The Design Builder's Blog

Going From Carpenter to Businessman as a Remodeler

I received the follow question from a carpenter via the send a message function of my web site:

“Where is a good start for a carpenter to become a business man as a remodeler?”

Here is my reply:

Bruce:

Thanks for your question.   It’s a great one! I’m glad you are asking before you start out on your own.  That makes you very different than most. 

I suggest you find a mentor to help you get started.   Find a person who has done it before so they have the experience and knowledge to guide you.   Even if you have to pay this person it will end up being an investment that can be quickly paid off if you do your part because you will get going toward success much faster and will save a lot of money in tuition at the lumberyard school of hard knocks.

One of my current remodeler clients got his parents to finance the coaching and mentoring I am giving him to help him get going.   We prepare reports for him to share with his parents so they can see how the money is invested and so they can see how he is doing regarding actual profitability against the plans and budget I have been helping him with.  In actuality it’s the same information any business owner needs to know how the business is doing.  It’s the same information a bank would want to see if it loaned you the money.

 Thinking about and planning what you will do before you get going is critical.   

Consider this: "You can either set up what you want to have happen or you can settle for what you get."

For a good overview see if you can find the book below.  It’s an old one that is out of print, and some of it is dated, but I think if you read it you will get a lot of good info to consider before you get started.  Try Amazon to find it.

Professional Remodeling Management

By Walter Stoeppelwerth

Using the book as a guide, find out about all the legal requirements, insurances and all the overhead costs you will have before you start.   That’s what I did before I started my business.   Then, do a budget so you will know what to expect for costs and what markup to use so you don’t guess at it.

 Keep in mind, 9 out of 10 contractors will fail within 10 years.   You can beat the odds by doing your homework before getting going.

Keep me posted about how you are making out.  Let me know if I can help.

The Design/Build Remodeler’s 10 Step Plan For Long Term Success

A long time ago a remodeler in my NARI Chapter who was just starting his business asked me for advice about how he too could have a successful and profitable business.   Seeking to keep my response simple and to the point I came up with a list of nine steps.   When I was explaining my list to him he asked where he would find the time to do all these things.  He said he was already straight out trying to sell and complete work.   That’s when I added step number one to the ten step list below. 

Success won’t happen by accident.  If you are disappointed with your level of success use the list below to help identify what you need to do to get your business on the path to planned success.

Recharge Your Batteries!

Step ten might be the most important.  Unless you take time to recharge your batteries they will go dead.  My experience has shown me that business owners get a lot more done and can remain positive even during challenging times if they take the time to reward themselves for all their hard work and effort.

“To get to the next level in your life will require a higher level of thinking than the level of thinking that got you where you are”   Thomas Edison

The 10 Step Plan For Success

1. Make time to create and implement your plan.
2. Establish your criteria for personal and financial success.
3. Establish an obtainable volume of sales for the coming year.
4. Create a budget based on historic information.  Adjust as needed to achieve current goals.
5. Establish the Mark-up required to provide planned gross profit.
6. Accurately estimate project costs and mark-up as planned.
7. Find your customers and sell them projects at the price required to obtain planned gross profit.
8. Monitor production and overhead expenses.
9. Adjust business as needed to maintain path to planned net profit.
10. Enjoy planned personal and financial success.