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Setting Up Systems to Scale Your Business


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Stan Genadek: What’s up Dirt Monkey Maniacs? Today, we’re going to talk about what everybody says you need to do, but nobody shows you how to do it. Not a lot of you know that I own a lawn care company, what you don’t know is, my excavating company is completely separate from the lawn care division and what nobody knows is that I own a third company doing pure construction, decks, house additions, remodeling work and two other companies.

All of my companies run themselves without me, you’re going to see that today. If I can do it, you can do it. Each company is completely unique from the other companies but the systems that run them are not, they’re universal across the board. But what’s even more important is, I’m going to teach you guys how to do the exact same thing.

When you understand the basic principles of a system, you can tweak it and make it fit just about any company’s profile. The system is the fundamental key to building a business that frees you up and removes you from the process. I’m not going to lie to you guys, this is going to be epic. But the tricky part, is understanding what system and how to build it.

How do you create a business that will make money without you? That will separate you from all of the mind-numbing details that suck up all of your time, energy and effort.

The Gurus call it ‘Making Systems’ but the Gurus never actually give you a system, I say screw the Gurus. All they’re doing is telling you to figure something out on your own that if you already knew, you wouldn’t have needed their crap in the first place. They never tell you do A B. C. and D. do it in this order and you’ll have a functioning system that will make your business operate more efficiently. When a business runs itself, it frees you up to figure out better ways to make even more money and some of you are going to say: Oh, he’s all about the money, you’re absolutely right. That’s one less thing to worry about.

Plus, once you get how to do it, you can do it over and over and over and over. It’s true! Step by step, I’m going to show you guys how to remove yourself from the process. Honestly, when I show up on a job site, my guys don’t even want me there, because I don’t want to be there.

When the system operates effectively and efficiently, when you come into the scene, you should actually be interfering with the process. His system is set in place on this job site that when I come on, He’s just got to make room for me. I’m doing nothing more than being a nuisance. Right place. That is a man of few emotions. Here’s the thing about systems, they should operate so absolutely efficiently that when they’re done the right way, you don’t even know that they’re working.

Anonymous: Pretty much took this this house was pretty bad was in a lot worse than I thought it was then and look right I didn’t do it all windows, doors, patio doors, cook stove oven, what else do we do on the park pretty clean all the walls still got about how much time we got left and with one eye open to be done by the 20th of this month to nap we will then what we do know if we’re going to get good one of us knows what we’re doing.

 

Stan Genadek: It’s systems that’s letting me run three separate companies now including what I’m trying to build with Dirt Monkey University. Today is the latest version of you guys want the heavy version we have hour upon hour of systems that you can immediately download, employ game play into your company and I mean you can copy and paste your name and have a functioning system immediately. We’re not trying to reinvent the wheel or make a better mousetrap; So, stop wasting your time trying to figure it out all on your own. Go to Dirt Monkey University click on the Mastermind group and you’re going to find all the information you need to immediately create a business that will free you up from the process and give you the ability to have the life of your dreams. Go to Dirt Monkey University and check it out and in the meantime, here’s an overview of what we’re going to be doing. One last thing guys, if this kind of information helps you out, let me know in the comments down below or hit the like button. Now, let’s get into it.

 

Stan Genadek: All right welcome everyone and this is the meat and the bones. Phil how are you doing my friend?

Phil Sarros: I’m doing great! I am very excited about this, this is what we have been asked for and the number one question we probably get all the time is ‘Systems’.

Stan Genadek: Systems and we are actually the difference, what we’re going to do is we’re not talking theory we’re not going to give you a bunch of B.S. and tell you to McDonnalize your business but not tell you how to do it seriously that this is me are nothing gets me more hurt than somebody that says oh you’ve got to install systems into your business and as landscapers, Contractors, Business owners in general what do we do? The next question says what’s the system what is it and then they don’t have an answer, they never have an answer, you know why? Because every single person out there, all these Gurus, all these people, they just are all there doing a spot not the same information that everybody else the spot, not they’re not give me anything new but what we’re actually going to do in the next 6-part series is, we’re going to literally spoon feed all the baby birds, The Systems. This gets me very excited because there’s nowhere else where you can actually have people give you the systems verbatim. Here you go, you may have to tweak it a little bit right Phil, to be specific to their exact business maybe a tree removal business or concrete business or you can be whatever you do, you may have to tweak that system but we’re actually going to over the next 6-weeks and Dirt Monkey Universities Mastermind Group, give you applicable systems plug and play, plug and flipping play.

