Business Owner

Ep.13: Buying Out Your Business Partner with Rick Goldstein

Business partnerships are a foundation that so many of our R/A Roundtables Members have built their remodeling businesses on… Whether it’s a family or a group of professionals coming together to form a business, each has its own story along the way.

In episode 13 we take a closer look at a scenario where one partner wants to buy another out and take sole ownership of the business. Victoria and Mark welcome Rick Goldstein of Mosaic Design + Build to the podcast and discuss the process that Rick went through recently to buy his partner out of their firm in Atlanta, GA.

Rick has been the Co-Owner, and now sole owner, of Mosaic for more than 12 years and has been an avid member of the Remodelers Advantage family for many years. Rick and his partner made the decision to move toward a buy-out years ago and Victoria and Mark discuss and ask about the challenges they ran into and lessons-learned along the way.

Victoria, Mark and Rick talk more about:

  • Developing a shareholders agreement – covering ownership transitions, scenarios, exit strategies, etc.
  • Obstacles to overcome (timing, emotional steps, valuation, etc.)
  • Bringing in consultants such as a business valuation firm to get an agreed-upon base line
  • Factors that are calculated in the valuation process
  • How roles and responsibilities play-in to the buy-out process
  • Getting accountants and attorneys involved to hammer out how to physically make the transition
  • Communicating to the company’s leadership and team regarding the process
  • Top three pieces of advice for any owner looking to make this transition

Whether you are considering this move for your remodeling business or not, Rick’s story is fascinating and definitely worth a listen!

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Ep.12: Growing a Strong, Successful Family-owned Remodeling Business with Dolores Davis

Building a business can be both a challenging and fulfilling adventure; Hard work, long hours, doing the little things behind the scenes to help grow the business, etc.

Many remodelers out there have not only built strong and profitable businesses, they have done so with the help of family, often spanning multiple generations.

Episode 12 covers both topics as Victoria and Mark talk with Dolores Davis, General Manager of CG&S Design-Build, a very successful family-owned remodeling business in Austin, TX.

The CG&S success story spans three generations of the Guerrero family. Dolores has been with the firm for 25 years, starting as a Production Assistant, learning the business from all areas and working her way up to her current role of General Manager. Dolores is a R/A Roundtables Member and is very active in industry associations such as NARI.

Victoria and Mark discuss 3-4 keys to success with Dolores and delve further into what has made CG&S so successful, not only a remodeling business, but also some of the challenges that working in a family-owned business can bring.

If you are a remodeling company that wants to take their business to the next level, this episode offers great insight into how to get there.

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Ep.11: Employment Law: The Good, Bad and Downright Scary, with Jen Cornell

If you are like most business owners, you don’t think about Employment Law until you’re faced with a complaint or potential lawsuit from a current or former employee. It’s inevitable… As you add employees and grow your company, the likelihood of facing a legal employment issue will increase as well.

When it comes to hiring, terminating and disciplining members of your team, there is so much to know and keep track of… You not only have state or territory regulations, but federal as well.

Our guest this week will tell you that anytime you run into a legal situation regarding an employee, the best course of action is to consult an expert… and that’s just what we did for Episode 11.

Victoria and Mark welcome Jen Cornell, an attorney at Nilan Johnson Lewis in Minnesota. Jen represents companies in litigation involving employees, including lawsuits, charges brought to government agencies, and investigations from government auditors.

Jen also specializes in preventive workplace audits and policy implementation, such as preparing employee handbooks, wage and hour audits, and immigration compliance.

Victoria, Mark and Jen uncovered so many different aspects of employment law in this episode, and they included:

  • Protecting your company from hourly disputes, lawsuits.
  • Timeframes to consider (2-3 years of records), penalties applied, etc.
  • Dealing with independent contractors transitioning to employees.
  • How laws apply to locations (jobsite, where the company is, where the employee lives, etc.)
  • Payment of employees, pay periods, minimum wages, etc.
  • How to handle discrimination complaints from current or ex-employees
  • Responding to charges from government agencies, document storage, etc.
  • Handling terminations and disciplinary issues the proper way
  • Importance of Employee handbooks and policies in place.

Don’t wait until you get that notice in the mail… Listen to this episode and start familiarizing yourself with some of the issues that may arise and derail the success you worked so hard for.

We would love to hear from you if you have questions or feedback about this topic, just use the comments area below. If you have specific questions regarding employment law, Jen Cornell can be reached at jcornell@nilanjohnson.com or (612) 305-7717.

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If you have a topic that you would like us to cover or know of an industry contact, author or thought-leader that you think others would like to hear from, let us know.

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Ep.08: Zero Punch List Production with Tim Faller

If you are going to have a podcast about the remodeling industry, it’s a no-brainer to have Tim Faller on your guest list, and I suspect he will be a frequent contributor to PowerTips Unscripted.

