Take a look at this month's edition of The Contractor's Advantage!
September 2020 The Contractor’s Advantage
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The Power of Books
Learn Something New With Every Turn of the Page
If you know me, you know I love to read. In past newsletters, I mentioned it was my goal to read 50 books this year, or about one book a week. Sept. 6 is National Read A Book Day, which makes it the perfect time to talk about books!
My daughter, who is 8, has become very interested in reading as of late. At the time of this writing, she was well into the third Harry Potter book, “Harry Potter and the Prisoner of Azkaban.” She has become completely engrossed in this series. She will stay up late into the night just reading. Then, the next morning, we’ll chat about what she read.
Books are a remarkable piece of technology. For us today, they seem so simple, yet they remain one of the best ways to learn anything. It doesn’t matter what you want to learn, you can find a book, or several books, that cover the subject of your choice. Or if you have a question, chances are there are books that hold the answer — or, at least give you more insight in your search for an answer. As much as we know and as much as we can learn, we still do not know many things.
As an avid reader, I’m glad to see she has taken such an interest in books. My son, who is 5, isn’t nearly as interested in reading, but I have a feeling he reads much more than he lets on. I can see him getting more into books as he gets older. As for myself, I’m reading “SPQR: A History of Ancient Rome” by Mary Beard. It’s a fascinating look into the arc of Roman history. I’ve previously read perhaps a dozen books on Rome, but they all center around the 1st Century B.C. (when Julius Caesar lived), partly
Our new dog, Ruthie!
As I mentioned, I am on track to read 50 books this year. That said, it has been more difficult than I expected, mainly due to the pandemic. While many people may have found time to finally read the books they’ve been putting off, when you’re working at home for an extended period of time, you find other things that can occupy your attention. For me, I’ve been spending more time with family, which is great. And, to add to that, there has been a small change to our family. Before the pandemic, I would typically get up early and spend my morning with a book. I enjoyed getting in a little reading before anyone else got up. Well, like many families, we got a dog! Our new dog has been with us since May. If you have a dog, you probably know where I’m going with this. My early morning routine has changed. Now, I get up and the dog is interested in hanging out with me. I’m reading a little less, but I’m getting in quality time with the dog.
because the fall of the Roman republic and the rise of its empire is one of the great stories and partly because we have so
many written records from that period.
What Beard does, however, is bring a lot of historical context to what happened before and after the Ides of March. I heartily recommend the read for anyone wanting to understand how any nation could build such a character to conquer the world.
Anyway, I hope you too have had the chance to catch up with a good book, or a few, this summer.
-Jeremy Wyatt
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3 Data Points You Must Track Immediately to Monitor Your Business’s Health LISTEN TO THE NUMBERS
In business, numbers speak louder than anything else. Data provides an analysis of the health of a company. It can be one of the most important factors in decision-making for many entrepreneurs and one of the greatest indicators of growth. For these reasons and many others, you cannot ignore your numbers. If you’re not sure where to start, consider these three top data points to track the health and growth of your business. Churn: New customers provide an opportunity for a new revenue stream, but the startup costs and the timeline to turn a profit should make gathering new customers a second priority. Instead, it’s your regulars who can influence your regular cash flow, and when you’re having to fill gaps left by previous customers, you’re steering a sinking ship. By calculating churn, you can identify how much money is walking out the door each month and year. Once you know how much you’re losing, you can effectively establish a plan to keep your regulars and stop your revenue from leaking. Pipeline Revenue: This is how much money you would acquire if you landed every single sale. So, let’s say your
pipeline revenue for a single month is $100,000. You might actually only acquire $30,000, but you can use the pipeline revenue number to set goals for your sales team and track progress. If pipeline revenue is low, then your true revenue suffers. Annual Average Employee Revenue: You can track data to ensure your greatest resource — your employees — is valuable. This data point is what you get when you average your regular revenue among all your employees. For every employee, you should be making at least $100,000 in revenue. If your average is below $100,000, this may be
a sign of overstaffing or inadequate use of your resources.
The Numbers Combined: If you take these numbers at face value, then you’re not optimizing the usefulness they provide through tracking. For example, if your churn rate on a new product is low after one month of implementation, that data is skewed. You need more time to add more data on churn, satisfaction, and effectiveness before claiming this product is a success. If anything, that low churn rate tells you the implementation of the product was positive. The key is to keep that momentum going to maintain a low churn rate. Your industry can also influence the numbers you need to analyze. For example, if monitoring the annual average of employee revenue doesn’t make sense for your industry, don’t include it in your top three. Instead, find a metric that does work for your industry. The thing you cannot do is ignore the data. That’s a formula for disaster. The numbers tell a big part of the story when we contextualize them. With that information, business leaders can make informed decisions to push their companies forward.