Phil Sarros: I want this to be easy, that is the goal of this, because we need think the systems are easy, I mean that’s the whole point of it is to have these systems that are so easy to make your business run smoothly without you and that’s the key but then when you actually sit down, and take a minute and start to just absorb what systems can be in place, the list becomes kind of infinite you can have systems upon systems and where do you start or start an officer start with production or sales, and what about this? What about this policy? And that checklist and it becomes kind of dark in your life lot of people just give up before they ever get started because of how overwhelming it can be for something that is initially designed to make your life simpler. So, what I’ve done is, we’ve gone through this and we’re making it simple. Something you can absorb and swallow in 6-parts by no means of my telling you that these are the only 6-things that you have to do. What I’m saying is, here’s exactly what a start with these, the 6-part system and you will be well on your way to creating more and more systems that will make your life simpler. We’re going to give it manageable steps.

Stan Genadek: And today, what I want you guys to do is to get your pen and your paper out, I want you to take notes on this because what you’re actually going to be learning should go into a permanent folder, they should never, ever leave your business office because what happens is, as your business matures and grows, these systems that are written down become documents that make your business transferable to somebody else. This is how companies to go from being owner operators Mom and Pop businesses to being legitimate franchises. That’s the only difference, a franchise is nothing more than the same business anybody else can run with all their systems written down into one book, it’s as simple as that, that’s the difference.

Phil Sarros: That’s it and you already have them. The only difference is they’re right up here all the whole process of creating a franchise is going from here to paper; that’s it! And it’s just taking the time to do it, it’s not as flashy as working on your marketing or working on your sales, it’s not as it is fun is taking portfolio pictures for the cover of your website. It’s boring in a sense and that’s why a lot of people hesitate and I got other things do, I got sales calls, I got a point that I think people need to get to so they always put it on the back burner. Today, let’s bring it to the front and let’s make it happen.

Stan Genadek: Let’s back up one slide Kelly and the first thing that I want to do is, I want to start to make the idea of systems be even easier and I want to remove the word system and replace it with the word checklist.

Phil Sarros: Very, very good point it’s the wording of that you’re using a lot of times you hear systems, I don’t want you to think that systems equal multi-page documents. Systems can be as simple as a few bullet points and you put one out and you create a process for how something gets done in it can very easily be a checklist as you’re going to see it, we’re going to go through this year and you’re going to see examples of checklists and forms. A good example, is a change order form. Change order form or it’s a system it’s a system for how a change takes place on a job, we’re going to talk about that coming up in part2. I’m going to go over to a little bit today but, all of these become their own systems add them all up, put them in a book and now you have something that can be repeated by somebody else not you, that you can now get freedom in your back in your life and back in your business.

Stan Genadek: Yes, So, today we’re going to talk about all of the 6-systems that we are going to be diving deep on; Part2 is job jacket or production system, Phil will take 30seconds to maybe a minute at max to tell us what to expect in that part.

Phil Sarros: So, a job jacket is what happens with every single job a packet of documents that need to be available on every single job and I believe in our go through it and I believe we have 7 of them or 8 of them this is going to change or reform, your contract, your material list, your basic description of a client list that you have, all the basic information you need to know about the client. I’m trying to think what else is in there, we’ll go through it will go through it at the end there’s a profitability report this is where you’re going to tell your crew how many labor hours they have. Guys, once you can start measuring every single job, you will be amazed at how much you can increase your profits per job. If you’re not measuring per job, you have to be. A lot of times, we start think of this job sort of when into the next job no stop and make sure each job is organized correctly. Once you get this job jacket system down, it becomes super easy, I have the magic spreadsheet I have all this in a spreadsheet I make all this available to you in one spreadsheet with all the tabs for every document that is inside of this job jacket. All you have to do is, type in the basic information about the job and produce everything you need for it.

Stan Genadek: OK and then Part3 and 4, we’re going to go into sales systems and this is where we’re going to say revert back to where I said checklists, it’s going to be create how to create an easy checklist that will lead you from your initial phone call, to what you do in the field, so that you have a very consistent result time and time again, you’re not searching, you don’t know where, you’re not losing track of customers, you know when to follow up, how to follow up. We are talking about having a very unique, concise way of turning that first phone call into an actual profitable job and then marketing follows along with it, we’re also going to be talking about accounting systems and last but not least, of course is actually should be first is your profits, your money system what why you’re doing all of this that’s part6 of this, so let’s start at let’s go to the next slide and start diving into this right Phil?

Phil Sarros: That’s right, so I wanted to sit down and I thought to myself what does it take to run a business up to about $150,000 in value? What are the most basic systems that need to be in place? And so, there’s two sides of this right? Right here are the systems that we’re going to go over, this red circle the sort of top half of the spreadsheet, the bookkeeping, the money system, the job jacket, the flow chart, the marketing system, that’s what we’re going to cover in the 6-part series. I want to give you the really exciting news in all of these guys, there are almost or close to million-dollar companies that have none of these in place, they’re scrambling. I think if you do this, you will be doing more than some of the biggest companies out there. They’re just running and running and owners are running like crazy and they doubled they prefer their sales and as I’ve said in the past, increase in your sales is the easiest part of this business. Being profitable doing it is the hardest part, like actually make or when there are plenty of people that double or sales and cut in half their profit in the process of doing it. This is going to make sure your bottom line continues to grow greater than sometimes even your top line. Doing this I say that this picks at 150,000 in revenue but I promise you do this and you will be well ahead of half a million-dollar companies.

