Why Some Builders Never Break Through (Ep 297)

Every contractor, everyday is faced with 3 things: Decisions, consequences, and taking responsibility. 

Today, Max discusses these 3 key items and how they will effect every aspect of your company depending on how you decide to deal with them.

Watch today's episode on the whiteboard --> https://www.youtube.com/playlist?list=PL76rc3DrCOMb7VM9icAOQmLodNCSZTfKf

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Transcript

SPEAKER_00 0:00

The reason your business is in bad shape is probably because you don't take responsibility for your decisions. Today I'm going to talk to you about six things that I do to use bad decisions to build a better business. Enjoy. How old are you going to be before you start to experience life like you want it? I want to tell you right now, whether you like it or not, there is a better way to do business. Hi everyone, welcome to the Business and Builders Podcast. My name's Max, I'm your host. Welcome to you if you're in podcast land. Welcome to you if you're in YouTube land. Great to have you in the house. And more stuff for us to talk about today. All about trying to give you more value and uh hopefully assist you in uh putting more information into your head and more money in your bank account. A, as the Canadians would say. Right, Gidea, um, I think some of the motivation for this little chit chat we're going to have here in the next 20 minutes or so, probably going to be more like 30, got a few points, um, has got a little bit to do with or a little bit of a um coordination between raising kids and obviously uh my number five or our number five graduating on the weekend. And you know, I've always said to our kids, good decisions, good outcomes, bad decisions, bad out bad outcomes, you live with both. You know, that you you're responsible for both. Well done. Okay, and so you know, for us as builders, you know, I think that we need to embrace what is our life in the business world, and I think it really, I think we need to be real with ourselves that we probably mess it up more times than we get it right. However, without the 80% failure, let's say if that's what my benchmark is, typically, you know, eight out of ten decisions I'll get wrong. More often than not, it is the 20% that will actually propel me into the area of perceived success, whether that's financial, um, you know, whether that's reputational, whatever it might be. And so as it relates to being a builder, I think that it's very difficult for me as a as an accredited business coach to just give you a checklist or a spreadsheet or an SOP or whatever the case may be, because it's only one very small corner of your business. It's a good foundation stone, and we always want to understand things, but there's things that I've learned from life, there's things that I've learned from business, uh, relationships, obviously, in the financial process of living life, that make me a better builder. And if you were to look back over that time, you'd say, well, he's made more mistakes and he has got it right. Um, but life's not too bad, no complaints, right? And so what you've got to do is I just think sometimes we have an unrealistic expectation around what the business is supposed to give us. And we want more money, less headaches, all this kind of esoteric furfy stuff, which is not reality, you know. Um, me and Jed were you know, we would sit there 18 months ago when it was inflation and interest rates, and Noel Maxi couldn't close a deal, and you know, we were talking about exit plans already, and we're only six months in. And we go, boy, it'd be nice to have a million or two million dollars worth of work on the go. Well, now you fast forward 12 months, and you know, we're a little bit stressed out about trying to wrap up jobs and keep, you know, keep clients happy, etc. So, which you know, you've got to just pick your poison. I think Alex Hormosy sums it up best. You know, when you're flatlining, business is stressful. You know, when you're sliding backwards, business is stressful. When you're growing business, it's stressful. So, guys and gals, just understand that you're going to be uh under a certain amount of stress. You've just got to govern how much you're going to bring into your world. And I, you know, I think that's what I've seen based on my experience is some guys that they have big eyes for big success, and when the business grows faster than them, there's an inability to be able to keep up with that mechanism, with that momentum, and uh and what it does that brings out the worst in the builder. Okay, keep that in mind. Right. So, what we're gonna do is run through six points here really quick, and uh just to try and help you get some sort of context around you as a human, you as a person, you as an individual, uh running a building company that has all of these facets, all of these departments within your business, okay, that you've got to keep your head on straight to make sure that you try to make good decisions. Uh and in the event you don't you don't, well, we've got to take lessons away from that. We're gonna talk about that here pretty shortly. Right, decisions shape, outcomes. You today are the sum total of all the decisions that you've made. It's don't even get into the whole, oh, but if I had that happen and the ball had to bounce the right way and blah blah blah. You know, you can't go back and change it, so