Manage Paint Jobs with a Production System | How To Start a Painting Company | Painting Business Pro

Manage Paint Jobs with a Production System | How To Start a Painting Company | Painting Business Pro


Hey there, this is Eric Barstow with Painting
Business Pro and here I’m going be talking to you guys a little bit about the production
system that we use to manage all of our production. So, last video I talked about creating systems
for your business and the importance of creating systems, so really quickly I just want to
recap that before we get into this. So creating systems is hugely important for business.
I don’t know any other way to run a business besides building and creating systems for
business, for a number of reasons but one is, when you create a system you are going
to have a much easier time hiring and training other employees to take on different roles.
If the system for how to run a business, like if you run your business really effectively
but you don’t have it written down on paper or in file somewhere like someone else could
learn, then it is going to be really, really hard for you to teach everything in your head
to someone else, so that’s one thing. The second thing is that when you create a
system, then you’ve got something physical that you can constantly improve. So we have
this production system and now that we have a system in place we can constantly improve
the system. But most importantly, I think it makes it really, really easy to work less,
make more money and it makes it way easier to grown on skill of business when you have
a elegant simple system. So, I do want to highlight though that it does make a difference
to have an elegant simple system. There are a lot of ways to do something. There
are a lot of ways to produce jobs in the painting business. You know, you can hire employees,
you can hire subcontractors or you can do it yourself, all three of those are options
and even inside those three, there are a lot of different ways to work all those three
different options. If you are doing it by yourself, you can do it completely by yourself
with painters and so on and so forth. So what we’re really after is not just the
system but the most elegant, simple efficient solution. So, this is it. This is where we
come to. So I am kind of going to show you exactly how we manage production this year.
My production manager, Paul manages all of our productions this year using this form.
And the reason I wanted to start with production is because I think production is the biggest
place that painters and painting companies spend their time. It is the biggest time consumer,
but it is the place that you make the least money. Ideally, you would want to spend all
of your time doing sales because that’s where you can make the most money per hour. So you
would ideally you would spend a hundred percent of time doing sales and zero percent doing
marketing production. We probably can’t get to zero but we can get pretty damn close. So, let’s get to it. So this is our production-
this is our production form and file. So basically what happens is when a salesperson books the
job then they make a job folder. The job folder has all the details about the job on it. The
salesperson then every Monday hands off all the job folders to our production manager.
So this is the production manager’s job. It is really only four steps. There is four
steps to managing production. So the first thing is, you enter the job in
the production form. So, this is our production form. So when you get a new job folder, you
first got to enter the job in, so with the name, their customers name there. And then
I’ve taken out their name and phone number, but actually the phone number and address
so columns B&C are their phone number and their address. This is the job size, how much
we booked the job for. This is the deposit they gave us. This is the balance they gave
us and this is the total we received. This is what the job is booked for, this is what
we actually received, so you can see we didn’t collect two hundred dollars on that job because
that particular job took like two months because of weather and other issues. Because it’s
a long story but we gave them a two hundred dollars off just for good faith. So, that
happens. So anyways, we can- that’s how I can keep track of my losses though and my
profitability. The next column is what subcontractor is doing
the job and who currently has the folder. So, then the status on the job, this is really
this is where most the management happens and the status and the notes. So, first you
enter the job in the production form. Step 2, contact the customer until they’re ready
to start. So customers go through these five phases. So first they go through the colors
phase, the colors phase is where the customers choosing their colors and confirm their colors.
Then once they have chosen and confirm their colors, then there in the HOA/ other phase.
So HOA stands for Home Owners Association. Some neighborhoods have been a HOA where the
customers, the homeowner need to get approval from the Association to get their house painted.
So, this is like a third party phase. This is we’re waiting on a third party so whether
the HOA, the carpenter, the roofing company or something else, we’re waiting on a third
party. Once the colors are approved and all third
parties are proved, the customer is ready to start. And once they’re ready to start,
then we do step 3, setup start date with customer and with contractor. So, let’s say we’re talking
to Rich Archer saying, “Hey Rick, this is Eric from Foothills Painting, I just want
to touch base with you. It looks like you have got your HOA approval done and I just
want to call the schedule so we’ve got an availability in our schedule next week. We
could probably start Tuesday, would that work for you?” Okay, great. We are planning on
starting Tuesday, we would let you know if anything changes and otherwise I will give
you a call on Monday just to confirm what time we should be there.” So then on Monday,
I meet with my contractor. So you can see this is the job site, Jay is our contractor
doing the job. So on Monday I would meet with Jay and I would say, “Alright cool man,
so we all on track. Tomorrow you’re going to be doing this job and I will give him the
job folder, say here is the price. The job is $2,050 so you will get 1,025 on the job,
what time can you be there tomorrow? Jay says, “I can be there at nine.” Okay, so I called
the customer and say, “Hey, you know Rick, so my painter is going to be there tomorrow
morning to get started, his name is Jay. He’ll be there by 10. So I gave Jay a little bit
of cushion there. So even if he’s late we’re not in trouble. I will be there by 10 tomorrow
to get everything started and he’ll be able to get everything complete for you, and once
the job is complete, he will go ahead and a get that final check taking care of. You
can get the final check for me and everything just write that up to Foothills Painting.
If you have any questions on the process, definitely give me a call, but he has been
working with us for a while and he will be able to take care of everything.
So once the job gets started, it is in progress and then once Jay finishes the job, collects
the check, then step 4, is to meet with the contractor to exchange checks. So Jay gives