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Change Can Be Easy Pam Marmon’s Outline for Effective Post-Pandemic Transformation
Pam Marmon understands what it means to adapt. After growing up in Bulgaria, Marmon had to modify her way of living when she emigrated to the U.S. Today, she’s a CEO, entrepreneur, wife, and mother who believes that change doesn’t have to be difficult. In fact, she’s mastered it. Marmon has even established a company, Marmon Consulting, that helps other companies develop strategies for executing transformation. In Marmon’s book, “No One’s Listening and It’s Your Fault: Get Your Message Heard During Organizational Transformations,” she outlines her proven methods for effective communication in any company setting, from a major corporation to a family business. Released on March 24, 2020, Marmon’s advice is timely in a period when many business owners are searching for proactive solutions and the next step in finding post-pandemic success. Marmon’s book is the perfect guide for business leaders who recognize the need for tangible change and want to execute it as effectively as possible. The key, Marmon explains, is to identify your company’s culture and cater your plan’s language to suit what will resonate with your employees the most. This will establish a sense of alignment with your business’s vision and direction, which can be one of the biggest hurdles to overcome. You cannot achieve success in a period of
change if your team is doubtful and unwilling. With your company united toward your vision, you can begin to enact real change. However, this is only the beginning. Marmon’s book also outlines how to connect with fellow leaders in your company to develop a framework for growth. By creating a stable foundation and inspiring change, you’ll find this time of major transition to be much smoother than you may have anticipated. As a
result, your company will come out on top at the end of the COVID-19 era.
Marmon’s mantra is inspiring: “With the proper process, change is not hard.” And with her book, “No One’s Listening and It’s Your Fault,” business leaders can see just how simple change can be.
HAVE A Laugh 11 Days Short How the British Changed Their Calendar System and Caused Chaos
jwyatt@harrisonlawgroup.com | www.HarrisonLawGroup.com | 3 There was a lot of confusion and chaos, but over time, dates fell where they were supposed to, and everyone lived their full lives, those 11 days included. The people were not happy. English historians found research that British citizens chanted “Give us our 11 days!” in the streets. Several other historical accounts state that many people worried their own lives would be cut 11 days shorter. For centuries, Europeans used the Julian calendar. However, significant dates “drifted” as centuries passed on the solar calendar. To compensate, the new Gregorian calendar was developed in 1582. But not everyone — such as the British — adopted it immediately, and Europeans were using two diverging calendars for over 200 years! Finally, the British chose 1752 to make the change. But they had to “jump” forward, which meant 1751 could only be 10 months long — starting with March and ending with Dec. 31, 1751. They also had to cut 11 days from 1752. The unlucky dates were Sept. 2–14, 1752.
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Jeremy Wyatt jwyatt@harrisonlawgroup.com www.HarrisonLawGroup.com (410) 832-0000
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Inside This Edition
1. 2. 3.
What Have You Read Lately?
3 Data Points for Your Business’s Health
How to Enact Effective Change
How 11 Days Were Deleted From History
4.
2 Steps to Cultivate Leadership in Your Sales Team
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Level With Me: DON’T LET CRITICAL DEADLINES PASS YOU BY
Optimize Your Sales Team By Enhancing Their Leadership Qualities
Think about the traits of a leader. You may be thinking of someone who can take charge, isn’t afraid to fail, communicates clearly, has a passion for helping people, and is extroverted. Now, think of a successful salesperson. Do you see any overlap in characteristics? The answer is likely yes. Salespeople are natural leaders. They lead consumers to the best product or service, and they effectively push our economy and businesses forward. However, having multiple leaders on one team can create friction. As an entrepreneur or sales manager, you must create a work environment that nurtures your leaders in the sales department without causing issues. Those with an innate sense of leadership still need the right training and work environment to optimize their skills and excel. When you
provide these, the confidence of your team increases, their ability to sell effectively is boosted, and your sales numbers improve. It’s a win-win-win for you, your team, and the company.
You can create a plan for cultivating leadership with these two steps.
Provide Leadership Training Learning is an essential part of sales. Salespeople have to understand the demographic, cater to trends, and be the first to admit when a sales tactic is wrong. In addition to learning skills specific to their position, salespeople should also undergo leadership training. Many of these courses and teachings target managers who have employees, but when you encourage your team to apply these concepts to potential clients, they will learn what leadership skills they must nurture within themselves to get more sales. You can also take managerial leadership training and convert it into a program that targets your sales team.
