BuildIT - Return on investment is a "no-brainer"

When was the last time you "wasted" money on something?

You took some hard earning money, bought a widget that ultimately gave you nothing in return, other than the initial feeling that you may get something out of it at some point.

  • the exercise machine that is collecting dust (and clothes)
  • that food mixer appliance that looked so easy on the infomercial but when you use it - not so easy, so you go back to the knife and cutting board
  • that stock you bought, thanks to a tip from your buddy - you're still waiting that puppy to climb back up to the purchase price
  • that box of software you bought a few years ago that promised the world, and now it's a bookend on your shelf

OK, now that I've re-opened a wound, let's cut to the chase.

Everyone comes to BuildIT looking for one thing - a solution to a problem. Finding the right solution will put money back into your jeans, or time back into your life, or will reduce the stresses of running your business... or if you're lucky, ALL 3 at the same time.

You part with your hard earned dollar to subscribe to BuildIT; mentally you are doing the math - the "what's in it for me" equation. You need to see a major return on investment, and you need to experience that return (make it yours) right out of the gate.

It's the story of many of our customers... and it can be your story too !!

Let's look at ways you can win with BuildIT.

1. Saving money - miscommunication

Every job you do requires a number of tasks, and responsibilities from other parties. The more tasks required, and the more people involved, the more mistakes will occur. Those mistakes generally are caused by miscommunication of some sort. Communication issues are the main cause of grief, and profit loss. This is an undeniable fact. Ask yourself, where do problems occur that cost you $$ or time, and chances are, you'll attribute that to a breakdown in communication.

BuildIT is the perfect solution for keeping you and others "on track". Any and all issues are documented in one place, tied to the job. There is no mistaking who is responsible for what, who said what, what was to be built and when - all that information IF YOU TAKE THE TIME TO ENTER IT, is in one place, and there to serve your interests down the road.

Scott Sedam of True North Consulting, an advisor to high volume homebuilders, claims from his organization's research that for every residential construction job, there are about 30 - 35 subcontractors and vendors. There is typically one mistake that takes place for every 5 outside people involved in the project, so you can expect 6 - 7 mistakes per job. These mistakes, thanks in large part to miscommunication (not getting the information in time, red lined drawings that are unclear, building off outdated specs or schedules, etc.) WILL COST YOU time, money and aggravation. And the dollar cost will be well in excess of what our typical customer would pay for subscribing to BuildIT for a year.

Use BuildIT properly (even minimally), and you will reduce errors, and have a back up that protects your interests should errors occur, and passes the onus of responsibility on to the other party.

2. Saving money - labor

Think about what it costs you for a part time or full time "warm body" to help with the "administrivia" of running your business. Now imagine a full time office assistant that never calls in sick, is available 24/7, does not give you "attitude", does not spend hours you pay this person each month checking Facebook, Twitter, playing Solitaire, checking CNN's latest headlines, etc., does not contribute to shrinkage, does not increase your risk of embezzlement - and you get this for a whole month, at a fraction of the cost of that "warm body" (perhaps, 1 to 2 hours' wages of that person's time and loading) !! Our customers make this claim that BuildIT saves them $1000's per month in wages. I calculated with one customer in Texas that his return on investment with BuildIT was 47 to 1 - think about it - for every $1 he spends on BuildIT, he saves $47. Do the math.

Having said this, we recognize that you do need adequate levels of staffing to run your business effectively, and office administrators do play a vital role in the operations of many small to mid sized contracting businesses. BuildIT can augment your business, assist your team with becoming more organized for success, and even give your office administrators a tool to help them accomplish their tasks quicker and with less error. Each person knows where to go for the information, where to post the information, and this will free up your staff to do more valuable functions that drive your business forward in terms of professionalism and profitability.

3. Making money - new revenue

We have customers who use BuildIT to their advantage - to get new business.

How?

Simple. You're competing with other companies offering a similar product. Your price may be in line with theirs. What distinguishes you from the other guy? If you use the worn out platitudes like "we're honest", "integrity in everything we do", "unsurpassed customer service", your customers will blow right by. You need something that truly sets you apart.

Professionalism - customers want to do business with someone that looks good, and gives them the "feeling" that they're dealing with the pros. You use the many construction document templates in BuildIT, which can be printed off, or emailed, showing your letterhead and all the details. AND, you let them know about a system that will keep them informed 24/7 about their project, where you are at any point in the schedule, and a place where they can view any files pertaining to the job.

