Painter Takes Closer Look at Goals

House painting was going to be a short-term gig for aspiring musician Frank Levine. But since his move to Los Angeles 20 years ago in hopes of becoming a rock star, painting has become Levine’s main performance.

Reviewers would give his painting skills five stars, said the owner of Art & Craft of Painting in West Los Angeles. His business performance, on the other hand, probably would be panned.

Some years he’s made as little as $5,000, other years sales have soared to $250,000, Levine said. He’s kept a crew of 10 busy in the past, but also has sat out down-times lasting more than a month.

“I am probably an accountant’s worst nightmare. I have no concept of marketing,” Levine said.

Levine, who went out on his own in 1989 after tiring of the sloppy work and ethics of some of his former painting contractor bosses, is tired of the revenue roller coaster that he and many solo craftspeople ride. His recent 50th birthday was a turning point of sorts.

“I guess I’ve reached a point in my life where I think it’s time to put this together,” Levine said.

He would like to build up his business enough to keep two or more painters busy and perhaps focus his own painting efforts on decorative finishes. His wife, Rosemary, who manages a medical office, has helped with marketing and customer relations. She’s ready to lend a hand again to help the painting business regain momentum, he said.

The couple is typical of many small-business owners, said consultant Paul O’Reilly. They talk about their business and what they need to do but not in the structured way needed to make progress.

To become more effective, Levine must learn to set goals and create a to-do list to meet those goals, O’Reilly said.

High on the list should be identifying the competitive advantage of the business and promoting that advantage to target customers, the consultant said.

“Frank knew he ought to do a lot of these things, but maybe it wasn’t clear how to do it or in what order,” said O’Reilly, the principal of O’Reilly & Associates, a Los Angeles consulting firm for work-force and economic development. He is a former vice president and consultant at Valley Economic Development Center and the former owner of a marketing consulting firm.

The first thing he discussed with Levine is the need to treat his painting as a business, not as a hobby or an artistic pursuit. That can be a challenge for craftspeople in particular because they may be uncomfortable with the idea of themselves as profit-oriented or with their lack of business skills.

Levine needs to take a mental step back from his painting activities and think about the needs of a growing business, including strategic planning, new-business development and marketing.

To determine which areas he should spend the most time on, Levine must set specific goals for his business, the consultant said. Goals will provide the structure needed to evaluate his ideas for the business and act on them effectively.

A basic goal-setting exercise for any business owner is to determine how much money he or she wants to make each year, O’Reilly said. It sounds simple, but many business owners fail to answer that question.

Levine said he’d like to clear $75,000 a year. To determine how many painting jobs that would take, he had to figure out his profit on an average job. He and the consultant figured he made about $1,500 on an average $6,500 house-painting job. So, Levine would have to paint 50 houses each year ($1,500 x 50 equals $75,000) to reach his goal.

Fifty jobs a year is too much for the company at present, particularly because the work probably would be compressed into the seven-month “painting season” that runs from mid-April through Thanksgiving, according to Levine.

To meet his profit goal, the business owner would have to reduce costs so his profit on an average $6,500 job is higher or he would have to figure out how to do jobs that people will pay more for, O’Reilly said.

Whichever path Levine takes, he needs to draw up a schedule of activities to keep him on track, O’Reilly said. The consultant recommends the activity schedule to nudge business owners toward doing a certain amount of business development and marketing each day.

“If this is a business, you aren’t just a painter who arrives at a job,” O’Reilly said. “You are the person who gets the job and there are all sorts of activities you will have to implement to do that.”

Levine said he will try to cut his costs where possible to increase his profit margin. But O’Reilly also offered detailed recommendations for a marketing program that has the potential to build a higher-profit business.

His first step should be to conduct a customer survey asking for feedback on company strengths.

The survey could serve three purposes for Levine, the consultant said. It could help him identify his competitive advantage, allow him to ask for testimonials and for referrals. And it could lead to more work from a previous customer.

“All in one phone call,” O’Reilly said.

Levine’s next step should be to set up what O’Reilly called a visibility program. The program is meant to strengthen and reinforce Art & Craft of Painting’s image in every way. O’Reilly recommended creating a new logo and slogan, then using it on crew T-shirts, hats and coveralls, business cards and fliers, as well as the company truck.

