Table of Contents December 2007

Features

• Marketing on a Shoestring

  According to experts, how much to spend on advertising can range from 2% to 16% of gross revenue depending on where you put your dollars — print, yard signs, Internet, TV. Knowing where to advertise means knowing which market to target, what differentiates your company from another, and what type...

   
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  2007 Business Benchmarking Survey

  How do remodelers measure their companies' financial performance?

   

Other Articles

• Marketing on a Shoestring

  According to experts, how much to spend on advertising can range from 2% to 16% of gross revenue depending on where you put your dollars — print, yard signs, Internet, TV. Knowing where to advertise means knowing which market to target, what differentiates your company from another, and what type...

   
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  2007 Business Benchmarking Survey

  How do remodelers measure their companies' financial performance?

   

View Point

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  Remodelers Draw on Past Wildfire Experiences

  Final tallies on the destruction due to October's wildfires in Southern California were not available as of press time, but estimates in early November ranged from 1,500 to 2,500 homes destroyed, with more than a half-million acres burned.

   

• Tough Love

  I try not to get preachy in this column. While I see it as part of my job to point out where you might try doing things better or a bit differently, at heart I am an advocate for remodelers. Having been one myself for 20 years, I know how hard your job can be. You've already got employees, subs...

   

Commentary

Linda Case

• A Spirited Send-Off

  Many remodelers give clients some sort of holiday gift as a thank-you for business. Michael Spreckelmeier, owner of Progressive Builders, in Fort Myers, Fla., elevates this tradition to a higher level. His system builds upon company culture by having staff work together to customize gifts for...

   

Mark Richardson

• Entrepreneurial Excellence

  It's easy to use the words “leadership” and “success” without thinking too much about them. When we speak or hear these words, we have a clear sense of what they mean. And, like the concept of “quality,” given examples of specific people or organizations, we can usually identify those who fit these...

   

Shawn McCadden

• Relentless Hope

  Optimists by nature, most remodelers are also good, caring people — admirable traits that often, unfortunately, conflict with one another. Because we're optimists, we want things to work out, such as new hires and big projects. Because we care, we want to give the employee or the client plenty of...

   

Your Business

Ways + Means

• People + Skills: Market Down, Employees Up

  One of the most difficult aspects of building a business is finding the right people. So when a slow marketplace threatens the need for layoffs, most savvy businesspeople fight it tooth and nail.

   
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  Lower Audit Anxiety

  Those workers' compensation and general liability insurance policies you're holding are really just estimates. Six months after they expire, an auditor will knock on your door looking to figure your actual premium amount. It's based on exposure or, for workers' comp, how many people you have on...

   
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  Now You See It

  About 10 years ago, Jay Riordan, owner of Dream Design Builders in San Diego, realized that while developing a design, he wasted a lot of time going back and forth between a client's home and the office. On one particularly difficult project with a slew of adjustments, he says, “We finally sat down...

   
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  Apt Description

  When Dave Myers joined J. Francis Co. in Pittsburgh, the company had no job descriptions. “Everything was loosey-goosey,” he says. But after several peer review meetings, one group member told them to get serious or get out. “We were in business 14 years before we wrote our first job description,”...

   

Bottom Line

• Maximizing Relationships

  For many remodelers, their accountant acts as a narrow-focused clerk. Good accountants, however, can be helpful advisers. With their specialized training, varied experience, and big-picture viewpoint, accountants make natural partners.

   
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  Retirement Plan Option

  The 412(i) plan is a retirement investment option for small-business owners with a high, stable income who need to catch up on adding funds to their retirement savings.

   

Sales + Marketing

• Quality Connections

  In a business where good leads are critical, joining networking organizations is a no-brainer. But finding the right fit can be a challenge.

   
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  What's in a Name?

  After years of operating under a particular company name, many remodelers find themselves at a crossroads. Perhaps the name no longer has the same ring it did a few decades ago, or the company has taken a new direction.

   

Field Notes

• Employees on Edge

  The market slowdown has made job security a real concern for many remodeling professionals. If you foresee slowdowns, I suggest these practices for shoring up morale:

   

• Bottoms Up

  Monthly production meetings at Basnett Design-Build-Remodel had a tendency to wander and to produce too few action items. So Jim Basnett and his production team at the Littleton, Mass., company, set a day and time, and created an agenda and a required attendance list.

