Steve arrived bang on time with his packet of biscuits to hand, ready for this weeks session.
“Hey Tony,” said Steve. “How has the week been?”
“Just awful,” said Tony! “I didn’t realise there were so many processes I need to do, and so much is in my head, I think I am going to explode.”
Steve chuckled. “Yes, I know Tony, most clients feel exactly the same when I work with them at the start. You’re not the only one to feel this.
Tony didn’t know whether to be glad or angry.
“It’s the quickest way I know of, to help you understand your reality, so we can move along more quickly,’ said Steve. “Now that you realise that the business is in your head and if we don’t get it out of there, you and the business will collapse.”
Let’s look at the 5 Levels of being a Business Owner, so you understand where you’re at, shall we?’ intoned Steve.
“Let’s,” said Tony.
“OK,’ said Steve. “Let me show you the 5 levels of business ownership so you have a sense of where you are heading, & where you might be now in different areas of your business.”
“Level 1 Overwhelm.
Owners who experience this level don’t know what to do next…
There are Too many fires to be put out that they cannot even run day-to-day operations, let alone run a team effectively.”
“Level 2 Overworked
This level is exhausting because the owner is trying to micromanage everything because the team is not properly trained & they do not have systems in place.
I estimate that 90% of business owners fall into level 1 or 2 most of the time with maybe only brief moments in some areas of the business at the next levels.”
“Level 3 Organised
This is where the owner has started to focus on the two things you need to in order to create a robust profitable sustainable business that runs without them.
The 2 Ps. – Processes and people. I CALL IT HAVING A MACHINE
The aim is to create the processes, then have the people or your team run the process, and the processes run the business. Don’t worry we’ll cover where you get started with this soon.”
“Level 4 overseer.
Owners at this level are really starting to make the shift from being an operator to an owner.
They spend more time working on the business improving the processes and the team, managing the teams rather than working in the business.
Very few business owners achieve this level without reading, learning and being mentored by people who know how to create a business that can run without the owners.”
“Level 5 Ownership
is where you’ve created the TEAM and processes that run the businesses for you AND THEN hired & trained someone to be the overseer for you.
They continue to improve and grow the business for you, requiring minimal input and effort from you.
This is where true freedom exists because now you have the ability to enjoy time with your family, pursue your passions, or you may still love working in the business but this is 100% a choice.
You know the business will still grow even when you just show up to quarterly meetings and the team barely needs your input, just to ask you the big strategic questions.
You’ve truly built something of value that runs & grows without you.
So those are the 5 levels. And it’s all about going from Chaos, to Control & Freedom.
Where do you feel you are in your business most of the time? Tony.
Obviously there is a spectrum where some days you feel at a higher level than other days.
Write down now – honestly – where you’re at right now in your business, Tony” said Steve.
It was quite obvious to Tony that he was in between Level 1 and Level 2. He realised that the lack of systems and processes was hampering him.
“I reckon I’m here Steve,” said Tony as he pointed to what he had written down.
“Yep, I agree with you Tony, in fact more toward level 1 than 2.” said Steve.
Tony felt a little deflated.
“But we can fix that,” said Steve, sensing Tony’s mood.
“Your homework for this week Tony, is to just park the processes to one side, as we need to get money into the business, now we know what level you’re at. And I want you to concentrate on finding out 5 things for me.”
“What the 5 business owner levels?” asked Tony.
“No. we’re going to look at the Profit Chain,” said Steve. “Finding and fixing the weakest link in your business”. I want you to get these numbers for your business before our next meeting:
- How many prospect leads you have each month
- Your conversion rate
- The average pound spend for your customers
- The average number of purchases they make
- And
- Your profit margin.
- And what the industry average for construction companies is.
And I want you to take Jayne out for dinner, and explain to her what you’re doing with me and why, so she knows and understands what you are doing.”
“Um OK,” said Tony, not expecting part of the homework was to take his wife for dinner. He liked that idea.
Steve drained his mug of coffee and leaving 2 biscuits in the packet got up, and said, “See you next week Tony”
7 Step Roadmap for Construction business owners
The path to success may be challenging, but with perseverance, innovation, and effective teamwork, it can also be deeply rewarding.
If you feel like you’re “Tony” and you’re ready to transform your construction operations and boost profitability? Book a call with me today to discover how I can help you streamline your processes, reduce overhead, and improve project timelines. Together, we can build a more efficient and successful business.
petersokeeffe@gmail.com
Ph: +44 7468 339 450
