Although loyal employees are critical to success, it’s also important to terminate those who don’t work out. Case warns against hiring relatives as though you’re playing pickup basketball, and against holding onto “sad sacks” out of the goodness of your heart. “I tell everyone, ‘You may need to hire three people to find one good one,’” Case says. “An integral part of success is being able to say, ‘You’re not a good fit.’”
CONSULTING THE MAP Carpenters’ independent inclinations can get them lost on the journey from carpenter to CEO. Bite the bullet, and ask for help. Former employers may shut the door, feeling betrayed or even threatened by the prospect of you becoming their competition. But knowledgeable business advisors can be hugely helpful, as can the widening array of educational resources that the industry has to offer, such as trade publications and conferences.
Find a mentor if you can, and be persistent. Most established remodelers advocate joining a leading trade association — the National Association of the Remodeling Industry or the NAHB —and becoming active in your local chapter. Your nearby peers may be somewhat circumspect with their insights, but “there’s nobody in the [NAHB] Remodelors Council of 200 or 300 people on a national level who will not sit and talk with you on the phone,” Motsenbocker says.
Jeff Hall searched for a mentor in vain for years. “I needed input on the best ways to structure my business, on covering costs, marketing issues, finding the right clients, and I could not get local remodelers to talk to me.” He finally struck gold when he joined a peer group of non-competitive remodelers from around the country.
Wherever you turn for help, bear in mind that you’ll get some daunting advice. Brady also worked with a professional peer group company in the 1990s, after nearly burning out on wearing too many hats. Meeting with other, more successful remodelers helped him develop goals, but “it seemed like climbing K-2.”
For his part, Levinson is absorbing knowledge like a toddler. He began by “devouring” books and magazines related to the profession, works with a local CPA, is working on his CGR and CAPS certifications, and attends as many industry trade shows as he can.
“The ironic truth about this industry is that there are tons of qualified craftsmen out there whose work is as good as or better than a larger, more established firm,” Levinson says. Too often, they resist delegating and “have no interest in putting into place systems and processes that simplify the entire process,” or in “creating a company that doesn’t dissolve when their bodies either give up or they check out. Those are the contractors who ‘work for wages’,” he says, who work 14-hour days, and who let clients dictate the terms of their projects.
And that’s the existence he’s determined to leave behind.
Start Big A damaging mistake many fledgling carpenter-CEOs make is positioning themselves as an inexpensive alternative to companies with high overhead. Not only will this constrain your ability to pay yourself well and build in profits for your company, but being known for low prices can make it hard to increase your markup later, as your company grows, or even to appeal to a higher-end clientele, Linda Case says.
Case also notes the psychological hurdles many carpenters place before themselves. “I hear a lot that they can’t charge a professional-level markup because their market is different. Clear out that head trash,” she says.
Develop professional marketing materials as early as possible. Establish that you charge for estimates, and stick to it. Carve out your niche — your attention to detail, your white-glove service, or whatever else makes you special. Explain that you’ll be happy to meet with prospects between 8 a.m. and 5 p.m. — not on evenings or weekends.
Beyond Quality Good carpenters are rightly proud of their craftsmanship, but you’ll be more successful at selling — at the price you want — if you shift your marketing focus to the experience you deliver.
Michael Howes of MCB Remodeling, Woodside, Calif., says his clients expect his company’s work to be of a very high quality. So instead of emphasizing workmanship to prospects, he speaks to them on an emotional level. “We tell them up front that we don’t allow radios on the job unless they’ve moved out, no smoking on the property, no foul language,” and so on.
Much of Howes’ inspiration comes from Nordstrom, the legendarily customer-centric department store where he worked after college. “The Nordstrom model so belongs in remodeling,” he says. He especially admired “the consistency of the message. You can’t find someone who is even a little bit clueless” about the store’s products or policies, who doesn’t feel comfortable being accountable for their actions, or who doesn’t show respect for the client.