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If You Can’t Take No for an Answer Don’t Ask

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By Tom Grandy

Take a trip down memory lane when you were little.  There was something you wanted to do or perhaps purchase.  You were a wise little person, so by this time in your life you had learned which of your parents was most likely to grant your request.  With that knowledge in hand, you knew who to approach in order to receive the answer you most wanted to hear.  Most of the time it worked.  However, sometimes the answer was no.  What was your reaction?  Being a mature little person, you politely replied with “Mom, or Dad, I see the wisdom of your answer.  Thank you for making a decision that I am fully aware is best for me.”  Does that sound familiar?  Nope.  You threw a temper tantrum in an effort to get your way.  Sometimes it worked and sometimes it didn’t.

Well, 20 or 30 years later things have not changed a lot.  We still know what answer we want to receive…BEFORE we ask.  The question today is “How do you react when the answer is no?”  Perhaps you could ignore the answer if it were your parents responding but what about when it’s your boss or a customer?  Do you still throw a temper tantrum or do you accept the answer and adjust YOUR way of thinking?  I was blessed to receive teaching from a very wise pastor many years ago.  He made a statement I will never forget.  He said “Men need to think before they act and women need to think before they speak”. 

The message is pretty clear.  Take time to think before you respond.  Failure to think before you respond can cost the company a customer.  Speaking without thinking could also cost you your job. 

When we were children our parents really were responding to us in the way they felt was best for us.  When it comes to your job or working with a customer you may not like the answer they give but it’s not about you.  If you can’t take no for an answer don’t ask the question!

Grandy & Associates has two great Website Special offerings this month.  The first is our 96-page Company Policy Manual.  This is a critical document for any business.  It details everything from drug testing to vacation policy.  Since it comes in Microsoft Word the user can add, change, or delete at will.  Normally priced at $134.95 this month’s Website Special is only $99.95.

The second Website Special is our online HVAC Onboarding Course.  This class is designed to familiarize most new employees (receptionist to technician) with the basics of HVAC.  This eight-hour class is normally $299.95 but it’s being featured this month for only $279.95.  

Untangling the Confusion

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By Bill Kinnard

There has never been a more important time in your company’s history to know your numbers than now. This Coronavirus has impacted every one of us and trying to navigate the confusion that is the Payroll Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) can be really frustrating. Some you have already received your funds under these programs, while others are still banging your heads against the wall trying to figure out how and what your banker needs in order to process the loan.

I have been busy working with companies to untangle the confusion of these programs. We have created a page on our website with all of this content. You can watch the recent webinar that was attended by over 300 contractors as well as get links to the application and other resources to help you through this. We have included a spreadsheet to help you project your cashflow over the next several weeks.

Come back to this page often as we will be updating it whenever new information becomes available. Find it all here.  

Now Is The Time Attitude Can Make The Difference

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By Tom Grandy

We all know how having the proper attitude can make or break a relationship.  The current virus brings that front and center.  Like most of you, I am a small business owner.  When I contacted my bank (large national bank I have worked with for over 40 years) about submitting my paperwork for the SBA Loan program they responded like this.  “There will be no face-to-face help.  You can go to our bank’s website and submit your information.  If you get kicked off, simply wait an hour or so and try again!”.

Needless to say, I left frustrated not knowing which way to turn.  I was then told by a friend to contact a “local” bank.  My wife and I do have one account at a local bank which we seldom use.  Frustrated, I decided to give them a call.  As expected, I reached a recording telling me to leave my name and number.  I did with little expectation. 

Less that 20 minutes later I received a phone call from a loan officer at the local bank, whom I had never met.  He was amazingly helpful and immediately sent me details of information to collect.  He told me he would make contact with me Friday which is the day applications could be made for solely-owned proprietorships.  He then commented that we had banked with them for over 20 years (he actually checked to see who I was) and therefore we would take priority over businesses that did not have accounts with them.  He went on to explain how they have backup teams.  Should one of them get sick, my information would be seamlessly transferred.  Wow, I was blow away!

Literally, his attitude changed my entire perspective of his bank.  Yes, attitude DOES make a difference…especially when backed up with positive action.

The virus has created a unique environment which we can complain about or take advantage of.  Now is the time to win over new customers with our kindness and personal concern.