us this check from the customer and we would give Jay his check for $1,025.00. That’s it.
So that’s what you do and you do it over and over and over. So basically how I teach people
manage production is basically every morning I wake up and I look at this form and I say
okay, so this isn’t a good example because these are already finished. And this isn’t
a good example either because we are almost done with our third job for the year. October for example, I would wake up in let’s
imagine all these were you know in different phases, I would literally just go through
and say, “okay, do I need to call Stanley today. Do I need to call him today? Do I need
to call him today? Do I need to call him today? In the morning in about one to two hours you
can make all your phone calls. So every morning it’s really just a matter of phone calls.
Once the job is finished, we put finished in the notes section. So I want to show you the value of the notes
section because that’s the other valuable section to use. So here you can see, we actually
click on this. You can see how much all of the notes, all the communications with the
customers in here, all of it. So we know exactly what we talked to this customer about. If
we see this one, same thing, look at that holy crap. It is a lot of time. So you know a kind of funny note here, is
that you see this job like I didn’t even know this but this job was suppose to be done
like a month ago. It was supposed to be done on September 30th, its Halloween today. So
that kind of give you an idea like how little I actually I’m involved in this process,
like my project manager really takes care of everything. And if there’s ever a serious
problem, like I’ll find out about it, because they will call the company line and I will
get an email, it is a whole other system but basically I think it’s kind of funny because
I had no idea until I look at this today that these jobs are supposed to be done almost
a month ago. So, you know I’ll be checking in with them and I’m sure there’s, I know
there is explanations for it but that kind of point out how little involved I actually
am, which I think is great. So you can see you know we have about $89,000
to produce in October; 50,000 of it or so is done. We got a little bit left here, which
is great. And then I think I my equation is off there, actually. So that 71,000 is collected,
so we got about 18,000 left, so just to show you how much we produced. March was 25,000,
April is 50, May was 86, June was 95, July was 114,000 and what was cool about July,
was I left town on January I’m sorry, I left town on June 29th off to like Tahoe, where
I spent 4th of July with a bunch of friends. I went straight from Lake Tahoe up to Seattle
where I was on a get away with 20 of us from around the world for a week. I got back in
town, I was at home for a week and then I went to the Caribbean to St. Marten with my
girlfriend for a week. So while I was traveling around the world
to all sorts of fun places, we produced $114,000 in revenue and my profit margins there was
about seventeen percent. So you know, it was really a good month, and in August we did
even more. In August we produced a $134,000 in August and then September was really a
really slow month with $58,000 and in October we are at about $90,000 and you will see we
have nothing schedule for November. That is our production, kind of how we run it. What
is really amazing is that Paul who is manage our production has not; he had a busy month
in June because we went from doing 80/90 and jumping up to two of our biggest month. So
he was hiring new contractor and doing a lot of crazy stuff like that. So he was working
about 30/40 hours week in June, but Paul as a production manager started working in January,
at the end of January, hiring subcontractors. He is done with work now, which is the end
of October. So he’s worked about nine months this year, and besides June, he only worked
about 20 hours a week. And our final production this year’s going about $650,000, so it is
really amazing that he, one person could have managed one million dollars of production
working less than full time nine months out of the year. And Paul is 24 years old and
just graduated from college. And he’s going to make pretty good money this year, I think
he probably making $40-50,000 or something like that, so they pay him a percentage. So
anyways, that is about it. So that’s production. One last thing, I’m not going to go into the
details but we do have like scripts, I want to show you something really fast, just you
can get an idea what I’m talking about with systems. Because that’s overall system but
there is more systems here, so you can see we have a port projection. So this is how
we actually project out the schedule. That is a pretty simple file, I am not going to
get into that now. We have our subcontractor recruiting systems, this is how we recruit
and hire subcontractors it’s the three phases. This is how we help customers, this is the
conversations we have with customers to help them with colors. And this is a quality form,
this is really great, our contractors have our customers fill this out at the end of
every job and so we have about 300 references from customers where they- not only do they
rate the job on 1-7, with 7 being the best, but they also usually write a little comment
section, it’s been easiest way I ever found to get references. We got like three hundred
almost effortlessly in the last couple years. And we almost have almost all sevens, you
know. So it’s cool because we actually get feedback from customers to find out actually
how it is going, and we got great, great, ratings, so it’s been really, really, cool
and it is really simple way to get those. So, that is kind of all the stuff I have to
show you for now about the production system. And I do want to let you know that as far
as production, as far as all my system go, if you are really interested in just getting
all my systems. I’ve actually published all of them at easypaintingbiz.com. You can
buy them at 140 bucks I think, 139.99 something like that. So you can actually buy them and
what you would get is you can get access to this Dropbox folder which has all of my forms
and templates and everything like you know from a sample of a client, like a client manual
to a contractor, to disclaimer, to ads, contractor interview outline, contractor phone calls,
I mean you can see a ton of stuff on here. And I’ll be getting into all these things
you know overtime, in these emails, videos and stuff I’m doing. But if you just want
to buy them all off here, it is going to take me a year or two to actually get through everything.
And then also on all these CDs there’s about seven hours of audio of me talking through
and explaining everything. So anyways, so I wanted to let you know about that because
I have gotten some emails recently from people who are asking for more info, so that is where
you can get it, that’s production. Next couple of videos we will be talking about
marketing and sales. If you have any questions or comments I would love to hear from you
about like, what you want to hear about, you know what you’ve been getting out of these
videos and that kind of stuff. I would love to hear from you, so contact me on the website
or shoot me an email and we will see you next time.

