Table of Contents October 2006

Features

• Required Reading: Financial Statements 101

  What follows are some insights regarding the P&L, also called the income statement, and the balance sheet.

   

• The Hidden Costs of Doing Business

  Losing money and can't figure out where? Look here first.

   

• They Want That!

  This is a story about the accelerating nature of change, the middle-Americanization of luxe living, and the opportunities that lie in understanding not only what really makes homeowners happy — but also knowing whether what they

   
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  Three to Watch

  Deep in the minds of many remodelers, one big question looms: What happens to my company when I retire?

   
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  The Association Junkie

  Through his efforts at teaching and writing and updating course materials, this year's Lifetime Achievement Award winner, MM “Mike” Weiss has helped raise the level of professionalism in the remodeling industry.

   

Before + After

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  Granting Asylum

  A clever adaptive-reuse project saves a 19th-century state hospital from demolition and proves profitable.

   

Other Articles

• Required Reading: Financial Statements 101

  What follows are some insights regarding the P&L, also called the income statement, and the balance sheet.

   

• The Hidden Costs of Doing Business

  Losing money and can't figure out where? Look here first.

   

• They Want That!

  This is a story about the accelerating nature of change, the middle-Americanization of luxe living, and the opportunities that lie in understanding not only what really makes homeowners happy — but also knowing whether what they

   
• 

  Three to Watch

  Deep in the minds of many remodelers, one big question looms: What happens to my company when I retire?

   
• 

  The Association Junkie

  Through his efforts at teaching and writing and updating course materials, this year's Lifetime Achievement Award winner, MM “Mike” Weiss has helped raise the level of professionalism in the remodeling industry.

   

View Point

• Figure This: Home Ownership Facts and Percentages from Aetna/Financial Planning Association

  Baby boomers (age 42 to 60) who have owned that many homes during their lifetimes.

   

• Storm Watch

  Hurricane Katrina reminded everyone in the remodeling industry that weather can affect their businesses. All over the country, materials prices spiked, and homeowners — concerned with rising gas prices and an uncertain economy — held their money a little tighter to their vests.

   
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  RMI: Not So Confident

  The August release of the Remodeling Market Index (RMI) showed a downturn in market demand in the second quarter of 2006.

   
• 

  Keen to Be Green: Sustainability is Popular in Remodeling

  Environmentally friendly building practices are a hot topic in the remodeling industry.

   

• Sea Change

  This month we introduce two new pages, GreenSpeak and GreenSpec. Together they make up a new department called “Sustainability” that will run every other month throughout 2007. GreenSpeak is devoted to helping you integrate sustainable thinking and practices into your business; GreenSpec sorts...

   

Commentary

Linda Case

• The Circle of Appreciation

  Giving praise doesn't come naturally to everyone. Remodeler Jay Van Deusen grew up in a household where doing things right was the expectation and deserved no praise. So when he started Van Deusen Construction, Bel Air, Md., he paid well, expected a lot, and considered that the end of the...

   

Mark Richardson

• A Balanced Outlook

  Make better business decisions by balancing emotions with facts.

   

Shawn McCadden

• Bricolage: The Ideas You Bring Back from the Remodeling Will Improve Your Business

  Just make sure you look at the big picture.

   

Guest Columnist

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  Design/Build Advantage

  For this architect, venturing into the design/build arena offers professional satisfaction.

   

Your Business

Ways + Means

• People + Skills: Slow-Market Prep

  As market conditions soften, communication from remodelers who need business has dramatically increased at our organization.

   

• Work+Life: Being There

  My team hit a snag on a job while I was away. Instead of resolving the issues and moving forward, they let the job sit until I returned. Why isn't my team able to do anything without me being there to oversee it?

   

• Giving It Away

  Kelly Vogan used to hand out a $20 bill whenever an employee volunteered a good idea or solved a vexing problem.

   

• Ready, Set, Store It

  Well before the usual selections stage, clients choose tile, plumbing and electrical fixtures, doors and windows, cabinets, and colors from MGD's showroom. They sign the drawings and are billed 10% to 20% of the contract sum, and the production person in charge of the job starts ordering as soon as...

   

• Relief From Afar

  In January Laura Calfayan found herself overwhelmed by a long to-do list. The principal of Calfayan Construction Associates, Huntingdon Valley, Pa., didn't want to hire someone full time, so through the recommendation of a marketing consultant Calfayan discovered outsourcing in the form of virtual...

   

Bottom Line

• Survey Share

  Once a year, three remodelers in the Nashville, Tenn., area conduct a wage and benefits survey of local remodeling companies.

   

• Children at Work: Suggestions from the VSCPA on Hiring Your Son or Daughter

  In an article titled “Hiring Your Children is Good Business,” the Virginia Society of Certified Public Accountants (VSCPA) offers suggestions to small-business owners who want to hire their children.

