I took a call recently from a property owner who had questions about industry standards. I initially thought they were going to ask about operational standards and the ASCA’s ANSI standards. Instead, what they were really after were standards for bidding contracts. And as I dug deeper, what they were really looking to do was save money.

The exact question: What is the standard trigger throughout the country?

Rather than answering the question directly, I began to ask questions. I needed to know where they were operating out of (Colorado), and then I asked what sort of properties they owned and what was located on the property. It turned out the property owner had a variety of properties housing various business establishments. One was strip mall with a Dollar Store, while another was a party/reception venue. A few others had businesses that generated plenty of foot traffic.

As the property owner continued to describe what they were trying to accomplish – save money – I began to contemplate how often snow professionals were going to have this same conversation this year.

So, I cut right to the big question: How much liability are you willing to take on?

Of course, the ASCA’s model legislation, the Snow Removal Limited Liability Act, passed in Colorado in 2018. I asked what would happen if a pedestrian slipped and fell while traversing one of the properties where he had decided to enact a 6-inch trigger (yes, this is what he was contemplating). I explained that even if they attempted to use a hold-harmless agreement to pass on their liability to the snow contractor, that would be null and void in Colorado and, as the property owner, he would still hold the liability.

“As the property owner continued to describe what they were trying to accomplish – save money – I began to contemplate how often snow professionals were going to have this same conversation this year.”

Needless to say, the property owner was no longer enamored with the idea of a 6-inch trigger.

The conversation switched topics to fluctuating seasonal weather. The property owner didn’t want to be on the hook if they got a huge winter, but he didn’t want to pay for services if they had a very low-snow winter, either. I explained we traditionally see winter weather as a three-season cycle – one heavy/active, one light/non-active and the third moderate/average – and you need to stick with it. If you go with a seasonal contract you are going to underpay some years and overpay in others, but in the end it all evens out. If you go with a per-event pricing structure, you are not going to have to pay much in low-snow years, but you will pay out big when you get that huge snowfall winter.

I then introduced him to the weather insurance concept and advised him to investigate that option on his own. I also encouraged him to find a snow and ice professional in his market who understood everything we discussed because if he did, then he would be working with an educated professional. In the end, he thanked me for the information and my time and that he now had a fresh perspective on what he needed to do.

As the upcoming sales season approaches, we’ll never know what winter has in store for us. However, as snow professionals, it’s vital to communicate to your clients – both existing and would be – that you’re selling winter services based on value, not price. And for property owners, the return on that investment is partnering with an educated professional who now only knows the business of snow and ice management, but also has their best interests in mind as they establish a safe environment for property owners and their clients to conduct business.

Kevin Gilbride is the Executive Director of the Accredited Snow Contractors Association (ASCA).

ESPN recently aired an interesting documentary called “The Last Dance.” The documentary followed the 1997-98 Chicago Bulls during the final season of their National Basketball Association dynasty in the 1990s. If you are at all interested in sports, I recommend it.

Growing up as a Cleveland Cavaliers fan, Michael Jordan broke my heart a few times as he was particularly great at dominating them. But it was hard to hate him because he was so unbelievably talented. I mean, what kid didn’t want to “Be Like Mike?”

The documentary lets you in on how obsessed Jordan was with winning. I had read books and heard stories about his work ethic, so none of that information was really new.

But the documentary did make me look at his drive in a different way. I realized how much he cared about the present. Sure, he held grudges from the past, but he didn’t really focus too much on tomorrow. That type of thinking would have taken the attention away from the current task.

When the Bulls weren’t really playing for anything and wanted to hold Jordan out after an injury he had healed from, he was stunned. He didn’t care the team wasn’t going to go far in the playoffs if they made it. He wanted to try his hardest and win every game possible. Every win and loss has a lesson that you can’t fully digest if you are sitting on the sidelines.

“In the current economic climate, a lot of you are forced to focus on the present more than ever."

