Profits Soar with a 40 Hour Work Week

Company Stats

Company Martinec Construction Owner George Martinec Business Construction and Remodeling Years in Business 21 Employees 15 Revenue $1.1MM

Business Background

The business was growing rapidly, with more employees and more gross revenue than ever before. But George Martinec felt he was "beginning to lose control of the business" and hadn't "a clue how to get it back." Then there was also the problem of a slim profit margin and out of control expenses. But the business was paying the bills.

Then it happened. A major cash flow crisis.

Business Challenges

Following the 9-11 attacks on the World Trade Center in New York City, two local Fortune 500 companies began laying off "thousands" of employees, wreaking havoc on the local economy.

"At that point, I thought we'd lose the business" according to George. But that didn't happen. What did happen was George got smart. Fast.

Enter E-Myth

"I think for most business owners it's just a matter of when that is going to happen to you." Fortunately for George, he was already enrolled in the E-Myth Mastery Program. His E-Myth coach sent him the Money Module, and with dedication and hard work, George was able to turn his financial situation around in a few short months. "I give credit to E-Myth" he says thankfully.

"We had an accounting system, profit and loss, balance sheets. It wasn't enough. We needed a cash flow reporting prediction budget." "We didn't have enough indicators to predict anything about the business." "That's why we came in" to E-Myth's Mastery Program.

As Michael Gerber, E-Myth's Founder says a business needs Innovation, Quantification and Orchestration. George took that to heart. "We now have quite a few financial indicators" and can "forecast our future a little bit better."

With all these systems, learned through Mastery, in place it's "changed the estimating process, production process and the way we sell." When referring to the components of the Mastery Program George says, "You just can't leave anything out. Just when you think you know enoughÉyou discover more and more."

Most Dramatic Results

Those "very significant" results include improving a 20-30% profit margin in 2003 to 49% in 2004. Net income has gone from 4% to 21.9%. Labor costs that were 33-40% are now 15.5%. And they are now "more profitable and doing more gross business than we did before with half the people."

Describing his company as a "client-centered business" George says his customer satisfaction surveys indicate, "Our scores are up dramatically."

Employees are happier as well. They work "40 hour weeks, we don't work on weekends, and there's no overtime" George says proudly. Employees also take a more active role in development of the company.

"My wife said this morning 'don't forget our quality of life.' As business owners we tend to put that lastÉjust from being overwhelmed." What's happening now is George is "having more life." Though he is not yet where he wants to be he is proud that he only works 50-hour weeks "much less than I used to."

Where Business is Going

Now that George has committed to the Mastery Program for two years he's discovering there's "more and more" to learn. At some points "You assume maybe that's enough." But as he shifts into a more strategic view he realizes "there's a lot more strategy than ever" involved with his business.

George is still struggling with stepping back and providing more leadership for the company. What he likes about the Mastery Program is that it is in "small enough pieces that you gain confidence in what you are doing." "And the coach helps you see that you really are progressing and changing your thought patterns."

Future Goals

George calls himself a slow learner, but he's really come a long way in a short time. More than most business owners could ever imagine. In the future George is looking forward to having even more "Vacation time and family time."

As for his relationship with E-Myth, George says he plans to continue past his two year commitment with the Mastery Program to continue to receive the business and personal benefits of what Michael Gerber calls "Working On your business, not In it."