Financial Management

Ep.72: [Unscripted Back-Up] Building a Successful, Profitable Remodeling Company with Brandon Bailey

It’s time for another Unscripted Back-Up. It’s a chance to revisit some of our best and most informative episodes. They’re jam-packed with information you can use — so if you missed it the first time around, here’s your chance to catch up.

Growing your remodeling company is filled with pitfalls and challenges that can prevent you from getting to the next level successfully. So many of our Roundtables members say it takes hard work, yes, but also a concentrated focus and a willingness to look for help from outside your organization when you need it.

In this episode, Victoria and Mark talk to Brandon Bailey, who’s a textbook example of a successful remodeler who made the right moves after deciding to significantly grow his business. 

Brandon is an owner of Bailey Remodeling & Construction, a design build company in Louisville, KY. After starting his business in 2005, Brandon was where many of our members were when they were starting out — producing good, reputable work but spinning their wheels with long hours, no systems in place, and no predictable revenue model. Sound familiar?

In 2009, Brandon and his business partner, Jon Steimel, set out to significantly change and grow their business. They’ve done a fantastic job, their awards include being named the 2017 Remodeler of the Year by the Building Industry Association in Louisville.They won two project awards from BIA in 2019. They are now have 10 team members and are looking for more.

Brandon talks about how the company has managed its growth, things to look out for, and what it has meant for the business and his life, including:

  • The specific challenges when growing
  • Finding outside resources to help his business
  • What it was like working with a business coach and peer group
  • Which KPIs to keep an eye on
  • Growing his team beyond the two partners
  • Building a sales system
  • Establishing a consistent and predictable revenue model
  • Increasing net profit
  • What his business and day-to-day life is like now
  • And more …

Brandon’s story will sound familiar to so many remodelers, and the steps he has taken to build a more successful, profitable remodeling company can be guide your own journey.

Join Remodeling’s Top One Percent

Brandon is a fantastic example of a business owner who took advantage of the Power of Roundtables. Our program is a world-class peer advisory service that brings together smart, motivated remodeling professionals, just like you, to help one another grow.

Want to learn how you can participate in this experienced braintrust? Learn More Here >>

Ep.71: Strategy Isn’t Enough with Brian Gottlieb

A successful remodeling business isn’t only dependent on tactics or the larger strategy behind them. A company’s culture plays a crucial role in executing any business strategy. 

In this episode, Brian Gottlieb discusses the key steps needed for a business to implement their desired strategy with Victoria and Mark.

Brian Gottlieb is the founder and CEO of Tundraland Home Improvements, which serves all of Wisconsin. He started his business on a plastic folding table, with just $3,000 in cash. Today, Tundraland employs more than 220 people, and revenues  are in excess of $42 million. We’re excited that Brian will also be a speaker at the Remodelers Summit in Orlando this September.

He defines strategy as an integrated set of choices an organization makes to position against the competition, add value to their customers, and add value to the company. Brian’s “a-ha” moment came last summer, when he understood that when a community is at its full potential, we’re all in a better place; and when an organization is at its full potential, we’re all in a better place. He calls Tundraland a training organization — developing an employee to his or her full potential is a key point of the company’s  strategy. Brian describes the four ways to define your culture, and how to make it stronger, including:

  • How building a strong culture is like building a ship
  • How realizing potential depends on others
  • Why Brian doesn’t have drawers in his office
  • Examples of the wrong strategies
  • Knowing how to add value for you customers
  • Why you shouldn’t hire people like you
  • Finding the root causes of your weaknesses
  • Why throwing dollars at a problem doesn’t work
  • The differences between vision and a road map
  • Why firing someone should never be a surprise
  • And more …

Including how Brian sees his role in his organization, what he does, and what it means to the culture of his organization.

See Brian Speak at the Annual Remodeler’s Summit

We’re thrilled that Brian will be joining us for two sessions at the 2019 Remodeler’s Summit, Sept. 24-25, in Orlando:

To learn more the Summit event and our line-up of other great speakers, go to Remodelerssummit.com!