   
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  Sales on the Side

  Besides earning a salary for full-time production responsibilities, the two project managers at Kanon Group, in Towson, Md., can earn thousands more by selling small remodeling jobs that don't require a designer, including basements, bathrooms, and some kitchens.

   

By Design

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  Restorative Venture

  Bringing an old home into the 21st century is a delicate balance of preservation, renovation, and restoration. “Sometimes the original design is the best design, and restoration, rather than renovation, is the best design approach,” says Ruth Kantar of Sage Builders.

   

Tech@Work

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  In the Groove

  Creating your own network database doesn't have to be complicated or expensive. Thanks to Microsoft Office Groove 2007, a collaboration software program that comes with most Microsoft Office packages, creating shared workspaces and storing group-accessible documents is no longer just for the...

   

Good Form

• Task Manager

  To keep monthly meetings on task, Basnett Design-Build-Remodel in Littleton, Mass., created this form based on suggestions from the project supervisors in the field.

   

Big50

Close Up

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  Profile: Alex Dean

  Ask most any remodeler about the long-term goals for his business and you'll be sure to find at least one common denominator: the desire to get the company to the point that it operates without the active participation of the owner. Alex Dean, of The Alexander Group, in Kensington, Md., is no...

   

Second Look

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  Second Look: Paul and Nina Winans

  As exit strategies go, Paul and Nin Winans' was both specific and open-ended. In 1998, 20 years after founding Winans Construction in Oakland, Calif., "we agreed that by December 31, 2008, we would be out of the business," says Paul. This summer, well ahead of schedule, the couple sold the highly...

   

Solutions

• BIG 50 Solutions: Q+A

  How do you identify leadership qualities in your staff?

   

K+B

Management

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  Baby Boom Business

  In January 2006, the first wave of baby boomers turned 60. Over the next several years, some 75 million of that generation will reach or approach retirement age. For remodelers, this represents a huge market opportunity. Scott McCollum of McCollum Associates, in Dallas, and Bob Bell of Bell's...

   

Spec Book

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  Toilets: American Standard, Duravit, Gerber, and Caroma USA

  Featuring four toilets as options for a remodel.

   

Sustainability

Green Speak

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  Tool Runner

  A few years ago, Travis Semmes worked for a company building houses in remote locations on the coast of central California. The crews had to use fuel generators to power their tools.

   

Green Spec

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  Green Solutions for all Four Walls

  A variety of green building products.

   

Products

Trends

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  Light Tech

  As more manufacturers offer lower-priced lighting-control products, builders and remodelers have the opportunity to make system packages an option or upgrade to their designs. According to the Consumer Electronics Association, 57% of home builders offered automated lighting controls in 2006, up an...

   
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  Small Gets Big

  Thanks to battery technology advancements, cordless tools pack more power, and new improvements are driving them to become more compact, as well. “The actual motor performance is getting better, and we have the ability to deliver more power out of a smaller motor,” says Shane Moll, Milwaukee's vice...

   
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  Strong Side

  Though vinyl remains the least expensive and most used siding, fiber-cement continues to make strides in the market. Known for its higher-end appearance, durability, and green qualities, fiber-cement is expected to lead siding in growth through 2008, reaching almost 14 million squares, according to...

   

In Focus

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  Trucks & Accessories

  The latest in trucks & accessories.

   
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  In Focus: Safety Equipment

  A few featured items in safety equipment.

   
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  In Focus: Rough Hardware

  Nails, blades, and foundation products.

   

Other Articles

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  Making Overtime Pay

  When employees work overtime, you are obliged to pay them time-and-a-half. That sounds expensive, but OT hours don't really cost 50% more than regular hours. In fact, under normal circumstances, overtime costs about the same as straight time.

   
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  Hot Competition

  Twenty college and university teams entered zero-energy houses in the Solar Decathlon held in October, in Washington, D.C. The houses were evaluated in 10 categories including architecture, engineering, livability, heating and cooling, water heating, and powering lights and appliances.