![\"Pop](\"https:\/\/media2.giphy.com\/media\/l0MYGxVgUUQHa3VZK\/giphy.gif\")
<\/a><\/p>And I\u2019m sure 5 years ago these startups were all optimistic they were going to make their businesses fly.<\/p>
So, the question becomes why did the (unlucky) 2\/3 end up as \u2018road-kill\u2019 with their dreams of success dashed? Why were they left only with hardship, additional debt, and painful lessons to show for it? What reasons for their failures could they have recognized (and corrected) before their business ended belly-up?<\/p>
These are the pain points (and mistakes) I\u2019ll identify in this article (along with ideas to get a bath remodeling business on track that\u2019s currently headed in the wrong direction). I\u2019ll show you 15 reasons bathroom remodeling contractors (or contractors of any type for that matter) fail (or don\u2019t do as well as they could). At the end I\u2019d love to hear mistakes you\u2019ve made in your business \u2013 and how you\u2019ve been able to \u2018course-correct\u2019 to steer your \u2018ship\u2019 on a better path.<\/p>
The reality is a business journey is never easy (and this is coming from a guy who bought my contracting and wholesale business in 1985 \u2013 and has certainly made more than my fair share of blunders \u2013 and I\u2019ll share a few here). So, let\u2019s dig in.<\/p>
Reason #1 bath remodeling contractors fail\u2013 Your price is too doggone low <\/strong><\/h2>I hear so many installers and salespeople who are planning to start a bath remodel business because the owners where they work today are \u2018gouging\u2019 customers. And while this can (and in cases) is true, what most of them don\u2019t realize is the actual cost of running a large-scale retail based bathroom remodeling business.<\/p>
The \u2018big boys\u2019 (and don\u2019t mean to be sexist here) are spending from 12% to 20% in advertising and another 10% in sales commissions. So, their \u2018outrageously high\u2019 price isn\u2019t quite as crazy when you factor in their sales and marketing costs.<\/p>
And while you will need to price lower than the \u2018big boys\u2019 to get started, you shouldn\u2019t undercut the market so low you leave no wiggle room to pay for job problems (warranty claims, repairs) which can (and do) happen.<\/p>
Before you start running appointments have someone be a \u2018secret shopper\u2019 and get competitive quotes for the bath to shower jobs you want to sell. Get a feeling of what materials are being offered at what prices. Then set your pricing based on what the values in your market are. There\u2019s no reason to undercut prices by 20, 30 and 40%. You\u2019ll just run yourself out of business F-A-S-T!
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-1-low-price-bathroom-remodeling-contractor-Innovate-Building-Solutions.jpg\")
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Reason #2 bath remodeling contractors fail\u2013 You don\u2019t understand cash flow <\/strong><\/h2>Let\u2019s say you\u2019re a home access (or age in place) contractor who solely works on projects which are paid for with state and federal funds you don\u2019t get right away. And while it\u2019s nice to not have to market to find jobs \u2013 if payments are slow \u2013 you may continually struggle to make payroll. In this instance look to change your mix of work. Learn how you can market for \u2018private pay\u2019 work where you can get deposits BEFORE you start construction.<\/p>
Or if the market you\u2019re focused on are individual homeowners, can you increase your deposits from 25% to 50% of the job to stay ahead on your bills.<\/p>
And as I think back, I can remember the little figurine my dad (a commercial mason contractor back in his day) had on his desk. It was a little guy with the words, \u201cHappiness is positive cash flow\u201d <\/em>at the bottom. I\u2019m sure many bathroom contractors would value from having this figurine on their desk.
