For Cincinnati, Ohio-based Neal’s Remodeling, success means maintaining systems and making an intense commitment to constantly improve.
“Our business is very detail-oriented, very system-oriented. We’ve taken every piece and parcel of the remodeling industry and turned it into a system,” says Alan Hendy, vice president.
Brothers Neal Jr., Steve and Alan have delegated job duties based on their own interest and strengths, so each of them can work on tasks that best suit their talents.
“That’s the point where you start working on the business,” Alan says.
Working on the business has meant strict job cost analysis. Neal’s remodeling uses WIP Reports, detailed spec sheets that monitor the profit margin of all work in progress. Regardless of where the project is in the pipeline, each project manager is fully aware of where it stands. Neal’s Remodeling is constantly aware of exactly where the money is at all times. Accurate estimating is key, as is careful analysis of overhead and accurate revenue projections.
“It’s hard to get a handle on it at first. But once you do it, it is easy to see where you are going to be for the year,” Alan says.
“It’s about empowering people to create a system that works and to be able to rely on the accuracy of the reports.”
Neal’s Remodeling is involved in the Greater Cincinnati Chamber of Commerce’s Roadmap to Excellence Program. Meeting with a facilitator monthly to discuss issues such as leadership, personnel, continuous improvement, data analysis, customers and purpose, the company’s systems are constantly challenged.
The sessions are set up to do in-depth analysis of the inner workings of the company from an outside perspective. “It’s common sense, but you ignore the fundamentals all the time,” says Alan. “Roadmap to Excellence is a way of continuously improving the company.”
Full-time employees: 28
Industry memberships: NAHB, NKBA, NARI, BBB
Annual design/build projects: 100 percent
Residential remodeling: 100 percent
Average annual revenue (including sales, overhead): $3.1 million