As business owners, you’re told to learn from your mistakes, focus on the now and plan for the future. In the current economic climate, a lot of you are forced to focus on the present more than ever. Who knows what the rest of the year may hold, so making the most out of today’s job is what will help you succeed and even survive into the fourth quarter of 2020 and into 2021.

Sometimes, we’ve missed opportunities because we’re too focused on what happened yesterday or what will happen tomorrow.

I think we all can learn from Jordan about living in the moment and doing our best right now.

At the end of “The Last Dance,” the director chose a great song, with a great line that sums up Jordan’s maniacal approach to winning – “Present Tense” by Pearl Jam.

“Makes much more sense to live in the present tense.” – Brian Horn

Entrepreneurs are an interesting breed. They come in all shapes and sizes. Becoming one isn’t for the faint of heart. Once you become one, staying one is even tougher. Successful entrepreneurs love not only people but also challenges. It’s important to understand that owning a business no more makes you an entrepreneur than owning a saddle makes you a cowboy… there’s a lot more to it.

Entrepreneurship is all about character. Circumstances don’t determine your character. Rather, they reveal it. Too many people, especially consultants, tend to think that success is all about having the right technology, having the right software or implementing the latest management technique (fad). They’re wrong. It’s all about becoming and staying the right person.

Because the current COVID-19 pandemic is so unprecedented and insidious, it provides us with not only one of the greatest challenges, but also one of the greatest opportunities that our nation has ever seen. Solving this problem will reveal our character, not create it.

Here’s how some of my clients (fellow entrepreneurs) are responding to the current coronavirus challenge:

Having the determination to succeed, regardless of your circumstances, is pivotal if your company hopes to survive this pandemic.

Analysis and action.

Loren has a great company in the southwest U.S., and he planned that his 2020 revenue would equal or exceed his 2019 sales of about $12 million. Due to the current pandemic and to the fact that he probably would not get his 80-plus H-2B workers, he reduced his 2020 sales projections to roughly $6 million. This wise entrepreneur did his homework, refined his numbers and faced the crisis head-on. He didn’t sulk or have an extended pity-party. He took decisive action based on good analysis.

Ken was building a great company in a booming Texas market. He knew his margins were far too thin and that he needed to calculate his costs and pricing more accurately. He had a fantastic marketing team and a production team that could hit any goal set before them. Then it all hit the skids due to the current pandemic. March/April sales took a big hit and the future was very uncertain, but he brought me in to do my analysis anyway. We established a 2020 baseline budget for all divisions and calculated daily revenue goals for every service that his company provided. His salespeople and production team responded to the challenge with vigor and, at this point, it looks like his 2020 sales will exceed his projections. This seasoned entrepreneur and his team faced adversity, spit in its face and prevailed.

Henry and Tom are in their late twenties, and they closed a deal last year to buy a company in New England where they had been working for a number of years. They both had degrees in turf management and knew the production side of the business. Nathan, the previous owner, had been a client of mine for thirty years and brought me in to train Henry and Tom about the business side of things. We created a budget for 2020 and reviewed all of the pricing for their services. They were excited but a bit nervous about their new venture. They knew that if they achieved the modest increase in sales that we had projected in the budget, everything would work out fine.

Once the pandemic hit, their anxiety increased significantly. However, they had a good plan that was quantifiable, easy to monitor and simple. They also had a good support team to back them up and encourage them. They dug in and focused on sales because they knew that if they sold the work, they’d get it done profitably in the field. Tracking each and every lead and its status provided them with a daily progress report as they pursued their goals. They knew exactly what was in the pipeline and could see their steady progress. This lessened their anxiety and gave them confidence that they could be successful.

Common theme.

These four entrepreneurs had a simple, measurable plan that they could track throughout the year. Not only could they see how they were progressing toward their annual sales budget, but they could also see how they and their crews were doing on a daily basis. However, they had something more. These individuals had the determination to succeed in spite of (not because of) their circumstances. If you’re going to thrive during the COVID-19 pandemic (or during any crisis), you’ve got to have grit. Remember, it’s not the size of the dog that’s in the fight, it’s the size of the fight that’s in the dog. Bark loudly, my friend, but bite harder!