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-2-bath-remodeler-bad-cash-flow-Innovate-Building-Solutions.jpg\")
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Reason #3 bath remodeling contractors fail\u2013 You don\u2019t establish a payment schedule up front <\/strong><\/h2>No customers like surprises \u2013 especially bad surprises when their contractor \u2018hits them up\u2019 for money in the middle of the job (especially if they weren\u2019t expecting \u2013 or budgeted- for it).<\/p>
In your contract be clear how you\u2019ll expect to be paid (and\/or the timing of your draws). Failure to do this will cause hardships for you AND your customer if the job is delayed because you aren\u2019t getting materials (or a subcontractor refuses to come back to the job until their invoices are current).<\/p>
Reason #4 bath remodeling contractors fail\u2013 Your \u2018old-school\u2019 ways aren\u2019t helping your business<\/strong><\/h2>Efficiency and effectiveness are tied at the hip with profitability. However, there are many contactors who are as stubborn as mules. They refuse to look into more efficient installation methods (or products) or tools to be more effective to generate revenue.<\/p>
For example, some bathroom contractors only do tile showers even though they know they\u2019re uber-time-consuming and finding a decent tile sub is a needle in a haystack experience. And while there are shower wall panel systems<\/a> which do a nice job creating the tile-look and will shave days off the project, they\u2019re still not interested because they\u2019re stuck doing \u2018old-school\u2019 tile showers (even when their customers tell them they hate grout). \u00a0
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-4-high-style-shower-wall-panels-for-remodelers-Innovate-Building-Solutions-1.jpg\")
<\/a><\/p>Or some bathroom remodeling contractors continue to rely on forms of marketing which have become less and less effective over the years. This could be print advertising, home shows, yellow pages \u2013 you name it. First start measuring the sales your marketing spending is bringing in and comparing it to your costs. Then don\u2019t be afraid to experiment looking for more effective approaches (and digital is certainly a new category to consider).<\/p>
Reason #5 bath remodeling contractors fail\u2013 You rely on \u2018W.O.M.\u2019 (word of mouth) <\/strong><\/h2>Who doesn\u2019t like a \u2018word of mouth\u2019 lead \u2013 or referral? They\u2019re the best.<\/p>
However, when the economy gets slower (which is happening now), if your WOM network is struggling to keep up with inflation, you\u2019ll start watching your lead flow come to a slow drip.<\/p>
Relying only on W.O.M. is a K.O.D. (Kiss of Death) in a down economy. If you look to make money, be prepared to spend marketing money to make money\u2013 especially if you want to keep your business alive in difficult times.<\/p>
Bottom line \u2013 the \u2018free lunch approach\u2019 (\u2018er waiting for WOM for leads) can be disastrous when the economy isn\u2019t strong.<\/h3>Reason #6 bath remodeling contractors fail\u2013 You suffer from B.H.S. (Big Head Syndrome) <\/strong><\/h2>I remember an ex-employee who left and started his own business. Then he poached a couple of employees. He had some initial successes. Then he started \u2018waxing poetic\u2019 on social media espousing his extensive business intellect. His \u2018head\u2019 was growing by the day.<\/p>
A few years later he was out of business. He was back working a \u2018day job.\u2019<\/p>
And while it\u2019s true every successful bathroom remodeling contractor has blunders along the way, if you start bragging about your own successes and B.H.S. (Big Head Syndrome) takes over, it\u2019s then the slippery slope of your downslide is beginning.<\/p>
Make sure you surround yourself with someone who can call \u2018B.S.\u2019 on you when you start believing your own \u2018press-clippings.\u2019 Business has a way of humbling even the best.
![\"reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/reason-6-big-head-arrogant-bathroom-contractor-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Humility breeds longevity.
<\/a><\/h3>Reason #7 bath remodeling contractors fail\u2013 You make a lot of money, but you spend even more money <\/strong><\/h2>Sports stars have never been thought of as the best money managers, so when Patrick Ewing (the multi-million dollar earning All Star Center of the New York Knicks) said, \u201cWe make a lot of money, but we also spend a lot of money,\u201d <\/em>it wasn\u2019t a surprising quote (although it was funny to the rest of us NOT on a guaranteed multi-million dollar contract). After all, it\u2019s sad how many big-dollar sport stars end up broke once their playing careers are over.<\/p>And while it\u2019s not unusual to find examples of overspending athletes, they ARE NOT alone in stupid spending.<\/p>
No, bathroom remodeling contractors who get a taste of success (see reason #6) have also been known to go on spending sprees as well. And who wouldn\u2019t be proud to buy (on credit) a big-ol new truck with your company logo plastered on the side? Or who wouldn\u2019t love to take a fancy trip around the world with their family and leave their \u2018minions\u2019 back home to do all the work keeping the business running?<\/p>
Just like we talked about in reason 6, don\u2019t let success cloud your business judgement. When it comes to buying business assets (trucks and equipment) consider how often they\u2019ll be used. Consider if it\u2019s best to rent or buy. Consider if you should buy new or used. Don\u2019t be \u2018showy\u2019 at the expense of profits.<\/p>
And whatever you do, don\u2019t\u2019 go draining money from the business the first time you see a large bank balance. Know what expenses you have coming. Think through future investments you need to go to the next level. Be conservative when drawing money out of your business.