Stan Genadek: Oh no Phil, I personally know people friends I don’t five million-dollar companies that don’t have systems as nice as what we were going to be implementing today and this is the difference between chaos and absolute knowing every step that has to occur next in the process. You would be up blown away by the size of the companies that are doing what we are about to teach. So, let’s get into it, I want to start giving these guys the meat on the bones this is my biggest, I’m so excited my biggest Pet peeve with interviewing all these guys on the podcast, love the guys for sharing their wealth of information but one of the things and I found, I was never getting from them was actual systems and so let’s do it.

Phil Sarros: So, I’m going to give you a little bit of an overview what a system is and I should talk on the same side what it isn’t. It isn’t supposed to be a complex thing, it doesn’t mean there’s not a lot of them when you run a business, it’s just that each of them in their individual components are nothing more than small break down of your processes. Most people will not their take the time to document their day, if you look at what you do in a day, it’s like keeping a journal of your time activity and it’s amazing. I mean, I’m sure there’s people who’ve been in business 10years that have never kept a journal of what they did every minute of the day. If you do this for 3-days, you’re going to be amazed not only at the inefficiencies that you find, but also, if the things that you do that can be delegated out, that can be passed out, if people only understood what was needed, what was necessary of them, this is where freedom comes and I’m no doubt that it’s possible to run a business that’s earning a lot of revenue but that’s not the ultimate measure, it’s your ability to go on vacation for a week, for 2weeks, for a month, can disappear and know that your processes are in place. If you can start looking at this, this is a way to create these methods that are easy the and repeatable so that that and I’m only going to use that word repeatable a couple times so that is a McDonaldlize, word, that is ultimately what we are trying to do. Get people to do this process, so you don’t have to do it and it runs automatically.

Stan Genadek: Let’s go on to the next slide.

Phil Sarros: So, these are the basic components of a system and line 2 says: Checklist, Policies, Procedures, Steps and Forms. I mean this is pretty much the breakdown of what we’re going to see. There can literally be hundreds of them but the point is not to overwhelm you with them, that’s why we’re starting here with the basic 5-6systems that you’re going to need and again, I can’t emphasize enough this will be so valuable for you to build and start to grow your business on if you go back to that slide, you don’t have to do it kelly but if you go back to that side with the spreadsheet, I had a whole bunch of other systems listed out if you’re growing to $500,000. You can alternately take these and break up smaller and smaller components of it so people will know what to do. But starting with this, is going to be a huge leap above what everybody else is doing and towards that freedom that you want.

Stan Genadek: We need to take away some of that overwhelming like feeling like you can’t keep up when you look at the systems because I want to basically start out with your most basic checklist and what you’re going to do is, you’re going to check off, you’re going to write down as bullet points the things when you’re creating your first system you know write down all of the good things and I don’t want a ton, I don’t want this to be like oooooh, I want you to have a very strong, easy to read bullet points and maybe use a different color of pen, hey guys we’re literally going to simplest possible, you write down maybe you’ve got to carry a blue pen and a red pen, the red pen is the bad things you see the, red pen, we need to make sure that you take note of the things that don’t work because as owner operators, a lot of things that we are doing would seem very intuitive that’s because we have our best interests of the business right here at heart right? So, we automatically think everybody thinks like us, but that’s not it at all, these guys that are coming to work for you are doing if they don’t have skin in the game, all their best interests it is what’s the easiest way to get to the end of the day and to do the least amount of work possible. You may love these guys, you may hug them, you may think of them as a Brother from a different Mother, and I don’t care, you’ve got to separate yourself from ‘You are the owner’ to ‘You as an employee’ you as an employee realistically, don’t have the same heart in the game and you literally have got to understand this. This is a mistake a lot of guys make, write down the things that do not work when you’re creating your checklist don’t overwhelm yourself, don’t create a super line check this because we’re going to simplify this the beginning and then as we refine and modify the checklist we keep our little eyes open, we’re going to learn better ways of doing things we’re going to dramatically improve performance from one year to the next, you know I said year and I said year specifically because if you’re going to say from one day to the next day, you’re going to be disappointed, say from one week to the next week you’re going to be disappointed. But if you say look at from one job to the 5th job I’m going to promise that I’m going to do that same job better, more efficiently and faster time, you’re going to be right, then you’re going to be right but now from one minute to the next minute, you’re going to be wrong.

