Episode 43: Creating A Successful Brand With Russ, Sky & Andy

In episode 43 of the Professional Builders Secrets podcast, we’re joined by Co-founders of the Association of Professional Builders Russ Stephens and Sky Stephens, along with APB’s Head Coach, Andy Skarda. Throughout this episode, the trio go over how professional builders can create a successful brand.

 

Inside episode 43 you'll discover

• Why having a brand mentality and brand focus is so important
• How long it takes to create a brand and where builders should start
• Common struggles builders have when creating a brand and how to overcome them
• How to know if you’re on the right track when creating a brand
• Resources builders can use to create a successful brand
• And much, much more.

 

Listen to the full episode to learn exactly how you can transform your building company into a successful brand.

 

Russ Stephens - Co-founder

Russ Stephens is a Co-founder of the Association of Professional Builders, a business coaching company dedicated to improving the residential construction industry for both builders and consumers. Russ is a data analysis expert who has introduced data-driven decision making to the residential construction industry. Russ is also a proud member of the Forbes Business Development Council.

Connect with Russ

 

Sky Stephens - Co-founder

Sky Stephens is a Co-founder of the Association of Professional Builders, a business coaching company dedicated to improving the residential construction industry for both builders and consumers. Sky is a proud member of The National Association of Women in Construction and she was also recognised as one of 2021’s Top 100 Women. 

Connect with Sky

 

Andy Skarda - Head Coach 

Andy Skarda has owned and led businesses in South Africa, the United States, South-East Asia, and for the last decade, Australia. With 30+ years of business experience, Andy heads up the coaching team at the Association of Professional Builders (APB), helping business owners in the building industry identify and implement the skills and systems they need to be successful, without needing to go back to school or more importantly, without going bust.

Connect with Andy

 

Timeline

1:57 The difference between creating a residential building brand versus a business.

3:38 Why having a brand mentality and brand focus is so important.

6:35 How branding affects the metrics of a business and where the results are evident in the business financials.

8:36 How conversion rates for referrals compare to conversion rates for other types of leads.

9:41 Some of the key areas to consider when building a brand.

11:35 How long it takes to establish a brand.

12:30 Where should builders start when they want to create a brand.

17:48 The next steps to take after the identity of the brand has been established.

23:37 The common struggles builders face when building a brand.

30:38 Success stories of residential builders and how they transformed their businesses into powerful brands.

37:30 The role leadership play in brand alignment and how builders can ensure their team members align with the brand.

39:25 How to know if you’re taking the right steps in taking a brand into the market.

42:29 How APB’s events align with the brand and work as a platform for builders networking with other builders.

43:27 How to make sure that everyone in the team is accountable for being brand compliant.

45:46 How builders can design a remarkable brand and resources that builders can use to get started.

 

Links, Resources & More

APB Website

APB on Instagram

APB on Facebook
APB on YouTube

Join the Professional Builders Secrets Facebook group for builders & connect with professional builders world-wide.

Russ Stephens:

People buy on emotion, and then they justify with logic.

Andy Skarda:

Efficiency always translates into bottom line profit.

Sky Stephens:

We can't be afraid to evolve. 

Sky Stephens:

You can really only earn what you truly believe you could earn.

Russ Stephens:

It can be a very lonely place in business and especially in a building company.

Andy Skarda:

If it's done to impress somebody else, but it's not true, it's not sustainable.

Russ Stephens:

The number one reason why 95% of builders make little or no net profit is pretty much branding.

Bosco Anthony:

Hello and welcome to the Professional Builders Secrets podcast, a podcast by the Association of Professional Builders (APB) for building company owners, general managers, VPs and emerging leaders. Here, we discuss all things running a professional building company, from sales processes to financials, operations and marketing. I'm joined today by Co-founders Sky and Russ Stephens, as well as Head Coach Andy Skarda for APB. Sky, thanks for being here today.

Sky Stephens:

Thanks Bosco. How are you doing?

Bosco Anthony:

I'm doing well. Andy, it's been a while since we've last seen you.

Andy Skarda:

It's oh, yes. It's been way too long. Good to be here, Bosco.

Bosco Anthony:

And Russ, it’s good to see your smiling face as well.

Russ Stephens:

Hey Bosco. Great to see you too.

Bosco Anthony:

I'm really excited to have you all back on again. I missed these jam sessions and I wanted to start off with what is the difference between creating a residential building brand versus a business?

Russ Stephens:

On the surface, anyone can create a building company. However, what most builders really end up doing is creating a job for themselves. The reason is they then end up competing on price and they don't achieve the margins that they need in order to generate net retained profit, which is when the shareholders start making money, rather than just the director. The number one reason why 95% of builders companies make little or no net profit, the difference between them and the guys that you see making 10% profit, is pretty much branding. You’ll see that the company making good net profit has got a brand, something of value, whereas the guys who don’t have a brand end up competing on price. 

