A New Kind of Remodeler

There’s a new group of remodelers on the block. They are young, full of knowledge and are putting their mark in every aspect of remodeling. They might not have 20-plus years in the business, but they are steadfast and quickly joining the ranks of top remodeling companies in the country. This group of company owners is proving that running a business in this industry is just as important as a perfectly built home.

The U.S. Census Bureau released its 2002 Survey of Business Owners report last year, which showed that a quarter of all respondants were between the ages of 25 and 34. Another interesting statistic showed that America’s business owners are highly educated, with 64 percent having at least some college education at the time they started or acquired ownership in their business.

Additionally, these young business owners are also seeking to balance their professional and personal lives. The U.S. Census Bureau reports that when it comes to putting in long hours on the job, more than half of the owners of employer firms reported working overtime in 2002 (more than 40 hours a week, on average), compared to only 26 percent of the owners of nonemployer firms. In contrast, 63 percent of the owners of nonemployer respondent firms reported working less than 40 hours a week, compared to 33 percent of the owners of employer respondent firms.

Whether they are taking over the family business or are starting one up, these remodelers are focused on developing elaborate marketing strategies, incorporating advanced software programs and technology and creating business plans aimed at increasing revenue and broadening company offerings.

Adapting to New Practices

With their share of opportunities in the coming year, these remodelers also face a host of challenges. One of the biggest challenges for Matt Hullander, who is in the process of buying out his father, who has run the business for the past 30 years, is helping his employees adapt to a new style of management.

“Not knocking my father, he built a very reputable remodeling company, but he ran the business a lot differently than I am, and it’s sometimes challenging to get our employees to adapt to that change,” says Matt Hullander, president of Hullco Exteriors, Chattanooga, Tenn.

What he is specifically speaking of is the adaptation of technology. Many remodelers are seeking out advanced software programs to help direct marketing, improve production and boost their customer service.

“We are using a Web-based communication tool, called BASECAMP, which was recently highlighted in INC. Magazine,” says Geoff Horen, CEO of The Lifestyle Group, Inc., Indianapolis, Ind. “We use this to communicate with our clients and log a history of all communication activity for future reference.” This program allows Horen to complete schedules for the client to see, receive change order approvals and interact at the convenience of the client with normal day-to-day questions that do not require in-person or phone interaction.

Lead generation is another area of importance to these remodelers. Hullander says that no lead is a bad lead, but an opportunity to better understand their audience and redirect their marketing efforts to get the sale.

“Our lead software allows us to know everything there is to know about a particular lead,” says Hullander. “We are even able to order and send direct mail to a specific target area through the program.”

Chris Weir, CGR, CAPS, owner of Weir Building Company, Fenton, Mich., has a different approach to his marketing strategy. “I have what I call ‘grass roots marketing,’ ” he says. “Eighty-five percent of our clients come from client referrals and from my strategic partners (insurance agents, lawyers, realtors, etc.)” Weir does some local advertising with the chamber of commerce, local rotary club and also does his share of community service to get the word out.