96% of Contractors Fail and Go Broke Because of this ONE Thing
Avoid the stress, debt, arguments and that feeling of never having enough cash or balance in your business life
Contractors have a 4% survival rate
In 2011, the U.S. Residential Construction and Remodeling business was a $253 Billion industry. The industry is now trending to hit $1 Trillion by 2025.
But according to the U.S. Department of Commerce, building contractors in the U.S. have a 96% failure rate. Higher than any other U.S. business tracked by the agency.
Think about that for a moment.
For every 100 construction businesses, 96 FAIL and only 4 SUCCEED.
The residential construction industry expanded by 400% but only 4% of the businesses who are driving that growth survive.
How is this possible during a period of such unprecedented growth?
Are You the Pirate or the Entrepreneur?
We all know the construction pirate.
He jumped into the contracting business when he was between jobs, and managed to steal some work from legitimate contractors.
The construction pirate could be one of your best employees who jumped ship after watching you win a few contracts thinking the money and the business was easy.
But eventually, the construction pirates are killed off by their own greed and lack of experience.
They run out of cash, can’t pay their bills, and skip town with customer deposits on unfinished work.
If this is you, STOP READING.
Go back to drinking your beer and watching NASCAR.
What I'm going to describe is not for you.
The construction entrepreneur is a different type of contractor.
The construction entrepreneur understands he is a business owner first and a contractor second. He knows his business requires a lot of work to make a living, support his family, and make a consistent year-on-year profit.
He knows the persistent struggle to find a balance between labor, sales, cash, and profit.
Unfortunately, most entrepreneurs never find that balance.
And the lack of balance results in health issues, and stress levels that are off the charts.
There's financial problems, debt, and using money from a new project to cover the costs from your last job.
They're a stranger to their kids and family...
...and their spouse or girlfriend has been giving them the “look”.
You know... the “look” that doesn't lead to anything good.
But the construction entrepreneur keeps fighting the good fight in hopes that someday everything will finally get into balance.
But even fighting the good fight, only a small percentage of contractors stay in business.
This situation reminds me of an old saying... "If you keep doin' what you've always done, you'll always get what you always got."
The SECRET the 4% won't share with you gives them a powerful competitive advantage
If I gave you my Home Depot credit card and told you to build me a house…
…what’s the first thing you’d need before you could start running up charges on my card and stocking the job?
I would hope your answer is a set of blueprints, signed and stamped by a civil engineer, and ready to pull permits.
It makes sense, right?
So let me ask you a simple question...
If you wouldn’t build a house without a set of blueprints…
…why should building your business be any different?
The secret that the 4% of contractors know...
...the ones who not only survive, but thrive in this industry is the value of having a business blueprint.
A set of plans that answer the questions...
Wait! Who are you?
Hi, my name is Lee Clements…
Since 1995, I’ve been an active real estate investor, property manager, residential in-fill real estate developer, and home improvement contractor.
I originally got involved in residential construction to support my real estate investment and property management firm in Los Angeles.
By 2002, my construction business pivoted to offering maintenance and residential construction services to the general public. Within a few years, it had grown to 4 offices, serving 5 Southern California counties and on its way to becoming a national franchise.
On the path to franchising, I became an expert in analyzing regional markets for the SMB home improvement sector. Add that to my years as a financial analyst, Chief Financial Officer, and business owner, economic validation studies were a natural fit. I founded Dream Sherpa Labs, LLC, as a business development advisory for ecommerce firms, and now focuses on SMB home improvement contractors in the U.S.
Dream Sherpa Labs provides finance, call center, sales training, marketing, human resources, manpower recruiting, safety programs, and advisory services for the home improvement general contractor.
The Contractor’s Blueprint:
Business intelligence to help you join the 4% Club
You've probably heard the saying...
"If you fail to plan, you plan to fail."
But in reality, all business ventures have some degree of planning. Otherwise the business would never have started.
The real question you should ask is...
"Have I done enough of the RIGHT planning to succeed?"
It's not doing enough of the right planning that causes a company to drift along until one day they run out of money, can't cover payroll, and go out of business.
As a contractor, you're trying to find the proper stress-free balance between acquiring steady sales, skilled manpower, and consistent profit?
But how do you achieve this elusive state of balance?
It starts by knowing the right questions to ask.
And if you don't know the right questions to ask, you find someone with the knowledge and experience who does...
...and then using those answers to create a "blueprint", that matches your service offering to your ideal customer, for the lowest possible cost at the highest possible profit margin.
Our Contractor’s Blueprint is a personalized, one-of-a-kind, in-depth analysis, and unique business intelligence report specific to your business.
It answers these important questions:
- What are your competitors doing to win profitable customers?
- If I'm your ideal customer, why should I do business with you instead of your competitors?
- What are your customers thinking, saying, and really want?, and
- What adjustments are needed in your business to become a profitable market leader?
