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Summer 2014 • Alabama Contractor
Have you tried NORMAC yet? Because . . . The NORMAC FLEX-Riser NORMAC ’s FLEX -R iser is Your “ A nodeless Simple, Efficient , Solution.”
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Associated Plumbing - Heating - Cooling Contractors of Alabama
ALABAMA
Contractor
The APHCC of Alabama is dedicated to the promotion, advancement, education and training of the industry, for the protection of our environment, and the health, safety, and comfort of society.
SUMMER 2014
Table of Contents 6 8 10 12 16 17 19 20 21 22
Stay A Step Ahead With PHCC - Gerry Kennedy, PHCC National EVP Get the Lead Out - Understanding the New National Lead Law PHCC’s HVAC Apprentice Winner Employee Retention - 5 Easy Strategies for Keeping Great People The Changing Legal Environment Handing Over the Keys to Your Shop - The Bare Basics of Succession Planning PHCC of Alabama HVAC Continuing Education Internet Course Application Captive Audience Advertising PHCC of Alabama Backflow Control Internet Certification Course Application CONNECT 2014
APHCC of Alabama Officers PRESIDENT: Mike Scanlon Scanlon Plumbing Services 263 Mendel Parkway Montgomery, AL 36117 331-279-8989 VICE PRESIDENT: Michael Dean Dean Plumbing Company 3100 Leeman Ferry Road Huntsville, AL 35801 256-883-6130
Advertiser Directory Alabama 811 16 American Apt Owners Assoc 15 Bradford White 23 FastEst, Inc. 18 Interline 5 Liberty Pumps 24
Norton McMurray Mfg 3 Rheem 2 Saniflo 7 SureSeal 13 T&S Brass 9
APHCC of Alabama Board Brad Hinton Brad Hinton Companies 2069 Cherry Ave Hueytown, AL 35023 205-491-7394
Charlie Conklin Sentry Plumbing, Heating & Air 2490 Rocky Ridge Road Birmingham, AL 35243 205-979-9864
Paula Quarles Banks Quarles Plumbing, Heating, Cooling 2501 17th Street Tuscaloosa, AL 35401 205-758-2627
Jay Wiggins Wiggins Facilities Services PO Box 1507 Montgomery, AL 36102 334-235-8889
IMMEDIATE PAST PRESIDENT: Phil Smitherman AUX Mechanical Inc. 5925 Johns Road Bessemer, AL 35023 205-428-8416
James Cole Cole Sewer & Drain Services 4530 Plummer Court Montgomery, AL 36106 334-279-8919
Fred Williamson Williamson Plumbing 560 Glade Park Loop Montgomery, AL 36109
EXECUTIVE DIRECTOR: Bob Mosca PO Box 36972 Birmingham, AL 35236 205-985-9488
Nick Tatum Conrad Watson Air Conditioning, Inc. 4100 County Road 5 Monroeville, AL 36460 251-282-7741
SECRETARY-TREASURER: Rick Thomason PHC 1634A Montgomery Highway, Suite 162 Hoover, AL 35216 205-822-0597
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www.alabamaphcc.org
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
Barry Lee Birmingham Noland Company 500 35th Street North Birmingham, AL 35222 205-323-6322
Senior Editor: Bob Mosca PO Box 36972 Birmingham, AL 35236 (205) 985-9488 alphcc@gmail.com
Alabama Contractor is the official magazine of the Associated Plumbing-Heating-Cooling Contractors of Alabama and is published four times annually. APHCC of Alabama does not necessarily endorse any of the companies advertising in this publication or the views of its writers. Alabama Contractor is designed and published by Blue Water Publishers, LLC. Articles and information published in this magazine may not be reproduced without written consent of the APHCC of Alabama or Blue Water Publishers, LLC. The publisher cannot assume responsibility for claims made by advertisers and is not responsible for the opinions expressed by contributing authors. For more information on advertising, contact Jim Aitkins, Blue Water Publishers, LLC, 22727 - 161st Avenue SE, Monroe, WA 98272 360-805-6474 / fax: 360-805-6475 jima@bluewaterpublishers.com
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www.alabamaphcc.org • Alabama Contractor • Summer 2014
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Stay a Step Ahead with PHCC
T
o help you thrive in today’s challenging business environment, PHCC—National Association focuses on providing you with the tools you need to not only survive, but actually keep your business a step ahead of the competition. These resources are developed through the strategic direction of the PHCC Board of Directors, which is leading PHCC through many progressive changes that will contribute to your business’s success and move the industry forward. There is much progress underway, including: Benefits That Work. PHCC continually is personalizing its communications tools and developing benefits that will work for you. As an example, through PHCC’s brand awareness campaign, a collection of new marketing templates, which support PHCC’s tagline – Best People. Best Practices.