Russ Stephens:

The brand really is not just about having a great logo, although that's something you definitely want to try and get, it's about applying your logo to all of the great things that you do for your marketplace, which then influences how your audience perceives you. So, we're talking about case studies, the type of work you do, the people you do it for, the messaging, because all of this evokes emotion; think of Apple. People buy on emotion, and then they justify with logic. So, with a great brand, you're already halfway there.

Bosco Anthony:

It's really interesting, because you had me at ‘profits’ and you had me at ‘emotion’. So, let's get into this a little bit. Why is having a brand mentality and focus so important? Let's dig a little deeper into how that impacts the numbers.

Sky Stephens:

I think Russ explained it really well. Add to that, your brand is also your reputation. The better brand you can create, the better reputation you have in the marketplace, and a much better reputation you have with team members and staff. People want to work at that company with a great brand and a great reputation. Then you get that following just like Russ just said: like Apple, people become passionate about your brand.

Sky Stephens:

I think as well, having a brand mentality as you just mentioned, Bosco, is so important. It takes it away from any one individual. It's really interesting. Paul Vespia was on our podcast and he did an episode a while back, and he mentioned it in his episode. He talked about how the building company he's creating is a brand. It's not a personal brand like so many people are going down that path to create. It's not about him or any one person. No, it's the entire building company so that people are all part of it. Everyone on his team is a part of it; clients are all a part of it when they build with him in this brand. So, it's much bigger than any one person. That's amazing.

Russ Stephens:

It increases recognition, doesn't it? That's what a brand does. It sets you apart. And of course, the real gold is that it generates referrals, at the end of the day.

Sky Stephens:

And it makes it much easier to exit. A good example is to look at somebody who’s building a personal brand, such as coaching. A lot of people getting into coaching are very much personal brands. They are the coach and they're the one delivering all of the services. They're very much a personal brand, selling themselves, and they burn out much more quickly because everything is dependent on them. Whereas if you can build a company and your building company is a brand, rather than just you, you can really scale that entire company and really achieve what you're looking to achieve. It also makes your exit and your whole exit strategy so much easier and so much more attainable – and that’s the whole purpose of what you're building.

Russ Stephens:

Yeah. I think Sky touched on something really good there. Building the brand gives you freedom. It helps you get your time back because like you say, when the business is all about you, there's no respite.

Bosco Anthony:

I think someone once said when you're telling people about your business or your brand it's advertising, but when other people are complimenting you and can't say enough about who's built their home, then that's really what branding does. It's interesting you say that, because even myself going through landscaping, I was so happy with it that I told so many other people about it. 

Bosco Anthony:

Let's get into the business of things. When we talk about a residential brand, we talk about reputation. We talk about exits as well. How does this impact the business from a metrics perspective? Where do you see the results in the business financials?

Andy Skarda:

I'm tempted to say, “What they said,” but the truth is, if you look at where that goes, the word that always comes to mind with me when you talk about brand is ‘consistency’. If what you've got is the central focus, it's not personal, it's an entity on its own. So, it has its own character if you like, it projects itself in a particular way. What that does is it brings consistency across that entire business. If you can be delivering the same level of service in the same way to every client, that translates into efficiency and efficiency always translates into bottom line profit.

Sky Stephens:

I think increased margins as well. What's the bottom-line impact? Like Andy was saying, more increase in profit, but you have the ability to add a higher markup and you have that line of clients out the door. This is literally how you can manufacture more demand than your supply. This is what all the best brands do. You're just replicating what happens.

Russ Stephens:

I think another way it impacts business is that it motivates the staff and helps set the direction for the business as well when you have a brand. That's so important, getting everyone on the same page and all pulling in the same direction.

Andy Skarda:

We're all tiptoeing around the same thing. There's that statement, “perception builds reality.” As soon as you've got an identifiable brand, it gives everything you do a lot more credibility in the marketplace. That's going to impact obviously your marketing, your sales and then all the way through the balance of the business as well.

Bosco Anthony:

Do you find that the conversions for a referral from someone who's very happy with the brand, or is an ambassador, would be a lot higher than any other part of the sales process, typically?

Russ Stephens:

Way higher.

Andy Skarda:

Yeah, absolutely.

Russ Stephens:

It's an interesting point because we've also studied this in detail and we’ve seen that you get bigger margins as well, by as much as 5%, from a referral because they are so warm and so easy to progress.

Bosco Anthony:

So, it’s qualified traffic as well.

Andy Skarda:

Yes, as you mentioned earlier with your landscaping experience.

Bosco Anthony:

Yeah.

Andy Skarda:

Particularly, it was because it was a good experience. You’ve literally taken that message and you’ve become a disciple. Everybody you know who mentions landscaping will now hear you promoting somebody else’s business. That’s the beauty of a brand.

Russ Stephens:

It’s a double win for the builder, because they increase margins and lower advertising costs.

Andy Skarda:

There you go. Yeah.