![\"reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/reason-7-fancy-pick-up-truck-overspending-bathroom-contractor-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Reason #8 bath remodeling contractors fail\u2013 Your web site is poor (or non-existent) <\/strong><\/h2>Your mom told you how important a good first impression was.<\/p>
And in today\u2019s business world, the first impression of your business IS NOT your fancy logoed truck, or how spiffy your (Tim the \u2018Tool Man\u2019 Taylor) power tools are \u2013 it\u2019s your web site.<\/p>
And if your web site looks like your 15 year old daughter\u2019s best-friend made it 10 years ago, and it has zero SEO (Search Engine Optimization) value and doesn\u2019t express how you uniquely qualified you are, you\u2019re losing leads and not even realizing it.<\/p>
Your web site should be the hub of your marketing program. If your site sucks \u2013 make it a point in 2023 to do something about it. And if you want ideas on how to improve your site read, \u2018Why I Blew Up my Remodeling and Building Materials Web Site with Over 250,000 Monthly Views<\/a>.\u2019
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-8-Cleveland-bathroom-remodeler-web-site-Innovate-Building-Solutions-.png\")
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<\/em><\/p>Reason #9 bath remodeling contractors fail\u2013 You\u2019re a \u2018craftsman,\u2019 not a \u2018businessman or businesswoman.\u2019 <\/strong><\/h2>It\u2019s great to know how to install a quality bathroom remodeling project. However, it\u2019s (by far) not the only skill you\u2019ll need to stay in business.<\/p>
You need to understand the \u2018numbers.\u2019<\/p>
You need to know how to market.<\/p>
You need to know how to sell jobs.<\/p>
And while you may be proud of your ability to \u2018work any of your employees under the table,\u2019 it\u2019ll be your ability to get the most of your field team which will keep your operations running profitably (especially as you grow).<\/p>
Most bathroom remodeling companies are started by craftsman. However, I\u2019d argue (although I have no statistical evidence to prove this) most contractor failures are craftsman who have no clue how to run a business.<\/p>
If you\u2019re a craftsman, I\u2019d challenge you to put as much attention into learning how to be a businessperson as you did learning the tools of the installation side of the construction trade. Join industry associations. Listen to remodeling success podcasts. Find a mentor.
![\"Reasons](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reaons-9-bath-remodeling-businessman-at-a-computer-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Do NOT go at it alone!
<\/a><\/h3>Reason #10 bath remodeling contractors fail\u2013 You don\u2019t \u2018discriminate against\u2019 bad prospects and customers <\/strong><\/h2>OK \u2013 I know the term \u2018discriminate against\u2019 could get me in hot water. However, listen to what I have to say before you put your P.C. (Politically Correct) Police hat on. And here\u2019s 2 points I\u2019d challenge you to think about.<\/p>
Not all customers are created equal<\/h3><\/li>
You don\u2019t want to sell jobs to every prospective customer you meet.<\/h3><\/li><\/ol>
Some customers will bleed the life (and profits) out of you. And if you\u2019re not sure how to identify them (and most importantly, how to stay clear of their problems), read \u201915 Tell-Tale Signs to Tell the Bathroom Remodeling Prospect (or Customer) From Hell<\/a>.\u2019
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-10-bathroom-remodeling-prospect-customer-Innovate-Building-Solutions.jpg\")
<\/a> <\/em><\/p>Reason #11 bath remodeling contractors fail\u2013 You put up with bad employees <\/strong><\/h2>The old saying was to \u2018hire slow and fire fast.\u2019 However, in today\u2019s world I\u2019d say this saying needs to be modified and say, \u2018hire fast, yet thoroughly, then fire fast.\u2019<\/p>
It\u2019s a brutal hiring environment. And if you have a growing company you need to always be \u2018in the market\u2019 looking for people. However \u2013 you need to thoroughly \u2018vet\u2019 (and no, that word is not about your dog) people before bringing them on. I\u2019d recommend when you find someone you think is good, make it a priority for EVERYONE you need to make them successful to interview them ASAP. If you wait around, they may be hired (by your competitor) before you know it.<\/p>
And if you see someone going \u2018off the rails,\u2019 after they\u2019ve been hired have an open, honest conversation (sooner than later). If you find they\u2019re still not \u2018getting it,\u2019 move on (despite the pain you\u2019ll feel in the short run being a set of hands down). \u00a0<\/p>
Reason #12 bath remodeling contractors fail\u2013 You\u2019re gullible to a slick sales pitch <\/strong><\/h2>Have you ever made a bad purchase?<\/p>
And if you didn\u2019t put your hand up right now, you\u2019re just flat-out lying!<\/h3>
The challenge in business is you and I ARE going to make mistakes. However, we don\u2019t want to repeat mistakes over and over and over again (Ok \u2013 that\u2019s redundant, yet true).<\/p>
So, I\u2019m going to tell you about one of my blunders. I bought into a pitch from my \u2018friendly\u2019 Client Success Manager (or CSM as the digital marketing company which begins with H and ends with Z calls them). She sold me on a 12 month (practically no-cancellation) contract to grow our bathroom remodeling leads.<\/p>
And after 4 months when I could see the program was sucking wind, I called my \u2018Client Success Manager.\u2019 She then told me I was \u2018stuck\u2019 (not the words she used) with the contract unless I paid a B-I-G cancellation fee (my words). This made it impractical for me to cut it off. I was \u2018on-the-hook\u2019 for a money losing program for 8 more months! OUCH!<\/p>
So, here\u2019s what I\u2019d recommend. When signing contracts, pay attention to the contracts length and your ability to get out. If you find out you\u2019ll be stuck if things don\u2019t work out, say no before you start.
