Hello business leaders!
At 70 years of age, John still enjoys what he does and has no plans of retiring. He shared his unique business model and talked more about his goals, values, challenges and solutions.
John started working on building houses from age 18 when he built three houses with his father. Today he has his own company but he does not shy away from a hammer.
His main goal has always been focused on changing people’s lives, by helping build their dream home. John said, “I strive to be as honest as I possibly can.” His time is divided into sports including bass fishing and spending time with his wife.
John believes being forthright and honest is the best policy. He said, “Little white lies will catch up with you and it just downgrades the quality of you as a person”.
The hard working 70-year-old treats his contractors like his brothers and sisters. “The most important people to you are actually people that work for you.” John added.
Having worked in the construction for 25 years, John knows that if you treat and pay people right, they do good quality work. He also advises that you should know what you’re doing and know how to talk about it.
John has a transparent business model that clients like. “I become partners with the client. I charge them a management fee, for managing the whole project. They have to pay all the bills.”
He saves by negotiating a split in profits between him and the contractors.
Unlike other contractors in the industry, John does not pay workers by the hour, he pays by the piece of work. He also pays the subcontractors as early as 5 days, as a way of motivating them.
Your business model does not have to be the same as the rest of the industry but knowing what they do in the industry is a must.
To be up to date in his industry, John subscribes to builders’ magazines. You should know what happens in your industry.
There are two main challenges John has in his industry - getting clients to pay, so the work can be done, is the one challenge.
Second is getting good and qualified construction leads.
Another pain point is always chasing after subcontractors. In the construction industry subcontractors can work for more than one company and that delays the other projects.
As we all know, no one person can do everything, at the same time.
John’s advice for beginners in his industry is to not only know what work tools to use but also how business works.
He also recommends using technology and internet tools to boost and/or advertise your business.
Listen to the full interview below.
You can connect with John on LinkedIn.
Share your thoughts on the interview by commenting below.