Masonry Magazine December 2017 Page. 99
though I knew we were sail�ing into nasty waters with the
�
recession upon us.
Moving forward with the revised, ultra-aggressive bid�ding strategy they designed, they picked up a ton of work. Unfortunately, we discovered later that it was totally under�bid! To keep our reputation intact, we had no choice but to finish it and take the loss.
Over the next couple of years, I lost another $1.3 mil�lion finishing up jobs they landed. Lessons don't get much more painful than that.
Had I only known back then that when a recession is coming, I must trim the right branches and let go of any�one who isn't producing well, I never would have taken the bath like I did.
Luckily, I had other companies that were doing just fine that helped offset the losses at that operation. But in hind�sight, I should have stopped after the first million in losses.
It turns out, I'm not that differ�ent from many of my industry peers. A common problem among many contractors is that the owner of the com�pany is so used to tolerat�ing poor performance that he doesn't even know what good performance looks like. Therefore, his low performing employees causes the com�pany to suffer for years and years while making minimal to no profit.
When poor performers are allowed persistently to un�derproduce, the impact on profitability is devastating. Measures must be taken to improve performance, and of�ten this means removing their salary from your books.
Again, to reiterate, when the inevitable recession comes, company management must reduce overhead by let�ting go of underperforming employees. Even if you like them, you must let them go.
This may sound harsh but allowing poor performing employees to remain at our companies, is something I just won't do anymore. But guess what? I am still in busi�ness! Damian Lang owns and operates several companies in Ohio. He is the inventor of the Grout Hog-Grout Deliv�ery System, Mud Hog mortar mixers, Hog Leg wall-bracing system, and several other labor-saving devices used in the construction industry. His latest venture is Malta Dy�namics Safety Company that focuses on bringing quality safety products to construc�tion customers at the best possible prices. He writes for Masonry Magazine each month and consults with many of the leading contrac�tors in the country.
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Damian Lang owns and operates several companies in Ohio. He is the inventor of the Grout Hog-Grout Delivery System, Mud Hog mortar mixers, Hog Leg wall-bracing system, and several other labor-saving devices used in the construction industry. His latest venture is Malta Dynamics Safety Company that focuses on bringing quality safety products to construction customers at the best possible prices. He writes for Masonry Magazine each month and consults with many ofthe leading contractors in the country.
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