Bosco Anthony:

So, there's a lot of sliding scale impacts from what you guys are all alluding to.

Andy Skarda:

Absolutely.

Bosco Anthony:

What are some of the key areas to consider when building a brand? Russ, you talked a lot about brand messaging, and you talked a little bit about identity. These are things that builders normally, I would assume, would find it very overwhelming to think about, but what are some of the key areas to consider?

Russ Stephens:

Yeah, I think there are some key things to really focus on. There’s the brand position, which is the niche, first and foremost. This all comes back down to the process of marketing 101 and getting that set up, which is a very large part of your brand. It is important to get clear on that niche, get clear on the promise that you are making and that your brand is making, which is your USP [unique selling proposition], because that is what sets you apart from the rest of the market. The personality of the brand is another thing because that's the voice that you speak with. It can be light-hearted, it can be a little more technical. But that’s the personality, the voice with which the brand speaks, and it demonstrates your values.

Russ Stephens:

Also, I think brand story is a big one, because your journey as a builder is important to your prospects. They love to hear how you got to where you are, and this is a very important component not to forget. And of course, another thing is brand associations; everything you associate your brand with in terms of other companies, that's where authority and trust come from as well. For instance, having the borrowed authority we call it, you might have the logo of another association on your signature, certain suppliers who you associate with, is really important.

Bosco Anthony:

On average, how long would that normally take? Because most business owners, when they're starting out are getting into it, they want to rush, and they want to go to the market right away. What you're talking about is actually slowing down before you get to that market, because from what you're saying, there's a lot of work that goes into this process as well.

Russ Stephens:

Yeah. And that's really important, because I think a lot of guys might be listening to this and maybe getting a bit overwhelmed, thinking about all the different things they’ve got to do, but it's like everything with running a building company, there is a lot to do. You can only do one thing at a time. You've just got to identify what that number one thing is, and then allocate time in your calendar to be working on your business. When you do that, I think you'll look back after three months and you'll be surprised how far you've come. But in terms of working on your brand, we're talking years to develop your own brand and it's still ongoing work. It is a work in progress, it's not something you can tick off and it’s done.

Bosco Anthony:

How do you create that brand for that residential company when it comes to messaging? What goes into this? Because it sounds like there's the experience level, there's the messaging level and there’s that ongoing improvement as well. Where do we start?

Sky Stephens:

I feel like if we take it down to its simplest form, there's so much goes into a brand, exactly like what Russ and Andy have just said. You've got your entire messaging and trying to look at who your ideal clients are. Firstly, who do you serve? What do you do? And what do you specialise in? What's the story? When you talk about what you do, really in a lot of detail, what is it? What kind of new homes, what price point? Are these over $1 million homes? Are they $10 million homes? Are they $300,000 homes? What are you really sticking to? What are you going to be known for? Because just like Russ said, building a brand takes a while. It takes investment. It's not instant; you can’t just work out the answers to those questions and then suddenly you have a brand, because then there's another layer.

Sky Stephens:

Your brand is everything that everyone sees. It’s how are you perceived in every single email and blog article and video, just like Russ said. What is the tone then? What are all of your colours and your fonts and your logo and your logo marks? These need to be consistent, so that when you are seen everywhere, there’s instant recognition. “Oh, that's APB.” I think the biggest misconception to anyone is that branding is a logo. To even do any kind of branding exercise, like putting your logo on the car, or on a site sign, there’s just so much more to it so that you can literally build a very valuable brand. The logo and the design are just one part of it; they’re a very important part, but they are just one part of it. 

Sky Stephens:

So how do you create a brand for a building company? It's starting with the basics. It's starting with all of your messaging. What is your niche? What is your specialty? Who is your avatar or your ideal client? What are their fears? What are their pain points? You need to really dig into that and truly understand them. What's their whole profile? How old are they? Do they have a family? Why are they looking to build a new home? You need to truly understand that story, and then you can look at your building company and think, “Okay, well, what's unique about us? What's our unique selling proposition? What are our features? And what are the benefits of going with us? What's our building process?” So you can see in itself, that takes a really long time. You asked before Bosco, “Do you have to set that all up at the beginning?” You truly don't. I think that's the beauty of it, because if you did, you'd never get started, you’d never build anything because you're spending so long working on this.

Sky Stephens:

It has to be done consistently and using the compound effect in the background, because a lot of the time, it's only when you're really established as a building company, that's when you sit back and say, “You know what? We need to work on this brand. We need to invest in it and really start developing some guidelines, some protocols.” Really, when you try to develop brand guidelines and protocols, you think, “This is going to be our font, this is going to be our logo.” They’re the guardrails on a highway; if you can picture that, it just keeps you on track. You're always moving forward, but it keeps you on track. So, you're not going to go too far out. You're going to colour within the lines, and then you will be a recognisable brand if you follow these principles.

