing a website? What information is important and what is junk? There are 161,000,000 Google listings for small business management skills, intimidating at the least. He knew that it was not a great source but he had read that entrepreneur and management of a business was not the same. Some entrepreneur needed to hire a manager. He listed some opinions from a LinkedIn discussion from August of 2010. Entrepreneurs are happy to run off and create new worlds. Managers prefer to grow existing ones. Either will be benefited by a charismatic personality. An entrepreneur has a vision and the manager makes it happen. Mangers alone are not visionaries, but need guidelines to complete tasks. Entrepreneurs are bored by the day to day of business, but get overly excited when presented with new possibilities. At least that is how it works for me! An Entrepreneur is more of a hunter looking for the next kill, but a Manager is more of shepherd taking care of his flock. The manager manages risk; the entrepreneur takes them. He wondered how to begin with so much information, but remembered how do you you eat an elephant, one bite at a time. Michael remembered Clark Swanson the always impeccably dressed representative for dealer financing at 5/3 bank. He said that the average lifespan for a home improvement company was
  4. 4. Sometimes the Dream is Just too Great to Pass Up 4 one year, one month, one day, a statement that was brought home to Michael from Walt Steppenwolf in an article in Remodeling Magazine entitled Getting Started, “Unfortunately, particularly among small companies, the failure rate measured over a five-year period is high. New owners often don't know how to run a remodeling company -- or don't know what to expect when they launch one.” A study by The Joint Center for Housing Studies at Harvard University entitled The Performance of Remodeling Contractors in an Era of Industry Growth and Specialization stated “Small non employee remodeling firms compared to new residential construction industries, general remodelers had a higher one-year failure rate in 2004 than both new single-family contractors and new housing operative builders. As mentioned previously, general remodeling contractors had an overall business dissolution rate of 12.9 percent, but examining failure rates by the size of the business (in terms of payroll expenditures) clearly shows that smaller contractors are much more likely to exit the remodeling industry (Figure 14). Twenty-two percent of contractors that had payrolls of less than $30,000 in 2003 were no longer operating. Walt Steppenwolf in an article in Remodeling Magazine “Unfortunately, particularly among small companies, the failure rate measured over a five-year period is high. New owners often don't know how to run a remodeling company -- or don't know what to expect when they launch one.” A study composed by Abbe Will and Kermit Baker for The Joint Center for Housing Studies at Harvard University entitled The Performance of Remodeling Contractors in an Era of Industry Growth and Specialization stated
  5. 5. Sometimes the Dream is Just too Great to Pass Up 5 “Small non employee remodeling firms compared to new residential construction industries; general remodelers had a higher one-year failure rate in 2004 than both new single-family contractors and new housing operative builders. As mentioned previously, general remodeling contractors had an overall business dissolution rate of 12.9 percent, but examining failure rates by the size of the business (in terms of payroll expenditures) clearly shows that smaller contractors are much more likely to exit the remodeling industry (Figure 14). Twenty-two percent of contractors that had payrolls of less than $30,000 in 2003 were no longer operating in 2004, a failure rate almost ten times higher ten times higher than contractors with payrolls of $350,000 or more.” Michael did not want to fail again, or share any advice with Jay that would cause him failure. Michael remembered the sermon from Pastor Ken two week ago about Christ is our foundation. If one had asked Michael what the foundation of a business was he would answer profits or at least cash flow. He was pleasantly surprised to discover the foundation of a business is planning. He had thought of business plans as being an instrument for acquiring venture capital. A Google search for business plan brings up 2,070,000,000 hits. Ok small bites. The
  6. 6. Sometimes the Dream is Just too Great to Pass Up 6 Small Business Administration teaches in their article, Ten Steps to Starting a Business, the first activity a eager entrepreneur needs to do is write a business plan. A business plan should include  A snapshot of your company and who is in charge.  A description of the company.  A market analysis.  How is the company organized?  What are you selling?  How are you going to market?  Where are you going to get the money for it?  What do you forecast the company will do over the course of time?  A list of variables such as government regulation. Linda Case says in her book Remodelers Guide to Making and Managing Money that before starting a business these issues must be explored.  Your mission statement  Your vision Statement  Your core values  Unique offering  Your target market Rhonda Abrams, in her book, Successful Business Plan sets forth the fundamental steps to the business plan process: 1. Lay out your basic business concept.