2019 Remodelers Summit

Ep.58: How LEAN Principles Have Improved My Business with Paul Kowalski

We’ve talked about LEAN before on the show with our own experts, but you may wonder what it looks like in the real world. Today we’ll hear about using LEAN in the remodeling business from an award-winning design-build company that focuses on residential remodeling.

In this episode, Paul Kowalski shares his experiences in applying LEAN in his business with Victoria and Mark. His company recently implemented the process, and he says the results have already been eye-opening.

Paul Kowalski is the owner of PK Builders in Charlotte, NC, and a member of our Remodelers Advantage Roundtables group. PK Builders has a team of eight, including Paul, with four Project Managers, an Estimator, and a Draftsman.

PK Builders was experiencing growing pains in 2018 — bottlenecks in the design-build process, some cash-flow issues, higher overhead, so they called in Doug Howard for help. Paul says it was intimidating at first, but soon becomes second nature to look for ways to speed up processes. It started with 16 feet of paper festooned with sticky notes detailing steps in the design process. They began by diving into the design process, and he discusses how they did it, including:

  • Explaining it to your staff
  • Sharing in chunks
  • Finding the hiccups
  • Why the people closest to the work have the best feedback
  • Getting over the intimidation factor
  • Timelines and swim lanes
  • Not including time for revisions
  • Building in collaboration up front
  • Unintended consequences
  • And more …

Paul and his team are deep in the LEAN process, and excited to see what their future brings, including how it affects their positive cash flow. They’ll be looking at the Production process as their experience with LEAN continues. We’ll check in with Paul on how it’s going in the future.

Here’s that 16-ft. piece of paper!

Getting LEAN

See the video Paul talks about outlining LEAN principles from the Food Bank For New York City on YouTube.

If you want to learn more about LEAN, and download the free process mapping tool, go to leanremodeling.com.

Ep.53: Growing a Company from Stage 3 to Stage 4 with Jef Forward

There are five stages of company growth, according to Judith Miller, one of our consultants and facilitators. Transitioning from Stage 3 to Stage 4 is one of the more complex. It takes a substantial shift in the owner’s responsibilities and skill sets. It can result in a much higher job satisfaction level, financial return, and working much less.

In this episode, Jef Forward explains how he managed this tricky move to Victoria and Mark. It’s a process he planned and implemented over years, and it had challenges and surprises for everyone in the organization.

Jef is a co-owner with his wife, Monica, of Forward Design Build Remodel in Ann Arbor, MI. Jef has participated in Roundtables at Remodelers Advantage for many years, and is now a member of Mentor FOR. Over the last six years, they have had substantial growth in the business and increased customer satisfaction and net profits through a team approach.

Jef talks about how the process has worked for his company, and what it takes to get there. It demanded a great deal of self-reflection on his part, as he moved out of the role of doer to teacher and had to become a better leader. He talks about understanding your priorities and how they might shift, and getting buy-in from your team, including:

  • Your company culture
  • Working the plan
  • Getting accurate feedback
  • Letting people fail, and teaching from that
  • Becoming a proactive, not reactive company
  • Why it’s not all about you
  • And much more…

Regardless of the growth stage of your company, Jef’s got workable advice to make your business and life better and more rewarding.

Some Background Info

If you want to brush up on Judith Miller’s stages of growth as discussed in the episode, here’s the article.

For more explanation of the DISC profile and what it can do for your business, listen to Episode 45: Using Tools to Find the Best Talent with Rick Bowers.

Ep.50: LIVE from the Extreme Business Makeover in Baltimore

For our 50th episode, we gathered a panel of industry experts and took questions from the audience at the Extreme Business Makeover in Baltimore at the the end of January 2019. It capped off an intense two days of learning, sharing, and networking among the remodelers attending and our Remodelers Advantage team.

In this episode, Victoria and Mark direct the lively discussions with our panel. We were joined by:

We talk profits and payroll, cash flow, the owner’s role in a growing business, margins, staying top-of-mind in your marketing, smart lead qualifying, planning and making decisions on your job sites, and the power of asking “why?”  

It’s an insightful and all-encompassing discussion of how to run your business to get bigger margins, more profits, and creating a real life/work balance. If you missed it, you need to listen to this episode.

