In Part 1 I told the story of Earl Swalm, a dealer from Canada who increased his revenue by 50% and cut his work hours in half. In Part 2 I covered some of the strategies he used to grow his revenue. In this installment, I’ll discuss how he was able to cut his work hours.
Overwork in the flooring industry is an epidemic. It’s much more common for a dealer to work 60+ hours per week than 40, it seems. That’s why I dedicate so much of my training to helping dealers cut their hours and get their lives back.
A one-store dealer who is putting in 60 hours per week generally can’t imagine opening a second store, let alone five or ten more. They’re tapped out. They’ve put themselves in a position where, if they don’t show up for all those hours, things start to fall apart. Yet there are plenty of dealers who own five or ten stores. It’s physically impossible for them to put in 60 hours at each store. So, what are they doing differently?
In a word: systems. A system is a procedure, process, method, or course of action designed to achieve a specific result. Also, if it’s not written down, it’s not a system.
A dealer with ten stores has to be system-dependent, meaning his stores have written processes and procedures that can get taught, and which employees can be held accountable to follow. An owner-dependent business is the opposite. If the owner doesn’t show up for any length of time, things quickly fall apart. This type of business usually has few—if any—written systems.
Over a period of about twelve months, Earl made the transition from being owner-dependent to system-dependent. “It didn’t happen overnight,” he told me. “It was a process where I systemized small chunks of my business at a time.” Here is a partial list of the things for which Earl created written systems:
- Greeting customers
- Opportunity tracking
- Measure tracking
- Sales presentation
- Purchase ordering
- Material tracking
- Post-sale pre-installation communication
- Post-installation referral and testimonial gathering
Training For Success
Earl has regular training sessions to keep his team up to speed on the systems and to hold them accountable for following them. When something breaks down in the system, he doesn’t jump in and do the task himself; he fixes the system. “This is called working ‘on’ rather than ‘in’ my business,” Earl says.
The Role Of Software
“I am a big believer in software,” Earl told me. “I used to try to keep everything in my head or a job folder, but there is no replacement for ‘working software.’” I agree. However, Earl will be the first to tell you that software doesn’t replace systems. There are plenty of dealers using quality, industry-specific software who are stressed out, working 60+ hours per week. The software is merely a tool to make your existing systems more efficient. For example, inventory tracking used to get done on paper. Now software can help you do it much more efficiently. But it doesn’t replace the need for an ‘inventory system.’
Transforming your business, so it’s ‘system-dependent’ may sound like a lot of work. It is. But what’s more work? Implementing systems or spending your life working 60+ hours per week?
Earl cut his work hours by 35 a week. That means Earl is working 1,820 fewer hours every year. That’s the equivalent of forty-five 40-hour work weeks. What would you do with that kind of extra time off? Hobbies? Travel? Spend time with your family? Relax on a beach? Write a book? Earl and many others have done it, and so can you.
If you have questions or need guidance on systemizing your business, I’d be happy to chat with you. Email me.
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!