Learning Experience It took two years for the Roesers to complete their project. “It turned our company upside down,” Cindy says. “We lost carpenters and clients because we were so involved in this.” The final tab was $2.4 million. They didn’t lose too much money, but they ended on a sour note with the owner and lost money on other projects they couldn’t maintain. They considered closing the business.
Perhaps because they didn’t compound their risk with many of Schleifer’s nine other reasons for failure they didn’t go under completely. They credit their peer review group and several loyal employees who stuck it out. Not long before the project was completed, the Roesers had joined Remodelers Advantage Roundtables, and, says Joe, “If it weren’t for those people and the support and advice we got from them, we would have shut the doors.”
In the ensuing four years, the Roesers have made many changes. Much of the staff is new. They document all change orders and get money up front. They use job binders and went to an open-book policy where project managers have access to the company financials and project budgets and often write up change orders. They’ve improved client and field communication and hold weekly meetings with project managers as well as company-wide monthly meetings. Subcontractors sign an agreement that states exactly what is expected of them. “They’re on our team,” Joe says.
In the fall of 2004 they began a $400,000 job “and it’s going very well,” they report. Volume for 2004 was on track for $1.3 million. In hindsight, both feel taking on the grand project was a good learning experience that made them recognize the value of systems. The first big job shouldn’t come as a surprise as it did for the Roesers. It’s all about planning for additional subs and supervisory people, permits and jobsite trailers, more change orders, longer delivery times for specialty products, and longer and more costly cleanup. Winans suggests talking to people you trust, “other contractors, your spouse, design professionals. Weigh the risks and benefits. If it all went wrong, what would it look like? If it went well, what should it look like? What could I learn?”
Of course, you’ll inevitably forget something or undercharge because the job is beyond your experience. But, says Winans, “to me, to do the same thing — the type of job I can do safely and super predictably —wouldn’t get me out of bed every day.”