™ - are being posted to the “Samples & Templates” section of the PHCC website as they are finalized. Also, there are two new member benefits that can help you increase your profitability. The first is PayAnywhere Mobile Credit Card Processing, in which you can increase sales by turning your smartphone or tablet into a powerful credit card processing terminal. Secondly, through PHCC’s new partnership with Market Hardware, you’ll receive social media tips and sample posts that you can customize for company newsletters, websites and other social media platforms. Speaking of which, be sure to follow PHCC on Twitter and “like” our Facebook page. We’re sharing more and more industry news and tips for you and your customers every week. And, traffic shows that those consumers are constantly finding us at www. phccweb.org. Become part of our social media network so that they can find you, too! Safety Tools. To stay up to date with today’s safety and risk management challenges, there is a full library of risk management tools to help you mitigate risk and create of culture of safety in your business. Sample topics include distracted driving, data compromise and cyber liability, OSHA Hazard Communication changes and the Affordable Care Act. Check out the information sheets at www. phccweb.org. All can be downloaded and used as a resource for safety meetings. A Strong Legislative Voice. PHCC is advocating for you and your business on several crucial issues, including changes to the health care reform law, overly burdensome regulations for small 6
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
businesses, objections to the expansion of the lead paint rule to By Gerry Kennedy commercial and public buildings, PHCC National Association Executive Vice President continued dangers of alternate refrigerants, and current activity on refrigerants on a global scale. Our Government Relations team also is working to ensure all PHCC members receive the information they need to make sound decisions for the 2014 Congressional election cycle. PHCC is busy planning the PHCC Legislative Conference, May 21-22, on Capitol Hill. I encourage you to attend so that you can voice your concerns or support issues impacting the p-h-c industry. It’s just a short trip for most of you—come on out and join us! Emerging Technologies. Prior to the Legislative Conference, PHCC will be co-convener of another important industry event in Washington, D.C.: the April 23-24 International Emerging Technology Symposium, at the Crystal Gateway Marriott in Arlington, Va. This will be a very informative conference held at a convenient nearby location that is just a short drive away for most of you. We hope you can make it! All year long, the association’s technical department is representing your interests on many important industry matters related to energy and water efficiency. Samples are green construction trends, emerging refrigerant products and drainline carry studies. Don’t forget that PHCC can provide you with assistance on code issues and interpretations through our free member techline (techline@naphcc.org). Proposed changes are being accepted in preparation of the 2015 National Standard Plumbing Code to be published later this year. CONNECT 2014: New Strategies. New Opportunities. New Orleans. PHCC is tailoring CONNECT 2014 in New Orleans to bring you best practices and strategies sure to boost your bottom line … and your energy! Save the date: Oct. 8-10! Now is the Time! Make this season of renewal your time to better your business and to stay a step ahead. If you’re already a member, now is the time to spring forward, get more involved, and maximize your investment. If you haven’t joined yet, partner with PHCC today and start putting us to work for you. Contact us at (800) 533-7694, naphcc@naphcc. org or www.phccweb.org
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www.alabamaphcc.org • Alabama Contractor • Summer 2014
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Get the Lead Out Understanding the New National Lead Law
Help has arrived at www.GetTheLeadOutPlumbing.com What is the Reduction of Lead in Drinking Water Act? The Reduction of Lead in Drinking Water Act is a federal law that amends the Safe Drinking Water Act (SDWA) and sets new, lower standards for the amount of lead permissible in plumbing products that come into contact with potable (drinkable) water. The U.S. Environmental Protection Agency (EPA) has primary responsibility for interpreting the SDWA with individual states using health or plumbing codes or other standards consistent with the SDWA and EPA regulations to enforce those standards. What does the law mandate, exactly? The new law reduces the permissible levels of lead in the wetted surfaces of pipes, pipe fittings, plumbing fittings and fixtures to