Russ Stephens:

I think the brand guidelines that Sky and the team developed for APB are probably one of our most important documents and probably the most used. Creating a brand is one thing, but protecting what you’ve created and staying on track is just so important. Brand guidelines not only help you and your team do that, but all the other companies that you bring into your world. Marketing agencies, et cetera, they can all access the brand guidelines. So, it's such an important document as you continue building your brand.

Sky Stephens:

The brand guidelines can be massive, but they can be really small as well. Even us introducing the concept of brand guidelines, as we've talked about this to our members, and our document is quite long, and the guidelines are very detailed because we've spent so long building them. But to be honest, you can launch with just saying, “Here are our primary colours and here's the main font.” Then you build from there. 

Sky Stephens:

Our guidelines now include things like imagery and photography. “Here's how we depict our clients. This is how we don't.” We always have yes and no versions. “Here's our logo. Here's how you can colour change it. Here's how you should never colour change it. Here is our tonality. Here’s how we talk, and this is our brand’s voice. This is how we do not talk.” It’s literally those highway guardrails, but it doesn't have to start being anything complicated, creating a brand and creating those parameters, it just involves starting, and then you can build from there.

Bosco Anthony:

So, let's talk a little bit about the next steps after you've built the identity. It sounds like you've nailed the guidelines. You talked a little bit about the looks and the messaging and everything else. What are the necessary steps after that look and that guideline are built? How does that reflect into the hiring process and the experiences? Do you have a blueprint where if a builder comes to you and says, “I need help. I don't know where to start,” where do they go?

Andy Skarda:

Well, I think Sky's covered that a lot of the fundamentals lie in the development of your marketing and your messaging and everything that's around that. I think the reality with this is it's a process that evolves over time. It's not something that you're going to literally get everything done immediately. If I think back even to the start of APB, and I’ve got to share the story of the history. Anybody who's read the book that Russ and Sky have written will know that we didn't start out as APB. We are the combination of a number of different experiences that have happened along the way, and the business has evolved from all of those experiences.

Andy Skarda:

I think the fundamental thing that we've touched on already is don't rush it. You're going to need some fundamental things in terms of imagery and colours to actually register the business and start trading. But it's important that you don't necessarily bind yourself to what you start with, because it could quite easily evolve over a period as you develop. Here's what we spoke about earlier, as you develop your reputation in your niche with your particular ideal client, that's obviously going to start to build in these other things that Sky and Russ are talking about.

Sky Stephens:

Let's touch on that for a second, because when we start working with builders and talk about putting in place a brand, first up is messaging and picking your ideal client and your specialty. What's the one thing Andy, everyone gets very nervous about if they haven't done it already? When you're telling them, “Okay, you need to niche, You need to specialise in a certain type of building,” what is the biggest fear they have?

Andy Skarda:

That they're going to lose out on stuff. They try to be all things to all people and end up satisfying nobody at the end of the day.

Sky Stephens:

Exactly, yeah, and it's just crazy because the opposite is true. You need to let go, and just choose one area, instead of doing everything: new homes and renovations and extensions. You're a professional builder, so of course you can build anything, but if you go all in on one specialty and you really just carve out and completely display and showcase that and show your ideal clients that this is exactly what you specialise in, your margins go up. 

Sky Stephens:

This all comes back to building that brand. You are the specialist and everything you do and even affiliate with and align with showcases that as well. I loved what Russ said just before, it’s your brand. You’re getting judged not just on how you look and what you say, but also on who you’re affiliated with. Every person in business that you are affiliated with reflects on your brand. So, you want to make sure you’re aligned with the best people as well, businesses that are specialists and high-end, if you’re high- end; or family homes, if your specialty is family homes. 

Russ Stephens:

Your brand is the average of the five companies you associate with.

Sky Stephens:

Yeah, exactly.

Andy Skarda:

Yeah. The other thing that’s important, that Russ touched on earlier: Apple doesn’t sell fruit. The reality of the Apple brand is the experience that every customer has with Apple. That’s what turns us into raving fans and disciples. At the end of the day, the logo’s quite cute and quirky. Even it has changed. If you go back and look at some of the early iterations of that Apple logo, it didn’t start out the way it is today. It’s almost like the one hand is washing the other, as the experiences grow, as the reputation grows, so you get this evolution and this morphing coming.

Sky Stephens:

I do love that. We can’t be afraid to evolve. When a lot of building companies start out, it is a formality, “Let’s get a logo.” Some people really overthink their logo and they spend tens of thousands of dollars and too much thought on this. If you’re just starting a company, get the company to work, then you can figure out the logo. But don’t be afraid to really sit back now and look at your own building company and ask, “Okay, what do we actually look like?”

Sky Stephens:

I remember having this conversation with some owners of a building company and I had permission to be very objective about their logo. They were really looking at building their brand and I said, “Okay, if you really want some objective commentary on what it looks like, your logo has a hammer in it. If you’re trying to appeal to some high-end clients, because you’re building these kinds of homes, you kind of look like a carpentry company.” It would appeal to a builder because they’re looking at the logo.

