Hello, Keith Long here with Thunderheart Flooring.
Up to this point while doing these blog posts, I’ve focused on putting out technical information specific to the trade of hardwood flooring. On this post, I’d like to share some ideas pertaining to the way I view business. As I’ve stated in the past before getting into installation or sanding techniques, these are my viewpoints. Take them for what they’re worth to you. I’m hoping that putting these ideas out there is helpful—it’s my intent to be constructive with these posts, going forward with some of them relating to installation, some to sanding, and some about business.
I view business as multi-faceted. Customer relations is a part of it. Industry trends are a part of it. Materials and labor costs are factors. Supply and demand … many other things come into play. I was taught that in hardwood flooring, if a contractor shows up on time, and delivers on commitments made to the customer, that person has got a big part of being successful covered. The other details are a bit less cut and dried. With the posts I make pertaining to business, I’ll attempt to demystify some of the potentially gray areas by giving you concrete examples of things I have done to achieve above-average results.
As I write this, I’m 40 years old, and have spent the last seven years as a hardwood flooring contractor. With the investments I have amassed throughout my working career, I could retire any time and live a comfortable lifestyle without working another day. But I enjoy providing the service of hardwood flooring and am still mobile, so I keep going. The good news is the types of business decisions I have made and continue to make can be duplicated.
I understand that there are many different personality types in the world. My personality has a tendency to be comfortable with facts. I’m the kind of guy who likes to get to the essence of things. I’m willing to put in the effort necessary to get the desired result. I recognize the fact that I don’t know everything, and am willing to learn. I read on a regular basis.
Speaking of reading, one of the best bangs for the buck I’m aware of is to spend $13 and the time it takes to read The Richest Man In Babylon by George S. Clason. Of the many books I’ve read pertaining to business philosophy, this is in my top three. I’m generally not one to re-read books, however, I find myself pulling this one off the shelf and reviewing it every two or three years.
One of the core principles of this book is to set aside a minimum of 10 percent of all money made and invest it. I view hardwood floor contracting as a way to provide a needed service, and also as a medium for me to be able to pay my bills and prepare for retirement. My business model is to provide superior quality and service at a fair price. Most everyone I bid for likes the sound of that. Then, I deliver on what has been contracted for, and get paid. Many of them refer me to their friends, family, relatives, neighbors, and people they meet. With the revenue that comes in, here’s one of the key principles that I follow:
IT’S WHAT’S DONE WITH THE INCOME SET ASIDE FOR RETIREMENT THAT DETERMINES HOW SOON A PERSON CAN RETIRE.
I’m not trying to make exorbitant profit on any one job. I just tend to my business, and keep investing the 10 percent of all money earned in preparation for retirement. Since getting into contracting, I have also set another 10 percent aside to buy tools and pay for courses to elevate my skill sets. I pay my bills and live on no more than the other 80 percent of total income.
This concept is one of the key building blocks that helped me to transform from someone who was chasing his tail with no solid plan for retirement at 25 to having the option to retire comfortably at 40.
What one does with the 10 percent set aside to invest for retirement has a large bearing on how slowly or quickly the investments grow. I’m not giving investment advice, just demonstrating what I’ve done, and what the results have been. I’ll give you all a hint as to what the biggest part of my investment portfolio is:
Let’s pick up on the next post the reasons why I like the medium of rental property for investment.
While we’re on the topic of business philosophy, I’d like to acknowledge Ralph Brookens, owner of Brookens Wood Floors out of Illinois. I look up to Ralph—he sets such a fine example for anyone looking to achieve above-average results. He sends his employees to NWFA courses, he’s a great networker, and he’s always at the NWFA Expo. A person doesn’t have to spend long with him to figure out he’s passionate about the flooring industry. This year, his company won the Floor of the Year award for Best Restoration. When announced, he brought Andy Ogden, the flooring technician who worked on the floor, up on stage to receive the award. Andy and I took the Jigs and Medallions course together a while back; he’s such a talented craftsman. Congratulations to both of you—you put in the positive energy and the time, and were rewarded with a top industry honor, which is well deserved!
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