a weighted average of not more than 0.25%. In addition, the law retains the 0.20% lead limit for solders and flux first implemented in 1986 and stipulates a method for calculating the weighted average lead content. Products that meet this standard are referred to in the law as “Lead Free.” When does the law go into effect? The Reduction of Lead in Drinking Water Act goes into effect on January 4, 2014. However, new lead content restrictions are already in effect in California and Vermont since January 1, 2010 and in Maryland since January 2012. They will go into effect in Louisiana starting January 1, 2013. What is the driving force behind the new law? Regulatory efforts at the state and federal level to minimize the lead content in drinking water are currently focused on reducing the lead content in drinking water system components and all other products that come in contact with potable water. Are there any exceptions to the law? The new standard does not apply to pipes, pipe fittings, plumbing fittings or fixtures that are used exclusively for nonpotable services such as manufacturing, industrial 8
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
processing, irrigation, outdoor watering, or any other uses where water is not anticipated to be used for human consumption. The law also specifically excludes toilets, bidets, urinals, fill valves, flushometer valves, tub fillers, shower valves, service saddles, or water distribution main gate valves that are 2 inches in diameter or larger. How does the law affect me? The law makes it illegal to sell or install pipes, fittings valves, and fixtures in applications providing water for human consumption which exceeds the 0.25% weighted average limit for wetted surfaces. That means whether you sell or install these products, you will need to supply products compliant with the new law. So, what happened on January 4, 2014? It became illegal to sell or install products for use in potable water applications that are not Lead Free*. This will dramatically reduce the available market for products made with traditional materials. Manufacturers are quickly working to bring their products into compliance, and obtaining the product certifications necessary to comply with specific federal and state regulations.
Who enforces this law? The U.S. EPA is tasked with implementing this law, but primary responsibility for enforcing the law is left to the states. Most states pass responsibility to cities, towns, and municipal utilities, which use health and plumbing codes to drive enforcement. Do Lead Free products need to be third-party certified? California requires product certification by an independent third-party laboratory and certifying to NSF 61 standards is becoming common. As of today, Vermont, Maryland, Louisiana and the Federal Legislation do not require third-party certification. How can I tell if a product is Lead Free*? There is currently no industry standardization regarding the marking of Lead Free* products. Manufacturers may vary in the ways in which they mark their products. Check the product nameplate, hang tag, body casting, part number and/or product packaging for a Lead Free* designation. If in doubt, please consult the manufacturer for further clarification.
Why is there lead in brass products? In standard traditional brass and bronze, lead has been added to act as an alloying material, to prevent porosity, and enhance machinability. What is replacing lead in the new material? There are a variety of new material formulations that have been developed that use silicon, bismuth, antimony, tin, nickel, or special heat treatments as alloying elements. Get up to date information from the consortium website at: www.gettheleadoutplumbing.com *Lead Free refers to the wetted surface of pipe, fittings and fixtures in potable water systems that have a weighted average lead content <=0.25% per the Safe Drinking Water Act (Sec. 1417) amended 1-4-2011 and other equivalent state regulations. This information is brought to you by the PHCC Educational Foundation.
What if I don’t comply? Failure to comply with the new law and these codes can result in fines or lawsuits.
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With new national lead-free legislation, there’s been a lot of talk about making the switch. Here’s the truth: T&S was the first fixture, faucet and fitting manufacturer to convert its entire line to lead-free alloys back in 2010. So when you purchase a T&S faucet, the peace of mind that comes with lead-free compliance is built right in. No worries. No hassle. Visit tsbrass.com/literature to download a free brochure about our lead-free products, or contact your local T&S rep for more information.