Here’s a brief look at what goes into a Contractor’s Blueprint:
Competitive Force Score Analysis
Our Competitive Force Score algorithm analyzes your top 30 competitors and predicts their competitive strength by measuring disparate data and rendering a numeric force value. Identifying your competition and staying informed about their products and services is the key to remaining competitive in the market and is crucial to the survival of your business. The higher the score value, the higher competitive force a company has on the companies scoring below it. The analysis focuses on five competitive areas: Search, Website, Paid Ads, Social Media, and Reputation.
Traffic and Scale Analysis
This analysis identifies how to bring in more sales leads, create more sales opportunities, and generate more revenue with less marketing budget. Is there evidence of people in your market area searching for the services your company offers? Do those searches represent your potential customer? Are there enough potential customers to scale and validate your business? How is your competition driving up the cost to acquire the visitor traffic? These questions help us estimate traffic potential and the ability to achieve incrementally better results through scaling.
Market Segmentation Analysis
We reveal people with similar buying behavior so you can efficiently target customers by grouping them together as a singular segment with similar behavioral characteristics. Sometimes referred to as ‘buckets’ or ‘avatars’, these characteristics help to identify buying patterns of customers based on demographic data, frequency of purchase, brand loyalty, and benefits needed to secure the audience as a customer..
Consumer Sentiment and Polarity Scoring
This analysis helps identify wasted money on ad spend and lost sales by focusing on the most important concerns and interests of your customer. The Consumer Sentiment Analysis uses Lexicon-Based Polarity Scoring to identify how people feel and think about the topics related to purchasing the products and services offered by your company. We then assign a negative or positive polarity score associated with the intensity of that sentiment.
Customer Advocacy Analysis
Increasing customer advocacy and reputational management are key profitability metrics. If not managed properly, they drive up advertising spend and customer acquisition cost. This is an in-depth analysis of your customer ratings and reviews on social platforms, and your Net Promoter Score. The analysis includes recommendations on actionable steps to improve this important metric.
Labor Market Analysis
This analysis reveals hidden opportunities to find, recruit, and hire affordable, dependable, skilled labor. The construction industry has been facing a growing skilled labor shortage for years, and COVID-19 pushed this shortfall to a far more critical level. Only 3% of people aged 18-25 want to work in construction. Combine this labor shortage with high recruiting costs and the unprecedented no-show rate of job applicants, it's become more difficult to find skilled labor than finding customers.
Value Proposition Analysis
The essential value proposition question is: “If I am your ideal customer, why should I buy from you rather than your competitor?”. A value proposition refers to the value your company promises to deliver to customers should they choose to buy your product or service. It's a declaration of intent that's woven into your marketing messages and serves to convince your potential customer that your offer will add more value or better solve the customer's problem than similar offerings from your competitors.
Customer Acquisition Cost (CPA) Sensitivity Analysis
This analysis answers the essential question, "What's the Most You Can Spend to Acquire a Customer and Still Make a Profit?". This analysis translates ad spend, channel traffic, awareness, impressions, click-thru-rates (CTR), users, cost per marketing qualified lead, cost per sales qualified lead, sales conversion rate (CVR), average order value (AOV), and profit per order to determine the customer cost per acquisition (CPA).
Predictive Customer Lifetime Value (pCLV) Analysis
Customer lifetime value is the total monetary worth of a customer over your entire business relationship. It's an important metric to track because it costs less to keep existing customers than it does to acquire new ones. Increasing the value of your existing customers is a great way to drive growth.
Profitability and Economic Validation Analysis
This analysis answers the question, "How profitable is the business if the recommended changes are made?". It factors in your billing rates, fully burdened labor rates, target gross profit, expenses, and your target EBITDA percentage. The result reveals the current profitability of an average order based on suggested changes that increase the economic validation of your business.
Website Teardown Analysis
You have 15 seconds to capture a customer's attention and interest. We look through the lens of a customer who lands on your website for the very first time. A website teardown is the practice of analyzing a website “line-by-line” for the purpose of validating technical performance, user experience (UX), and the user interface (UI) to determine whether the text, design, and images align with the interests of your target customer.
Bounce Rate Analysis and Website Validation
This analysis reveals lost revenue opportunity and wasted advertising dollars. The number of seconds a web page takes to fully load correlates with the rate at which visitors will abandon the page. Load Time Bounce Rate (LTBR) is the primary (and most important) technical component of the overall bounce rate and is part of Google's Core Web Vitals algorithm. Using industry averages and the Customer Cost per Acquisition (CPA) Analysis, we can estimate the direct financial impact your LTBR has on revenue opportunity cost and wasted advertising spend.
Content Style Guide
"If you confuse people, you lose people." This 65-page reference guide is composed for your business using all the relevant data from our analysis. It helps UX writers and content designers keep the voice, tone, and messaging consistent across your website, and social platforms. The guide includes both general advice about language use and specific instructions that are specific to your company, services, and brand.
Final Close-Out Meeting
We've have taken a mountain of data and distilled it into a comprehensive, actionable blueprint for your business. This final close-out meeting is held using Google Meet with your team at the conclusion of our analysis. The meeting is video recorded, including screen shares, so you can refer to the recording and revisit our discussion and recommendations. You will also receive a link to your completed Contractor’s Blueprint.
