Table of Contents March 2004

FEATURES

• Hiring immigrants for your business needs

  Decades past, Americans proudly declared this "nation of immigrants." We celebrated the idea of the United States as a Melting Pot, a nation capable of welcoming and assimilating just about anyone from anywhere who sought refuge or opportunity here.

   

• Money loss due to miscalculating costs

  Too many remodelers are miscalculating their prices and losing serious money because of it.

   

• Dealing with change in your business

  Remodelers admit they spend too much time putting out fires ignited by change and not enough time devising solutions to insulate their companies from getting burned again. Indeed, the rapid pace of change, exacerbated by an unstable economy, exposes remodelers to a volatility for which many aren't...

   

Before and After

• 

  Before+After: Less Is More

  The Eubanks wanted a brighter room, a new kitchen, and a living space that flowed well. Fleming immediately saw all of that fitting into an addition to the back of the living room -- one that measured just 155 square feet.

   

Reader Panel

• Industry Receptive to Immigrant Labor

  Since 1990, new immigrants have entered the American work force in unprecedented numbers and altered its makeup as never before.

   

VIEW POINT

FIRST WORD

• Thinking Through Systems and Processes

  The line between consistency and stubbornness is a fine one. Systems and processes are essential to success in the remodeling business, but only when they produce the desired results.

   

News + Notes

• Homeowner Spending Up

  Homeowners spent $130.4 billion remodeling their homes in 2003, according to the latest Remodeling Activity Indicator (RAI) released by the Joint Center for Housing Studies at Harvard University. The RAI only tracks money spent by people who own their homes, and it is therefore not an indication of...

   

• Running a successful advertising campaign

  To run a successful advertising campaign, you have to use your head. He and partner Nathan Allen, both former students at Johnson & Wales University, are taking time off from school to concentrate on business ventures, including growing Headvertise.

   

• Lookout for code violations

  A recent Minnesota Court of Appeals ruling reminds remodelers to be on the lookout for code violations and extra work, even in the middle of a job.

   

COMMENTARY

GUEST COLUMNIST

• Effective interviewing and hiring methods

  How many times have you hired someone because that person happened to be in the right place at the right time, only to find out later that he or she wasn't really qualified?

   

LINDA CASE

• 

  Using time, money, and talent to improve a community

  Bill Medina, of Medina Construction Co. in Salina, Kan., is a remodeler and a philanthropist. The story of Bill's journey to community-based giving involves a few elements - his passion for cooking and his ownership of a 1,600-square-foot loft apartment - not common to the experience of every...

   

MARK RICHARDSON

• 

  Training: Expense or Investment?

  Prior to that point, I had certainly believed that training was useful and beneficial, but essential to growth? When I framed the issue in this new way, I had no choice but to act on a renewed commitment to training.

   

WALT STOEPPELWERTH

• 

  Helpful tips for opening a remodeling company

  In the remodeling and home improvement universe, there's plenty of room for contractors doing as little as $100,000 per year in total volume, and going up from there. Here are some questions to ask yourself if you're thinking about starting your own remodeling business.

   

YOUR BUSINESS

Sales and Marketing

• Encouraging one spouse to make joint decisions

  Most salespeople won't go on one-leggers, but I'll go to start a relationship. I want them to feel comfortable.

   

• Presentation Portifolio May Bring Positive Results

  A presentation portfolio, done well, can help bring the meeting to a positive close.

   

• Cutting lead costs in half

  How do you halve lead costs? Tom Poulin of Poulin Design Remodeling, Albuquerque, N.M., has done that since hiring lead manager Joe Turowsky six years ago.

   

• Catering contracting projects to the older crowd

  Many remodeling clients over age 55 have a medical condition that the project needs to accommodate or are anticipating old-age infirmities that they want to plan for.

   

BOTTOM LINE

• Formula for calculating break even point

  After years of confusion, Bill Medina of Medina Construction finally found a simple formula to calculate his company's break even point -- the point when gross margin equals overhead.

   

• Divorce Protection - Prenuptial Agreement

  Divorce is terrible, but its financial consequences can be minimized. The best time to prepare, financially, is before you are married. If you own a business, it is a good idea to draw up a prenuptial agreement.

   

• Be Aware of Internal Fraud

  In my years of experience as a CPA and certified internal auditor, I have seen a high rate of significant internal frauds. Most checks are processed by the thousands in the bank's batch mode and signatures are not checked by anyone.

   

BY DESIGN

• Rules for designing dormers

  Dormers can add greatly to the exterior aesthetics of a house, as well as provide more space inside. But because of their prominence, poorly designed dormers can mar an otherwise pleasing facade.

   

FIELD NOTES

• Delivery Receipts

  The bookkeeper needs accurate and timely receipts from the jobsite for several reasons. Second, the cost coding on the receipt provides information on how the material was used on the site.

   

• Using Videos to Avoid Insurance Fraud

  Remodeler Tim Cross used to videotape at the beginning of his remodeling jobs. Though he no longer has time for this marketing tactic, he liked the results.

   

GOOD FORM

• Quotes client a price based on preliminary specifications/drawings

  Like many contractors, Rick Pratt is careful to not count his chickens before they've hatched. They then sign this form and give Pratt a deposit check for 10%, which he is entitled to keep even if they decide to back out -- provided that his estimate stays below the quoted price.

