Equipment World Digital Magazine
Issue link: http://read.dmtmag.com/i/521868
B etween estimating, making sure everyone's doing their job, field execution, keeping track of costs and getting paid, many contrac- tors find growth either a bucking bronco of reality or a concept that's an off-in- the-distance shimmer. The day-to-day gets in the way of the One Day when you hope your business will work the way you want it to. It's complicated by the fact that there's no one path to success in this business. The guy who started shoveling dirt at 18 can have healthier financials than the guy with a four-year degree. The woman who had no family mentors can have annual revenues that top those of a third-generation firm. And vice versa. What strikes me when I interview contrac- tors is how the best are continually seeking a better way. I was privileged to see this first hand in May, observing a peer group of contractors get up front and personal, all in search of ideas or tactics that could move them forward. But first let me explain the concept of a peer group. To do that, I went to George Hedley, president of Hardhat Presentations, and facilitator of two ongoing peer groups. "A peer group is like having your own board of directors," he says, "that will help you make good decisions about how to grow your busi- ness and make more money." One way to do this is to find out what other successful con- tractors in the business are doing to become best-in-class companies. And that requires trust building with 10 to 15 non-competitive contractors meeting at least twice a year in an open sharing forum. Hedley is quick to point out that peer groups come in all forms. He serves as both on-site moderator and off-site coach for his groups. Other peer groups are organized by associations and organizations, and may not have a designated facilitator. Some meet at each other's businesses to review and cri- tique a contractor's systems and processes. They can be limited to just a certain trade, such as concrete contractors, or a designated age group (under 40). Financials are shared; members talk openly about what they pay their people … and themselves. "One of the benefits of being in a group is that you'll see how everyone else does things," Hedley says. Each peer group determines what's hot on their plate; for the contractors I met with in May, this included employee retention tech- niques, equipment replacement and disposal, lease/rent/buy decisions, and exit strategies. There was a lot of discussion around growth. As one member put it, "Do you get to the point where you're happy at where you're at, or do you need to keep growing?" Another key question that went around the table: How much do you do yourself and what tasks do you need to hand off? (And the answers var- ied greatly.) Sometimes the meeting had a "show and tell" vibe, as members demonstrated apps and software they've found helpful; another contractor shared how he calculates his fleet maintenance costs. Running a construction firm can be mighty lonely. Having a group that will give you hon- est feedback – and knows exactly where you live – could make all the difference. EquipmentWorld.com | June 2015 11 on record | by Marcia Gruver Doyle MGruver@randallreilly.com A meeting of your peers