Palzewicz teaching construction execs how to succeed with their businesses

Listen to this article

For a business coach, Tom Palzewicz has an above-average understanding of electricity.

“I was an electrician. At least, I was in the Navy. I was on a nuclear submarine, the USS Scamp, for four years, so I was nuclear electrician,” Palzewicz explained.

“I’m not an electrician today,” he quickly added, laughing. “I don’t know if I’d know how to do anything. But I understand the language.”

It’s part of the reason he reached out to the trades when he and his brother, Jim Palzewicz, started ActionCOACH of Elm Grove in 2005.

“We actually help them take a step back from their business and examine what areas are working and what areas aren’t working, and then we teach them how to build a business,” Palzewicz said.

From one-man start-ups to multi-million companies, ActionCOACH works with hundreds of businesses, including about two-dozen area construction companies, on everything from recruiting and hiring to finance and exit strategies. Palzewicz, who has an accounting degree, has even written a book about business finance, called “Consistent Cash Flow,” which includes elements of pricing and cash flow in construction.

After 15 years in banking, including five years as treasurer of U.S. Bank’s mortgage division, Palzewicz didn’t expect to start his own business.

Then, he said, “My brother and I were sitting around at our parents’ cabin in the U.P. We were drinking a beer on the porch one night, really complaining about our cushy corporate jobs, and we looked at each other and said, ‘What are we doing?’ That was 2001.”

They thought about working for themselves, but the idea sat for a few years, just a late night beer dream. And Palzewicz wasn’t sure what to do next.

“I wanted to teach and I wanted to make a lot of money, so when I found ActionCOACH, I said, ‘This is it! I get to teach things that can fundamentally change people lives and it can be very profitable, if done right.’”

When he started business coaching, Palzewicz realized there was a big need in the trades.

“Most of the guys I talk to are in their trucks between jobs. They’ve got guys in the field and someone back in the office, but they’re bouncing between jobs, running themselves ragged, working 12 to 14 hours a day. And some of them are making money. The ones who aren’t are kind of demoralized,” Palzewicz said.

“They don’t have the ability to create recurring revenue. They have to find projects, bid projects, do projects and then they’re off to the next project. If they’re not good at going and finding the business, they become subs; they have this group of people who find work for them and they just have to go out and get it done, but they have to give up some margin for that.

“The ones who can find the work but can’t find the team use subs, but, again, they give up some margin.

“The people who can find the work and build a great team get the biggest margins. They find work at their price, not other people’s prices. And it’s hard. I’ve had grown men in tears in my office because it’s a hard life and they’re doing the best they can with what they know. To me, it’s a lot more about a pricing strategy because you need that fuel to grow your business. Otherwise, you’re always chasing, chasing, chasing and it’s a really tough life.”

It’s part of the reason he encourages contractors of all kinds to find service work — work that helps other trades or companies that require service on a regular basis — to create recurring revenue.

It can mean the difference between growing and going under. And, Palzewicz said, he wants to see the trades succeed.

“Those are local jobs, and we’re about building local jobs. They’re great paying, great jobs for the community.”

The Daily Reporter: What surprises you most about your work?
Tom Palzewicz: The business owners themselves, having almost exactly the same issues yet almost all of them think they’re alone.

TDR: What would you change about the construction industry?
Palzewicz: I’d have everybody raise their prices; they’re killing each other.

TDR: What other job did you consider trying?
Palzewicz: I’ve done a whole bunch of things. But I love helping people grow.

TDR: What job would you not like to do?
Palzewicz: I wouldn’t want to be an accountant, even though I have an accounting degree. Being a business owner it’s hard to think about a job because, for most of us, once you become a business owner it’s hard to think about working for someone else.

TDR: What device could you not live without?
Palzewicz: Actually, it’s interesting — and this is the first time it’s happened to me in a while — I forgot my phone at work and I didn’t miss it. I’m not a device person. I think the Navy taught me that, because standing and watching a nuclear submarine is pretty boring. But I am addicted to political news.

TDR: What is the most useful thing you’ve learned since starting your job?
Palzewicz: People work the same way. All people would like some respect. They’d like to be heard. Almost everyone can be motivated, if inspired. And people want to give. I’ve probably had interactions with 10,000 people over the last 12 years. It just amazes me there’s so much people want to give and so much that can get in the way of that happening.

TDR: What would your colleagues be surprised to find out about you?
Palzewicz: That I love karaoke. My brother and I actually sang at quite a few weddings in the ‘90s. It’s been a long time since we did a wedding gig. But my wife and I will still go out every once in a while.