just freaking deal with it. And the sooner you own it, the more opportunity you have to get better in the future and to recognize patterns perhaps that got you into that that you didn't know back then because in naivete, but now you do. Okay, good decisions generally lead to good outcomes, poor decisions uh generally lead to poor outcomes. That's pretty standard. The quality of your business often reflects the quality of your decisions over time, and so don't go blaming third parties. The quality of your business is based on the decisions that you have made over time, and there'll be some guys and gals that will call bullshit and go, I don't believe that. And you know what? I ain't gonna argue with you, I'm just gonna keep building my business. And my you just mate, that advice that I just gave you is probably could be only worth to you what you paid for it, which was nil. So this is why it is a the more you learn, the more you earn. Your growth will determine how quickly you rise into the the areas of success within your business life. Okay, if you want to sit there and argue the point, like a three-year-old that can't tie their shoes, their shoelaces, and then they put a knot in it, and then mummy and daddy tries to help them undo the knot and they scream out because they don't want the help. Like, fine, when the student is ready, the teacher will appear. That's how it bounces. Okay, so guys and gals, just on that, you know where I am. I mean, we're almost 300 episodes deep here. If you can't find me on an email or a website or anything like that, you're not looking hard enough. Okay, so where if you're sitting there and thinking, I need to get my poop in a group, and I need some direction, I need some infrastructure, I need some level of education, I need some uh leadership in my life to help me like fight the good fight in the ring. I need a coach. Well, then that's what I do. You know, it's like you know, sometimes we have good talks and sometimes I've got to show some tough love. But it's all motivated. My intention is to promote you, is to help you grow, is to push you a little bit beyond your comfort zone because your success, my success, is outside of our comfort zone. Every decision is a vote for the future that you're creating. See, so your decision, how you handle a bad outcome, is going to help lead you into either a good future or a not so good future. See, so it's like if you are good at making bad decisions, though that will exponentially destroy your business. Jeez, that's a bit harsh, isn't it? Point number two, sometimes we don't know immediately. You know, there's some good decisions that you make that don't reveal how good they are until months or years later. Okay. Um, you know, I I just pause for a minute because you, you know, it's very difficult to say that when you've when you realize you made a good decision, you know, and so I think sometimes we look over our shoulder and go, wow, I'm really enjoying the fruits of my labor or the outcome here. I didn't realize how good it was going to be when I made that little decision. So sometimes, you know, the the outcome, you're not gonna see that straight away. Some bad decisions look good initially before the consequences appear. Uh, I've done it more often than I care to think about, where I've been ridiculously optimistic, overly optimistic, with a highly high level of naivety, with misinformation or low education, and thought it was gonna be all rosy and it turned out to be the worst thing in my life. So it's at that point that I've got a decision. What am I gonna do with that outcome? Am I gonna make excuses where I don't pull the lessons from it or actually don't get better? Because somebody who is serious about getting better will recognize that that bad outcome is just, you know, hopefully it's a micro bad outcome, it's not gonna destroy your business. But hopefully the the lessons that can be pulled for that is gonna set you up for success, and you basically step on that dirt and it elevates you, okay. Uh, leadership requires making decisions despite uncertainty. And I think when I I think what I do, you know, we've just purchased recently a dump trailer, and you know, we're weighing up do we go and lease to buy or do we just go and cut them a check, and and so it's at that moment in time where Jed sort of said to me, Hey mate, I'll trust whatever decision you make. And so in him doing that, it didn't make it any easier for me. I just knew that I obviously was able to think about what was going to happen in the future, even though there was a level of uncertainty, because when you cut him a check for that sort of money, you know, yeah, I could probably sell the trailer if we needed to to liquidate and create cash. But you're always wanting to make good decisions, that's the case. And of course, over time we did the forecast, we looked at the projection, we thought the day rate on that trailer is a couple hundred bucks a day. Every time we use it for a job, say on cost plus, you know, we we allocate 200 bucks if we go and even do a fixed price and we say we're gonna use that for 20 days, you know, that's four thousand dollars, a line item, and so it wouldn't take long to recover the investment that we required. But at the same time, even though those forecast numbers look good, we've got to make sure that we continue our sales trajectory, otherwise, we're going to need cash to pay the bills. So