You offer them the following:

"Mr. Future Customer, if you choose us, we have a web based service that will allow you to view your project schedule at any time of the day. Through this system, you can see how your job is progressing, and you can even communicate with us on any particular task on the schedule. I will also post files for you to review - contracts, specifications, progress reporting, pictures - anything that you need to see along the way will be available through this service. There is no website to remember, no username and password to maintain - just check your email and I'll send you a link."

All things being equal, by you offering this service, you are now set apart from 95% + of your competitors who haven't yet graduated to web based construction tools like BuildIT.

4. Saving Time

Have you ever calculated what your time is worth, per hour?

Have you ever calculated how much time you would save on each project if you carved off, say, 5% of the time?

Time is money - do the math. And start saving time today by using BuildIT. Take the time saved and invest it in new business. New business = new revenue = increased profits for the year.

Do this, and then call us with your answer so we can brag even more about how BuildIT contributes to our customers' bottom line.

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In short, you're not here to buy technology because it's cool (although, we admit, it is a cool tool). It HAS to either save you time, make you $$, help you avoid embarrassment or costly call backs, or help you get the next job and have a leg up on your competition.

Put it to the test today - we'll partner with you, and help you get some success under your belt.

 Scott Hutchinson
 scott@builditsystems.com
 1 866 585 5050 ext 1

BuildIT Lean and Mean

Scott Sedam, President and Founder of TrueNorth Development recently did a presentation on Becoming the Lean Builder.

He nailed it.

For years, as a technical consultant for Weyerhaeuser's engineered wood product line, I saw waste and inefficiences everywhere I looked. Contractors were making money by accident, and leaving a lot on the table, and a lot of waste ended up in landfills.

I saw a big opportunity with BuildIT to help these contractors take the "good" job they were doing, and do it even better by becoming more organized, more attentive to detail, and more in control of their scheduling. So I invested in the Company, and soon afterwards joined the team.

As Scott mentions, from 1991 to 2006, considered by many the "Golden Age" of building, 90% of the margin made by 90% of the builders were made in 3 ways:

  1. Land appreciation
  2. Sales price inflation
  3. Volume expansion

Stuff was built, and people were buying. Efficiency was a great concept, but not really necessary when profits were made by default.

Along comes 2008... and the party's over. It's time to get lean, or get out.

For years, BuildIT has offered a system of tools designed to make contractors more efficent, and keep them more organized. The economic realities today are such that system like BuildIT are necessary for contractors to stay in business, and achieve acceptable profit margins.

Let's talk about "Lean" for a bit.

What is "Lean"?

It's not dropping your price to get the job. No point in working for free, or losing money while someone else gains from your loss. It's not making unilateral cuts across the board (materials, labor). It's not necessarily about reducing your expenses either, the mistake many make when considering whether they can "afford" to keep systems like BuildIT going.

It is about "doing less", but making it "count more". Plug the income and profit leaks in your organization, your product and your processes. Become intolerant of waste.

Lean is identifying waste in all it's forms:

  • Product waste (materials)
  • Process waste (time & labor)
  • Design waste (get it right on paper before mistakes are made on site)

Product waste is fairly self explanatory.

Check out these pile of goodies left over after a job - who do you think pays for this? How much $$ does this represent? Whose pocket would you like that $$ to be in?

         

Less waste = less cost = improved margins for contractors and better products for their clients.

Start becoming lean in the "product" category by becoming obsessive about product waste. Don't let it happen. Design it out at the beginning. Hire consultants like Scott Sedam to find out where this waste occurs in your product offering, and how you can turn this waste into margin. Sometimes it takes someone from the outside to show you.

Now about process...

Scheduling accuracy, wasted trips, change orders, communication issues. These and other process issues are hard to nail down. Quite frankly, it's a lot easier to deal with product related waste. But spend some time on this one... there are gains to be made, and they'll translate to dollars in your pocket. 

Let's look at wasted trips to the building site:

Scott's research shows that the typical builder averages 50 wasted trips to the jobsite. Times that by an average of $200 per trip, and there's $10K savings right there. While this may seem steep to most at first, do your own math. Keep a log of how many trips you make... that you really didn't need to (if you were more organized, and your subs were better scheduled, and you hadn't miscommunicated on some matter earlier). Figure out what your time is worth, per hour (be truthful here, what could you trade your time for), don't forget wear and tear on your truck, fuel, and opportunity cost (you could have used that time to work on a bid, land another contract, see your son's baseball game). Wasted trips are an indisputable time and money waster.