Techs and employees are often concerned and/or confused about why the company is charging what its charging.   The bottom line is simple.  If they don’t believe the companies pricing is proper, they will tend to under charge the customer.   The Why Do We Need to Charge So Much? presentation does a great job of explaining the basic costs of doing business and therefore why the company charges what it charges.  It comes in two formats.  The first option is the multi-user streaming version that comes with the presentation, a workbook and directory of how to present the materials.   This version is normally $114.95 but this month it is featured at only $99.95.  The second option is an online, one-module, single user, version which normally $39.95 but this month is only $29.95, order yours today.  No matter the format you choose, this program will help your employees understand why you charge what you charge. 

Did You Learn From 2008?

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By Tom Grandy

The years 2008 and 2009 were really rough years for most small businesses.  Now granted, some reading this article were not even in business 12 years ago, but those that were, will remember the financial bottom fell out of the system.  Money became tight, people were not buying,and unfortunately many small businesses failed during that time.

Most tragedies have a silver lining, eventually.  The silver lining back then was the “wake up call” for small businesses in terms of getting out of debt and putting money back for a Rainy Day Fund.  The companies that were able to survive 2008/2009 were the ones with the least amount of overhead, especially in the area of debt, and those that had a Rainy Day Fund to fall back on.

Most reading this article have children.  As parents, there are always specific things we tell our children not to do.  If they do it anyway, there are consequences.  It the behavior continues the consequences increase. If the parent is consistent, and loves the child, they are relentless with the consequences knowing that if the child does not learn the desired lesson it will have far worse repercussions down the road. 

Bingo!  Here we are in 2020, over 10 years later, with a test.  Did you learn the lesson?  No, the current virus is not a financial breakdown but from a business standpoint it can very well turn into that.  Let’s assume I am your parent for a couple of minutes.  It’s time to restate the desired behavior and to once again explain the consequences if behavior is not modified.

Become Debt Free

Debt always has been and always will be a killer.  It’s not so much that the debt itself is bad (although it is) but it’s the fact that it serves as a huge blinking stoplight telling us there is an underlying problem that needs to be addressed.  The very nature of borrowing money has one of two main tap roots. 

  • Greed – Yes, greed is a strong word. Its foundation is that we “want what we want when we want it”.  Sound familiar?  We want something NOW that we don’t have.  When we were children it may have been a candy bar.  Today, it might be the latest model of a certain truck. Bottom line, we want it and we want it now.  How do we get it?  We borrow money and go into debt.
  • Poor Planning – Now to be honest, most business debt has nothing to do with greed. However, business debt is a symptom.  It’s a symptom of an issue or issues that have not been dealt with as yet.  It could be any of the following:
  • Poor Collections – Some debt is incurred because the company simply has not been able to collect the money they are owed. The solution is obvious.  Take time to review and revise the company’s collections policies.  Oh, and implement them!
  • Purchase New or Used Equipment – If the money is not available when it comes time to purchase or replace, equipment or vehicles it’s time to institute the Equipment Replacement Fund we have talked about over and over again. Simply stated, if the vehicle is estimated to last three more years, and is estimated to cost $30,000 to replace in three years from today, then the company needs to save back $10,000 per year ($30,000/3 years = $10,000/year) and put the money into a saving account or mutual fund until the funds are needed.
  • Improper Labor Pricing – Collections and/or lack of savings to purchase equipment can be a reason for debt as well as many other smaller issues however, the root problem is usually improper labor pricing. It’s amazing to me after three decades plus in the industry, the number of trades companies that still fail to set proper hourly rates.   The bottom line is quite simple.  It produces a known process with a known end result.  If the company is not priced properly, it begins to produce an environment that requires borrowing to stay alive.  Debt increases, the cost of doing business goes up, profits fall and bingo, the company fails!   Bite the bullet and determine what the company really needs to charge to make a fair profit in each department.  Don’t forget, pricing needs to be set based on cash flow dollars not accounting dollars.

Rainy Day Fund

It a fact, it’s going to rain (eventually) nearly everywhere on the face of the earth.  It may not be for days, months or multiple years but in all likelihood it will eventually rain.  The question is not, “Will it rain?”.  The question is, “are you preparing for the rain that is coming?”  That is where the Rainy Day Fund comes in.  The company needs to be putting money back each month (it’s called savings) to put into its Rainy Day Fund.  The rain may last a day, a week, a month or longer.  No one can save for every occasion, but a great rule of thumb is to shoot for putting back enough money to cover 3-6 months of fixed overhead costs. 