Sky Stephens:

You may need to rethink some of your logo marks, because that icon in your logo is usually what gets used as your favourite icon on your website or little icons on your socials or anything like that. Don’t be afraid to look super objectively at what your brand looks like right now. You can refine it over time. We’ve even done this at APB with our colours and our brand guidelines. Even now we’re thinking, “Okay, we need to turn up the saturation.” We’re trying to deepen some of the shades and that’s fine, because brands can and should evolve, just like Apple.

Russ Stephens:

We often say, don’t we, “What got you here is not going to get you to the next level.” That means looking at everything, not just your processes, but not being afraid to relook at what you’ve done in the past with a fresh set of eyes and a fresh vision.

Bosco Anthony:

That leads me to my next curiosity here as well. You talked a little bit about people niching and not being afraid to let go and actually hang onto something here. Is there a commonality where builders struggle when it comes to brand building? Do you notice a few areas that are common or is it different based on every builder who you’ve worked with in the past?

Russ Stephens:

I think there’s a few things that affect most builders. One of those is short-term thinking rather than long-term thinking, in terms of creating their assets. It’s not just about the quick wins, but it’s also about those things that can have a lasting compound effect, which probably can be a little bit grittier. So yeah, it can kind of get exciting to produce a logo and choose your colours and even the USP for the company. But some of the other stuff takes a bit more work, and you’re not going to see a benefit from it straight away. Those are things like case studies and creating a client booklet and a company brochure and your lead magnets, which are your ‘how to’ guides, which gets people to opt in. These things can take a lot of work and you’re not going to see an ROI in the short term, but over time, these are very valuable assets.

Russ Stephens:

So, long-term thinking is important. But it’s also important to plan your vision and get it written down and shared; just be very clear in your vision about what you stand for, what you want to be known for. Then work towards it. Probably the most important part of the way to work towards is sharing with your team, making sure that you bring your team with you, that they’re clear on where this company is going and what it stands for. But not just your team – you’ve got to share it with your audience, your public, via your marketing and even your suppliers. Because again, these are the companies you’re associating with. It’s very important that they understand what your brand stands for because they’re representing it on site as well.

Sky Stephens:

I love that. To add to that as well, I think another struggle is design. These building companies can build beautiful homes, but brand design is just a totally different beast. When we were designing our brand for APB, we went all in and found that it’s just a minefield. So, builders have to be prepared to know that they are not going to make the best decisions all the time. I remember when we first started working on our brand and we were working with a brand specialist, it was great because we were engaging a professional. We recommend that you also engage a professional, you truly do need one in building design. Remember of course, that in everything, you get what you pay for. So, find a specialist and a professional, and it is their job to fight the battles that are the most important.

Sky Stephens:

I remember having these conversations about the primary colours and secondary colours that we had chosen. In the secondary colours, the designer didn’t like the orange colour that we had chosen. They knew that was a battle to fight. “You do not use this colour orange everywhere. It is used in these examples,” and they gave about 10 different examples of how it's supposed to be used. I said, “Okay. Point taken. Yes, you are clearly the specialist here.”

Sky Stephens:

I think the struggle in brand building is often not being able to ask for help and to find specialists to involve and loop in so that you can develop. Also, just think about the investment side, because there is an investment in building a brand. It's not just for one designer to build some brand guidelines around your logo and fonts and all the colours that you use. That really is just one part of it. The investment in your brand is exactly what Russ said: it's getting professional case studies, it's all of those photos and videos of your projects, of the perfect, ideal projects that you're trying to promote. All of this is content building and then brand building because they're all under this perfect banner of how you're supposed to look. It takes A, a lot of time, and B, it takes cash. It is an ongoing investment and you're never done because like Andy said, you’ve got to constantly be evolving.

Andy Skarda:

If I can just back up one thing that Sky hasn't touched on that, she is very good at, is having made those decisions, you've got to passionately defend them. I can remember in my early days with APB, putting together a slide deck and getting back a very short and pointed email that said, “This is not how we do things at APB.”

Sky Stephens:

Sorry, Andy.

Andy Skarda:

No. Right. Absolutely.

Bosco Anthony:

Harsh.

Andy Skarda:

No, not at all. The points is, because of the work and the effort, the blood, sweat and tears that had gone into creating what APB had, she wasn't prepared to just throw it out the window because some new upstart decided he was going to do things differently. That's part of what we were saying earlier about not rushing into this process, of getting to a place where you are confident in the brand that you are building and that you truly believe in it. It's a reflection of your values. It's a reflection of the way you do things throughout your business. And then you need to defend that passionately.

