How profitable is general contracting?
In today’s episode of The Sweaty Startup, Nick talks about miscommunication. One of the biggest problems in many service-based businesses, especially smaller ones, is that communication isn’t prioritized and mistakes are made. The mistake of miscommunication can EASILY cost companies millions of dollars every year.
Ways to become a better communicator
- Email follow-up
This is vital for businesses of any size, and in nearly every facet of life. Nick sees this time after time. After a conference call talking details about a deal or a property closing, he sends a follow-up email containing the details of every commitment they talked about on the phone for confirmation. Nearly every time, he gets a response saying, “that’s not what I got from that call, I need you to do this and I’ll do the other thing”. Following up with customers, coworkers, and employees confirming details, numbers, and agreements in writing can be a huge saver and protection.
2. Keep it simple
It is so easy for logistics and communication to get muddied up with too many details. Nick himself says he is guilty of this at times. An over complicated job description can result in wasted time, extra steps, and inevitably extra money being spent when it doesn’t need to be. If a person has more than five tasks in their mind at once, they are most likely going to perform them poorly or forget some of them. Simplicity is key, and creates better productivity.
3. Set expectations
This goes for everything from mowing lawns to replacing dry wall: laying out the scope of work, expected timeline, estimated cost, and worst-case scenario is the best way to avoid dissatisfaction or unmet expectations. If you are focused on telling people what they want to hear rather than potential hold-ups or costs, you will end up being stressed out and struggling to make sure the customer is satisfied.
Going over a worst-case scenario, giving simple instructions, and following up conversations with a confirmation email are just 3 super simple steps to improve your communication. Don’t lose money unnecessarily. Work on your communication skills and your employees, coworkers, and customers will be grateful for it.