At the bottom of every page of our Contractor’s Blueprint includes this statement:
Our client's trust us with information that we hold sacred. For this reason, we’re prevented from revealing the identity of our clients. But we can share one of our client’s story.
Jim is a home improvement general contractor in the Midwest. He started his company in 2016, and running a small crew of highly skilled tradesmen, quickly built his annual revenue to $750K
By the beginning of 2019, the stress of the business was taking its toll. His business was 3 weeks into the slow season and he was concerned about having enough work to keep his crew busy. The slowdown also made him realize he had been trading dollars with customers, not realizing he wasn’t making the profit margins he needed to survive. His available cash was running low.
Jim was referred to Dream Sherpa Labs by a friend, and he signed up for our Contractor’s Blueprint about a week later. We immediately went to work analyzing his regional market, top 30 competitors, the types of projects and customers he had been targeting, and financial analysis to understand his profitability and cash position.
Armed with a new understanding of his construction business, we assisted him with making strategic changes to every aspect of his business model. Today, his company has a consistent flow of marketing qualified leads, a 90-day backlog of contracts, a stable workforce with a consistent, recruiting effort, a healthy profit margin, and sufficient cash on hand. He has not only increased his revenue past the $1 million mark, he has tripled his profit margins. He still has the occasional stressful day but nothing like before. He’s now building a sustainable business with predictable income. He even gets to spend time with his wife and kids.
Here's what Jim wrote about his experience with Dream Sherpa Labs...
"Lee and the Dream Sherpa Labs team have taken a personal, hands-on interest in my success.
Lee is tireless in his pursuit of detail, and wants to use every piece of data to better understand and optimize my business. I often find Lee awake and online in the early morning hours working through one of my business problems that surfaced the day before.
He challenges me, and constantly takes me out of my comfort zone. Because of his decades of business experience, he’s honest, direct, and to the point. When it comes to critical decisions, he doesn’t hold back and tells me the consequences of making the wrong decision. Sometimes his advice is hard to hear, but ultimately he leaves the final decision to me. But when I follow his process and coaching, the results have always been positive.
I've come to trust and have complete confidence in Lee and his team. Today he is a key and essential part of my company, intimately involved with every aspect of my business. Put Lee on it and know that it is not only done, but done really well – better than you could ever do it yourself, or think it could be done.
His fee is always reasonable, and I’ve learned that whenever I receive his monthly bill, the value I receive is significantly greater. I can confidently say that every team member in my business is deriving high value from Dream Sherpa Labs contribution."
Our clients are talking...
“I was blown away the first time you showed me the results. Thank you for all your work and guidance...home run!...I've got some people very excited!”
“Dream Sherpa Labs was retained by our firm to review our business systems and discover opportunities for improving our marketing and customer-facing activities. He interviewed key managers within our companies and rendered a final opinion to the executive management on areas where improvements could be made. Many of his recommendations were implemented successfully and are still in use today.”
“Dream Sherpa Labs has been instrumental in guiding us through the tedious process of re-inventing our marketing. He played a critical role in helping us secure over $5 Million in new contracts with high-value customers. Whether you are looking for management consulting or sales and marketing training, Lee and his organization are a highly competent group of experienced professionals.”
“Dream Sherpa Labs expertise in software, marketing, and general business is extraordinary. Lee found free, organic traffic to our website and to date has converted over 250,000 visitors into subscribers. Our month-on-month sales have increased an average of 400% with some months hitting as high as 1400% without spending any money on advertising.. If you are looking to grow your business to new levels, you really need to sign on with Lee and his team.”
How to get your business started on The Contractor's Blueprint
Look...if you're currently satisfied with how things are going with your construction business and don't feel the need to try something different, then keep doing what you're doing.
I would honestly tell you not to change a thing. Do what works for you and makes you happy.
But, if your business is getting harder, the profit isn't there, the stress is becoming unbearable, and you want a clear direction on how to turn your business into a market leader and not join the 96% of contractors who fail.... I'd like to help you out.
SAVE 80% OFF RIGHT NOW
Why the GIANT discount?
Dream Sherpa Labs charged ecommerce companies $10,000 to validate a product launch. You see, when millions of dollars are on the line, the smart entrepreneurs understand the value of an economic validation study BEFORE they spend one dime on their product launch. Unfortunately, every study needed to start from scratch. A different product, a different market, and different customer segments all increases the cost of an analysis.
The Contractor's Blueprint is different. We can leverage economies of scale because we're working with similar service providers within the same industry. All we need to do is focus on the 20% that makes your business unique and add it to the 80% we have already know and studied about the industry. That's why we can discount it 80% and keep it affordable.
Get YOUR Contractor's Blueprint: Business Intelligence Report
(BTW...this takes a minimum of 30 days to complete!)
Regular Price: $9,995.00 | Save $7,000.00
No Risk. You-Can't Lose. 100% No-Questions-Asked. Money-Back Guarantee.
I don't want there to be any doubt in your mind. But just in case you didn't understand what I wrote above, let me say it a different way.
If FOR ANY REASON you aren’t THRILLED and SATISFIED with your personalized Contractor’s Blueprint Business Intelligence Report, just let me know and I'll refund 100% of your payment.