T&S plumbing products represented in Alabama by: Williams & Associates, Inc. - 205-833-6666 TSB-615 2014 Lead-Free PHCC Ad-Alabama.indd 1
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Employee Retention Five Easy Strategies for Keeping Great People
From the PHCC Educational Foundation via third-party
“
The ultimate throttle on growth for any company is the ability to get and keep enough of the right people.” This quote from Jim Collins’ book Good to Great, is a perfect introduction to the topic of retention. Basically, what Mr. Collins is saying is that the key to running a “great” company is having “great” people. Taking the concept one step further, having a satisfied and engaged workforce (great people) leads to operational excellence, which produces customer loyalty and that leads to increased profits (a great company).
Why Focus on Retention? There are many reasons to focus on employee retention, but the number one reason is because turnover is very expensive. While it may appear difficult to put a real number on the cost of turnover, most studies indicate that – when you consider lost productivity plus management time to fill vacancies plus time to train new staff – the hard dollar cost of turnover is approximately 50% of the annual pay of each person you have to replace. So it is nothing but common business sense to focus on retention to reduce turnover. In fact, it could be said that having high retention numbers actually cuts operating costs. But, unfortunately, the reality is that every week thousands of well-performing and hard-working employees leave their companies. The average annual turnover range for most companies is 18-34%. So why do good employees leave? Many believe that most employees leave for more money or better benefits. But, again, studies indicate that most employees don’t actually leave companies, they leave their supervisors! Employees want to work in an environment where managers care about them personally and professionally and where their managers have the supervisory skills to help them grow and learn. When employees don’t have this connection at work, they “quit their boss.” Efforts to enhance employee satisfaction and retention actually start with recruiting. Before you can keep good people, you have 12
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
to hire good people. Hiring good people starts with creating an employment brand. Determine what your company’s culture and philosophies are and hire people who will be a good match. Ways to accomplish communicating your brand include enhancing your Web site to reflect your company’s culture. For example, if you have a fun and entrepreneurial workplace, be sure your Web site reflects that. In addition, ensure that effective interviewing practices are in place that will help you identify the right candidates. Once you are able to bring in good talent, the real challenge begins. Keeping good employees is all about creating employee satisfaction. And, simply said, when employee satisfaction goes up, customer satisfaction goes up and profits go up, too! In a typical organization only 20% to 30% of employees are engaged and satisfied and willing to give their best efforts. If you take a few moments to focus on engaging and retaining your employees it will pay off in real profits. Below you will find some suggestions of cost effective retention strategies. Some business owners may find that it is not practical or possible to implement all of these strategies, but it is important to consider which strategies can help you retain your best employees.
Do the HR Basics Well! While employees aren’t typically going to leave an organization over money, benefits, or other core Human Resources programs, they aren’t going to come to your organization if your company doesn’t do these things right in the first place. Important HR basics to focus on include offering competitive pay and benefits, having an effective new employee orientation to the organization and the job, and ensuring employees have the tools and resources necessary to do their jobs. Compensation and Benefits programs should be properly designed and implemented to meet the needs of your current and future workforce. Your company’s compensation and benefits programs should be communicated in a meaningful way so that employees
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www.alabamaphcc.org • Alabama Contractor • Summer 2014
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understand their value. Here are some questions you should ask yourself to ensure that your company is competitive in this area: • Does the company understand what the market pays employees who hold the same positions that you employ? • Does your benefits package achieve company goals such as providing a safety net for employees or encouraging them to maintain their own health? • Does the benefits package match the company’s employee demographics, not wasting money on benefits that don’t meet the needs of the workforce? • Does the benefits package attract desired applicants? • Does the benefits package recognize an employee’s time in a position? It is important to ensure that employees have the Tools and Resources necessary to do their job. This could be as simple as providing a cell phone, uniform or even a GPS for drivers. Not only will these types of tools make the employees feel more supported in their work, it will probably make them even more productive! Finally, make sure that your company has a comprehensive Orientation Program that ensures that new employees are welcomed, processed seamlessly into company systems such as pay and benefits, trained as needed, and integrated effectively into their work. Employees need to understand their work assignments and to feel like they have a doable job. They also need to understand how their job ultimately impacts the results of the company. Here are a few questions to ask yourself to ensure you have a well-designed orientation program. • Do new hires receive a welcome letter? • Before their first day, do employees know what to expect when they arrive? • Do you have a package of materials organized for the new employee to put them onto payroll, benefits, etc.? • Are supervisors prepared for the new employee and have they set time aside to spend with them during the early days of their employment? • Who assumes responsibility to ensure that the new employee understands the organization, its goals, and basic policies and procedures?