Phil Sarros: And let me talk specifically to the perfectionist out there because there’s a group of you that are absolute perfectionist and you’re not going to be in sometimes that can create procrastination because you want to spread sheet this thing out into a very possible system, every possible question in flowchart or an algorithm is perfectly in place and then you’ll get started. The problem is, it will never ever be perfect. You can sit for as many days and weeks and months that you want you will always be able to think of a new system, a way to take one system in breaking and two systems and make them perfect on paper, that’s why I want you to start right here, if you are a perfectionist, I’m going to ask you to please set that perfectionism aside and put a trust and faith in this process and just start and I will promise you this it will not be perfect, it will be something that is a living document, that has to change but it will be so much more than never starting at all and I think a lot of people get overwhelmed and don’t ever just start the process. Start even if it’s not perfect and just get the ball rolling, I’m going to give you all of the steps in what you’re going to need to do start with this system, you can modify it to be perfect for you as time goes on.

Stan Genadek: So, get I’m going to speak to the perfectionists out there and some of these guys you know I don’t know what you’re talking about but I have one that runs my lawn maintenance company and I have to tell him Phil, you have the timer, click you only get to harass me on this problem for 10minutes, I’m done. When I mean harass, I mean analyze and now is this paralysis all what about this? What about that? what about this? What about that? what about this? What about that? Don, you got 10minutes and then I am done, this topic is over. So, if you guys are aware that you are a perfectionist, you’re spending 30minutes or an hour on something when reality you should be spending 10minutes, you may need to set a timer and only allocate so much time to allow yourself to go into the dive into the minutiae of a single problem or project because you’ll waste time. Perfectionist tend to spend a lot more time than they need to generate the results. Now, their results are usually better than anyone else’s but the amount of time it took to get there doesn’t tend to be profitable and there is a balance point. Time efficiency equals profitability, good projects, equal profitability but you can’t waste a ton of time and lose efficiency to have a perfect project that won’t be profitable, big difference so but yeah, we’ve got to actually break down some of these systems and give these guys a system to divert.

Phil Sarros: So, Guy, the window to the next line at the end of this we’re going to talk to you about a job profitability report we’ll get to that coming up because it’s going to be a really impressive thing that you’re going to get access to through that to the spreadsheet. Let’s talk about where to keep the systems system as a 3-ring binder go to Office Depot pick up a 3-ring binder make it a big one and pick up a section of pre-divided tabs, I want you to create 3-tabs and again the perfectionists are going to say but I can think of 4-5 tabs you can start with 3, Office Production, Sales. There are other systems that can come into play but these are the 3-main headings that I want you to create because really most of your business can be categorized into one of these 3. I don’t want this to overwhelm you, that’s why I want to keep it simple but a simple is that, you’re going to put this on the shelf, you’re going to have three separated tabs and you can put it up there today and now you have the beginning of your system, that’s simple! Buy 3-ring binder, some dividers put on your shelf and let’s get started with that.

Stan Genadek: And welcome to the world of franchising and selling your business because this is what’s going to make you whole business transferable. These systems when somebody can pop it open and see a Checklist for answering a phone, pop it open and see a checklist for starting a project, pop it open and see a checklist for when they get a call, what the process is to do it from step 1-2-3-5-8-10 is already here. You have a very real business.

Phil Sarros: We’re not saying you have to franchise your business so for those of you who heard the word franchise and decided to leave the webinar and say wow I’m not going for franchise, I’m never going to be a family business forever, I don’t need to do this, now this is so you can get freedom because otherwise, you just have a job. If all you’re doing is being able to walk away maybe for a week at best, to take a vacation then you come back in the whole ton of problems and things waiting for you won’t to be able to walk away and leave this to me hands of other people. So, this is what we’re going to. We’re going to show you to do so I want to talk to you about this job jacket system because this is what’s going to be coming up next week and I’m going to end this with a job profitability report, then you asked in the beginning what’s in this job jacket system here it is here are all the things that we’re going to go over next week, each one of these is a system. A system downloadable that is already written out that you can already take and go to work with tomorrow, put your logo, put your name on it and start to go to work with it find out what tweaks you want to make to it that these are ready to use systems. The job profitability report will also be including that, this thing has changed the way we have done business, you can go to the next slide, so I show a screenshot of this and I’m going to make it available to everybody downloadable. I’m going to do a close up of this upper right-hand corner here in a minute but basically, this is where all your costs, it’s specifically related to the job are listed out and you know prior to beginning the job how much money you anticipate making. So, if you want to go to the next slide, I’m going to zoom in on this upper right-hand corner of this; This is the me potatoes of what this spreadsheet produces, spreadsheets already may be already the variable the input on this is 5-lines down on the left side 1-2-3-4-5 overhead apply that $1,050 in the days on the job that days on the job, is where what is pulling from my daily overhead rate and there’s a place so we know how many people hold there’s an input for how many people are going to be in that job but right here, prior to beginning the job we’re anticipating a net margin of 33% you should know this number, you should know when you’re going into a job and you realize whether you’ve potentially underbid the job or whether you have some extra margin on that project, this is taking into account all the materials or labor that we talked about in the past the overhead. So, this is what you’re going to have access to start using tomorrow for your very next job and this is the measure of how we can become more profitable, make improvements in your business adjust before you make a mistake, don’t want you to learn lessons the hard way, make your money up front so you can know what is what to anticipate in terms of how much money you’re making.

