Switch from Addition to Multiplication to Grow Your Contracting Business
In the video – subscribe above to the Illuminations on Leadership video series to see it – Larry talks about how contractors can grow their business by not doing the work themselves.
Addition vs. Multiplication
Most owners of home services or home improvement companies work in their business and add their time and effort to the overall output.
Typically, the owner runs sales leads, answers the phone, handles the marketing, or installs the work. In each of these cases, the owner is adding his/her time to the business’s output.
If this is you, you are adding to your contracting business by what you do. You are working by addition in your contracting services company.
You can see that working by addition can only go as far as the hours you have in a day.
Working by multiplication
To multiply your effort, you need to take a different approach. Rather than you as the owner doing the work, you should hire and train other people to do what needs to be done. Train other people to run the sales leads, install the work, handle the marketing, answer the phones, and anything else that adds output to your business.
Multiplication is a different job than addition.
If you do the multiplication job well, you can have five, ten, 15, 50 or even 100 people who know how to do the work. All these people can now add to the output of business. And you have multiplied yourself through these other people.
You can see how multiplication is highly scalable, where addition is stagnating. You can see why some companies grow and some don’t.
Your job as multiplier is to find and hire the right people. Get these people doing the right things. And train and equip them to be experts at their jobs and experts at serving your customers.
Focus your efforts on multiplication and watch your home improvement, repair or services business grow by multiplication as well.
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