Sky Stephens:

It adds to such a positive experience. For example, think of your client journey. Say you have a prospect who sees you on social media. They then follow you for a while. Maybe they go ahead and download something after reading a blog article on your website. Everything from the social to the website, to the article, to the email they got, to the lead magnet, the how to guide that they got, was so consistent. And then the salesperson who got in touch with them was so consistent and passionate about the brand that they've built and who they serve and what it is that they do.

Sky Stephens:

Then the meeting that was in the office, and you gave them a brochure that they got to walk away with. The presentation that got them into concept designs, how they were presented, how the presentation for prelims was presented, how the fixed price contract proposal was created. If that was all so consistent, that's an amazing brand experience. That is what we're about at APB. We are trying to improve the whole experience for builders, and of course for consumers. Having as many professional building companies as possible roll out a brand experience like that is game changing. That's so professional.

Bosco Anthony:

Yeah. Speaking of values and speaking of brand consistency, I do remember having a guest, a builder, on our podcast who actually had his values on the wall while he was being interviewed. I remember at the end of the interview, I asked him, “What is that on the wall?” And he said, “Oh, this is inspired from my coaching. We actually live and breathe our values.” I remember seeing it on the wall through the entire interview. I was curious about them, and it was my last question of the interview. So, you are right. It’s interesting how people live and breathe values, and that’s what they put into their brand as well. You’re probably going to know what I’m going to ask next. And that is, can you tell me of an APB member who inspires a strong residential brand? How did they transform their business into a powerful brand?

Andy Skarda:

The problem Bosco, always with these questions, is they’re too limited, because no, I can’t tell you about one. I could probably tell you about 20, and that would probably be unfair to the other 25 that I couldn’t think of at the time. But let me say this to you, there are a number of our members who, over a period of time, have exactly the discussion that Sky has just taken you through. You can only create the brand that epitomises what she’s just described when you’ve done all of that work. She’s using words that maybe a lot of people listening to this podcast don’t even understand exactly what we’re talking about, when we talk about some of the processes that have just been mentioned. But that’s part of building this consistency into the business, it’s actually step-by-step working through that client journey, all of your messaging, all of your communication, et cetera.

Andy Skarda:

We have a bunch of people who, as we speak, have been trading very successfully under one name and brand. But exactly as Russ said earlier, they’ve got to the point where they’re ready to move to the next level, and that kind of messaging is not going to serve them to make that transition. So, I'll try and keep it as broad as I can. Their business until now has been named after their family surname. They are now thinking about moving it to something that is more relative to the work that they want to do. Take that back to what Sky said earlier: at some point in the near future, they're going to think about exiting their business. If the business is still named after them, when they try to leave, the incoming buyer now has a problem. Whereas if it's branded as something that speaks to the client, that client base isn't going to change.

Andy Skarda:

Most builders starting in business go through that. You start off self-employed, then you become a business owner because you get some people and then you become an entrepreneur. The brand needs to wait until you are at least at the end of your business owner phase, moving to entrepreneur, where you actually have some runs on the board. I personally would probably be saying to a client, “Don't invest the big bucks that Sky was talking about in the first year; get something that serves the purpose in the interim while you build those other things. Then when you're comfortable that you've now got a business that actually has value and assets, now you can get together with a brand specialist and bring that all together.” Just as an aside, those values that you saw on the wall of that particular person, what he didn't tell you was he makes every employee tattoo them on their chest as well. Just to really rub them up.

Russ Stephens:

Looking at a high level as well, we've seen so many building companies change their process, which then becomes part of their brand as well. For instance, the building companies that started out just quoting plans and were a commodity have evolved into design and construct companies, which is where the margin is. Their whole brand evolved as part of that process as well.

Sky Stephens:

Even the people behind the company, just to add onto that as well. Think of so many of our members when they first joined APB, compared to where they are now. These owners of building companies are straight up professional. It goes back to so many episodes we've done in the past, but even so much as mindset. Remember that whole idea of self-concept: you can really only earn what you truly believe you could earn. So, if you were to raise the stakes and raise your game, you can only earn what you believe you can earn. These companies have completely transformed into such professional building organisations. That's how they're earning the margins they are now earning, because of the complete brand transformation, but also the people behind the company – that transformation as well from all this effort and learning that has gone into it.

Sky Stephens:

I’d like just to add a little bit of a story that I think is very worthwhile to explain this. It is very hard to change your brand because it's so much work and effort involved. But one thing I can promise is that it's worth it, because we have done it. We've done it more than once. But when we rebranded and created APB, that was also a change in name. I remember, and Russ and Andy would remember this, when we did that, when we were starting to put out APB, we redid a lot of materials. It was so clear the first time we heard our clients repeat it back in a video interview, and they started referring to us as ‘the Association of Professional Builders’. It's so worth it.

Sky Stephens:

It takes a couple years for everything to come out in the wash, for you to update everything. But it's just one thing at a time. Don't think you need to be working on this for two years in the background, so then you flick a switch and suddenly you've gone from a complete renovations company to then this custom design and build new home company, overnight, where all the branding is done and everything's updated. You can do it in phases, and it can take a little bit of time, but I promise it is worth it.