Stan Genadek: So, let’s quickly Phil go through these exact numbers, I want to be able to understand it because some of the guys that are watching on YouTube because this this video is going to be for YouTube as well as for the Mastermind Group. The Master Mind members are going to get us, we’re going to dive very deep into this exact system for our next Master Mind webinars but for the guys on YouTube watching that are members of our Master Mind group, I want them to also be able to get an understanding of this. So, can we start? Can we go into this little deeper Phil?

Phil Sarros: Yes, these are actual real live job numbers from a project, these numbers come from the other portion of the spreadsheet that we just saw it’s a much bigger she some kind of zoom in on the on the main numbers of it where your revenue is simply what you sold the job or the cost of the job to the client. The materials are included from every single material that you have made a list of so you know your exact cost, tax, delivery, everything. Your labor, this is the variable, this is what you’re estimating, the number of guys on the job, the hours per day that they’re working, the labor rate that you have calculated for them and the total number of main hours on the job.

Stan Genadek: I want to interrupt really quick Phil, 1440 comes from three days on the job for how many guys you have calculated into this?

Phil Sarros: I think these 3, I’d have to go back and look at the other portion of the spreadsheet but let’s say there’s 3 on this job and not every job is going to be in this is probably a simple you know 3-day job I mean if you have a job that’s a week long, you have a job that’s 2weeks long, you’re going to need to you may have portions of your project where you have a set up crew going in, you’ve got two guys going out there just doing grading for the first 3-4days and then your for me and crew comes in to do hard skates or layers of sort you’re going to be able to outline this in the spreadsheet so you know they want what is being performed or grading and prepping the site, they want through to days 3-4-5 we’re doing hard skates, day 6&7, we’re doing the soft skates and know how many is so in that always being fed these numbers are being fed to your labor numbers in your days on the job all you have to do is input your time and you know put it out here.

Stan Genadek: Now, this is a question that some of the guys are going to have 3-days on the job for 1-Guy, I know it’s 3-days on the job for either 2 or 3 guys so that means each day is either 16 or 24hours. If 1-Guy works 8hours, 2-days are going to work 16, 3-Guys are going to work 24hours but that 1440, is if you’re paying a guy $20/hour you know, 15 then plus all of the other stuff on it whatever and I’m that’s where that comes out. So, I want these guys understand is the question always comes up is that one guy how many guys is that so this may be 2 or 3Guys, it doesn’t matter 1440, we take that now that gives us your revenue minus your materials, minus your labor which is where you as an owner operator need to start to implement some of the changes that we had in one of our past webinars, the minutiae changes that you have right gigantic impact watch some of those it gives you your gross margin of 49, 26,54 that means that’s your basic profit on that specific job but then we have to remove overhead because that never changes, we’ve talked about overhead before and how you know it depends on how many days you’re on the job, we divide that up to add know how much overhead to allocate. Now, if I confused anybody right now, what I meant is your overhead applied to a job is going to change if you 3days on that job or if you’re 4,5 or 10days on that job. Because over had maybe $100,000 and you’d be backed up by how many days are in the year or however you want to calculate your overhead OK, what the longer you are on that job, the more overhead you have to apply, right Phil?

Phil Sarros: Yes, you have all your overhead in we’ve gone through your rent, some payment, some building expenses. You divide that out by the number of days you work, do you work on the job 1day, you only have to cost 1day’s worth of overhead, if you’re there a week, you’ve got a cost and this is where a lot of guys lose money, so you can go back and look at our webinar specifically on overhead and get more detail but this is where we want to make sure we’re not to this is the difference in your bank account. When you’re looking at your bank account, and you see all this money come in and then almost all the money go out and you’re at the end you’re like why do I make any money a lot of times the first place we’re going to look is this overhead number because it’s not matching reality or it’s not many cases even being accounted for but you don’t tend to notice it when you’re going to 100miles/hour during the spring season from job to job because cash is flowing, you notice it in November when cash a start right now and the jobs are starting to thin out, that’s where you notice it’s want to make sure you’re paying attention to it on every single job to know exactly what you’re really making.

Stan Genadek: Exactly! OK so great where we go on with it from here Phil?

Phil Sarros: That is good, so next week, we’re going to dive into the job jacket documents all of them are going to be included next we are going to go through a pretty quickly because these documents are done. They’re ready to go, we’re just going to explain what the document is again, I’m not going to overcomplicate it, I’m going to just deliver it.