  7. 7. Sometimes the Dream is Just too Great to Pass Up 7 2. Gather data on the feasibility and specifics of your concept. 3. Focus and renew the concept based on your data. 4. Outline the specifics of your business. 5. Put your plan into compelling form. Ms. Abrams also includes this quote from Eugene Kleiner, Venture Capitalist, “Even if you have all the money you need, you still need a business plan. A plan shows how you’ll run your business. Without a plan, you don’t know where you’re going, and you can’t measure your progress. Sometimes, after writing a business plan, you may change your approach, or even decide not to go into a certain business at this time.” Dwight D. Eisenhower once said: "In preparing for battle I have always found that plans are useless, but planning is indispensable." Not having a business plan was one of the reasons that remodeling contractors fail according to J. Jerrold Hayes in 30 Plus Reasons Why Contracting Businesses Fail The simplicity of the lessons reminded Michael of lessons learned in the past. Steve Covey saying “Begin with the end in mind” in his book 7 habits for Highly Effective People and John Wimber, founder of the Vineyard Church movement, called it “Planning your future in advance.” One of the lessons Michael heard years ago, from Tom Hopkins author of How to master the Art of Selling, in a seminar, was you cannot control the numbers you can only control the activity. Simply put, make a plan, work it and stay focused on the goal. A business plan would lay everything out in writing. In Michael’s words, what are you about, what do you believe, why should anyone choose you, and how are you going to do it? Goals, was the word that came to
  8. 8. Sometimes the Dream is Just too Great to Pass Up 8 mind. "Goals in writing are dreams with deadlines." Brian Tracy – “Dream Big, but be sure to have a plan, or else you'll just keep dreaming.” Michael knew from experience and reading Victoria Downing in a Remodeling Magazine entitled Goals for Sales Excellence where she wrote that goals needed to be SMART Specific – Measurable – Attainable - Realistic - Tangible Richard Steven’s article The Three Steps of Management from Remodeling Magazine explains that high performance is the result of building on a solid foundation of the basics which are: Set goals, Monitor and Adjust A business plan with specific goals seemed like a simple idea for Michael but he knew it was not easy work. He also knew it was what was missing from his past ventures. He understood that running a business was not all fun and games even if every detail was planned out. It was war. “I have studied the enemy all my life. I have read the memoirs of his generals and his leaders. I have even read his philosophers and listened to his music. I have studied in detail the account of every damned one of his battles. I know exactly how he’ll react under any given set of circumstances. And he hasn’t the slightest idea what I’m going to do. So when the time comes, I’m going to whip the hell out of him.” General George S. Patton “What makes the difference between a winning general and a losing general? The winning general has the strategies to enable him to outthink, what makes the difference between a winning general and a losing general? The winning general has the strategies to enable him to outthink, out plan, and outmaneuver his foes, just as you have to outthink, out-plan, and outmaneuver your competitors in business. The only difference
  9. 9. Sometimes the Dream is Just too Great to Pass Up 9 between fighting a war and competing in business is the battlefield on which you compete. Whether you realize it or not, everyone in business is engaged in “business war.” Think about it.” The former is found in the essay, You’re in Business War Whether You Know It or Not, written by Ken Brodeur on the web site Strategic Planning. We have a plan but how does one manage the business though? Michael would give the advice get Quick Books Pro for accounting, but he also knew that if the numbers were not inputted correctly and faithfully, then the owner would be looking at false information. He also understood the hardest aspect of selling on your own, what he believed killed more remodelers than anything else, and how he was deluded years ago was the financials. Michael was Vinyl Kraft Windows dealer of the year in 1998 their top producer for units with an independent dealer. He personally took home a total $18,000 that year. Walt Stoeppelwerth in his article from Remodeling magazine relates “For some time I've been giving a seminar aimed at smaller contractors -- those under $600,000 –called "Small But Smart." During the session, I always ask how many people in the room mark up their work 50% or more. Invariably, fewer than one out of 10 will raise his hand. The most common mistake made by newer remodelers is that they have no idea what the markup over cost must be in order to make a profit. As has been stated many times in this column, the minimum markup is 50%, and as a company grows, it is 67% and even higher. In the handyman business, the labor figure is over 100%. The biggest reason for this misunderstanding about markup is that most small company owners have never taken courses or attended seminars that show them how to break down job costs”