the trailer's got to go. So there's always a level of uncertainty, and I won't know whether that was a bad decision, a moderately good decision, or a great decision until maybe 12 months from now. Especially, I'll be a lot happier if I can sign another contract, you know, in the next four months to ensure that we've got work between say October and the end of the year and beyond. Okay, good decisions. Number three, good decisions. Enjoy the win and stay grounded. Celebrate, celebrate your victories and your progress. You know, I think there's nothing more motivating when it comes to weight loss. The best motivation, inspiration is to see some numbers coming down on the scales, if that's what you're shooting for. And so, really, you know, success breeds success. But at the same time, I would caution you not to get high on your own supply. Okay, you are still human. If you get distracted, and I know having read multiple Donald Trump books, and it doesn't matter if you're a fan of Donald Trump or not, but he did get high on his own supply in the early 90s, and he almost brought down the Trump Empire because he just got flippant and lazy. Right? And and he notes that in his own in his own memoirs, in his own books. And so if it can happen to a guy like that with that sort of stature and that sort of financial capability, it can definitely happen to you and me. So just be enjoy the wins, but just also at the same time keep one eye on the future. Be grateful when things go well, success is a result to appreciate, not a reason to become complacent. And that's what it comes down to, guys. You know, we want to enjoy the fruits of our labor, but everything's a season, okay? So there's gonna come a time where there is a bit of a harvest, and yes, there is some apples on the tree, and great, we fill the box up and we're okay. But the farm never sleeps, okay. So you've got to keep on being diligent because if you're not busy living, you're busy dying. Stagnation is just another form of dieback, okay? So the business has to be always fresh, it always has to be moving. You know, a shark never stops swimming. If it does, it'll die. Okay. Uh, point number four bad decisions. Accept responsibility and find the lesson. So here's the key: it's easy to high five and enjoy the victory and all that sort of stuff. But if you've had a bad day at the racetrack because you made some bad decisions, then you have to take stock. You have to look at it and go, you know, we made this decision, we used that strategy, and it backfired. Okay, there's no room for finger pointing. I'll often say, I'll, you know, like, mate, this this interior designer that we worked on, I often say that I bet she's got a sore finger from all the finger pointing that she does. Just doesn't have the balls to cop it in the mouth, it's just weak, it's pathetic, right? And it's like, you know, we we don't want to be that person that always deflects, points the finger. And you know what, in some cases it might have some merit. I'm not saying that it does not, but I'm just saying beware that if that's your modus operandi or your MO, and that's what you do as a reaction, it's you that's it, you're a weak player. Okay, you might have just cause to bring forward, you know, why that there was a third party that created the challenge, right? But ultimately, if I'm the CEO, I'm the president, if I'm the boss guy, if I'm the head general contractor, if I'm the company owner, it's just easier for me to take on the responsibility of the failure. Because if I own that problem or that failure, then I can help develop the solution, which is good for me and my business going forward. Um sometimes bad decisions aren't are intentional. Okay, sometimes they're made with good intentions and incomplete information, and that's what I said before that I've made been overly optimistic, miseducational, misinformation, lack of education, too much motivation, and really not enough brainstrust was involved, and that's what happened. Uh, the goal is to not self-criticize, the goal is to learn and to improve. And so, as much as we want to sit here and listen to the podcast and take all the good things and learn from that, great, you need to understand that is it is as good or better than this podcast and any checklist or spreadsheet or SOP to analyze and to audit a situation that has affected you negatively and take and squeeze everything you can out of that and go, why you've got to be honest with yourself, guys and girls. I would say the reason, like most of us guys and gals, builders, who doesn't want to build a $10 million business? I do, okay? But what is going to stunt your growth? What is going to create the bottleneck and the roadblock to you achieving the revenue target for your business and the profit margin percentage goal, the net retained earnings goal that you have in your mind, the thing that is going to stop you is your immaturity and your inability to take responsibility for the cock-ups. Mate, I've I've I you know I've cocked it up more times than I care to think about. But out of that, when I because I am secure in who I am and my intentions throughout the process were pure, and I worked my face off, and it didn't work out the way I wanted it. Because of my inner security, I don't need to throw out ego and bullshit to cover for my insecurity. Because I know that everyone around me is having a hard time too. So why am I going to do things