![\"reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/reason-12-cancelled-contract-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Reason #13 bath remodeling contractors fail\u2013 You don\u2019t \u2018pre-sell\u2019 your expertise <\/strong><\/h2>Depending on your POV I\u2019ve got some good (and bad) news to share with you.<\/p>
First \u2013 it\u2019s not always the smartest and most technically advanced company who gets the call to quote the job.<\/p>
And second \u2013 the company who gets the appointment is the one who becomes KNOWN by the prospect.<\/p>
And while you can be known through a friend or family (by referral) \u2013 it\u2019s also wise to become known for your \u2018expertise\u2019 even if the prospect doesn\u2019t know you from Adam (or Bob or Sarah for that matter). And right now, you may be wondering, \u2018what the heck is Mike talking about here?\u2019<\/p>
Well \u2013 if you establish yourself as the expert (at least to this prospect), you\u2019ll not only get the initial call, but I\u2019d argue you\u2019ll have the inside track (all things being equal, and all things not being equal) to sell the job because they already respect what you bring to the table (or vanity, or shower \u2013 you get it).<\/p>
And how can you set up your expertise? It\u2019s by \u2018pre-selling\u2019 (without actually selling) your knowledge writing blogs<\/a> or creating videos educating people on bath remodeling. Then email this content to prospects consistently. This (little-used) strategy is very powerful. However, I\u2019ll be honest and tell you it does require extra work, but if you\u2019re not comfortable doing it yourself, you can hire someone to help you.
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-13-bathroom-remodeling-blog-Innovate-Building-Solutions-1.png\")
<\/a><\/p>Reason #14 bath remodeling contractors fail\u2013 They \u2018play\u2019 in too small a sandbox <\/strong><\/h2>I understand the value of \u2018niching down\u2019 and focusing to improve profits. However, if your business is focused on too small a niche, you\u2019ll also limit your growth.<\/p>
For example, my company used to sell and install glass blocks for windows<\/a> and glass block showers<\/a> exclusively. And while the good news is this product lasts, the bad news is (for us) the product lasts and rarely needs to be replaced. So \u2013 this niche started to limit our growth. This caused me to look for bigger markets (like the bathroom remodeling<\/a>).<\/p>Make sure you don\u2019t limit your growth by playing in too small a \u2018sandbox.\u2019
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-14-small-sandbox-dont-niche-down-too-far-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Reason #15 bath remodeling contractors fail\u2013 Not looking at how to improve margin dollars per crew per day <\/strong><\/h2>Let\u2019s face it, it\u2019s a pain to find qualified people (and especially field installation people) today. And since most parents aren\u2019t telling their kids get into construction, their influence hasn\u2019t been helpful to a construction industry which is already hamstringed by a lack of people<\/p>
So, if you\u2019re looking to improve the profits of your business \u2013 and you can\u2019t for the life of you find good people to work for you \u2013 the question is what can you do with the same number of people and still make more money?<\/p>
I\u2019d argue you need to look at a new goal. And that goal is how can you improve the dollars of profit margin you make per crew member per day.<\/p>
For example, if you\u2019re using cheap shower pans, could you sell a nicer, sturdier shower base<\/a> (which installs in the same or less time) at a higher price to add to the profits on a job?