Manage Performance and Recognize and Reward Good Performers Every company must pay attention to measuring employee performance and providing regular recognition and rewards. While providing quality feedback is something that doesn’t always come naturally, it is a skill that every manager must learn. Eighty-nine percent of workers say that getting candid feedback is important, but only 39% say that they receive it! In order for employees to perform well, they need to know what is expected of them. Managers need to define the standards of performance and have a system for Measuring Performance. Equally importantly, managers can’t ignore poor performers or bad behavior. Ask yourself the following questions to determine if your performance management techniques can help enhance retention: • Do employees get both positive and constructive feedback in a timely manner? 14
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
•
Are performance issues documented and followed up on appropriately? • Does the company have a way for employees to raise issues or express concerns? • When performance improves, is it acknowledged and recorded? Once performance is measured, you need to recognize those employees who are good performers and reward them appropriately. This is a small investment to make in order to retain your top performers. Determining the best Recognition and Reward Strategies is all about understanding what you want to reward and what motivates people. Reward systems need to truly motivate people to change their behaviors to produce strong performance and to sustain that performance over time. Employees often don’t understand what it takes to make a company successful or profitable. For example, cost of goods may not seem important to the average worker, but if they were to receive a bonus for minimizing waste on the job, there would be more motivation for everyone to work toward the bottom line of the company. Money can be used as a reward but it is a short-term motivator. There are many other non-monetary rewards that companies can provide. Amongst the strongest of these is recognition. Sixty-five percent of employees have not been given as much as a “thank you” by their immediate supervisor in the last year.
Provide Quality Work Life It seems that today everybody talks about employees wanting work life balance and companies that provide work life quality. But what does Work Life Quality really mean? In fact it means different things for different companies. In the broadest sense it means that a company provides a positive work environment and consciously works to keep employees satisfied with their employment. Obviously making this work in one company will be different from making it work in another. Let’s face it – everybody wants Work Life Balance. We all want to be able to balance work with our personal lives. But how realistic is this when you’re trying to run a small business? It’s very realistic. And it’s very beneficial. Companies need to recognize the benefits of providing work life balance for their employees and establishing an atmosphere that promotes respect for the demands of modern life. There are many things you can do to help provide good worklife balance. These include flexible work schedules, part-time work schedules, job sharing, compressed workweek, etc. One of the benefits of focusing on work life quality and balance in your company is that you can make it uniquely your own plan – there is no cookie cutter approach. A thoughtful and unique approach will attract employees who want to work in your type of environment. And if the environment you create has a sense of community, shows employees that you value and care about them, and provides for open and honest communication, you will have gone a long way in not only attracting, but also retaining a strongly contributory workforce.
Ensure Management Effectiveness This topic has been saved for the end because it truly is the most critical. Remember, employees leave supervisors, not companies.