  10. 10. Sometimes the Dream is Just too Great to Pass Up 10 J. Jerrold Hayes in 30 Plus Reasons Why Contracting Businesses Fail adds to our understanding “No Understanding of Pricing -Boy this is a big one in my estimation. This means understanding both the concepts of markup and overhead recovery and how to estimate at least semi-accurately. Poor pricing decisions - Even with an accurate estimate, some contractors still would want to shave off their bid price just to ensure that they are the lowest bidder and would eventually win the job. Although dropping prices is a pricing strategy, it is most of the time not sustainable and should be looked at as a short-term strategy.” What financials are important? The book The Remodelers Guide to Making and Managing Money by Linda Case relays the basic financial reports that you should be receiving regularly. What You Need Profit and Loss Balance Sheet Job Cost Cash Flow Projection Annual Budget When You NeedIt Monthly Monthly Weekly or Bi Weekly Weekly Annually, Realigned Quarterly Judith Miller writing for Remodeling Magazine in an article she calls Ratiocination; the five ratios will tell you if your company financials are improving or moving you closer to the edge.
  11. 11. Sometimes the Dream is Just too Great to Pass Up 11 The Ratios are Sales ÷Total Assets Net Profit ÷ Total Assets Working Capital ÷ Total Assets Retained Earnings ÷ Total Assets Equity ÷ Debt Michael wanted to add another ratio that was gaining credence in direct sales organizations taught by Jim Cory in his article Measuring Up, in Exterior Contractor Magazine, is Net Sales per Lead issued (NSPL). Cory believed it was a stronger indicator than close ratio or demo rates because of the raising cost to gain a prospect. Ok Michael thought, business plan, marketing plan, work the plan, mission statement, vision statement, who are you, your customers, your offers, and why you should be chosen. We have added financial to watch for. In his mind though was a nagging concern that haunted him and caused him to make mistakes in the past. The lone owner, working by him or herself, sometimes
  12. 12. Sometimes the Dream is Just too Great to Pass Up 12 you need to share victories or defeats. Michael wished that he had an advisor to turn to years ago when he made the decision to change his marketing in order to smooth out the selling cycles. He wished that he had a bookkeeper to rip off the rose colored glasses he wore when looking at his sales figures. He wished that he would have listened to his gut that things were not right and changed some installation crews. He was blinded by his desire to help people and did not face the reality that his customers, his primary responsibility, were being shortchanged. A loss of confidence was something that he knew from experience. NARI, The National Association of the Remodeling Industry has a daily newsletter and each week they have a feature entitled the big five, where expert answer five questions posed to them. Shawn McCadden wrote on this concern. “Biggest challenge: I have recently started working with several new clients who first called because they felt they were losing confidence in themselves. After a bit of discussion, we agreed that each of them had really lost confidence in their businesses and business systems, not in themselves. My best advice: It’s a whole new world out there. Most of the old methods used to conduct business, motivate employees and attract work no longer produce adequate results. Successful remodeling business owners must be self- confident. At the same time, to remain self-confident you must also be confident about how you do business. If I’m describing your situation, ask yourself how long you plan to tolerate mediocre or inadequate returns for all your effort. Find the help you need to identify and implement what you and your business must do to build a new and sustainable business that prospers regardless of the economy. Build a business you can be confident about.”