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-15-white-marble-low-profile-shower-pan-for-bath-remodelers-Innovate-Building-Solutions.jpg\")
<\/a><\/p>Or could you use grout shower surround panels<\/a> vs. tile to build the job quicker, and make more money while doing it? Or could you use a 3\/8\u201d thick laminate tub surround<\/a> system vs. a generic 1\/8\u201d thick molded acrylic panel system to increase your margins on a project
![\"Reason](\"https:\/\/innovatebuildingsolutions.com\/dealers\/wp-content\/uploads\/2023\/01\/Reason-15-laminate-wall-panels-in-a-modern-bathroom-Innovate-Building-Solutions.png\")
<\/a><\/p>Stop focusing just on margin percentages, look for ways to make more money per crew member per day.<\/p>
Are you on the path to success or failure? Do you need to make changes to improve? <\/strong><\/h2>While I\u2019ve identified 15 reasons bathroom remodeling contractors fail, the reality is I don\u2019t know of any successful businesses which hasn\u2019t committed some of these blunders and aren\u2019t working to \u2018up their game,\u2019 even if they\u2019ve been successful for years.<\/p>
However, I think the challenge is this. You (and I) need to step back from the \u2018rat-race\u2019 and think critically about how our business is structured, the team we have, how we measure successes and whether we have the tools (and products) to succeed in this market with a shallow labor pool and increasingly demanding customers.<\/p>
And if you\u2019re looking for time-and labor saving products to help your bathroom remodeling business<\/a> me and my team have a few products (not up our sleeves, because our sleeves aren\u2019t that big) which can help.<\/p>Call 888-467-7488 and ask about our laminate wall panels<\/a>, low profile shower pans<\/a> and oversized niches<\/a> to help your business stand out from your competitors. Earn more margin dollars per crew member per day and watch your profits soar.<\/p>Thanks for reading and putting up with my crazy personality!<\/p>
Mike<\/p>
###<\/p>
<\/p>Let\u2019s say you\u2019re a home access (or age in place) contractor who solely works on projects which are paid for with state and federal funds you don\u2019t get right away. And while it\u2019s nice to not have to market to find jobs \u2013 if payments are slow \u2013 you may continually struggle to make payroll. In this instance look to change your mix of work. Learn how you can market for \u2018private pay\u2019 work where you can get deposits BEFORE you start construction.<\/p>
Or if the market you\u2019re focused on are individual homeowners, can you increase your deposits from 25% to 50% of the job to stay ahead on your bills.<\/p>
And as I think back, I can remember the little figurine my dad (a commercial mason contractor back in his day) had on his desk. It was a little guy with the words, \u201cHappiness is positive cash flow\u201d <\/em>at the bottom. I\u2019m sure many bathroom contractors would value from having this figurine on their desk. No customers like surprises \u2013 especially bad surprises when their contractor \u2018hits them up\u2019 for money in the middle of the job (especially if they weren\u2019t expecting \u2013 or budgeted- for it).<\/p> In your contract be clear how you\u2019ll expect to be paid (and\/or the timing of your draws). Failure to do this will cause hardships for you AND your customer if the job is delayed because you aren\u2019t getting materials (or a subcontractor refuses to come back to the job until their invoices are current).<\/p> Efficiency and effectiveness are tied at the hip with profitability. However, there are many contactors who are as stubborn as mules. They refuse to look into more efficient installation methods (or products) or tools to be more effective to generate revenue.<\/p> For example, some bathroom contractors only do tile showers even though they know they\u2019re uber-time-consuming and finding a decent tile sub is a needle in a haystack experience. And while there are shower wall panel systems<\/a> which do a nice job creating the tile-look and will shave days off the project, they\u2019re still not interested because they\u2019re stuck doing \u2018old-school\u2019 tile showers (even when their customers tell them they hate grout). \u00a0 Or some bathroom remodeling contractors continue to rely on forms of marketing which have become less and less effective over the years. This could be print advertising, home shows, yellow pages \u2013 you name it. First start measuring the sales your marketing spending is bringing in and comparing it to your costs. Then don\u2019t be afraid to experiment looking for more effective approaches (and digital is certainly a new category to consider).<\/p> Who doesn\u2019t like a \u2018word of mouth\u2019 lead \u2013 or referral? They\u2019re the best.