Stan Genadek: OK I want to back up a couple slides Kelly, because not everybody is part of the Mastermind Group keep one more please. And I want the guys that are watching on YouTube to be able to have an opportunity to get at least the gist of this information if you want all of it, join us on our Mastermind Group, go to Dirt Monkey University click on our mastermind it’s very cheap for what you’re getting, nowhere else anywhere and there’s no other Academy, no other training facility nowhere else well actually give you what we give you, hands down and I know this for a fact and I can say it with utmost confidence because I’ve gone to their places, I’ve attended so many Mastermind workshops academies training seminars been invited to be speakers at him and I know what Phil and I and Kelly are doing right now, is not being done. So, go there for the detailed information I want to talk about this job jacket system what you’re going to do, is you going to have a client information sheet and what you’re going to do is you’re going to create a checklist and we’re going to go over this next but for those tunning in right now, client information sheet in what they expect with this just give me a 15-30seconds overview on a couple of these different sheets here Phil.

Phil Sarros: One of the things that I realized in my business and this took years to realize is how important it was to tell my foreman, the person leading the project the name of the client and their contact information and make a proper introduction and I want yours I guess I mean minute I went years without actually making that proper introduction that it was so empowering what I actually introduced my foreman to the homeowner, I shared the information so as questions come up about simple things, I allowed my foreman empowered him to go ahead and make contact with the client, you know what that did, it stopped my phone from ringing over little tiny issue, can you move the car in the driveway because we’re making a dump truck load, my guys these are calls I would get, my guys are out there the homeowners out there, they would call me to call the homeowner to move the homeowners car so our dump truck could get in, I made a proper introduction and it overcame the barrier of like OK now if you’re approachable. So, client information should be my Foreman who are working for it allows them to address them by name Mr or Mrs Smith, however that is, but allows them to address in my name instead of just nodding their head, it’s sounds so simple but it’s empowering for you and for your Foreman and for your client.

Stan Genadek: Scope of work should be like a blueprint for your project. OK, so, when you go out and you’re introducing whether you’re doing this for yourself and you’re walking through the job with the customer or you’re doing it for a project Foreman or anyone else that may be on your job site, they should have a piece of paper and it doesn’t have to have your numbers on it, it doesn’t have to left of your what you did the job for that can be privileged information for you the owner of the business or just the customer. Nobody else needs to know the actual, well like here’s what I did this job at, but they do need to know on their blueprint if there is 100sqm a retaining wall or 105sqm of retaining wall, if there is 50sq yards or 15. So, actual numbers of quantities so your material list is on there your scope of work and here is something that I found to be very applicable. What is not included Guys and Girls? But I actually have a checklist of things that I would think the home owner may want included. I’m guessing at this point but through experience and through refining my checklist, my system, I have learned that a lot of times a homeowner a want this or they want that or their want these little things here and there and so I make sure that before we start the job, it’s not included and this is what is included so it’s very clear black and white, it’s a blueprint of what we are doing, how much for doing, what we’re not doing and so that is your scope of work and your material list, you’re going to create that on your own next week we’re going to have one for you change order form, Phil walk us through that please and thank you.

Phil Sarros: A lot of guys don’t have processes in place for simple for making changes you need to have a form that is that the homeowner gets a copy you get a copy, I print these on carbonless copy papers it a stack of them in the truck when there’s a change, you sign a change order form, it’s very simple. And it’s already put together you list the amount of change, the amount of material you have and the cost of the homeowner you capture signature and now there’s a document every change that you’ve made on the job, it’s good business practice these are records when this incident when this job jacket is done. This job is completed and finished being produced, this is what gets filed in the office which is a whole another system which we’ll talk about that in the future but there’s a system for how an Office Manager would take this document, I mean at the end you would describe you know 4minutes to put this in the inbox sitting on the desk, The Office Manager takes it out, files it away and you keep these records because there will come a time you don’t know which job it is? But it’s going to happen when a customer calls you back and ask you a question about a job how professional is it to be able to pull out their file and just look at it in the answer some basic questions rather than say, I don’t know, I don’t remember, we’ve moved on or we don’t keep these records. So, change order form is going to be included, ready to go out of the gate you put your name and logo on it and get to work with it.

Stan Genadek: Final walkthrough form, I want to go over this now both Phil and I were contractors, we still own our own businesses, this is how we make our living so what he does and what I do may not always be exactly the same but we have a process we have a checklist, a system we will not leave the job site without going through it and for us, it’s having the customer there before we leave and before we even get to that point, we notify the customer that, I don’t care what they’re doing, they have to make themselves available to do a walkthrough and I don’t say I don’t care what they’re doing like I’m just callous about it, but this is their job site and their most happiness and satisfaction is dependent on the decisions they make before we leave the site because once we’re off that site, a change is too late. To go back and to make even a minute of a change is a big process because we’ve got to get trucks, guys equipment we’ve got a remobilize all of those things have to be done to even do something, it’s what a homeowner thinks is very simple so we make sure that they know that on such and such a date on Tuesday at 2 O’clock, we anticipate being done with their job we need 5minutes of their time, we need 10minutes of their time, to walk through it before we can leave and then we expect the system is for our guys and for our customers. We expect their John Hancock on their final payment and over. Or to us before we leave and I will tell them I will not leave the job site my partner will stay on your job site until I have that cheque in hand a lot of times, a customer understands that that means that you better be ready to pay me and I’m ready to move on to the next site and we are making sure that you and I are on the exact same page. That how you do this your final walkthrough to Phill…