to try and impress people who don't care? That's called ego. Because people see through that, they feel that. They go, Max is just bullshit, and he doesn't, he just got slaughtered, and so now he's just trying to cover it up, or he's just trying to pretend like it wasn't his fault, or blah blah blah blah. You just lose all the credibility, you lose face. You know, to stand there in front of the camera saying go, this is what happened, this is the outcome, this is what I didn't do. Failure was on my part, but I'm gonna get better. Mate, it's pretty liberating. And this is why I won't work with EBA clients and just got too much ego and want to blame everybody else. I saw enough of that in the franchise world to freaking like for decades, forget about it. Enough, right? It's just it's borderline cowardice, guys and gals, right? So man up, woman up. Gosh. Number five, and I've talked about this before, and I really like this analogy, if you like, or I really love this this this train of thought, right? That in our perfect world, what we want is we want to have control of our business. And I always say control more but do less, right? That's and we lead into systems and people, okay? But to get control, we've got to have okay, we've got to have a very high level of order within our business, which really starts in our head. If your head is disorganized or it has disorder, what that's going to result in is utter chaos. I've seen business leaders, business owners, grow a business to over 1.5 million, and no sooner had they got there, the thing was just in dieback because the stress and the pressure and the lack of responsibility and the inability to cop it in the mouth and accept the responsibility because it was not there because of insecurity, personal insecurity. And I'm it's not my job to fix your insecurity. That's your job. You've got to go figure that shit out. Okay, but I know this I can pick an insecure leader in five minutes. It's just the way they talk, it's the way they carry themselves. Okay, instantly their street cred is diminishes, it's non-existent anymore because they're just talking a big game, it's bullshit. Okay, so and you know what? More often than not, that person, you'll never be able to get through to them because they're too busy talking. They don't shut up for a second. They don't, they don't like I'm all about having confidence. Guys and gals, you need to be confident when you're out there and you're talking to vendors and you're talking to agencies and you're talking to clients. Guys and girls, you need to have a level of confidence in what you do, who you are, and what uh what service and product you provide. Okay, but at the same time, you need to have an element of humility, okay? That is going to be an equal measure, right? Because what happens when you get overconfidence and you've got lack of humility, then ego's got to rise up there and just give you air cover for all the BS that's coming out of your mouth. It's it's so unattractive and it's so ineffective, okay? And I'm not saying that if you've got a big ego and you're insecure, you can't be successful in business. I'm sure there's thousands of them out there. But I'm just saying you won't be respected where you want to be, and you won't have many friends because good people are probably not going to hang around you. Okay. Um we are. Good decisions create clarity, stability, and order. Okay, so that's what we want. We want to be in control, and so we've got to really have a business that has got some level of order within it. Um, otherwise, we're living in a state. And I'm telling you, you can never grow a business out of chaos. Impossible. Now, don't get chaos mixed up with intensity. I thrive when I've got deadlines and I've got few people coming down the pipe, and I've got to triage them and I've got to get back to them, and I've got to keep going. Like, I love the game. The, you know, I was gonna say the thrill of the kill, but you know, the chase, the thrill of the chase, like it's on. It's like I've got to deliver, it's all on me. Like, I love that challenge, that personal challenge. Make sure I communicate the highest level, make sure I'm ordered in the way I'm thinking, make sure I execute efficiently, make sure I do what I say. I'm gonna do it. It's really based around producing when you're in a high stakes game, is all around your core values. Like, I'll never say to someone, hey mate, I'll pay you this week and then I don't pay them, and they've got to chase me next week for that same payment. Like the minute that comes out of my mouth, it goes into my calendar. Pay old mate. And I won't go to bed until I've done that. It's got to be done, you know. Now, if I don't do it, and I there's reasons why I can't get to it, there's got to be communication because we value open, honest communication, don't we, folks? Yes, we do. Core value. Okay, so good decisions, which I believe are founded off the back of we are called we are core value, uh, we are core value based. We're purpose-driven, core value-based. Like all of our decisions are made around those. So if they are, if our good decisions are based around our core values, automatically there should be clarity, stability, and order. Now, if you don't have any core values to do with your business, you need to start looking at those. Because it is your go-to when it comes to making your decisions. I'm making my decision, this