An employee’s relationship with his or her boss is the top factor in determining whether there is a successful partnership between the person and the company. Therefore, ensuring strong and effective management is critical. Making an investment in the quality and effectiveness of your management team will pay off. Employees need two things from their managers. First they need managers with good Managerial Skills. If your management team is lacking great management skills, invest in management training and development right away. The critical things that employees are looking for in a good manager are: • managers who create opportunities for staff development at all levels, • managers who provide leadership, direction and support, • managers who care about their employees, • managers who treat their employees well and fairly, and • managers who provide face time with their employees. Mark Schweber, owner of Water Works Plumbing in Rockville, Md., says he has very little turnover. When asked why he thinks people stay at his company, he said “the most important thing I do in my company is I pay attention to my people. I try to understand each employee individually well enough to know what might make a difference to them. I do small things that show that I care. In the end, what might seem small to me is very important to that employee. When you run a small business, you need to be willing to help people with their problems.”
The second thing employees need from their managers is the Ability to Learn and to be given new opportunities. Almost all employees want to learn and grow. They want to make meaningful contributions and feel a sense of accomplishment. Again, Schweber agrees, “Giving employee the opportunity to learn new skills keeps them satisfied at work. And, when employees are happy, they do the job right the first time, which ultimately make the customers happy and leads to more business.” In summary, there are so many things a company can do to focus on and improve staff retention. These strategies can be fun and affordable to implement. And, in the end, organizations that build a committed, interested and engaged workforce can gain a true competitive advantage. If you make retention a priority, you will be able to attract and keep the people who will make your business a success. This content was provided by a third party via the PHCC Educational Foundation. Please consult your HR professional or attorney for further advice, as laws differ in each state. The PHCC Educational Foundation, a partnership of contractors, manufacturers and wholesalers was founded in 1987 to serve the plumbing-heating-cooling industry by preparing contractors and their employees to meet the challenges of a constantly changing marketplace.
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Get More Business Now! Get Listed Today! Visit: www.AAOA.com/getlisted www.alabamaphcc.org • Alabama Contractor • Summer 2014
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The Changing Legal Environment I
ndividuals and businesses which have a personal or professional lawyers recently have felt need or interest in discovering or researching Alabama Law compelled to raise their without the formality of hiring an attorney should contact Greater legal fees in response Alabama Legal Research. to the changing legal Johnston Barton and Haskell Slaughter, among mid-sized (20environment. This 40 lawyers) law firms, were two of the most well known firms in fact, combined with the Birmingham legal community during the last 25 years. Times skyrocketing court costs, has made it much more difficult to access change, and apparently so does the legal community along as both a court of law. This is the legal system we live in today. firms are almost extinct. Many factors play a role in the collapse of a successful Anyone seeking answers to legal questions or is just trying to law firm (midnight move outs by key partners taking with them learn Alabama and federal law on a subject can take advantage of valuable clients are common) but it deems that the financial services offered by Greater Alabama Legal Research, LLC., www. collapse of 2008 ultimately took its toll on many corporate law galrllc.com (205) 322-7050. We charge as little as $50/hour for firms in Alabama. Perhaps the biggest blow of all to local firms legal research and legal writing. was the takeover of nearly all locally owned and operated banks to out-of-state banks. As banking operations went to New York, Dallas and Charlotte, so did the legal work once prized by local mid-sized law firms and a few large ones (such as Burr & Forman which used to enjoy most of the South-Trust Bank work). Notwithstanding economical fluctuations, the biggest challenge to modern law firms is simple mathâ&#x20AC;&#x201D;there are too many lawyers inundating the legal market and only so much legitimate work for these lawyers. Things are so bad right now that there is a pending class-action suit against several dozen law schools by recent graduates who claim said law schools implicitly promised to find their graduates jobs and failed to deliver. Immune from the virus that has struck many medium-bodied law firms are your garden variety solo-practitioners and small One free, easy call gets your utility trial lawyer firms as they thrive on the never lines marked AND helps protect you ending supply of personal injury, divorce, from injury and expense. crime, probate, bankruptcy and disability Safe Digging Is No Accident: work. Unfortunately for the public, many Always Call 811 Before You Dig. www.al811.com
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Summer 2014 â&#x20AC;˘ Alabama Contractor â&#x20AC;˘ www.alabamaphcc.org
Handing Over the Keys to Your Shop:
The Bare Basics of
SUCCESSION SUCCESSION Succession PLANNING PLANNING Planning
By John Zink, VP of Education and Programs Educational Foundation
E
very business owner must recognize that one way or another, at some point they will no longer be running their company. Yet, it is estimated that four out of five contractors have no succession plan for their company. These contractors may be risking their livelihood by not being prepared for an illness or serious injury that could keep them from running the company’s daily operations. They are also risking trapping themselves in their company; unable to retire because of a very real fear that the company will unravel without them. Business owners owe it to their family and employees to have an emergency plan in place. They also deserve the ability to retire and enjoy the fruits of their labor. By taking some time to plan ahead, contractors can make sure that they are prepared for the day they hand over the keys to their shop.
