Scenario: Due to the market demand, Barry has more work than he can handle. He already works six days a week, and now he finds that he’s getting up earlier and coming home later. He doesn’t feel that he can delegate the work, because his two superintendents are also maxed out and working long hours. The company is making good money and the work is rewarding, but his family is beginning to wonder who the stranger is they see on Sundays. His wife, of course, is very supportive, but she constantly tells him how much she misses him, and how she would like to take a few weeks to travel and relax. The kids are growing up fast, and he’s afraid that soon they will be teenagers with few memories of growing up with Dad.
Barry has thought about hiring a new superintendent, but since Barry handles most of the client contact that would only increase his workload. He doesn’t want to delegate management oversight, since he often catches mistakes that could reduce his profits. He could raise prices to lower demand, but he’s already earning a nice profit margin, and is afraid of getting a reputation of being too expensive. What should Barry do? He’s too young to retire, and would probably feel bored if he did.
Solution: Barry’s primary problem is that he’s created a bottleneck in his own company that limits both his ability to enjoy life and to increase company growth. As long as Barry is the sole point of client contact, adding more clients will simply mean more time holding their hands, smoothing over problems, and chasing decisions. While this is a very satisfying position for Barry to be in, it simply isn’t worth it if he misses out on his life and his family.
Barry basically has two choices: He can either find a way to delegate some of his responsibilities or he can choose to scale back his work to a level he can comfortably handle (or some combination of both). If Barry decides to limit his production, it could have the additional benefit of allowing Barry to raise prices or be more selective with his clientele. There is nothing inherently better about being bigger. Without tight management controls, big businesses can lose money just as easily (if not more so) than their smaller competitors.
If Barry decides he can afford to delegate some of his responsibilities, he must decide which of those he feels most comfortable giving to others. Some builders love the financial management aspect, finding hidden dollars in tighter management controls. Some prefer the human contact of meeting and dealing with clients. Others are more comfortable with the production side, making sure that jobs proceed smoothly and efficiently. To maximize your quality of life during working hours as well as leisure time, find those areas you enjoy the most, and concentrate on them.
Delegating responsibility, however, does not mean abdicating responsibility. Barry must still oversee the overall financial health of the company, and ensure that all aspects are functioning smoothly.
One builder we know manages a very successful building company while taking off two months out of the year to travel and spend quality time with his family. He closes the office for two weeks at Christmas time, and then schedules an additional six weeks of vacation, interspersed throughout the year.
The key management decision that enabled him to accomplish this was to hire a sales manager and relinquish all sales responsibility to him. The sales manager helps the clients modify plans and select options and finishes, and coordinates the paperwork with construction.
He further streamlined the construction process by adopting a slot scheduling system. When a client buys a home, he does so with the understanding that construction on his home will not begin until the pre-determined date, often six to eight months in the future.
Life is too short to become a slave to your work. Part of the advantage of being your own boss is the opportunity to seize control of your life and manage it in a way that brings you the greatest satisfaction. Carpe Vita: Seize your life.
Al Trellis, a co-founder of Home Builders Network, has more than 25 years of experience as a custom builder, speaker, and consultant. He can be reached at [email protected].