<\/p> However, when the economy gets slower (which is happening now), if your WOM network is struggling to keep up with inflation, you\u2019ll start watching your lead flow come to a slow drip.<\/p> Relying only on W.O.M. is a K.O.D. (Kiss of Death) in a down economy. If you look to make money, be prepared to spend marketing money to make money\u2013 especially if you want to keep your business alive in difficult times.<\/p> I remember an ex-employee who left and started his own business. Then he poached a couple of employees. He had some initial successes. Then he started \u2018waxing poetic\u2019 on social media espousing his extensive business intellect. His \u2018head\u2019 was growing by the day.<\/p> A few years later he was out of business. He was back working a \u2018day job.\u2019<\/p> And while it\u2019s true every successful bathroom remodeling contractor has blunders along the way, if you start bragging about your own successes and B.H.S. (Big Head Syndrome) takes over, it\u2019s then the slippery slope of your downslide is beginning.<\/p> Make sure you surround yourself with someone who can call \u2018B.S.\u2019 on you when you start believing your own \u2018press-clippings.\u2019 Business has a way of humbling even the best. Sports stars have never been thought of as the best money managers, so when Patrick Ewing (the multi-million dollar earning All Star Center of the New York Knicks) said, \u201cWe make a lot of money, but we also spend a lot of money,\u201d <\/em>it wasn\u2019t a surprising quote (although it was funny to the rest of us NOT on a guaranteed multi-million dollar contract). After all, it\u2019s sad how many big-dollar sport stars end up broke once their playing careers are over.<\/p> And while it\u2019s not unusual to find examples of overspending athletes, they ARE NOT alone in stupid spending.<\/p> No, bathroom remodeling contractors who get a taste of success (see reason #6) have also been known to go on spending sprees as well. And who wouldn\u2019t be proud to buy (on credit) a big-ol new truck with your company logo plastered on the side? Or who wouldn\u2019t love to take a fancy trip around the world with their family and leave their \u2018minions\u2019 back home to do all the work keeping the business running?<\/p> Just like we talked about in reason 6, don\u2019t let success cloud your business judgement. When it comes to buying business assets (trucks and equipment) consider how often they\u2019ll be used. Consider if it\u2019s best to rent or buy. Consider if you should buy new or used. Don\u2019t be \u2018showy\u2019 at the expense of profits.<\/p> And whatever you do, don\u2019t\u2019 go draining money from the business the first time you see a large bank balance. Know what expenses you have coming. Think through future investments you need to go to the next level. Be conservative when drawing money out of your business. Your mom told you how important a good first impression was.<\/p> And in today\u2019s business world, the first impression of your business IS NOT your fancy logoed truck, or how spiffy your (Tim the \u2018Tool Man\u2019 Taylor) power tools are \u2013 it\u2019s your web site.<\/p> And if your web site looks like your 15 year old daughter\u2019s best-friend made it 10 years ago, and it has zero SEO (Search Engine Optimization) value and doesn\u2019t express how you uniquely qualified you are, you\u2019re losing leads and not even realizing it.<\/p> Your web site should be the hub of your marketing program. If your site sucks \u2013 make it a point in 2023 to do something about it. And if you want ideas on how to improve your site read, \u2018Why I Blew Up my Remodeling and Building Materials Web Site with Over 250,000 Monthly Views<\/a>.\u2019 It\u2019s great to know how to install a quality bathroom remodeling project. However, it\u2019s (by far) not the only skill you\u2019ll need to stay in business.<\/p> You need to understand the \u2018numbers.\u2019<\/p> You need to know how to market.<\/p> You need to know how to sell jobs.<\/p> And while you may be proud of your ability to \u2018work any of your employees under the table,\u2019 it\u2019ll be your ability to get the most of your field team which will keep your operations running profitably (especially as you grow).<\/p> Most bathroom remodeling companies are started by craftsman. However, I\u2019d argue (although I have no statistical evidence to prove this) most contractor failures are craftsman who have no clue how to run a business.