As 2014 comes to a close are you thinking that your business model needs some remodeling to take advantage of a surging remodeling market in 2015? Some remodelers are booming while others are struggling to make it in a strong market.

 The difference is often found in one's well developed business model with defined systems and carefully planned execution. 

Before we get into some thoughts on system and business model development here are some current trends that bodes well for remodelers who are ready.

Remodeling Growth Moderate

Recent economic factors show that remodeling is booming in many parts of the country. Job growth is picking up, unemployment is going down, interest rates are at all time lows, people are now more likely to stay in their homes and new construction is struggling. Our clients with good to great business models in Boston, Washington DC, Dallas, Columbus, Ohio, and Minneapolis are enjoying strong growth. Are you?

According to the Harvard Housing Studies remodeling forecast the residential construction industry has regained all that was lost in 2008 and 2009. Growth is moderate well into 2015. If your business is not part of the resurgence maybe your business model needs some system development, tweaking, revamping or replacement.

With 4 weeks to go until 2015, now is a smart time to start and complete your planning for a great 2015. If you wait until the spring you will miss half of 2015. Pent up consumer demand is causing many remodelers to start looking for new hires to meet this demand. In the Boston market clients are telling me they have backlogs of 5-6 months and looking to book work in April and beyond.

What are these contractors doing to produce these results?          

These remodelers are enjoying great outcomes because they have well defined systems and strategies in place. Many of them were preparing for the rebound 3 to 4 years ago and they were ready. When the consumer starting calling these companies got the call because they had robust marketing, sales systems and production capacity in place.

Success occurs when opportunity meets preparation."- Zig Ziglar"

So you may be wondering where do I start?

First take a honest and hard look at how you performed this year. If you did well and you are happy then maybe you don't need to read any further unless you want to improve on last year. If your honest assessment leaves you unhappy and frustrated then consider whether you want to repeat last year again in 2015. (You know the saying....insanity)

Ask yourself the tough questions such as;

• Did I have a plan/budget to start the year and if not was it worth it?
• Did I work the plan diligently or did you just wing it?
• Do I have effective systems in place to manage your business and work flow? 
• Am I constantly putting out fires and doing things at the last minute?
• Am I forgetting important items on a daily basis?
• Do I need some help such as a business coach or mentor?
• Am I doing things like paperwork that can be done by a lower compensated employee or outsourced to a specialist?
• Am I doing things over and over again because I forgot to write it down?
• Are you guessing at the price only to find out when you get into the job you missed hundreds/thousands of dollars of work you must now do?
• Did you lose projects to companies that charge a lot more than you?
• Did it take you too long to get back to referrals and other leads and you lost the job? 

In a Cradle to Grave System Development Seminar for supplier Harvey Building Products I shared a saying with the class;

"If you have to remember to remember you will most likely forget! And the item you forget may cost you some or all of your profit on the project."

The group laughed and several shared something they forgot that cost them money. 

Developing and implementing effective business systems requires strategic effort, time and money. Remodelers and home improvement contractors with strong business models will continue to chalk up great business results in strong and slow business cycles.

Today's consumer is educated and expects top notch service and value often found in companies with strong business models. Hopefully that is the case for you. You know running a business while shooting from the hip leads to inconsistent outcomes.

As we approach the new year take some time to invest in you and your business by deciding to work more on your business and a little less in it. Setting up basic repeatable processes can help prevent avoidable time wasters. A little or a lot of prudent planning can produce improved outcomes in 2015.

Need help or want to talk about system development, I am here for you.

Announcement: Remodeling Industry Speaker and Educator Shawn McCadden a good friend and mentor will be starting up a Peer Group for Remodelers in late February, 2015. Click here for more information.