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INSIDE HVACRBUSINESS

The Issue: November 2008

Trade Skills Are Not Enough…Part I

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To launch a business and get it beyond the first five years, you need to be an innovative leader.


By Greg McAfee


Johnny was the best hvacr service technician and installer in town. He entered all the contests and won many awards. There was nothing Johnny couldn’t install or service. He enjoyed a good steady income, but had dreams of really making the big bucks! After much thought, Johnny decides to leave his job and start his own business. His boss tries to talk him into staying, but his grand dream of being his own boss inspired him to go.

The first few months couldn’t have been better. Doing work for family and friends, even taking a fishing trip with a buddy. Life was good. Throughout the following months, however, the phone didn’t ring much and the steady paycheck never arrived. Johnny hired a helper to assist in carrying equipment. Unfortunately, he couldn’t provide steady work or benefits, so employee turnover was high. He also found out that bookkeeping work was difficult and there was never enough money left over at the end of the month to pay the bills. Marketing and advertising was on his list to do, but was too costly.

His old pick-up truck with a cap was fine at first, but Johnny found that it was not perceived as professional by new customers. Long story short…Johnny joined the 64 percent that threw in the towel within the first five years of business. He became a statistic and went back to work for his previous company.

Why did Johnny fail? He was a great technician and installer. He had all the trade skills he thought he needed to run a company. Right? Wrong! What Johnny didn’t realize until it was too late, is that his technical competence only earned him 10 percent of the way toward success and that he needed more business skills.

Some hvacr businesses have a Johnny running them and have made it past the five-year mark. But they’re barely getting by and they dread going into the office everyday. Some businesses have had a 2nd or 3rd generation Johnny takeover and are struggling to stay afloat. What do these companies need and what are they lacking? For most successful companies there is a leader in place who is innovative. To start up a new hvacr company or take an existing one to the next level there must be dedicated, passionate, and visionary leaders who think and act boldly.  This is the essence of innovative leadership!

  1. They have a sense of urgency. Regardless of the size of the company, they foster speed, responsiveness, and agility, which are everything to innovative leaders who analyze situations, make decisions and act on opportunities.  They’d rather make a wrong decision than blow a potential opportunity by cautiously sitting still and playing it safe until all the information is gathered. In the hvacr business, reacting quickly and responding to a customer’s needs are imperative for success. At McAfee, the phone must never ring more than twice before answered. Our first call has a guaranteed arrival time of 8 a.m., and every customer receives a courtesy call letting him or her know we are on the way. A “no heat” or “no cool” call is put at the top of the list and takes priority over all others.
  2. They find that motivating and inspiring others are very important.  Innovative leaders first get people excited, then committed, and finally moving swiftly.  They tap into secret chambers of the minds, hearts, and souls of people and know which “buttons to push” to activate their team’s pride, faith, hope, drive, and perseverance.  If everything is the owner’s idea, it can probably get pretty boring for the rest of the team. At McAfee, we empower our co-workers to use their creativity and innovation through many different avenues such as meetings, sharing ideas, trying new methods, etc. This accomplishes two overwhelmingly important things:  it makes people feel good about themselves and it makes them feel good about what they’re accomplishing.
  3. Innovative leaders are very passionate about what they do. They are incredibly driven, which rubs off on their followers.  They express emotions freely and showcase their excitement about new ideas and change. At times they may even seem upset because they are going at warp speed and believe so strongly about business progression and growth, that others either get on board or get out of their way. E.M. Forster quipped, “One person with passion is better than forty people merely interested."
  4. They are opportunists. Innovative leaders aggressively seek out and grab ideas and opportunities before others are even aware of their existence.  They seek out and hang with other successful people, and are well-rounded readers.  They’re always asking themselves questions like, “How does ‘this’ apply to my organization?”  “How can I use it or get ideas from it?” “How does this help me improve?”
  5. They are future-seekers. The beckoning horizon ahead excites them.  Someone once said, "Dissatisfaction and discouragement are not caused by the absence of things, but the absence of vision.” Innovative leaders visualize their organization’s future and plot its course. They are normally not concerned about yesterday’s trophies, but are always asking, “What next?” “Where else?”  They create the future by visualizing it now.
  6. They are high on the chart of risk taking. You won’t find innovative leaders thinking small.  Their plans are grandiose and their dreams and actions are big and daring.  They seek progress and aren’t afraid to take smart calculated risks. These are people who create very solid and large companies, not by cautiously holding back, but by boldly staying ahead of the average crowd.

How much risk have you taken lately? About six years ago, McAfee went 100 percent private label. During that time, our gross revenue increased by over 100 percent. It was a risk worth taking and our goal is to double every six years. I’m reminded of what the former Dallas Cowboy coach Jimmy Johnson asked, "Do you want to be safe and good, or do you want to take a chance and be great?"

Innovative leadership is a must have for every successful company, and is admired for the huge contributions made in the lives of employees,customers, and community. Innovative leaders take their companies to far away, exciting destinations.

Greg McAfee founded McAfee Heating & A/C Co., Inc. when he was 27 years old. Seventeen years later he has become a leader in his residential market. Greg now consults and teaches others how to succeed. For more information, visit: http://www.gregmcafee.com..



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