Analyze Traits Leaders do have defined traits, but no two leaders are alike. Pinpointing the qualities that make each team member an effective leader — and therefore great at their job — can help you identify sales teams or partners that will function harmoniously. (Coincidentally, this process will also show you who should not work together.) The best pairs feed off one another. Maybe you have one salesperson who is the best at explaining the technical aspects of your product, while another is the most empathetic and emotional seller. Together, they’re a winning combination.
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DON’T LET CRITICAL DEADLINES PASS YOU BY
1. Two Powerful Tools — Just Don’t Miss the Deadlines
As we’re often reminded, there is such a thing as too late.
Over the years, many clients have called me or come to my office asking for help with their construction claim. They call me in dire straits: They missed a deadline (though sometimes they do not know it). Missing a deadline can make a big difference in your claim. In the construction industry, across the board, deadlines play a critical role in the operation of businesses, projects, and contracts. Miss a deadline — or miss the wrong deadline — and you will face serious consequences. I see this most commonly among subcontractors. They miss deadlines or someone up the chain — a general contractor or project owner — missed a deadline.
In a construction claim, there are two major protections (and their attendant deadlines) subcontractors should always be aware of, especially when it comes to securing payment and recovering losses. These protections are:
a. Mechanic’s liens
b. Surety bonds
Exact deadlines related to mechanic’s liens and surety bonds can vary depending on the project and can vary by state. It is of utmost importance that you know any and all deadlines related to either of these if you want to get the most out of your claim.
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... continued from Front
Here’s why: Missing deadlines have the potential to erode your leverage in your construction claim. When you quickly build your case and hit all the deadlines like clockwork, you maximize your leverage. I have always seen leverage as a combination of risk of loss and the proximity of that potential loss – lien and bond claims are some of the best leverages in that equation.
2. Understanding the Mechanic’s Lien and the Surety Bond
We sometimes forget that a mechanic’s lien is a lien on a property — it can result in the sale of property at auction to pay you what you are owed. It gives contractors special leverage when working on a project, but its enforcement is severely limited in time. The contractor may foreclose on the lien should they need to recover payment related to a project, but if the contractor does not file a lawsuit within a certain timeframe, they lose all of their lien leverage. Surety bonds are a protective insurance product guaranteed by an insurance company (the surety). The big upside to surety bonds is that Insurance companies are required to hold billions of dollars in liquid or semi-liquid assets to pay out yours and other claims against their bond. But a surety bond also has the power defines who is eligible to make a claim against it, and often sets strict and deadly deadlines for any contractor who waits too long.
hours every month to do a deadline audit . All upcoming deadlines should be clearly marked on a calendar for easy reference. Routinely check these deadlines to make sure you’re not too close to crossing the threshold and that proper paperwork has been filed with the correct authorities.
3. Missing Deadlines Drastically Reduces Your Ability to Recover
In short: Keep tabs on everything.
After you pass a deadline, whatever it may be, your leverage begins to evaporate. When the owner of the property fails to pay their bill, it has a trickle effect. The owner cannot pay the general contractor, who then cannot pay the trade contractors or subcontractors. If you missed crucial deadlines related to a mechanic’s lien or surety bond, your options are limited. Here’s another factor to consider: coronavirus (COVID-19). The COVID-19 pandemic has slowed everything down, including payment to general contractors from owners. It also has slowed payments to trade and subcontractors. The end result is a ripple effect. I am seeing an increase in the number of clients missing deadlines due to the delayed payments. It puts everything on a very tight schedule, and people are running up against deadlines through no fault of their own. They are left asking, “What can I do?”
This is paramount if you are currently unpaid and deadlines are looming. Due to interplay contract clauses, the general contractor may be under no obligation to pay their subcontractors unless the owner pays the general contractor. It puts subcontractors at a disadvantage if they are unaware of their deadlines. File a mechanic’s lien (and hit the appropriate deadlines) and you may be able to overcome this challenge. If you have any questions about mechanic’s liens, surety bonds, and their associated deadlines, please email me at jwyatt@harrisonlawgroup.com. Don’t let tight deadlines
or slow payment processes get in the way of your rights as a trade or subcontractor. File the appropriate claim and keep deadlines top of mind.
4. Pay Close Attention to Deadlines
-Jeremy Wyatt
I cannot stress this enough. One of the simplest steps you can take to avoid missing deadlines is to take a few
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