Case Study: AEM, Inc., Plumbing and Fire Systems Specialists

Larry appeared to be doing well as a specialized contractor pulling in $700,000 a year. Yet, upon closer examination, his business was a mess.

Larry worked too many hours – in the field, in the office, and trying to manage his crew. He lacked a structure to effectively manage his business, and was constantly pulled into work because “he was the only one” who could get the job done. He was “emotionally beaten up” and knew he needed to do something different.

Larry could not seem to get unstuck. His business would grow to about 7-8 guys in the field, generating close to $1,000,000 in revenue, but the wheels would come off. His wakeup call came when he learned that he had inadequately managed his bookkeeper and finances, and his business had lost $156,000!

Process:

When Larry came to us, he knew he needed to make changes. He’d tried working with business consultants and programs but couldn’t find anything that really helped him. He needed help implementing processes and structures into the business, but other programs had been too “theoretical or rigid,” not addressing real world issues and helping him solve his day-to-day problems.

After an initial assessment, we realized that Larry’s problem was that he'd been running his business as an "owner operator." He was immersed in every aspect of his business and did not delegate effectively. The result was that he was constantly scrambling, always dealing with daily crises, and doing way too much work in the field. This approach was limiting his business growth, personal earnings and quality of life.

Larry made a commitment to change. He made his number one priority to develop systems that would help him effectively delegate responsibilities to other people.

He started by creating a clear picture of where he wanted the business to go – personally as well as professionally. He then created a roadmap for his new business structure, hired people to run key functions, and improved his delegation skills and let go of his compulsion to control and micromanage. Currently, he is in the process of identifying key strategic indicators to better manage his business and ensure that key people stay on track.

Result:

Now, Larry works fewer hours – he went from an average of 50 hours per week to now averaging around 20. His quality of life has improved dramatically. Key people are in place, business volume has increased from $700,000 to over $3 million, and he has paid off most of his debt. Larry knows he still has “a ways to go” but much has improved in the three years since he began working with Jayme.