   

Sales + Marketing

• What's Not to Like?

  The answer: quite a bit, when it comes to homeowners' impressions of contractors. Two nationwide surveys conducted in March for Kimberly-Clark Professional explored this inherently tense relationship.

   

• Sales School 101: No Hablo Español?

  How do I gain traction with Hispanic homeowners? We get calls from people who speak such limited English that my staff and I (who speak little Spanish) can barely understand them.

   

• Markup Madness — Or Brilliance?

  His colleagues say he's crazy, but his prospects say, “Where do I sign?” Darius Baker, co-owner of D&J Kitchens and Baths, Sacramento, Calif., is referring to his new policy of disclosing his markups to clients and prospects. “Contractors try to hide these figures, and it becomes uncomfortable,” he...

   
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  Hitting Home on Offbeat Holidays

  Rekindle the romance with your home.” “Restore your home to its old glory.” “Gratitude … can turn … a house into a home.”

   

Field Notes

• Time Management, Part Three

  Find what you need, when you need it.

   

• Talent on Trial

  A good 20% of Anthony Cucciniello's new field employees last just two days, and he likes it that way.

   

By Design

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  Sketch Pad

  Although you can't completely avoid cross traffic or keep it out of the kitchen, it is possible to organize the flow to reduce interference with the work area. When remodeling a kitchen, fixing the traffic problems could be more important than the style of the cabinet doors.

   

Tech@Work

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  Home Technology Trends

  Gary Sasaki, president of Cupertino, Calif.–based Digdia, a company that provides strategic analysis and consulting for digital media industries, discusses trends in home technologies.

   

Good Form

• Keep the Cash Flowing

  Pat Raftery realized long ago the importance of tracking his cash flow. One instance of not having enough money in your bank account to pay all of your bills is enough to realize that you need to keep a handle on it.

   

Big50

Close Up

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  Profile: Chuck and Robert Vailes

  Vailes Brothers (Big50 1997), in Fishersville, Va., conducts customer surveys for several reasons. First, the “quality audit” gives the company a chance to immediately address any issues. Robert Vailes says the firm relies on past clients for future leads, so making sure they have a positive...

   

Second Look

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  Second Look: Bill Connor

  The past five years have been rough, admits Bill Connor (Big50 1990) of Connor & Co., Indianapolis.

   

Solutions

• Q+A: Gathering Feedback

  What, specifically, do you do with information received from customer satisfaction surveys?

   

K+B

Design Clinic

• Space Makers

  Three clever storage solutions that make use of space in unlikely places.

   

Management

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  Cabinet Extension

  A remodeling company expands its cabinet dealership to include contractor sales.

   

Spec Book

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  Showers & Tubs: Ceiling-Mounted Shower Heads, Shower Doors, and Bathtubs

  Products from Safety Tubs, Acryline, and Oceania Baths

   

Replacement

Decks

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  Gaining Space

  Using deck drainage systems, remodelers can create outdoor living spaces beneath elevated decks.

   

Siding

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  Vinyl Siding Update

  Since the 1960s vinyl siding has been sold as an exterior that doesn't need painting. But the color was prone to fading and the material was susceptible to damage from weather or windblown debris.

   

Sustainability

Green Speak

• Environmental Curriculum

  The National Association of the Remodeling Industry (NARI) is offering a green remodeling education program this year, and next year it plans to unveil a green certification program.

   

Green Spec

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  Surface Treatments: Plaster, Caulks, Flooring and Solar Tiles

  Products from Henkel, Open Energy, American Clay and Teragren

   

Products

Trends

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  That's a Wrap!

  Craftsman, colonial, even traditional porches — they're nothing without their columns. But mitering trim pieces to cover treated wood posts can be a bear, and leaving wood exposed to the elements (gasp!) is just asking for trouble.

   
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  Playing Matchmaker

  As homeowners increasingly focus on finishes and fixtures, some manufacturers are joining forces to create whole-house consistency with more attention to detail.

   

In Focus

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  Moisture Barriers & Mold Prevention: Exterior Paint, Sheeting, Flashing and Plywood

  Products from Cosella-Dorken, Zinsser, Green Guard and Georgia-Pacific

   
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  Home Theater & Electronics: Wall-Mounted Televisions, Speakers, and Intercom Systems

  Products from On-Q/Legrand, Paradigm, Runco and more.

   
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  Fireplaces: Gas, Electric and Direct-Vent

  Homeowners are still gassing up when it comes to fireplaces.

   

First Look

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  First Look at Heating Systems, Crown Molding and more...

  Increase construction efficiency with the ZIP System for walls and roofs. Wall panels (7/16-inch thick) and roof panels (½-inch thick) both feature built-in moisture barriers that won't tear or delaminate, eliminating the step of applying housewrap and roofing felt.

   

Other Articles

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  Practice or Business?

  Find out which business model is the best fit for your company.