Levine should be prepared to pay for a quality logo and should consider bartering his services for the graphics work and materials he would need. And he should ask his barter partners for referrals, O’Reilly said.

As part of the visibility program, O’Reilly also suggested that Levine pick a bright, memorable color for his company’s equipment and that he offer customers a 10% discount on their jobs if they allow Levine to post a sign advertising his business on their lawn.

The consultant also recommended Levine choose one business name and use it consistently on everything related to his company. He suggested that because Levine’s Web site,

https://www.gr8painter.com, has a different name than his business.

A potential competitive advantage, being on budget and on time, became the basis of the third marketing tool O’Reilly recommended. He suggested Levine set up an on-time job completion program, a service that he said costs nothing except to plan well and stay on schedule.

Under the program, Levine would bring a checklist of issues the customer has to determine before a job starts, such as colors and repairs. The checklist also should give the customer a clear idea of the specific preparatory steps and the costs.

The business owner also should note the promised start and end dates, O’Reilly said. That information should go on an announcement card sent before starting a project. The card could also include a brief list of things the customer needs to do before a job starts.

In addition to giving a copy of the start and end dates to the painting crew, O’Reilly suggested placing a larger version prominently on the job site. The idea is to show that Levine is a contractor so committed to punctuality that he’s willing to advertise it.

A thank-you note and small gift should be sent when the job is done. O’Reilly suggested a clock or watch with Art & Craft of Painting’s new logo or a photo of the customer in front of his newly painted house in a frame with the company logo on the back. Every customer should receive a follow-up survey within a week of the job’s completion, he said.

Time could be the focus of all of the company’s promotional materials, the consultant suggested.

Levine already has a product in place that could bring him more profit. He recently began to offer a high-grade European paint that he said costs more but lasts longer than most domestic paint. Domestic paint, he said, is regulated for environmental impact but not for quality. That can mean chalk fillers that aren’t allowed in the more highly regulated European paint. For a homeowner who plans to stay put, the annualized cost of the European paint is less than domestic paint, he said.

O’Reilly suggested Levine offer two levels of service. One, perhaps called the Professional Paint Job, he said, would offer a good, thorough job using quality domestic paint with a certain time guarantee. The Master Paint Job would use the higher-quality European paint, offer other extras and include the longer guarantee the European paint manufacturer offers. The Master Paint Job should be priced to earn a higher profit margin, O’Reilly said.

As a final step, which would work for many business owners in the crafts or trades, O’Reilly suggested that Levine upgrade his customer relations. He’d like to see the owner create a portfolio of photographs of his work, including the decorative finishes he offers and written testimonials. Levine might want to barter for the services of a professional photographer, he said.

Levine should take his time making changes, O’Reilly said. He’d rather see the business owner take a few steps he can sustain than start half a dozen things he can’t finish.

“Consistency is the key,” O’Reilly said. “Creativity is wonderful, but consistency is much more impactful.”

Levine said he’s on his way.

“I’ve started using some of the stuff Paul recommended and by golly it’s working,” the business owner said. He has put together the customer survey and was stunned that when it came time to ask for a referral from a recent customer, he received two. He’s registered a new Web site name, https://www.artandcraftofpainting.com, and has abandoned his practice of sending out a bid and forgetting about it.

Two follow-up calls on a recent bid won him the job, he said, despite his higher price.

“He just got me to think about it more as a business,” Levine said.

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Cyndia Zwahlen can be reached at cyndia.zwahlen@latimes.com.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

This Week’s Business Make-Over

Company name: Art & Craft of Painting

Headquarters: Los Angeles

Type of business: Interior and exterior painting, faux finishes

Status: Sole proprietorship

Owner: Frank Levine

Founded: 1989

Start-up financing: $800 credit at local paint stores

1999 sales: $55,000

Employees: Two

Customers: Homeowners

Main Business Problem

* How to generate a steady flow of profitable business.

Goal

* To have a medium-size shop that specializes in high-quality painting.

Recommendations

* Treat the operation as a business.

* Set specific goals.

* Create a schedule of activities.

* Implement a customer survey and referral program.

* Identify the business’ competitive advantage and promote it.

Meet the Consultant

Paul O’Reilly is the principal of recently formed O’Reilly & Associates, a work-force and economic development consulting firm in Los Angeles. Previously, he was vice president of the Valley Economic Development Center. He has also owned a marketing firm and taught the subject at Pepperdine University.