Let's say conservatively that half of those trips could have been eliminated using a tool like BuildIT. You've literally paid for BuildIT for 5 years.

Then there's the "saved day" in a building schedule:

I'm surprised at how many contractors I've talked with that have a loose schedule. They build in 120 - 150 days what an "efficient" builder who schedules with specific intent can do in 100 days.

Consider "interim financing" or carrying costs. Let's say those costs are $50 per day for a project. The total impact of saving just 1 day in the build schedule can exceed 5X that amount (or $250) IF that day is used for production (taking into account fixed costs and overhead).

Now imagine if using BuildIT (not just subscribing to BuildIT and checking it occasionally, but working with the system regularly to update the schedule, notify subs, and keep scheduled tasks on track and production happening on EVERY working day from start to finish) allowed you to shave off a week or 2 on every project you do for the entire year? Save 5 days per project, on, say 8 projects, and there's another $10K saved.

The numbers get ridiculous... in your favor. And still, I get those that balk at subscribing to our service for $85 per month because, in their words, "they can't afford it".

Yeah right.

What you need to understand: those that think they can't afford BuildIT really haven't done the math yet.

But their competitors will.

We hope you will too, and choose to become lean and profitable.

To your success !

 Scott Hutchinson
 scott@builditsystems.com
 1 866 585 5050 ext 1

Help is a click away

Help.

There's a lot of it available out there... for you... and much of it is free. Help with your marketing, business management, and ways to stay competitive, cash flow positive, and ahead of the pack.

And in this economy, why not take advantage of it ! 

1. Network organizations

Business after hours, Chamber of Commerce meetings, BNI or similar business networks. Rotary, Jaycees, and other service organizations. Trade organizations like NARI, NAHB, CHBA (for you Canadians). Get involved, and get the word out on your business. Associate with those that are going through similar experiences, and brainstorm with them. Many of these folks are willing to share their advice and help you out. Hey, you may just shake hands with your next customer.

2. SCORE big time

I came across SCORE the other day (Service Corps of Retired Executives http://www.score.org/). Here's what they say about themselves:

SCORE "Counselors to America's Small Business" is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE is headquartered in Herndon, VA and Washington, DC and has 370 chapters throughout the United States and its territories, with 11,200 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors. SCORE was founded in 1964.

We are America's premier source of free and confidential small business advice for entrepreneurs.

Wow, I'd take them up on that one in a heartbeat. Just look at all the business templates that are available for your small but growing business:

http://www.score.org/template_gallery.html

3. Small Business Administration

The Small Business Adminstration (http://www.sba.gov/), or SBA, helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States.

Not only can they provide you with business planning, services, financing, marketing and a host of other tools, they can also help you find local State resources.

4. Economic Development Administration

Each State has one, and they all want YOUR business. They want you to succeed in their State. And they provide the tools to help you: access to capital, technical assistance, educational programs, peer groups and referrals to others in your situation who may be able to help out. Find your State's EDA here:

http://www.eda.gov/Resources/StateLinks.xml

5. Free Software Productivity Tools 

There are some great applications out there to make your job, and life, easier. Some of it will also raise you up a few notches in professionalism.

6. Free Website

If you don't have one already, get one. Many free "template" websites exist.

If you subscribe to BuildIT, we'll give you one, and even help you get it set up.

You need a web presence. Your customers want to see what you're made of. And you'll fare much better if you give them a business card with yourname@yourbiz.com on it as opposed to a Gmail, Hotmail, or AOL email address (save those for your personal email - for business, spend a few dollars and get a proper email address that brands your business).

We can help you get a domain (www.yourbiz.com) and an email address yourname@yourbiz.com pretty quick, and for just a few bucks. Call us.

7. BuildIT

OK, time for the shameless self promotion :-)

But seriously, BuildIT is mission critical for many construction businesses that are weathering this financial crisis. This is a productivity tool that keeps you organized, on top of your scheduling, and gives key people visibility into what's happened, and what needs to happen next. Use it right, it will put more time back into your life, and more $$ in your jeans.

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So there you have it, just a sampling of tools and ideas geared to help you achieve more in your business.

Here's to your success !

 Scott Hutchinson
 scott@builditsystems.com
 1 866 585 5050 ext 1