Maybe last month was a bit harsh, I am not sure. But I have decided not to apologize. I talked to you about contractor autoimmune disease. When we self-inflict by distraction.
A contractor I will name Borno responded to me with this. “I guess I am not a professional, we do it all from the footings to the roof!” I started feeling bad about what I said. But what he said next confirmed everything again. He said, “We could do tons of little concrete jobs here and there, but we focus on a few larger complete contracts.”
See, it’s not so much about what you do, it’s knowing what not to do. Understanding your distractions. In Borno’s region there is a lack of quality concrete subtrades. So, to deliver his contracts well, he has chosen to do the concrete himself. But he doesn’t allow himself to be distracted by the many opportunities to be a concrete subtrade. Borno understands his unique abilities and his market fit!
There are “good” distractions and “bad” distractions to your business. I know that doesn’t make much sense but let me explain.
Several years ago, our forming and finishing division had a “good” problem. We were pricing hundreds of jobs for good clients. But we could never do all the jobs we had a high potential of closing. So, I asked myself, “What segment of work could we cut out to narrow our specialty, and realign our focus?” We decided to largely cut out residential work. There was nothing wrong with residential concrete work, and it wasn’t that we weren’t good at it, we just needed a place to draw a line that would bring freedom to focus.
I also have an example of a bad distraction. For several years, I was an active partner in a residential real estate company. We bought and rented apartment buildings. Now there is nothing bad about apartment buildings. And I loved my partners. But it wasn’t “industry aligned” with my core business. Neither was it close to my unique abilities, in fact I hated working in it. Furthermore, it directed time, energy and money away from our core business. For me, it was a bad distraction.
You and your company will find yourself in a sea of things needing to be done or could be doing. Those attributes could be categorized into 4 categories.
- Distractions
- Responsibilities
- Demands
- Opportunities
We need to have flexibility and latitude to move around. If we are too narrow minded, we will go out of business as well. But sometimes the bigger problem is knowing how to stay in our space. We need to find a way to reduce the sea into pond size. The following 4 boundaries help do that.
- Your Values – what is important to you and nonnegotiable?
- Your Unique Abilities – what are you particularly good at?
- Your Market Fit – what project types are you most competitive, efficient and profitable?
- Industry Alignment – Does this opportunity fit with my core business?
Think about it this way.
Values curb distractions.
Unique Abilities define responsibilities.
Market Fit channels demand.
Industry Alignment cross-examines opportunities.
Let me give you a simple example. Let’s say one of your values is family. Your industry is residential flatwork. Your unique ability is decorative concrete. Your market fit is pool decks and patios. If your mom wants a small, stamped patio done on the weekend, you will probably do it without question. But if your best client is demanding that you pour a machine slab for a Toyota plant on boxing day, you probably won’t.
Last month I promised you a tool. Below is a snapshot. But you can find it here. Or feel free to reach out to me by responding to this email.
It’s June, and the heat is on. All the best on your summer projects. Stay hydrated, stay focused, stay profitable.
As always, take good care. And don’t forget to sign up a friend. 😊