<\/p> If you\u2019re a craftsman, I\u2019d challenge you to put as much attention into learning how to be a businessperson as you did learning the tools of the installation side of the construction trade. Join industry associations. Listen to remodeling success podcasts. Find a mentor. OK \u2013 I know the term \u2018discriminate against\u2019 could get me in hot water. However, listen to what I have to say before you put your P.C. (Politically Correct) Police hat on. And here\u2019s 2 points I\u2019d challenge you to think about.<\/p> Some customers will bleed the life (and profits) out of you. And if you\u2019re not sure how to identify them (and most importantly, how to stay clear of their problems), read \u201915 Tell-Tale Signs to Tell the Bathroom Remodeling Prospect (or Customer) From Hell<\/a>.\u2019 The old saying was to \u2018hire slow and fire fast.\u2019 However, in today\u2019s world I\u2019d say this saying needs to be modified and say, \u2018hire fast, yet thoroughly, then fire fast.\u2019<\/p> It\u2019s a brutal hiring environment. And if you have a growing company you need to always be \u2018in the market\u2019 looking for people. However \u2013 you need to thoroughly \u2018vet\u2019 (and no, that word is not about your dog) people before bringing them on. I\u2019d recommend when you find someone you think is good, make it a priority for EVERYONE you need to make them successful to interview them ASAP. If you wait around, they may be hired (by your competitor) before you know it.<\/p> And if you see someone going \u2018off the rails,\u2019 after they\u2019ve been hired have an open, honest conversation (sooner than later). If you find they\u2019re still not \u2018getting it,\u2019 move on (despite the pain you\u2019ll feel in the short run being a set of hands down). \u00a0<\/p> Have you ever made a bad purchase?<\/p> The challenge in business is you and I ARE going to make mistakes. However, we don\u2019t want to repeat mistakes over and over and over again (Ok \u2013 that\u2019s redundant, yet true).<\/p> So, I\u2019m going to tell you about one of my blunders. I bought into a pitch from my \u2018friendly\u2019 Client Success Manager (or CSM as the digital marketing company which begins with H and ends with Z calls them). She sold me on a 12 month (practically no-cancellation) contract to grow our bathroom remodeling leads.<\/p> And after 4 months when I could see the program was sucking wind, I called my \u2018Client Success Manager.\u2019 She then told me I was \u2018stuck\u2019 (not the words she used) with the contract unless I paid a B-I-G cancellation fee (my words). This made it impractical for me to cut it off. I was \u2018on-the-hook\u2019 for a money losing program for 8 more months! OUCH!<\/p> So, here\u2019s what I\u2019d recommend. When signing contracts, pay attention to the contracts length and your ability to get out. If you find out you\u2019ll be stuck if things don\u2019t work out, say no before you start. Depending on your POV I\u2019ve got some good (and bad) news to share with you.<\/p> First \u2013 it\u2019s not always the smartest and most technically advanced company who gets the call to quote the job.<\/p> And second \u2013 the company who gets the appointment is the one who becomes KNOWN by the prospect.<\/p> And while you can be known through a friend or family (by referral) \u2013 it\u2019s also wise to become known for your \u2018expertise\u2019 even if the prospect doesn\u2019t know you from Adam (or Bob or Sarah for that matter). And right now, you may be wondering, \u2018what the heck is Mike talking about here?\u2019<\/p> Well \u2013 if you establish yourself as the expert (at least to this prospect), you\u2019ll not only get the initial call, but I\u2019d argue you\u2019ll have the inside track (all things being equal, and all things not being equal) to sell the job because they already respect what you bring to the table (or vanity, or shower \u2013 you get it).<\/p> And how can you set up your expertise? It\u2019s by \u2018pre-selling\u2019 (without actually selling) your knowledge writing blogs<\/a> or creating videos educating people on bath remodeling. Then email this content to prospects consistently. This (little-used) strategy is very powerful. However, I\u2019ll be honest and tell you it does require extra work, but if you\u2019re not comfortable doing it yourself, you can hire someone to help you. I understand the value of \u2018niching down\u2019 and focusing to improve profits. However, if your business is focused on too small a niche, you\u2019ll also limit your growth.<\/p> For example, my company used to sell and install glass blocks for windows<\/a> and glass block showers<\/a> exclusively. And while the good news is this product lasts, the bad news is (for us) the product lasts and rarely needs to be replaced. So \u2013 this niche started to limit our growth. This caused me to look for bigger markets (like the bathroom remodeling<\/a>).