Andy Skarda:

I can remember the time that Sky's talking about where, because it was clear, we could go back and look at content that we'd created, as we knew it no longer fitted what we wanted to be putting out into the universe. We could go back and redo major chunks of the business because we'd got that branding so clear. Sky's analogy of those Armco barriers, those guardrails on the freeway, is absolutely fantastic because it guides virtually every process within the business once you've got it set up correctly.

Sky Stephens:

It makes it easier for you to say goodbye to certain testimonials and case studies if they no longer align with where you're going. It makes it easier to remove certain pieces of content, certain posts on social media, because you're realising that's not where you are headed anymore. It makes your decision making a lot easier. But again, not just your decision making, but the entire team’s decision making, because they're all working in this same direction for the same brand.

Bosco Anthony:

Let's talk about the team side of things and people in the workforce as well. Andy gave a great example of the past, where he was reminded of where the direction is, where the brand is, but why is that brand alignment so important from leadership to everyone on the front lines, your workforce? Why is that so important? And how do you inspire that in a team? I'm sure the builders are probably saying, “Well, how do I make sure that the people who work for me actually wear my brand and live and breathe it?”

Sky Stephens:

Brand alignment is so important because you're not going to spend all this time, energy and effort so it can then just fall under the attitude that it's marketing's problem to fix it up. No; it then becomes everyone's problem to make sure you're all aligned in where you're going. The biggest fight in any company is usually between the sales and marketing departments, because the sales team always says that the leads aren't good, and the marketing team says they have all the leads in the world. You don't want there to be any of that conflict.

Sky Stephens:

So, you do want that alignment between marketing and sales, that this is who you're targeting. “This is our ideal client. This is what we stand for. This is our target, where we're headed.” It needs to be completely uniform and aligned, what you're saying, even what you're putting out there in marketing. That includes the clients who are in your case studies, their homes that you are photographing and showing online. They're the kinds of homes that you are looking to sell and the sales team is looking to sell. It just makes you all very much on the same page and singing from the same song sheet.

Russ Stephens:

I think in the absence of this as well, people would naturally go in their own direction and do their own thing, so all of a sudden you don't have a brand at all. You have a lot of mixed messaging out there and different standards because everyone has their own opinion on marketing.

Bosco Anthony:

That's true.

Andy Skarda:

Yes – and slide decks.

Sky Stephens:

I won't live this down. 

Russ Stephens:

You're over it now, Andy.

Andy Skarda:

I'm over it. I've had counselling. I’m fine now, I’m fine.

Bosco Anthony:

Tell us how you really feel. Maybe that’s another episode, but all right. How do you take brand messaging to the market? APB every year has been even bigger and stronger than the year before. The media, the attention on TV, the national coverage. How do you ensure that you’re taking the right steps to take a brand into the market?

Russ Stephens:

Well, it is every interaction that you’ve got to be aware of. First and foremost, your website has got to be on point because that’s one of the most interactive components that you’re putting out there. But it’s your blog site as well, which contains all the articles. That’s got to be consistent. The videos that you are producing as well and putting out into the marketplace. Getting on podcasts as well, has been quite powerful for a lot of builders we are seeing, and that helps them to get their message out to the market.

Russ Stephens:

Again, through a third-party channel, which is their signage, even their sites. If you think about a builder’s sites, how that can damage a brand, looking at a messy site with messy workers on site, this is all part of what you stand for and the rules that you are putting in place. And then of course the advertising that you are putting out there, and if you’re working with a marketing agency it’s very important that you’ve got the brand guidelines for them to follow, to make sure the advertising is consistent when you go out to market.

Sky Stephens:

Yeah. It helps you to have higher standards. You really set it in stone. We end up saying this internally all the time, “No. We’re APB and we can do better than that.” How are we going to look? How well-groomed are we going to be at any event? “No, we’re APB.” And that, I know, just comes out internally and it just becomes part of the culture. Imagine building that for your own building company, so any of your team members can go onto any site and say, “No, we’re APB Luxury Homes. We can do better than that.” And then everyone just holds that higher standard. It’s amazing.

Russ Stephens:

I think a good example of that is the live events that we do. Because we aspire to such a high standard and we want to help our members achieve such a high standard as well, whenever we do a live event, we always go to the best hotel in the city, because that is part of our brand. We are right on the high-end. So, it has to be consistent right across everything that we do.

Bosco Anthony:

I’ve actually had the good fortune of attending these events. I really resonated with the attention to detail in everything from the little booklets to that experience, that they had networking with other builders, to the fact that they all wanted to connect after the event as well. So, I have to commend you all for the attention to detail and it was details across the entire experience from start to finish.

