Running a remodeling business requires a level of responsibility that is vastly different than being a crew member on a jobsite and taking on tasks as assigned. Even if a remodeler is highly skilled in their trade, they may not have the formal training necessary to successfully run their own company.
For remodelers looking to take their businesses into their own hands, it is vital that they be equipped not only with remodeling expertise, but also the knowledge and tools to effectively run their own business, says Alan Hanbury, Jr., CGR, GMR, CAPS, MBA, an industry veteran and president of House of Hanbury Builders in Newington, Conn.
In the second installment of NAHB’s Remodeling Forecasts, Myths & Trends video series, sponsored by Lowe’s Pro, Hanbury examines five more misconceptions that are prevalent in the industry and could limit some remodelers’ business potential. These includes being at the mercy of inflation or using discounts as a tactic to help attract and retain new clients.
Hanbury transforms these myths into actionable advice that novice business owners can implement to help improve their bottom line. For example, he provides:
- Suggestions for how to mitigate inflation with non-fixed contracts, including overhead staff time in the billable rates.
- Time-saving strategies to consider instead of traveling to all callers to provide estimates. This may include asking qualifying questions to help rule people out or implementing fees for travel.
- Asking key questions before hiring new employees, such as “What additional overhead costs would hiring a new person trigger?” and “Have we maximized the efficiency of our current staff?”