Author:

13 thoughts on “Manage Paint Jobs with a Production System | How To Start a Painting Company | Painting Business Pro”

  • Alex Salfetnikov says:

    Are all those system forms that you have available for $140 included in the painting business pro and entrepreneur programs?

  • Hi Eric I am currently working for a sub contractor as a translator and laborer with my brother. I'm 23 and he's 21 looking to build a company of our own. I have been watching your videos and think your great. I would love to get tips on how to from you

  • Hey, Nice videos.. I have watched a handful of them already.   I like the excel doc.  I have a couple of recommendations to make the sheet more valid (from a relative details perspective)
    1. Create a coloumn that subtracts to show difference between  the contract versus the total paid.  The "conditionally format" the column to a red or green column based on if the value <0 or >0.
    2 Create relative Job stat columns that are relative to each job. 
    examples: num of stories, window count, sq ft, any other relative values to how your estimate is created.
    date started, date completed, Days accomplished,

    Last, How come the "notes column is completely empty  with just "finished" inside it..  i would think there are always relative details that could/ should be recorded there.

    I could carry on with other ideas.. but this is not critique as there is a chance these values are stored inside other documents.

    Best Regards,
    David

  • Marcus Aydelott says:

    Great videos. I own a tile company and I think I'll be getting my painters license soon and starting this and buying your tutorial. Question. When you say production of say 100k a month you mean 100k for the jobs and 50k goes to subs what's your percentage to you and to your employees or is something that's in the 140$ tutorial?

  • +Eric Barstow Hello Eric, from your 50% how do you brake it up? what % you pay to sales rep., % to production manager, % to sales manager??… I love all your videos… Thanks!!

  • Hey Erick, super helpful videos, thanks. At the final walkthrough with the client when the sub has finished the job do you ask the sub to be present so he sees if in case the owner points to a problem?

  • Since your sales and production managers are the people who have direct contact with the client, is that mean that you (as owner of the business) have no contact with the homeowner (client)? and if you do have, please give an example on what matter
    Thanks

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