The really good news is that YOU don’t have to the fund the account yourself, let your customer do it!  Here we are again, back to proper labor pricing.  Let’s assume the company would like to save back $60,000 over the next three years to fully fund it’s Rainy Day Fund.  That means they will need to “save” $20,000/year.  Simply place the $20,000 in your budget as an overhead cost and be sure it is included when you set proper hourly rates.  The really tough part is not so much building the cost into your pricing.  The tough part is actually placing the money into some kind of savings account or mutual fund and then having the discipline not to spend it.

Ok, the parent teaching lesson is over.  The two points to remember are:

  1. Get out of debt, and stay there
  2. Create a Rainy Day Fund

Hopefully the lessons are now learned and will soon be implemented.  If not, the consequences may be even worse the next time around.

Another thing all employees need to understand is why the company charges what it charges. Techs and employees are often concerned and/or confused about why the company is charging what it’s charging.   The bottom line is simple.  If they don’t believe the companies pricing is proper, they will tend to under charge the customer.   The Why Do We Need to Charge So Much? presentation does a great job of explaining the basic costs of doing business and therefore why the company charges what it charges.  It comes in two formats.  The first option is the multi-user streaming version that comes with the presentation, a workbook and directory of how to present the materials.   This version is normally $114.95 but this month it is featured at only $99.95.  The second option is an online, one-module, single user, version which normally $39.95 but this month is only $29.95 and order HERE.  No matter the format you choose, this program will help your employees understand why you charge what you charge.

Who Is More Persistent – You or a Squirrel?

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By Tom Grandy

Do you have a bird feeder?  If so, you have likely noticed those persistent little rodents called squirrels.  No matter how many times they are run off they continue to come back. I have tried numerous suggestions over the years including several “squirrel proof” feeders.  None of them worked.  As my frustration grew and my patience was disappearing, I visited the feed store one more time determined to spend whatever it took to rid our feeders of squirrels.  I asked the owner a simple question.  “Is there any kind of a bird feeder that will keep the squirrels away?”  Without hesitation, his answer was “No”.  A bit shocked, I asked why?  He then went on to tell me that 80% of a squirrel’s waking hours are spent looking for food.  They are persistent!  

Now let’s think about your business for a moment.  There are at least three areas within your business where being persistence makes a huge difference.  Let’s talk about them.

Receivables

Some of you may be aware of the story in the Bible about the widow and the unjust judge.  The lady’s husband had died and she was asking the unjust judge for legal protection from her opponent.  In those days of Israel, women did not have any rights so the judge said no.  Scripture records that she came back the next day and the next and the next until and I quote, the judge said, “Even though I do not fear God nor respect man, yet because this widow bothers me, I will give her legal protection, otherwise by continually coming she will wear me out.”  Translated, she was bugging him to death! 

There is a reason your customer has not paid their bill.  It is usually the fact that they have a limited amount of funds which exceeds the bills they have to pay.  If you had five bills that were past due and one of the people you owe money to calls you every day asking when you are going to pay the bill, which one are you going to pay first?  Likely the person who calls each day will be first on the list.  Not necessarily because it’s your largest bill or even the one that is most past due.  Persistence pays off. 

If you want to get paid, it’s the squeaky wheel that gets the grease.

Sales

Every company makes numerous sales calls each week.  Hopefully the customer signed on the bottom line before the sales professional left the home or business.  If not, what is your follow up strategy?  Statically, 80% of sales require five follow-up calls after the initial meeting.  44 % of sales reps give up after the initial call!

Our sales philosophy is simple.  Once an individual or organization has shown an interest in a product or service we offer, we call back over and over again.  Each call ends with a question, “When would be a good time to touch base with you again?”.   The process is to simply call back and call back until one of two responses are received, either of which is totally acceptable.  Either the customer purchases the product or schedules the seminar or they tell us they are not interested.  It’s called persistence.  Why is persistence important when it comes to sales?  Because we are simply never anyone’s number one priority.  The irony of the process we use is telling.  Over 90% of the programs we schedule are scheduled when “we” call back.  Seldom does the potential client pick up the phone to call us to schedule a program.

When it comes to sales the same principle of the squeaky wheel applies.  Call back until the sale is made or the potential customer tells you they are no longer interested. 