Russ Stephens:

It’s great the way builders respond when they come to these events as well. They dress up; it is a special occasion. It’s a special night out. We don’t have the guys turning up in shorts and fluoro. There’s nothing wrong with those events, but that doesn’t fit with our brand. That’s not what we’re looking to achieve in the marketplace.

Bosco Anthony:

It sounds like the events are going to be a signature thing for APB, long term, by the sounds of what you’re saying. It sounds like the builders are wanting more and more if this as well.

Sky Stephens:

Yeah, definitely.

Russ Stephens:

The builders love the networking, because it can be a very lonely place in business and especially in a building company with all the pressures. So, it’s good to come out in a nice environment and relax with a couple of drinks and talk to other like-minded people. I think that’s the key; it’s not just about talking to other builders. It’s talking to like-minded builders, builders who also aspire to improve the building experience for their own clients. This is what members of APB are all trying to achieve: to deliver that better experience. And of course, to get well rewarded for the service that they’re providing.

Bosco Anthony:

Let’s talk a little bit about accountability, especially with keeping the brand. We talked a little bit about having that uniformity and alignment as well, but is there tool or is there a way of internally communicating with everyone to make sure that everyone’s accountable?

Sky Stephens:

Well, I think a really good step to actually achieve that is to have some form of structure in the way of brand guidelines. Just like we talked about, it doesn’t actually need to be anything complicated. Honestly, you don’t even need to design a very fancy PDF for it. Have it somewhere that you’re going to look at it all the time, in a document that you can at least have all of your assets. So, it should be a high-resolution copy of your logo. What are your brand’s three primary colours? They’re probably just going to be the one or two colours you already have in your logo and black, that’s a primary colour. You can go into secondary colours, but if you’re not there, just don’t worry about it. What’s your primary font? Be really clear on those things. That’s just one part of it though, that’s the design section. Map out in its simplest form, what it is you specialise in, your ideal project.

Sky Stephens:

Do you design and build custom new homes between $800,000 to just under $1 million? That’s may be the sweet spot of those custom homes you build, and you do maybe 20 of them a year, maybe six, maybe whatever. Get really clear on what and who your building company actually is, and how you look, and then get it written down. As soon as it’s written down, it’s a little bit more set in stone, a little bit more formal. Then just share it and communicate it with your existing team and just make a really big point to always reference it in anything that you do, any marketing activity, anything at all. And then just make a point to invest in it and build on it.

Sky Stephens:

Don’t go all out and spend all this money, putting together such a massive deal right now, just get started in its simplest form. Refer to it, loop in your team, make sure they’re very aware of it and call them out if they do not make something correct as per the brand guidelines. That is how you can set up those highway guide rails just to keep people moving forward. But you’ve got your initial parameters. That’s the easiest place to start.

Bosco Anthony:

I could talk to you guys about different topics for a very long time, but for the sake of time in this episode, my last question is, how does APB empower residential builders to design remarkable brands? And what are some of the resources that you provide to help them along the way?

Andy Skarda:

Well, I think I’m going to be my usual obtuse self and tell you that we don’t, but that’s not a hundred percent true. If you think about everything we’ve discussed, really it’s broken into two pieces. There is a design element, and a lot of builders may not necessarily be comfortable in that space. I think that’s why Sky said when you are ready, when you’ve got it clear and you know, this is who we are, then get a professional involved. But obviously, within our library of training videos, Sky has broken the process down into bite-sized chunks. We walk members through everything that we’ve mentioned today, website design and brochures and all of those kinds of things, company manuals, handbooks that are given to clients, et cetera. All of these things are explained in a lot of detail.

Andy Skarda:

But I think really, if we’re going to talk about empowering people, what stands out to me is that at APB everything we do is authentic. So, it's not a made up, let's pretend to be X. It's actual values that are lived and breathed in the business on a day-by-day basis. It is the way we do things and that's what we are reflecting. So that reality and that authenticity are a major part of this exercise. If it's done to impress somebody else, but it's not true, it's not sustainable. What you'll find very quickly is the dissonance that is going to cause is actually going to work against you, rather than for you. The empowerment comes from us teaching builders to be consistently professional. And when they have become consistently professional, it's then a lot simpler to do the design side of representing that to the marketplace.

Bosco Anthony:

As someone once said, brand is the most important investment you can ever make. So, it sounds like this is a continuous practice that you’re inspiring your builders to do.

Bosco Anthony:

Once again, I really appreciate your insights and your time today and for the lot that we've unpackaged. I'm sure we'll have more episodes around this in the future as well. Sky, I want to thank you for your time, Andy and Russ as well. I want to thank you for your time as well.

Sky Stephens:

Thank you Bosco, this was great.

Andy Skarda:

Thanks, Bosco.

Bosco Anthony:

Cheers guys.

Bosco Anthony:

Thank you for listening. Remember to subscribe to Professional Builders Secrets on your favourite podcast platform and leave a review. To learn more about how the systems at APB can help you grow your building company, visit AssociationofProfessionalBuilders.com. See you next time.