 

Ep.49: How, Who, and Why to Build a Leadership Team with Steve Barkhouse

You’re not running a successful company unless you have a good work/life balance. But there’s only one way to sustainably grow your company without sacrificing your life, and that’s by having a strong leadership team.

Steve Barkhouse stops by to give Victoria and Mark a crash course in how and why you should have a leadership team — and who should be on it.

Steve is the president and co-owner of Amsted Design-Build in Ottawa, ON. Steve has a well-deserved reputation as a thoughtful, logical, and caring business owner. Steve founded the company in 1989, and it now produces  over $10 million annually. He’s a long-time member of our top-performing Roundtables group, and the recipient of the 2018 Remodelers Advantage Impact Award.

Steve and his co-owner decided to start a leadership team at their owners retreat about a year ago. They researched the different models, and picked the Entrepreneurial Operating System. Steve talks about why EOS was the right fit for Amsted, and also about the other systems they didn’t pick. He details their process, including:

  • The differences between a leadership team and a management team
  • The importance of having a facilitator
  • How they picked their leadership team and got lucky
  • The six benefits of a leadership team
  • How often they meet
  • Who runs the meetings
  • What the agenda is
  • And a whole lot more…

Forming the leadership team was the best decision he ever made. “Outside of joining Remodelers Advantage, of course,” he says.

Ep.48: How to Hit Healthy Net Profits in any Economic Climate with Mike Medford Sr.

One of our core principles is that remodeling companies should make a good net profit, after paying the owners an above-average salary. When the economy’s booming, you can get away with a lot and still hit those goals, sometimes by accident. But the goal is to get those healthy net profits consistently, year after year, even in a downturn.

In this episode, Mike Medford Sr. talks to Victoria and Mark about how to do just that. Before seeing the metrics of the Top Ten Roundtables members a few years ago, Mike says his financials were always in flux. But then he took those figures and made them hard targets.

Mike Medford Sr. has been a home remodeling contractor for over 40 years. In 2007, he partnered with his son, Mike Jr. to form what is now Medford Design Build, with offices in Colleyville and Arlington, TX. Mike Sr. is the president of Medford Design Build.

Mike challenged himself and his team to hit the new fixed targets. He refined their processes, and challenged his team to hit those targets. By the next quarterly meeting, the company’s profits were rising. He talks about how he and his team made it happen, including:

  • Creating a profit-centric culture
  • How net profits will help you beat the labor shortage
  • Focusing your staff on gross profit
  • The importance of open books to the process
  • Setting up a bonus structure
  • Building time in to plan
  • And more…

Mike also talks about getting back to the art of contracting and how important that is to your margins.

Ep.46: Onboarding the Most Vital Roles in Your Company with Jackie Shaw

Your accounting is a vital part of your business. You’ve spent valuable time hiring a new accounting staff member. Now what? Too often, owners think the new hire will be able to sit down and get to work with no introduction to processes and policies of the business. This can be a costly mistake.

Accounting is the story of your business in numbers, Jackie Shaw tells Victoria and Mark in this episode. Properly onboarding a new accountant or bookkeeper will keep that story from becoming a tragedy.

Jackie, the founder of Get Organized! LLC, is one of the QuickBooks gurus who support our members — and they love her. She gets paid to clean up a lot of accounting disasters and has seen first-hand how quickly a new bookkeeper can destroy your books. She’s here to help you get the right systems in place so you don’t have to pay anyone to clean up after a bookkeeping hire goes wrong.

“A bookkeeper can kill a database in a week,” she warns. That’s why, Jackie says, when onboarding new hires, they must do everything the same way they were done before, and they need to study prior entries to figure that out. And you have to forbid them from making changes for at least a month. Other things you should keep in mind when onboarding and working with a new hire include:

  • Not making assumptions
  • Experience doesn’t mean competence
  • Why you don’t want your bookkeeper to take ownership of the books
  • The importance of financial SOPs
  • Why accounting can be like an archeological dig
  • And more…

Including the methods you can use to safeguard your company against embezzling. If you thought talking about accounting was going to be dry and boring, then you have to listen to this episode — it’s lively!