Selling Vision to Team

Hopefully your company has a specific vision and/or mission.  Do your employees know what it is?  Is it part of their thinking?  Can they comfortably convey that vision/mission to your customers?  If not, it’s YOUR fault.  Owners and/or managers must continuously state and restate the vision to those they have responsibly over.  It has to become habit.  Like receivables and sales, the key is persistence.  Tell the story over and over again until it is a normal part of the employees’ presentation.

When a squirrel wants food, they are persistent.  Their life literally depends on it.  If they are not persistent, well you know the end result.  The principle is the same for your business.  Persistence pays off.  If you are not persistent in asking for the sale, someone or someone else who is more persistent, will.  Guess who wins!

We have two great Website Specials for you this month.  The featured product of the month is our Company Policy Manual.  This is a “must” document for every company.  The good news is that it comes in Microsoft Word so you can add, change, or delete the document to customize it for your company.  The normal investment is $134.95 but this month it’s only $99.95.  Order today!

Brand New Offering!!!  Our industry acclaimed two-day program called Planning for Profit is now available as an online course.  It literally covers everything you need to know about the business side of our business.  The normal price is $1,495 but this month we are offering it at the special introductory price of only $1,295.  If this program doesn’t make you money…nothing will.  Order today!

Count the Cost Before You Jump

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By Tom Grandy, Founder

There will be about 15 seconds between the time you jump off the 100-foot cliff and the time you hit the ground.  Ten seconds into the fall is NOT the time to consider the consequences of hitting the ground!   What’s the point?  Count the cost before you jump.

Nearly all trades companies are started by technicians that used to work for someone else.  From the techs point of view, they are being paid $XX.XX/hour and the customer is being charged a huge hourly rate, often many times more than what the tech is making.  The thinking is simple enough to understand.  “If I quit and start my own company I could charge less and still make a lot more money.”.  In theory that’s true.  In practice it’s an entirely different story.

Before you quit that 40-50 hour a week job that allows you to go home and enjoy time with the family, count the cost.  As a new owner, you will need cash and lots of it.  You will need cash to start the new company and cash to purchase the needed new truck, not to mention acquiring equipment or parts inventory.  Cash will be needed to cover payroll because believe it or not, all customers don’t pay on time.  Yes, you are often on call at your current job, but guess what?  As a new owner you are on call 24/7/365.  When (not if) a tech doesn’t show up for work, who has to do the job?  What do you know about payroll taxes, matching social security, and Worker’s Comp insurance?  Do you understand the whole principle of cash flow?  Best study it because cash flow is the Number 2 killer of small businesses, with improper labor pricing being the Number 1 killer.  There is a reason 50% of new businesses fail the first year and only 1 out of 1,000 that start up this year will ever see their 20th birthday. 

Yes, the grass ALWAYS looks greener on the other side of the fence, but it still has to be mowed.  Now, I am not telling you not to quit and start up your own company.  That is how our industry grows.  However, what I am saying is this.  Count the cost BEFORE you turn in your notice to your current employer.

Two great money saving Website Specials are going on this month that will help you understand the business side of the business:

Money Matters – This new self-paced online program covers the monthly review that every business owner should be conducting to make sure your business is staying on track financially. This process will help to identify issues when they come up and allow you to make changes before they become a real problem.  The normal investment is $159.00 but the Website Special is only $139.00.  Order today and get your money organized tomorrow!

  • Lesson 1 – Foundations of the Financial Review (30 minutes)
  • Lesson 2 – Profit and Loss Statement (30 minutes)
  • Lesson 3 – The Balance Sheet (30 minutes)
  • Lesson 4 – Payables & Receivables (15 minutes)
  • Lesson 5 – Hill & Valley, Debt Reduction, & Profit Sharing (25 min)
  • Lesson 6 – Tying it all together (40 minutes)
  •  

Labor Pricing for a Profit software – This industry acclaimed software will model your company, by department, setting profitable hourly rates, creating month-by-month cash flow budgets and much more.  The normal investment is $399.95 but this month’s Website Special is only $299.95.  Order today.

Like all Grandy products, we offer 100% satisfaction or you will receive a full refund.  No fussing!

Green Bay, WI Office
2671 Continental Dr. Suite C
Green Bay, WI 54311
Toll Free: 877-202-8891
Sales@GrandyAssociates.com

Owensboro, KY Office
1028 Standish Place South
Owensboro, KY 42301
Toll Free: 800-432-7963
Phone: 270-926-3212

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