  13. 13. Sometimes the Dream is Just too Great to Pass Up 13 Michael thought where one could get help if they needed it? He would have started classes to be a Certified Remodeler through the Home Builders Remodeling Council if he had not started online college in order to finish his degree. He would include information about that in an addendum. The courses taught covered all aspects of running a business including how to use technology and accounting principles. He remembered having a prejudice against the remodeling trade associations because his friend and employer Mike Gilkey was bothered by the other members trying to gain information from him. Tim Sanders in his book Love is the Killer App shares that we should share our knowledge, network, and compassion. Michael believed that it was sound advice that fit into his values. He had learned about the Christian Business Network meetings held each month. He did not know if the National Sporting Goods Association would be a help to Jay but it was worth looking into. He thought about his Bachelor’s of Andersen (Windows) Degree and how he could count 16 certificates from various manufacturers and eight from seminars and training courses. Most suppliers concentrated on product knowledge and not business skills. He was registered for training through both Simonton and Mastic both which had great information on marketing; a subject which was constantly changing. Education, what you don’t know either learn or hire someone. There are resources available. Find someone to partner with, a mentor, and a friend you could share with. Michael thought ministry leadership 101, join an accountability group. Michael wasn’t quite sure if he had asked and addressed all the questions and challenges before him. It was time to scribble a mind map and engage SWOT analysis. Make a plan, work the plan, and be willing and brave enough to take the first step, one bite, and one step at a time. Bob Goff says in his book Love Does, “I used to be afraid I wouldn't make enough money; now I'm afraid I won't make enough difference.”
  14. 14. Sometimes the Dream is Just too Great to Pass Up 14 References Abrams,R. (2010). SuccessfulBusinessPlans:Secretes and Strategies. PaloAlto,CA:The PlanningShop. Retrieved2013 Brodeur,K.(2010, feb.2). You're in businesswarwhetheryou know it or not.RetrievedJan.22,2013, fromstrategicbusinesstools.com/Blog/you’re-in-business-war-whether-you-know-it-or-not-: strategicbusinesstools.com/Blog/you’re-in-business-war-whether-you-know-it-or-not- Case,L. (1998). RemodelersGuide to Making and Managing Money. WashingtonD.C.:Remodeling ConsultingServices. Cory,J. (2012, Oct. 18). measuring up lead return now key metric. RetrievedJan.2013, from http://www.replacementcontractoronline.com: http://www.replacementcontractoronline.com/sales/measuring-up-lead-return-now-key- metric.aspx Downing,V.(2003, October).Goal Settingforthe SalesProffesionals. Remodeling,p.27. Editorial.(n.d.). Thinking aboutstarting a business. Retrievedfromhttp://www.sba.gov: http://www.sba.gov/category/navigation-structure/starting-managing-business/starting- business/thinking-about-starting Hayes,J. J.(2005, December11). paradigm-360.com/management/30plusreasonswhy contracting businessesfail.RetrievedJan.26,2013, fromparadigm-360.com:www.paradigm-360.com McCadden,S. (2013, May 13). Real Remodeling Challenges,RealRemodeling Solutions - daily 5 Remodel. RetrievedJan22, 2013, from www.daily5remodel.com: www.daily5remodel.com/index.php?action=article&rowid=1672 Miller,J.(2012, Sept.17). http://www.remodeling.hw.net/finance/ratiocination.aspx.RetrievedJan.26, 2013, fromhttp://www.remodeling.hw.net: http://www.remodeling.hw.net/finance/ratiocination.aspx Rigg,A. (2007). How to Beatthe 80/20 Rule in Sales Team Performance. Scottsdale,Az:Performance Press.RetrievedJan.2013 Steven,R.(2011, Oct. 18). owner-issues/the-three-steps-of-management.RetrievedJan.22, 2013, from www.remodeling.hw.net:www.remodeling.hw.net/owner-issues/the-three-steps-of- management.aspx2/ Stoeppelwerth,W.(2004, mar.2). www.remodeling.hw.net/remodeling/getting-started.aspx 2/. RetrievedJan22, 2013, from www.remodeling.hw.net/remodeling/getting-started.aspx2/: www.remodeling.hw.net/remodeling/getting-started.aspx 2/
  15. 15. Sometimes the Dream is Just too Great to Pass Up 15 Addendum American Renovations Ltd. MyWindowPrices.com Mywindowprice.com is the brain-child of the folks at American Renovations Ltd. We are a small company offering personal service, great products, and big savings. We believe in doing business differently; Straight talk, upfront pricing, no gimmicks. Our Vision: To help forward America's energy independence through leadership, education, and guidance in fenestration, improved building performance and alternative energy sources. Our Mission: To serve by offering an easy shopping experience with straight talk, no gimmicks, and upfront pricing. To never compromise on product quality, installation, or service. To treat everyone the way we want to be treated. Our Passion Windows, doors, family, and happy satisfied customers. Our Pledge: Deeds Not Words

×