For the past 17 years, Tim has worked with remodeling companies, large and small, to help improve profits by creating smooth, efficient production systems. As a Senior Consultant and “Master of Production” for Remodelers Advantage, Tim’s field and business ownership experience is vital to his additional role as facilitator for Owner and Production Manager Roundtables Groups.

In Episode 8 Victoria and Mark welcome Tim Faller to the show as he covers a topic that he has been working on for the past 5-6 years as he tours the US & Canada, providing on-site production consulting – “Zero Punch List Production.”

Tim provides a great overview of the zero punch list strategy and describes in detail how he has seen companies successfully implement this process. According Tim, all-too-often remodelers put the onus or responsibility of completing a punch list on the client, thereby creating the perception that the job is being presented as incomplete.

As they explore the zero punch list theory and strategy, Victoria, Mark and Tim discuss:

  • Steps to successfully implement this within an organization
  • How this effects sales process, contracts, payment draws, etc.
  • Production Techniques & Checklists
  • How to handle Backorders
  • How to handle the final walk-through
  • Getting rid of Head Trash

…And then a Big Announcement!

As they wrapped up Episode 8, Tim announced that he and R/A’s Steve Wheeler have launched their own podcast, The Tim Faller Show … Episode Zero is online now and they will post new episodes starting on Monday, March 26thGo Check it out!

Ep.07: Is an ESOP Right For Your Remodeling Business?

When it comes to succession planning and determining an exit strategy from your remodeling business there are plenty of options to consider.

Many of our Roundtables members have either sold or handed their businesses off to the next generation, for example… but all of them will tell you that making that determination early in your company’s lifespan can be critical to the success of your plan.

In today’s Episode of PowerTips Unscripted, Victoria and Mark explore an area of succession planning that is somewhat new to the remodeling industry, by talking with Anthony Mathews, a thought-leader in the area of creating and maintaining ESOPs, or Employee Stock Ownership Plans.

Anthony has spent the past 40 years helping business owners and employees transform their companies into communities of stakeholders through the creation and maintenance of ESOPs – many of them for construction companies. Most recently Anthony has spent the last decade at the Rady School of Management at the University of California, San Diego, teaching future business leaders and advisors.

Anthony describes what he refers to as a “Succession Crisis” in this country where closely held companies get to the end of their life span and simply close or liquidate. When that happens, the owners may (or may not) receive full value in the business, employees lose their jobs and towns and cities are faced with yet another business that is no longer a part of their business community.

Anthony, Victoria & Mark discuss:

  • What type of company sets up an ESOP? Size? Number of Employees? Characteristics?
  • What is the process of establishing an ESOP?
  • What are some of the challenges companies face?
  • What makes an ESOP different than a 401K, Profit Sharing or other plan?
  • What are the Tax Advantages that companies and employees will see?
  • How does having 10-30 owners effect the company culture?
  • Anthony’s 4 phase process of determining if an ESOP is right for a business

Is an ESOP right for your remodeling business?

If you are a current R/A Roundtables Member, Anthony has offered a FREE initial consultation to help determine if an ESOP is the right solution for your company.

Anthony can be reached using the following contact information:

Anthony Mathews
Rady School of Management
University of California, San Diego
Office: (858) 822-6010
E-mail: amathews@ucsd.edu

Ep.06: Behind the Scenes of an HGTV Pilot with John Huffman

Lights, Camera, Action! Getting the brand exposure of a TV pilot, aired on a national media channel like HGTV, can seem like every remodeler’s dream… But is it? What’s involved? Is it disruptive to your business? Do you get leads from it? Is it as exciting as it sounds?

In Episode 6, Victoria and Mark talk to John Huffman, CEO & Co-Owner of Black Door Renovation in Southlake TX. John runs Black Door with his wife, Elizabeth, and Rick Baker, a long time RA member, and together they focus on large-scale, high-end additions and whole house remodels.

John and Elizabeth, were approached by a production company in 2016 about pitching a show called “Lone Star Flip” to HGTV and their story of the ups and downs of that process is amazing and great insight to other remodelers considering a similar endeavor.

Often in business, timing is everything… and John talks more about how this opportunity occurred at about the same time as their merger with Rick Baker’s Stately Design & Renovation company.

John walks us through their experience and along the way Victoria and Mark cover:

  • How disruptive was it to your business?
  • How did this experience effect your brand and messaging for Black Door?
  • Did you see leads from it and were they qualified?
  • How did you handle the influx of leads?
  • How did you handle the pricing expectations we see mentioned on these types of shows on TV?
  • Knowing what you do now, would you do it again?

A great episode, not to be missed! Enjoy!

If you would like to know more about Black Door Renovation visit their website and they did an amazing job of documenting their HGTV experience on Instagram and Facebook.

Do you have a similar experience with any other media efforts? Cable shows? Radio broadcasts? We would love to hear about any of your experiences, positive or negative, in the comments section below.

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And as always, if you have a topic that you would like us to cover or know of an industry contact, author or thought-leader that you think others would like to hear from, let us know.

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