<\/p> Make sure you don\u2019t limit your growth by playing in too small a \u2018sandbox.\u2019 Let\u2019s face it, it\u2019s a pain to find qualified people (and especially field installation people) today. And since most parents aren\u2019t telling their kids get into construction, their influence hasn\u2019t been helpful to a construction industry which is already hamstringed by a lack of people<\/p> So, if you\u2019re looking to improve the profits of your business \u2013 and you can\u2019t for the life of you find good people to work for you \u2013 the question is what can you do with the same number of people and still make more money?<\/p> I\u2019d argue you need to look at a new goal. And that goal is how can you improve the dollars of profit margin you make per crew member per day.<\/p> For example, if you\u2019re using cheap shower pans, could you sell a nicer, sturdier shower base<\/a> (which installs in the same or less time) at a higher price to add to the profits on a job? Or could you use grout shower surround panels<\/a> vs. tile to build the job quicker, and make more money while doing it? Or could you use a 3\/8\u201d thick laminate tub surround<\/a> system vs. a generic 1\/8\u201d thick molded acrylic panel system to increase your margins on a project Stop focusing just on margin percentages, look for ways to make more money per crew member per day.<\/p> While I\u2019ve identified 15 reasons bathroom remodeling contractors fail, the reality is I don\u2019t know of any successful businesses which hasn\u2019t committed some of these blunders and aren\u2019t working to \u2018up their game,\u2019 even if they\u2019ve been successful for years.<\/p> However, I think the challenge is this. You (and I) need to step back from the \u2018rat-race\u2019 and think critically about how our business is structured, the team we have, how we measure successes and whether we have the tools (and products) to succeed in this market with a shallow labor pool and increasingly demanding customers.<\/p> And if you\u2019re looking for time-and labor saving products to help your bathroom remodeling business<\/a> me and my team have a few products (not up our sleeves, because our sleeves aren\u2019t that big) which can help.<\/p> Call 888-467-7488 and ask about our laminate wall panels<\/a>, low profile shower pans<\/a> and oversized niches<\/a> to help your business stand out from your competitors. Earn more margin dollars per crew member per day and watch your profits soar.<\/p> Thanks for reading and putting up with my crazy personality!<\/p> Mike<\/p> ###<\/p><\/p><\/a>
Reason #3 bath remodeling contractors fail\u2013 You don\u2019t establish a payment schedule up front <\/strong><\/h2>Reason #4 bath remodeling contractors fail\u2013 Your \u2018old-school\u2019 ways aren\u2019t helping your business<\/strong><\/h2>
<\/a><\/p>Reason #5 bath remodeling contractors fail\u2013 You rely on \u2018W.O.M.\u2019 (word of mouth) <\/strong><\/h2>
Bottom line \u2013 the \u2018free lunch approach\u2019 (\u2018er waiting for WOM for leads) can be disastrous when the economy isn\u2019t strong.<\/h3>
Reason #6 bath remodeling contractors fail\u2013 You suffer from B.H.S. (Big Head Syndrome) <\/strong><\/h2>
<\/a><\/p>Humility breeds longevity.
<\/a><\/h3>Reason #7 bath remodeling contractors fail\u2013 You make a lot of money, but you spend even more money <\/strong><\/h2>
<\/a><\/p>Reason #8 bath remodeling contractors fail\u2013 Your web site is poor (or non-existent) <\/strong><\/h2>
<\/a>
<\/em><\/p>Reason #9 bath remodeling contractors fail\u2013 You\u2019re a \u2018craftsman,\u2019 not a \u2018businessman or businesswoman.\u2019 <\/strong><\/h2>
<\/a><\/p>Do NOT go at it alone!
<\/a><\/h3>Reason #10 bath remodeling contractors fail\u2013 You don\u2019t \u2018discriminate against\u2019 bad prospects and customers <\/strong><\/h2>
Not all customers are created equal<\/h3><\/li>
You don\u2019t want to sell jobs to every prospective customer you meet.<\/h3><\/li><\/ol>
<\/a> <\/em><\/p>Reason #11 bath remodeling contractors fail\u2013 You put up with bad employees <\/strong><\/h2>
Reason #12 bath remodeling contractors fail\u2013 You\u2019re gullible to a slick sales pitch <\/strong><\/h2>
And if you didn\u2019t put your hand up right now, you\u2019re just flat-out lying!<\/h3>
<\/a><\/p>Reason #13 bath remodeling contractors fail\u2013 You don\u2019t \u2018pre-sell\u2019 your expertise <\/strong><\/h2>
<\/a><\/p>Reason #14 bath remodeling contractors fail\u2013 They \u2018play\u2019 in too small a sandbox <\/strong><\/h2>
<\/a><\/p>Reason #15 bath remodeling contractors fail\u2013 Not looking at how to improve margin dollars per crew per day <\/strong><\/h2>
<\/a><\/p><\/a><\/p>Are you on the path to success or failure? Do you need to make changes to improve? <\/strong><\/h2>