There is no golden rule for success in the remodeling industry. However, having regimented and organized systems and business processes in place at a company can facilitate growth and alleviate stress. For Jeremy Martin, a principal at RisherMartin Fine Homes in Austin, Texas, having systems that can accommodate planned growth and documented procedures for business processes have allowed his 10-person company earn to $8 million in yearly revenue.
“You have to act big if you want to get big,” Martin said on an episode of the PowerTips Unscripted Podcast, sponsored by Remodelers Advantage. “Some companies stay small because they think small.”
Martin said growth in the remodeling industry involves steps rather than a linear process. The less predictable pattern of growth necessitates having proper systems in place to plan for future growth. Martin said it is important for companies to have the systems for the business of the future, not the systems needed in the present, as this allows companies to grow into their profit numbers rather than having the stress of constantly updating systems. Blocking out as few as two to three hours per week to brainstorm system or big-picture process development is an effective way to prepare for the future, Martin said.
One such system that Martin and his team with RisherMartin devote a lot of attention to is the hand-off between the sales and production teams. RisherMartin has a entire document, called “The Book,” dedicated to the transition from the “promise-makers” (the sales team) and the “promise-keepers” (the production team). “The Book” has enabled RisherMartin to better stay on budget and on schedule, Martin said, and additionally has alleviated stress for both employees and clients.
“The hand-off between sales and production is the most treacherous thing in the remodeling industry,” Martin said on the podcast. “When handled well, it can be a comparative advantage, but when handled poorly it can crush you.”
“The Book,” a three-ring binder made available for clients that also exists digitally for RisherMartin employees, helps Martin and his company avoid situations where clients feel promises made in the initial stages of a project have been broken. Dedicating the same attention to documenting processes can help remodelers avoid common issues such as slippage, falling behind schedule, or coming over on cost margins. Martin said slowing down on the front-end design phase can help speed up the construction phase for remodelers, which is especially important amid the construction industry labor shortage.
“If you don’t have enough people or time to do [a job] right the first time, you most certainly don’t have the time or people to do it a second time.” Martin said. “All the more reason to nail it the first time around.”
In addition to implementing systems to accommodate growth and streamline a smoother hand-off process, RisherMartin also has systems in place to ensure the company is hiring the right employees. Martin said having a system that uses personality profiles has made the hiring process more objective and also allowed the company to hire the right people to set themselves apart from the competition.
“The [remodeling] business is all about people. Do you have the right clients, do you have the right employees, are you working with the right architects? Those are all people questions.” Martin said. “Everybody can figure out how to build a cabinet, it’s the people that are going to separate you.”
