Managing expenses without compromising quality or productivity is a crucial skill. This week on Small Business Celebration, we had the pleasure of speaking with Lee’o Whisenant, owner of Old Ironsides Construction. Lee’o’s journey from serving in the Army to working in insurance and finally embracing his passion for construction is nothing short of inspiring. He shared about how his business is leveraging expenses without compromising quality.
Who is Lee’o Whisenant
Lee’o Whisenant’s career evolution from Army to construction was a shift made out of necessity. While serving, he became a disabled veteran leading to an unexpected life change. Before starting his construction business, Lee’o worked in insurance and taught at Cal State. During weekends, he took on side construction projects, gradually realizing his love for building and creating tangible results. Encouraged by his business partner and leveraging his status as a disabled veteran, Lee’o decided to get his contractor’s license and embark on his entrepreneurial journey.
Transitioning to Construction Full-Time
Lee’o’s background in the military provided him with a unique perspective and discipline, proving invaluable in his business endeavors. His interest in construction was sparked by his first job framing houses at the age of 18. The sense of pride he felt from building something tangible stayed with him, even as he transitioned to safety and risk consulting. Eventually, the desire to return to construction led him to make the bold decision to pursue it full-time.
The Chaos of the First Year
The first year of running Old Ironsides Construction was marked by chaos and unexpected challenges. Financial and operational struggles were daunting, but they taught Lee’o valuable lessons about business management. One of the most significant realizations was the importance of having the right people on the team. This insight would later play a crucial role in leveraging expenses without compromising quality.
Shifting from Residential to Commercial Work
As Old Ironsides Construction grew, Lee’o recognized the need to expand from residential remodels to commercial projects. Residential projects, although rewarding, have financial limitations. Transitioning to commercial work opened new opportunities and required strategic planning, including obtaining bonding capability to bid on larger projects. This shift is a key factor in the company’s growth and sustainability.
Leveraging Expenses Without Compromising Quality
One of the most insightful parts of our conversation with Lee’o was his approach to managing expenses without compromising quality or productivity. Initially, this process was driven by his partner, Patrick, who identified areas where reductions could be made. Lee’o candidly admitted his initial resistance to some of these changes, but Patrick’s strategic cuts proved to be effective.
Here are some key strategies Lee’o and his partner implemented:
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Reduce Payroll Efficiently:
Patrick suggested reducing payroll significantly, which initially seemed risky. However, this move uncovered how a smaller team of highly productive employees could achieve more than a larger, less effective team.
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Eliminate Ineffective Expenses:
They scrutinized monthly expenses and identified services and subscriptions which were not yielding sufficient returns. Cutting these costs streamlined operations and improved profitability.
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Focus on Core Advertising:
By analyzing their advertising efforts, they focused on channels delivering the best results and eliminated those not contributing to growth.
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Trust and Delegation:
Lee’o learned to trust Patrick’s decisions and delegate responsibilities. This trust allowed for more effective management and decision-making processes.
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Leveraging Subcontractors:
They shifted towards using specialized subcontractors for specific tasks, which increased efficiency and ensured high-quality work.
Hiring the Right Employees Through Staffing Agencies
Another significant aspect of Old Ironsides Construction’s success is their innovative approach to hiring. Initially relying on internal referrals and traditional advertising, they eventually partnered with a staffing agency. This partnership led to a hybrid hiring solution:
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Initial Screening:
The company conducted initial phone interviews to assess potential candidates.
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Staffing Agency Processing:
Candidates who passed the initial screening were sent to the staffing agency for paperwork and further evaluation.
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On-Site Trial:
Potential hires were brought to the job site for a trial period, allowing the team to assess their skills and fit within the company. This practical approach ensured only capable and reliable workers were hired.
Lee’o’s partnership with Harold Brown from Continental Labor and Resources has been particularly fruitful, highlighting the importance of networking and maintaining professional relationships.
The American Dream and Resilience
Lee’o’s story is a powerful reminder of how the American dream is alive and well. His journey from the Army to insurance and finally to building a successful construction business showcases the possibilities available to those who are willing to work hard and adapt. He emphasizes the importance of perseverance, adaptability, and not being afraid to change strategies or business models when necessary. There are many ways businesses can be leveraging expenses without compromising quality.
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Reach out to our guest’s website: Old Ironsides Construction