   

Tech at Work

• Using technology to your advantage

  Good software and hardware often turns into "shelfware" because you bought it to address the wrong problem, or because your company just wasn't ready for it.Here are some tips that will raise your TQ and ensure that your next technology purchase succeeds.

   

• Punch! Software

  Software's latest release, Architectural Series 3000, offers an alternative for contractors who want basic plan creation and rendering utility without the challenging sophistication of more robust CAD applications.

   

Ways + Means

• Stay committed to your business by writing a plan

  Without focused, written plans, leaders become worn-out micromanagers.

   

• A loyalty program lets remodelers rack up the points.

  Whether for business or personal reasons, you probably participate in loyalty incentive programs, like frequent flier miles. If you do, you might share the common complaint that it often takes far too long to earn rewards.

   

• Keeping track of Business Cash Flow

  Be it computer software, plain old pen and paper, or abacus, most business owners have a way of keeping track of their cash flow. Kelly Vogan, president and owner of Vogan Associates in Silver Spring, Md., has a method that does what he says most others don't.

   

• Men and women have different taste

  More specifically, says Stephenson, women are generally more thorough, while men are more likely to be happy with the first thing they find that they like.

   

BIG50

CLOSE UP

• Profile: Phil and Tom Callen

  It's not always easy for brothers to agree, nor is it for co-owners of a remodeling company. The two, separated in age by 10 years, have agreed often enough on the right decisions to shape Callen Construction (Big50 2000) into a thriving $5.4 million company.

   

FACE OFF

• Should the owner sell

  The owner must ask, If I add personnel, should I stay in sales or stay in production? We have sales personnel already, so it's up to me to decide whether I want to keep selling.

   

SECOND LOOK

• Second Look: Ellen Cheever

  When Ellen Cheever was named to the Big50 in 1987, she had just left her kitchen and bath design practice. Now, she's come full circle.

   

SOLUTIONS

• Big50 answers to big business questions

  Some examples, though, would be the project took longer than the homeowner anticipated; the homeowner is intimidated by what they view as a one-sided contract; the homeowner thinks someone will be working on their project every day; the homeowner feels there could be better communication during the...

   

KITCHEN AND BATH

DESIGN CLINIC

• Glass becoming the popular tile

  The range of color and styles of glass tile are catching the eye of designers and their clients. The subtle, muted tones of the Pila Vetro line of glass tiles from Ann Sacks fit contemporary or traditional designs.

   

• Using cooking demonstrations as a marketing tool

  If the quickest way to clients' hearts is through their stomachs, then The Neil Kelly Co. is on the fast track to that spot.

   

• Glass Tile Prices Can be a Deterrent for Homeowners

  The price of glass tile can deter homeowners from choosing it. Bonnie Bagley says many of her clients are willing to spend the money for the design options glass offers.

   

SPEC BOOK

• 

  Kitchen & Bath Industry Show Preview

  Here's a sneak peak at some of the new product introductions at the 2004 Kitchen & Bath Industry Show.

   

PRODUCTS

IN FOCUS

• 

  Locksets & Hardware

  Constructed of solid brass and featuring the maker's Maxum deadbolt, the Cambria lever set has an ornate one-piece design and comes in Satin Nickel, Oil-Rubbed Bronze, and Anti-Tarnish PVD Brass. Offering the appearance of aged metal, the finish carries a 10-year warranty and is now available on...

   
• 

  Innovative hand tools

  Designed with a sleek profile to fit into hard-to-reach work spaces, the Vise-Grip Quick Adjusting Pipe Wrench adjusts with one hand. Its cast aluminum body makes it 40% lighter than standard 14-inch cast iron pipe wrenches.

   

• Ideas for interior doors

  A profusion of wood species, architectural panel styles, and glass panels dress up lackluster interior doors and make for some grand openings.

   

ON THE JOB

• 

  Cold-Weather Tool Tips

  I usually try to plan my work according to the weather; I like working outside when it's sunny and warm and inside when it's cold.

   

READERS CHOICE

• Filtering out negative air

  The H500V model uses an internally protected 99.97% certified HEPA filter and has a filter change indicator light.

   

• Simonton Windows turnaround time

  Kevin Ahern's company has been using vinyl windows from Simonton Windows for several years, but in the past two, he's come to use them with increasing frequency. The manufacturer's turnaround time of one week helps Litchfield Builders keep a streamlined and efficient production schedule.

   

• Measuring wheel for saving time

  Product: Lufkin Measuring Wheels by Cooper Hand Tools. All Lufkin Measuring Wheels can measure curved, horizontal, and vertical surfaces and have molded rubber tires that resist corrosion, as well as telescoping handles.

   

TRENDS

• Deep Clean

  Central vacuums have been around since the 1850s and have evolved into ever-more-efficient household appliances. Indoor air quality is becoming a much bigger issue in the marketplace.

   

• Solid surfacing has sustainable growth

  For several years now, solid surfacing has been the material of choice for homeowners looking to upgrade their kitchen and bathroom countertops. While solid surfacing entered the market as an upscale product with a matching upscale price, those prices have started to come down over the past few...

   

LAST WORD

Bench Mark

• Benchmark: Basic Measures

  There are five baseline measurements that all company owners need to know.