decision is made in conjunction with we do what we say we're going to do. That's another core value. If I've said I'm going to pay you, I'll pay you. Then if I'm if I give you a deadline and I go past that, we value open honest communication. I will communicate with you that I've dropped the ball and I'll get to it tomorrow first thing. Trust that's okay. Guys, see, that's that is kind of how we run our business from an emotional standpoint. It's like We need to be a good communicator. We need to be a person of our word. We need to deliver that which we say we're going to. So that's good decisions. Poor decisions often create confusion, friction, and chaos. Mate, have I seen my fair share both in my business and in my franchise group and inside of my EBA group? Poor decisions often create confusion, friction, and chaos. All bad for business. Anything that creates heat or drag in your business is bad for your bottom line. Okay. Business leadership is largely the process of being bringing order to disorder. So for me and my role in this business, even though I have a business partner, Jed's role is to maintain order on that building site. Period. My role is to maintain order in the office. Make sure that bid requests are going out, any walkthroughs that are happened, they're scheduled, making sure the quotes come in, they're accurate, make sure I do good quote reviews or comparisons, make sure I'm issuing POs, make sure I'm monitoring the bills coming in, make sure I've got my office system sorted out so that I can get payments out on time, make sure I've got uh accounts receivable going out to clients at different stage claims, making sure, liaising with Jed that this is the next project payment stage, this is what we need to be focused on, all that kind of stuff. Keep the cash flow coming in. So that's what business leadership is largely responsible for, is to bring order to disorder. So I think a lot of the time most builders don't even understand that that whole thing about chaos and control and disorder and order and controlling more and doing less. Like your life can be so much better. I mean, you know, it's it's really just sometimes we've got to look at our life and go, you know what? You know, Alex Ormozy says sometimes it's the things I say no to that determine my level of success. And you know, having been in and around the franchise business for the longest time, um, being in the coaching business, being in the construction business, there's no question that sometimes you just got to say no. And I'm now president of the Okanagan Footy Club, I'm, you know, business development manager for the Okanagan Cart Club, I play in a rock and roll band, you know, father of six. You're like, sometimes you've got to probably just just time out, look at the hours per week that you've got and go, this is not sustainable, something's got to go. See? And so that's gonna be in the quiet moment. And I've forced myself more often, uh, more recently, in the more recent times, to do more audits around what's important to me, you know. So I start jettisoning some of my corporate duties, and I all of a sudden start getting some stuff done at home. Stuff uh I get to spend more time with my family, all good things, right? But you've got to be in control of that. You've got to bring order where there is disorder. Okay, number six, focus forward. I'm gonna close out with this one. You can't change yesterday's decisions, right? We know that you go, oh, that's a well, that's deep, Max. Yeah, I know it is. Okay, but sometimes we just sit there in the wish land and wish we could. So you know that you can't go back and change decisions, but you will sit in this valley of despair and go, I wish I could go back and change my life. It's just you're gonna that's called stalling, that's stagnating. And you're not busy living, so you're busy going backwards. You just die back, you're busy dying, your business is not growing. So, what you've got to do is pull up your bootstraps and accept it for what it is and what has happened, and all you can control is the future and your decision making going into the future. Nothing that's happened in the past. Learn from it, pull a lesson from it, but understand that you can't influence yesterday's decisions any anymore. It's now about you know the tomorrow's outcomes. You can influence tomorrow's outcomes by making better decisions today. Remember, I tell my kids good decisions, good outcomes, bad decisions, bad outcomes. You own them both, you're responsible for both. Do your best to get it right. That's what I'd say to you. Same thing, same thing for me. Like every day, we've got thousands of decisions to make every week. How we use our time, what phone calls we make, who do we follow up, what bills do we pay, how do we negotiate? All this kind of stuff, you know, that's not even anything to do with our family life. Don't become consumed by what you're going through, stay focused on where you're going to. Right? So it's it's you know, I think that the climb is the challenging part. Reaching the summit is a natural byproduct of putting one foot in front of the other and maintaining posity and optimism despite the challenges that are there. If you're climbing Mount Everest, there's challenges everywhere you look. There's dead bodies on the road, on the track up to the summit. If that doesn't rattle your cage, I don't know what does. They're not going anywhere, frozen