Ep.39: How NOT to Grow Your Remodeling Business with Judith Miller

The Great Recession gobbled up a whole slew of remodeling companies, but more of them fail during an economic expansion than during a contraction. Growth is great, but it’s risky, and knowing how not to grow will put you ahead of the game.

In this hot market, there are so many opportunities, you can get ahead of yourself too quickly for the health of your company. And that’s where remodeling company owners get into trouble by growing the wrong way. There are potential downsides, and to avoid them, you have to keep you basic best practices — and customer satisfaction and net profits lie at the center, says Judith Miller.

In this episode, Judith joins Victoria and Mark to talk about the ways to grow your company the right way.

Judith has been a facilitator for Remodelers Advantage Roundtables for more than 15 years. She’s a QuickBooks expert, the author of The Remodeler’s Ultimate Guide to QuickBooks, and has been a columnist for Remodeling magazine for more than 10 years. Judith isn’t just a financial guru, she’s a high-level strategist who understands that numbers prove your strategy. She loves the challenge of helping good remodelers become better every day.

When trying to grow, the biggest stumbling block is a lack of control, preparation, and not focusing on the best practices. Judith tells you what those best practices are, and how to grow the right way, while explaining the details, including:

  • The critical need for leadership
  • Why your financials have to be in order
  • The Top 5 things you need to do to build a strong, profitable company
  • The predictable stages of growth — and which is best to grow in
  • How large you can get
  • Why hiring a sales force is the riskiest transition
  • How to build a company you can sell
  • Why growing over 20% may be crazy
  • And more…

You’ll also learn why “The Whale” projects takes too many remodelers down. Click here to go to the Growth Sustainability Calculator we discussed in the episode.

And if you need QuickBooks help, or want bring in Judith as a consultant for your business, you can email her at jfmiller@remodelservices.com.

 

Want More Ways to Improve Your Business in 2019 and Beyond?

We are excited to announce that we are re-launching and re-branding our annual January event, formerly known as the Master Your Remodeling Business Workshop. The Extreme Makeover: Business Edition Event has been re-tooled and re-focused on providing growing remodelers and renovators with the tools necessary to improve their businesses in 2019 and beyond.

In addition to Judith Miller, this 2-day event will feature well-known speakers such as Victoria Downing, Tim Faller and Mark Harari and bring in new faces like Doug Howard and the 2018 Fred Case Award Winner, Michael Sauri. For more information and to grab Super Early Bird discounts, CLICK HERE.

Ep.35: Why You Should Have a Personal Vision Statement with Dave Bryan

A personal vision statement charts your course — in life and in business. If you don’t have one, you might as well be lost at sea when you’re making decisions.

For Dave Bryan, his personal vision statement serves as his North Star, allowing him to plot his course through his life. “There are a million ways in any given day to get knocked off course,” he says. “Everything you do should be in support of your life, and having a personal vision statement can help you stay on the path and keep on track.”

In this meaningful episode, Dave talks to Victoria and Mark about the genesis of the idea for him, how he did it, and gives tips for how you can write your own. Most importantly, he shares his reasons why you should.

Dave president of Blackdog Builders, with offices in Salem and Amherst, NH. After starting his business in 1989, he’s built Blackdog into a strong, consistently profitable business, with several diversifications under its umbrella. Dave is an entrepreneur who is known for the discipline and care with which he runs his company. Dave is also one of our popular Roundtables facilitators, where he shares his story with the groups.

Being an entrepreneur can be lonely, with no one to keep you accountable. Planning your life and using a personal vision statement can help define your goals. Dave’s path to writing his own statement began with the recession in 2008. “It was brutal,” he says. But defining the goals and intentions for his life going forward was a turning point.

You’ll hear Dave’s personal vision statement and learn why he won’t share it in written form. But you have to do the work yourself for your own, he says. Dave covers how to develop your personal vision statement, and what it can do for your life and business, including:

  • Creating a vision board as a first step
  • Why work is only a tool to build your life
  • How far out to plan
  • Working gratitude into your plan
  • What you learn when you look back

With all of the planning and goal-setting you do for your business, you may still be spinning your wheels if you don’t create the personal plan that forms a strong foundation for what you do — and why.

You can learn more about Dave and Blackdog at the website.

 

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