New home sales may be down, but remodeling continues to be very big business. In 2006, remodeling expenditures reached an estimated $233 billion, up 8.4 percent over 2005, according to the National Association of Home Builders.
If you’re thinking of getting into remodeling, industry veterans say you should plan on spending as much time building the business as you do building room additions. Here are some of the critical elements of being a successful remodeler:
1. Good Business Sense
The biggest mistake new remodelers make is failing to operate like a business, says Eric Phillips, vice president and general manager of DreamMaker Bath and Kitchen, of the Triangle in Apex, N.C. You’ll need a basic understanding of cash flow, accounting, sales and marketing, purchasing, contracts and estimating.
And, Dean Bennett advises, set aside time every day to manage your company’s finances. The owner of Dean Bennett Design Build in Castle Rock, Colo., spends eight to 10 hours a week doing his books.
“People aren’t used to that,” he says. “They’re used to going to work. To stay home and not be making any money doing paperwork is tough.”
2. Estimating Expertise
Proper estimating can make or break a remodeler. Bid too low and you can lose money on a job; too high and you won’t get any work.
“It’s a huge aspect of the business,” says Justin Williams, a third-generation builder/remodeler and owner of Williams Drake Construction, in Dallas, Texas.
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