in time, that's where they stay. In the freezer. So it's not what you're going through, it's what you're going, it's where you're going to. So if, and this really comes down to where I might start with you as a business coach, and I might say to you, look, tell me what your business looks like in 12 months from now, two years, five years, 10 years. Like, when I say what does your business look like, what do you want your business to give to you? What sort of lifestyle do you want? And that will tell me what sort of money that you need to be making. And of course, we underestimate what we can achieve in 12, uh, excuse me, we overestimate what we can achieve in 12 months. We think we're going to kill it in 12 months, and all of a sudden you're a year older and nothing really much has happened. And then we underestimate what we can achieve in 10 years. And I might have said it on a couple episodes ago. Jed and I are building what we want to be uh a family construction business for the ages. You know, and so you know, when you've got that long-term goal, it actually empowers you, it gives you incentive. It's like, okay, it's not what I'm going through right now. Uh, that was a bad decision. I'm gonna take the lessons as much as I can, I'm gonna wring its neck for everything it's worth. And in 12 months, because I responded to that that way, in 12 months, two years, five years, my business is gonna be in better shape because me, the leader, the boss man, the boss lady, um, I responded professionally and I didn't take it to heart, and I had humility and understood that yes, I made a bad decision, but I can grow from it. Success consists of getting up one more time than you fall down, folks. You just got to keep getting back up. Um, ask me because I'd know all about getting knocked down. Okay, just to close out, every six every successful builder has made mistakes. You're looking at one. Well, not one big mistake, but you know, guy that's made a few. The difference is that we've learned from them, accepted the responsibility, and kept moving forward. And so that's the key. You know, I think once you accept responsibility, it enables you or allows you to move forward. You know, so don't be like the donkey that fell down the well that thought, whoa it was me, you know, I'll never get out. And then there's challenges that come into our life, like people looking down the well going, Well, we can't get the donkey out. Don't know how he got down there in the first place. So, what we'll do is we'll just bury him alive. And as the as the villagers would throw dirt on this donkey to bury him alive, because he's never getting out, the donkey, the dirt would hit the donkey's back, and the donkey would shrug that shit off and put it under his feet, and over time it elevated him to the top of that well where he could just walk out. Now they couldn't use it. Well, because it's now full of dirt, but that's a them problem. Oh goodness me. So, look, just you've got to stay optimistic, you've got to stay positive, you've got to keep rising above. And here's the thing if the business gets too big for you, it's going to bury you, it will hurt you. Okay, so what you need to do, I think the guys and the gals that have got what they don't know is they've got time on their side. The guys in their 20s and early 30s, perhaps, that aren't too damaged goods, right? Slow down the play, pump the brakes a little bit. Understand technique first, okay, speed second, right? Develop the technique, right? Make sure that you've got everything in place. You're executing um intuitively, and it's second nature. You know what you're doing is right, and you execute consistently, and then off the back of that technique, you can grow, you can you you can then implement speed, which will help you grow vertically, right? So just be encouraged, it's not what you're going through, it's where you're going to, but you've got to understand too that the problem to your challenges in your life are not external, they're internal. How do I embrace the challenge? Now, I'm not saying don't get frustrated, you know, don't go kicking the cat or the dog, right? They didn't do anything. But the point I'm making is that you know, you've got to vent, you know, and if you've got a really good understanding partner like I do, then you can vent to them, and we're in it together, and as long as I get that off my chest, I'll go to sleep tonight and I'll wake up tomorrow with another positive attitude, positive mental attitude, and um, you know, get after it again. So, guys and gals, look, if you want me in your corner, whether it's a coaching on demand, 90, 90 day program, um, or you want me with your weekly coaching, um, you everyone's got different requirements in their business, personally and professionally. Um, and I, you know, I think for the most part, I can sort of cover off a lot of that. Be sure to get across to LeapbusinessAdvisory.com, hit the book a consultation button, um, book some time, spend 30 minutes with me, just a bit of a strategy session, free of charge, and uh we'll see what we can do to put you in the right direction. Um, don't forget, if you're feeling generous, give us a uh give us a five-star review, we'd appreciate that. Helps us get the word out there, good karma, all that sort of good oil. Um, but other than that, have a great day, go build a kick ass business, and I'll see you on the next episode. Cheers.