Build an Emergency Plan An emergency plan can help a business survive if the owner is suddenly incapacitated due to illness, accident or other unexpected event. Building a basic plan simply requires planning and some time to compile the information that staff would need in case the owner suddenly was gone. •
Gather in a single file the contact information for the company attorney, insurance agents, bankers, payroll management firm, bonding company, vendors, suppliers, subcontractors, major customers and any other contacts crucial to keeping the company running.
•
A single accident has the potential to affect the entire management team. Make sure multiple people know where important records are kept. These records may include tax returns, insurance papers, the lease for your building, license numbers and back-up copies of important software and data, historical financial statements, payroll information and other paperwork the new management would require. •
Work with your employees to establish a chain of command. Create a written plan detailing who would be
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in charge and how responsibilities would be shifted if you were suddenly absent. Make sure all staff members clearly understand their potential new roles. Create an Exit Strategy Step two for the owner is to build a roadmap of how to exit the business at a predetermined point in time with the assets equal to his or her stake in the company. The planning and paperwork already done in creating the emergency plan will help in the development of an exit strategy. •
•
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Establish a long-term timeline for your exit. Set your retirement date, not less than a year out and ideally five to ten years in advance. You will need this time to make a smooth transition. Identify the future management team. Objectively examine who is most qualified to run the show after you are gone. If you have a son or daughter in the business, ask honest questions about their current and future ability to lead the company on their own.
•
If the business would be best managed by someone else or by a team of employees, you must consider that option. Keep in mind that the company owner does not have to be the top level operations manager.
•
Determine what your stake in the company is worth, who is going to buy you out and how they can do it. Consider working with a consultant to determine the buyout dollar value for your company.
•
Potential buyers could be family members, a single employee, the entire employee team through an ESOP (Employee Stock Ownership Plan), or a competitor. Work with the buyer to find a buyout method that works for both of you. You will need a secured guarantee that you will receive your full payment, even if there are problems at the company after you depart. An attorney can help ensure that the agreement will stand up if there is a legal challenge later.
•
Train your leadership team. Delegate increasing amounts of responsibility and important decisions to those who will be in charge when you are gone. Provide guidance and advice, but avoid running the show. You want your leadership team to gain all the experience they can before you leave.
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Show up less for work. Get in the habit of not being present. This will help the new leadership team adjust to not having you there to answer questions and will help you to let go.
Summer 2014 • Alabama Contractor • www.alabamaphcc.org
When your retirement day comes, be firm with yourself and the new ownership that your exit means you are no longer running the daily operations of the company. A retired owner who never goes away is not retired and may be undermining authority of or acting as a crutch to the current owner. Hand over the keys and walk away. It may be the most difficult thing you have ever had to do, but if you have done your preparations correctly, the company will run better without you there. Get involved in other activities to keep busy or head to the beach and put your feet up. You’re retired, remember? John Zink is VP of Education and Programs of the PHCC Educational Foundation, which provides business management training for contractors and their employees. He can be reached at zink@naphcc.org or 800/533-7694. (c) 2013 PHCC Educational Foundation This information is brought to you by the PHCC Educational Foundation .
