Six Key Fundamentals to Success

Last month, I discussed remodeling business treasure: strong margins and quality of life. Let me ask you a question: Do you have those at the level you would like them to be? Depending on the cycle of business growth you are in, the answer is often no. It takes two sets of keys to successfully open the lock to the treasure inside.

There is Nothing Gross About Profit

Part 7 of a Series on Benchmarking Setting a gross profit target — finding a pricing, staffing, operating expense and profit model that is SMART — is the key to all business success. (SMART is defined as specific, measurable, attainable, relevant and time-sensitive.) No one can tell you what to charge for your work or what markup to use.

Culture of Success

Perfect Strangers

My wife loves to entertain; the more the merrier. She can make fettuccine Alfredo with one hand while preparing flan with the other. An intimate dinner at our house may mean 10 people in the dining room or 20 on the deck. My wife is always as cool as the ceviche, even when the event is spontaneous or the guests have never been to our home before.

Winners Offer Competitive Advantage

Interestingly, what product manufacturers think sets them apart from the competition isn't necessarily what remodelers actually value.

Two Birds, One Stone

Creativity doesn't simply extend to remodelers' bump out ability and wall placement strategies. Remodelers' products are an expression and reflection of their experience and credibility. Products are what you leave behind, and they speak volumes after remodelers have walked off the site, especially if something is wrong.

Putting in the Fix

Just when you think you can spot a lemon of a remodeling job, along comes a lemon that turns into lemonade. The project that Gehman Custom Remodeling completed for David and Terri Wyher this summer is a thirst-quenching case in point. At first the project looked straightforward enough — exterior repairs and a few other things.

Using the Lead Carpenter System

Some remodelers insist the lead carpenter system is the only way to maintain quality control and customer satisfaction. A lead stays on one project for its duration, doing most of the work himself and communicating directly with the homeowner. Others prefer to use a project manager to handle communication and logistics, outsourcing most labor.

For Remodelers Only

Not every product is cut out for remodeling. Windows and doors have to fit existing openings. Fixtures must work with existing plumbing. Styles and finishes should complement the overall architectural theme. Even when building an addition — technically new construction — remodeling contractors need to blend the new part of the home with the old.

Financing the Dream

Lending has been part of the Custom Design & Construction business model since its inception in 1986. A big part, in fact — not only do the majority of the Los Angeles firm's clients finance their projects, 70 percent of them do so through the residential remodeling company's in-house financing arm, Custom Funding.