Gary Cohen, Vice President, Certified Contractors Network
In the fast-paced world of home improvement contracting, sustained growth and profitability often feel like a moving target. Most contractors excel in their craft but lack the structured systems and processes required to grow their business efficiently. That’s where Certified Contractors Network (CCN) steps in with a game-changing system: the Virtuous Cycle of Success.
At its core, this 8-step system is built on a powerful premise: small, consistent improvements – micro-improvements – at each step of the cycle compound into significant gains over time. By iterating through the Virtuous Cycle of Success with every project, contractors can continuously refine their operations, scale their revenues and boost profitability. Let’s explore this process in detail and uncover how these micro-improvements can transform your business.
Many businesses strive for quantum leaps in growth but real, sustainable progress often comes from making small, intentional improvements. These micro-improvements, applied consistently across all aspects of your business, accumulate and compound into macro-level transformations over the course of a year.
For roofing contractors, every completed job is an opportunity to identify inefficiencies, implement better practices and refine customer interactions. By working through the Virtuous Cycle of Success with each project, contractors can gradually optimize their business from marketing to post-production to conducting a root cause analysis to close performance gaps. Over weeks, months and years, these small changes snowball, driving exponential growth and higher profitability.
The Virtuous Cycle of Success is comprised of eight interconnected steps. Each step represents a critical phase of a contractor’s business operations, offering countless opportunities for micro-improvements.
1. Marketing
2. Call Center
3. Sales and Sales Management
4. Pre-Production and Firewalls
5. Production
6. Post-Production Feedback Loop
7. Financial and KPI Review with Takeaways
8. Root Cause Analysis and Action Plan for Improvements
Then we “rinse and repeat,” as this is a never-ending cycle for improving your business’s systems and processes.
Every business begins with generating leads but the quality of those leads determines how efficiently they convert into paying customers. Keep in mind that marketing also encompasses building brand equity and clearly articulating your company’s unique value proposition that differentiates you from your competitors. In this step, contractors refine their marketing strategies, making small adjustments such as targeting specific demographics, tweaking ad copy or
experimenting with new channels.
Example of a Micro-Improvement
Analyzing the performance of a digital marketing campaign and reallocating budget to higher-performing platforms. Over time, these adjustments ensure a consistent flow of high-quality leads.
The next critical touchpoint is the call center. Whether in-house or outsourced, a well-functioning call center ensures that leads are handled promptly and professionally. Of course the ultimate goal in this step is to schedule an appointment with all decisionmakers present.
Example of a Micro-Improvement
Implementing a follow-up script for missed calls to re-engage potential clients. Over time, this results in higher appointment-setting rates and better conversion.
The sales process is the lifeblood of your business. Every sales rep on your team should be following the same sales process and script. If you have a proven sales process, there is no reason for anyone on your sales team to deviate from it at all. By fine-tuning sales scripts, objection-handling techniques and sales management practices, contractors can improve close rates and average ticket size.
Example of a Micro-Improvement
Train sales teams to ask better discovery questions during consultations. When you first meet with the homeowner, your goal is to come in wearing a doctor’s hat, diagnosing the homeowner’s pain points. This will be followed by wearing a teacher’s hat, educating them on the project at hand so they can truly make an educated decision. These small changes will yield significant improvements in client trust and contract value over time.
Pre-production is where the groundwork for a successful project is laid. Building firewalls – proactive measures to prevent delays, errors or inefficiencies – are crucial here. In addition to firewalls, this step includes effective scheduling and a pre-production meeting with the ultimate goal of delivering a world class customer experience.
Example of a Micro-Improvement
Adding a pre-construction checklist to ensure all materials are verified before work begins. This simple step prevents costly delays and enhances customer satisfaction.
Production is where the promise made to the customer becomes reality. Ensuring projects are completed on time, on budget and to the highest quality standards is key. Remember, delivering that world class customer experience will enhance your business, leading to five-star reviews, referrals and repeat business.
Example of a Micro-Improvement
Introducing daily progress reports for crews to improve accountability. Over time, this leads to faster project completions and happier clients.
Once the project is completed, the focus shifts to customer feedback and quality control. By closing the loop, contractors can gather valuable insights and address issues in a total quality management meeting before they escalate.
Example of a Micro-Improvement
Creating a simple post-project survey for clients. Over time, this feedback helps identify patterns and refine processes to deliver better experiences.
Understanding your business’s financial health is critical for growth. Reviewing key performance indicators (KPIs) and financial statements helps contractors identify what’s working and what’s not. However, we must remember that your financials must be robust and accurate if you are going to be making data-driven decisions. In today’s digital world, the vast majority of top performing companies are making data-driven decisions.
Example of a Micro-Improvement
Regularly monitoring gross profit margin by product line and zip codes. Over time, contractors can shift their focus to higher-margin projects, increasing overall profitability.
The final step is where contractors reflect on challenges, identify their root causes and implement actionable solutions. To uncover the root cause of a problem, you must do a deep dive into detail to uncover the cause of the problem. At CCN, we teach the “5 Whys Method” of conducting a root cause analysis. This step ensures the cycle is a continuous loop of learning and growth.
Example of a Micro-Improvement
Identifying recurring production delays caused by material shortages and negotiating better terms with suppliers. Over time, this improvement reduces delays and costs.
The true power of the Virtuous Cycle of Success lies in its iterative nature. Instead of striving for overnight success, contractors focus on consistent, incremental progress across every business function. Here’s why this approach delivers results:
1. Compounding Growth: Micro-improvements in multiple areas compound into significant gains over time.
2. Adaptability: The cycle evolves with your business, allowing contractors to address challenges as they arise.
3. Sustainability: By focusing on continuous refinement, contractors build a scalable, resilient business model.
4. Customer-Centric: Improvements directly enhance the client experience, building trust and long-term loyalty.
Contractors who embrace this system often see transformative results. One example is a CCN member who increased their revenue by 40 percent within a year by consistently refining their marketing and sales processes using the Virtuous Cycle of Success. Another member improved their gross profit margins by identifying inefficiencies in their production workflow and making small, calculated changes.
The Virtuous Cycle of Success is more than just a business framework – it’s a philosophy of continuous improvement. By making small, intentional changes with every project, home improvement contractors can achieve exponential growth in revenue and profitability.
At CCN, this is an invaluable tool we work with contractors on so they can successfully implement this system and see impressive results, year after year. Are you ready to start making micro-improvements that lead to macro gains? Let the Virtuous Cycle of Success guide you to the next level of excellence.
Gary A. Cohen is Vice President of Certified Contractors Network (CCN) and is responsible for the day-to-day operations of the company. CCN is the leading comprehensive training, coaching and networking membership organization in North America. Gary is also a 30-year veteran of the home improvement industry, spent 11 years at the Robert H. Smith School of Business at the University of Maryland as a Professor of Business and served four years as Associate Dean of the Business School. Gary has been a Certified Leadership Coach for the past 18 years. His email address is gary@contractors.net.
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