www.alabamaphcc.org • Alabama Contractor • Summer 2014
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Your ad appears right along side popular sports and entertainment TV channels (College football, basketball, pro sports, etc.) 89% of patrons say they view the screens during their visit (Neilsen Media Research) 53% of views recalled one or more ads (Neilson Media Research)
Cost-Per-View Calculator
More Reasons to Choose Field of View Marketing:
25.0 Appearances x 10 seconds per Ad = 250 Seconds To Re-Appear
50 Ads (shown 2 at a time per screen)
Digital Advertising Is the Fastest Growing Media Digital ad spending has overtaken every form or advertising (radio, magazine, newspaper) except television1
250 Seconds divided by 60 per minute = 4.2 Minutes To Re-Appear 14.4 Appearances of each Ad per hour
And by 2018, it is projected to exceed television1 Print advertising fell for the 6th consecutive year2
144 Appearances in a 10 Hour business day
“Recall rate of Digital Advertising is double that of televised content.”1 80% view digital signage network during their visit
2160 Appearances per 15 Screens per day
3
35% of views were visiting a retail merchant the same day they viewed the advertising3 Field of View Marketing | Chuck Caldwell (800) 844-3145
12960 Appearances per 6 Days per week 648,000 Appearances per 50 Weeks per year $300 Monthly cost of Ad x 12 = $3,600 Cost Per Year $3,600 Cost divided by 648,000 = $0.005556 Per impression (avg. of 1/screen) = $0.002778 Per impression (avg. of 2/screen) = $0.001852 Per impression (avg. of 3/screen) PHCC of Alabama Members Save $600.00year ($250. 00 Monthly cost of Ad)
1) Medialife 3/13/2014; 2) PQ Media; 3) Neilsen Media Research Study of Restaurant Digital Advertising March 11, 2010
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Summer 2014 • Alabama Contractor • www.alabamaphcc.org
www.alabamaphcc.org • Alabama Contractor • Summer 2014
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CONNECT 2014
Heading to the Big Easy Oct. 8-10, 2014 New Orleans, Louisiana
The accolades about CONNECT 2013 in Las Vegas continue to arrive! Check out what some PHCC members said about the event. Start making plans to attend the Oct. 8-10 CONNECT 2014 in New Orleans! The event promises to offer an exciting, energetic atmosphere full of fresh new ideas that can help improve your business. The education and networking available at this event will be unbelievable! CONNECT 2014 will be held in one convenient location: the New Orleans Marriott, a majestic hotel in the French Quarter boasting fantastic Canal Street location just steps from Bourbon Street. This stunning 41-story New Orleans hotel boasts beautiful panoramic Mississippi River and city views. It provides a perfect traditional and compact setting for this event. PHCC has negotiated a special rate of $189+ for CONNECT 2014 registrants. A Keynote Sneak Peek: No one can forget the images of devastation on the Gulf Coast left by Hurricane Katrina in 2005. When it seemed that desperation and chaos were taking over the city of New Orleans, one man stepped in to take charge and restore order: General Russel L. Honoré. In his keynote address Oct. 9 at CONNECT 2014 – “The New Normal: Leadership and Preparedness in the 21st Century” – General Honoré will apply his proven strategies to the needs of small business owners.
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Summer 2014 • Alabama Contractor • www.alabamaphcc.org
B
R
A
D
F
O
R
D
W
H
I
T
E
A COMMITMENT TO YOU At Bradford White, our business
helping to create more jobs for the
We truly appreciate and depend
philosophy is very simple. We sell
American worker. We believe that’s
upon the loyalty of the plumbing
our products to the trade through
something to feel good about.
and heating professionals.
wholesale distribution. That’s it.
Your commitment to support this
Bradford White water heaters are
American company and Wholesale
built in Middleville, MI by a highly
Only brand has brought on the
skilled and experienced workforce.
greatest era of growth in our history
When you support Bradford White with your purchase decision, you’re
and allowed us to expand our production capabilities and product
And, you can depend upon Bradford White for the high-quality, ruggedly-built, and technologically-innovative products you need for your business.
offerings.
Official Water Heater of the PHCC
Built to be the Best ™ ★ www.bradfordwhite.com Committed to American Manufacturing, ★ Wholesale Distribution, and Professional Installation ★ ©2014, Bradford White Corporation. All rights reserved.
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