Three Considerations for Controlling the Destiny of Your Remodeling Business
Many remodelers start their business with little real planning or consideration for the future other than to grow the business and make money. For many this tends to work out alright, particularly during a good economy. But the current recession has definitely exposed to remodeling business owners some of the natural consequences that come along with a lack of a long term vision for their businesses. A couple of obvious examples might include the current cost of excessive overhead accumulated when work was strong, and the overwhelming workload and responsibilities the business owner had to absorb due to staff layoffs. However, an anticipated improvement in our economy offers an ideal time for businesses owners to rethink how they will move their businesses forward as the economy eventually improves. Planning for the future now can definitely put you on a much better path and using what you have learned in business so far makes that planning much easier and more likely to protect your business when the next recession shows up.
This summer I will be participating in several Remodeler Summits sponsored by Marvin Windows and Doors to be held at their training center in Warroad MN. As part of the Summits I will be presenting seminars to attendees to help them strategically grow their businesses. Here are three things I will be asking the attendees consider about themselves and their businesses before new opportunities for business growth appear as the economy and the remodeling market improves.
(1) Are you an Entrepreneur or a Craftsperson?
This should be your first consideration. Be honest with yourself. Do you really want to be a business owner running and growing a business where your role is to develop your business so it creates the opportunity for employees and subs to perform the work, or is your love for the tools and craftsmanship what motivates you to go to work each day? Either one can be a good choice, but the business you build will be dramatically different depending on your choice. If you choose the craftsman route be sure to consider your age and health; now and in the future. Will your body be able to handle the work type your business sells as you get closer to retirement age? Also, as you age, will you be able to maintain the productivity required to earn the money you need to live and eventually retire?
(2) Will you hire to complement your skills or to maintain your authority?
Regardless of your choice to the consideration above, few business owners can know and or do everything needed to run a profitable business and still have a life outside work. When seeking to add new employees, consider how you chose your previous employees. Did you hire people who required constant supervision and instruction, or did you hire people who added skills and knowledge to your business that you didn’t have yourself? Who you hire going forward will make a big difference in regards to what you will have to do yourself and how much of your time will be spent where.
(3) Will yours be a Practice or a Growing Business?
A business that is a practice depends on the participation and the skills of the owner every day. If the owner is on vacation or can’t come to work for any reason the business stops operating very quickly. If you plan to run your business as a practice keep this reality in mind. Your ability, as well as your employees’ abilities, to pay the mortgage and feed the kids can quickly become compromised. Be sure to consider options like disability insurance and a reserve fund to protect yourself. If you plan on growing your business be sure to take the two considerations above very seriously. Also, make sure you choose employees with the cognitive abilities and desire to grow with your business.
There are two schools of thought regarding destiny
Destiny is often seen as either a fixed sequence of events that is inevitable and unchangeable, or that individuals choose their own destiny by choosing different paths throughout their life. Marvin Windows and Doors is helping contractors shape the destiny of their businesses. How about you:
Will you let destiny happen for you and your business?
Are you shaping your destiny on your own?
Are you getting help shaping your destiny, and if so, who's helping you?
Please share your comments and thoughts. Other contractors looking for options could benefit from what you have to offer!