Phil Sarros: That is my guys, I mean look even as we record this webinar right now my guys are out on a very complex project with artificial turf, plants, stone, pathways, Boulder walls, lighting, irrigation, I haven’t had a single phone call today or yesterday and I’m not saying this to pat myself on the back but I am saying it have a self on the back because all these are the systems My guys are using right now as we’re recording this. They’re on the job with a blueprint, with the scope of work, everything has been gone through if there’s a change, they have change order forms, they know who the homeowner is, they know their name, then they worked on the property during different phases of the project, there’s a walkthrough form. Any actual physical clear see through job jacket right now in my Foreman’s truck. So, it’s all taking place and that’s how this this process is a smooth process if I get a phone call from my foreman I will I will very much pay attention because it is something that is probably new or something that is probably very urgent. I’m not going to get, I mean we don’t talk a lot during the day, I don’t get a lot of minuscule phone calls that don’t mean anything, they are important things. So, this portion of this final walkthrough system is critical to our business this is what it says that at this point in time, it’s time stamped at this moment in time, you were happy with all of the work, so happy that you paid us and you signed off on it and we delivered what we promised. Because we’re not going to get a signature, we’re not going to payment if we fall in short too so this is. A really good chance to start examining your own processes and oh say a lot of guys are in a rush to complete jobs just get paid, and and move on and just know that the guys are done just send them on their way. I want you to quickly in your mind recall that overhead number we just looked at about $1,050 over 3days of work. Yeah, well that was the way for the overhead number, imagine both of those numbers, imagine going back for half a day the next day to clean up some minor stuff and Imagine how many times now you’ve gone by I’m not saying this so you can feel bad, so you can beat yourself up. This is a problem that most people have to correct, these little trips don’t usually get factored in and again, what you think of the bank account you know lots of money moving and lots of money moving around saying what why isn’t there much left for me it’s go back in and look at these little tiny trips that take out big chunks of money when you have to go back and do these things. These forms, these systems, protect you against having to do that will it ever happen sometimes stuff happens but for the most part you’re trying to prevent all of it and this is a great way to do it.

Stan Genadek: And last but not least as we talked you said timestamp, your warranty must have your time stamp on it, you don’t want to work without a start time and end time on it yet no I also want to give it work it will separate you from the rest of pack if you’re doing good work you shouldn’t have to worry about, the warranty they give but just once you understand it, you know it’s just when you create for the guys watching on YouTube, you create you initially create these 7 initial pieces of paper and they never have to change, just the information on them for each the specific job will be changing after that, now for our Mastermind member are going to have us available for download so these guys can actually have it they can put their own company names on it and they can actually have it from companies that like yours mine that have been doing it for years and years.

Phil Sarros: Yes, this will all be available for download including this job profitability report it’s in a spreadsheet format, the individual documents are available and so you can print them off individually if you want. This is a ball for us as it will for you, I mean initially when we were doing this 10years ago these were all paper documents a lot of this can be send some of the recent electronically to the homeowner. You decide, you decide how you choose to deliver but make sure you have it for every job. We’ve done a complete separate webinar just on the contract alone. So, I’m not going to go through it next week in the same level of detail we did in the past webinars just on the contract alone. My point here is to deliver to you and get these in your hands that you’re actually used in them working with them the fall or they’re ready to go

Stan Genadek: And over the next 6weeks, this was this was checked Lester systems liked right, this was quickly want to get through it we know that we have limited time this is going on YouTube so that every landscape company can at least get the concept of what we’re trying to accomplish with them here they can create their own or our Mastermind members go to Dirt Monkey University you are not going to get a light form, we’re going to dive into this and break this down component by component so you guys, when you go out there, you know we are taking the process out and we are creating it so that you can literally plug and play and put all of these 6 different systems into your business and this is where you start. Now, I’m going to ask the YouTube community out there, if you watch this if you thought that this was good information, if this has helped you in any way shape or form, I want you to do two things for me let people know about Dirt Monkey University there’s a guy struggling there’s guys that really could use this help if you when you’re just out there working if you mentioned Dirt Monkey University the other guys out there, it would really help us out spread the word we need you guys to talk about us, we can’t do it on our own. So, if this has helped you, please let other people know about us and consider going to Dirt Monkey University’s Mastermind course if you want deeper information because that’s what fill in are doing, we’re trying to bring you something that isn’t available anywhere else. Absolutely hands down, I have not found anywhere else where you can get this kind of deep information, what we’re trying to accomplish. So, share this, hit that share button, my YouTube community, it’s right up there just please share this video and talk to other contractors, let them know where we exist, let him know that wherever you can, that’s all. It’s all I ask please help us, please help spread the word because there’re guys that don’t know about us, that’s what you could really use the Help.