In my last article, I wrote about how important your “state of mind” is when it comes to running a successful (or unsuccessful) business. Successful leaders think and act differently than unsuccessful ones. Preparing for and responding to a crisis, whether it’s a recession or the COVID-19 pandemic, is all about how you think. It’s imperative that you think “outside of the box” and be proactive with your team and your circumstances.

Let’s look at what you can do once you find yourself in a crisis where cash flow is seriously reduced. We’ll look at what you can do both short-term and long-term as you lead yourself, your team and your company through such a situation.

Short-term response.

First, similar to a pilot who finds himself flying into the fog, you have to get on your instruments. Otherwise, you could be flying upside down and not realize it. You need objective data to tell you where you are. Here are the tools (or “instruments”) that my clients use:

1. Annual budget: Your budget is a document that looks to the future for your divisions and/or company. It provides objective revenue goals and production benchmarks for each division. This document tells you and your team the sales goal that you need to shoot for. It also establishes tangible benchmarks for costs such as field labor, materials and equipment. Most importantly, it allows you and your team to see your progress (or lack of progress).

2. Bidding and estimating worksheet: This worksheet also looks to the future for individual projects or accounts. It helps you manage risk by establishing goals for field labor, equipment and materials. Field labor comprises 90% of your risk, and this worksheet establishes man-hour goals to help you measure and control risk.

3. Job-costing worksheet: This worksheet looks at past performance and provides a reality check of sorts. Since field labor jeopardizes your profitability more than anything else, this worksheet should primarily focus upon your budgeted-to-actual man-hours for each project or account.

4. Profit and loss (P&L) statement: The P&L also measures past performance, but on a division or company-wide scale. If formatted properly, it can tell how you are doing compared to your annual budget.

5. The Bid Board lead tracker worksheet: This is perhaps your most important tool. It tells you what’s in the pipeline and whether you’re on track to hit your sales goals. Cash is king in a recession. First, each and every lead needs to be tracked to ensure that it doesn’t fall through the crack. This worksheet allows you to do that.

Second, you have to network like crazy and be proactive at finding solutions to help you work more efficiently and market more effectively.

Long-term response.

Since recessions and crises are inevitable, entrepreneurs should always have contingency plans – both short- and long-term – to counter their effects on their businesses. Here are some long-term suggestions:

1. Build a service base: Too many entrepreneurs provide services that are severely affected by recessions or crises. They enjoy creating construction projects, for example, so that is all they do. Construction projects are the first casualty in a recession. Just like football, if you live by the blitz, you’ll die by the blitz. It’s not a question if there will be another crisis; it’s a question of when.

Smart entrepreneurs don’t just do what they like to do. They do what is best for their business. It may not excite you, but providing services such as lawn maintenance, irrigation, lawn care, pest control, tree care, plant health care, etc., just may provide the cash flow that gets you through a crisis and allows you to sleep at night.

2. Build a cash reserve: It may be difficult, but it’s important that you prepare for a rainy day. Open a money-market account, a savings account, whatever; but force yourself to regularly deposit cash into this account.

3. Build good management systems in your business: Remember, “What gets measured, gets done!” Build the systems and provide the tools that allow you and your team to measure whether you’re being successful or not. This takes time, training and treasure (money). The things that you should be doing to prepare for and respond to a down economy are the things that you should be doing anyway. There’s nothing new here.

Conclusion.

In order to build a successful business, you have to be prepared for any and all contingencies. To be prepared, you have to think like a leader. Successful leaders think and act differently. There are things that you can do short term and those that you can do long term in order to build a business that can weather just about any storm it faces. Being an entrepreneur is not for the faint of heart. It’s a constant mental battle – a state of mind. It’s one that you can win, if you’re willing to train yourself and your team to do so.

Contact Jim Huston at jhuston@giemedia.com