Phil Sarros: That’s what it’s about is sharing this information growing your company in then paying it forward growing helping somebody else where look there’s nothing to fear, if every one of your competitors had access to this information. You’re not going to create a more scarcity of business, you’re not going to hurt yourself, you would only improve. I would be glad, this is why, I don’t mind giving the stuff out, I mean there could be a guy right down the street in my neighborhood, another landscaper that could be watching this and could get this, I’m happy for, I’ve done that, I’ve given my contract out, I’m not afraid in the end, I would rather if everybody had the same amount of information. It’s you selling you versus me selling me. And here is that sometimes you’re going to win, I think most of the time, I feel like I’d win but it’s just…

Stan Genadek: And here’s the thing, I have these guys are chronically underbidding, chronically underbidding. I have never seen a business go out business because they make too much money. I have seen them go out because they’re struggling, they don’t know where the money comes from. And all we’re doing right now is making a more efficient and more profitable and so if your competition is more efficient and they’re more profitable and they’re learning to raise their price and you’re learning to raise your price, win-win for every single person involved. Cooperation not competition, let’s raise our prices, let’s give ourselves the real value of what we’re giving to our customers. But we’re going to deliver on that value. We’re not going to be Jack in his truck, we’re going we’re going to be Johnny on the spot. We’re going to really be that guy that makes puts a big smile on a customer face and makes that customer be our sales person when we leave this job site. Dirt Monkey Mastermind members get that, they are committed to being the absolute best in their business and guys on YouTube watching, and I want you to be the best in your business as well. So, I want so please don’t feel like this should be proprietary information just for you, if you discovered something, share it because when you’re competition gets it and they start to go wait a minute, I should be doing this, this way I can make more money, be more profitable, holy cow so much money left on the table I’m thinking maybe I should do a video just on all the money that’s been left on the table on jobs and when I said left on the table, I’m talking about where I bid it right here and got the job and I’m like the next guy did it way up here and I could have brought my price up just a little bit more, or a whole lot more and still got the job.

Phil Sarros: There’s a lot of money out there and we get caught up in moving fast and growing and growing I’ll say in air quotes because we think that more sales equals growth and it doesn’t, more sales does, I mean that’s one measure up but this, this is where the money is made, efficiency and your ability to tap for every dollar out there, raise your value, raise your price guys, this is years in the making for us and to develop it, that these documents just he handed over gladly, willingly because I want you to avoid all of the pains that we went through and there is so much more to come and the systems don’t get systems for days so I mean we’ve got plenty of them and I’m just excited to get them in your hands.

Stan Genadek: This is this yet to me this is the most but I’m assured a very quick story before we wrap up, Phil you know I do I bid on Government open contracts which means that when I put a bit in, there may be 2or 3 other people that put their bids in as well and then they’re all open publicly and everyone in the world gets to know where their bids are and the companies, the big companies, the companies that I’m familiar with the companies that know what they’re doing, we’re always neck and neck or they’re a little bit higher than me and then these guys that we’ve never heard of like, we’ll all be like great about here then somebody we don’t know come in to go down here and that’s the guys that are that are doing their homework, these are guys that we’re neck and neck with they know what they’re doing and they will chronically be up at the top of the price chart because they know everything it takes to get there, they know the value they’re bringing and then the guys that just think it’s all about price are way down here but then, they’re not making a living and they’re getting some of these jobs and you lose them to these guys. But you will lose many of them to these guys because, these guys are going to stay in business plain and simple. You guys are going to stay in business, you’re going to bring value to customers, you know how to implement it, you going to bring value to your business by understanding the systems and I’m droning on and on and on but I’m so pumped about this next 6-part series because it is exactly what we need! Exactly what we need! Yes, I’m just excited guys, you can tell I’m pumped about this I’m really excited that we can bring this you guys. God bless Dirt Monkey Mastermind my grip Do you have any closing thoughts Phil because you better shut me up because I can’t shut myself up.

Phil Sarros: I can tell your excitement concern, I’m excited too. So, let’s get these into your hands, get working with them, give us your feedback. Let us know what you like or don’t like or want to see change, but just do it. Get out there and do it, don’t wait another day, another week, start today and get to work on this.

Stan Genadek: God bless to get a 3-ring binder Brothers and Sisters.

Phil Sarros: Have a great day guys.

[End of Transcript]


1 Comment on Setting Up Systems to Scale Your Business

  1. Hey Stan and Phil i whent out and got 3 3 ring binders for each subject
    ready up for the next screw the guru part 2 Job Jackets episode of your 6 part series
    Sooooooo cool !!! I almost didnt sleep ( thinking systems all night long )
    can’t wait seriously you guyts are the best youtube gurus out there and i have been arround.
    I really appreciate your videos and information!!!! YOURTHEMANSTAN!!

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