By Corey Mann
Best Tips for Building a Successful Remodeling Business
Today’s market gives contractors the perfect opportunity to learn how to build a successful remodeling business. In fact, the industry is generating record-setting revenue numbers and Americans are eager to upgrade their homes. With the right tools and systems in place, you can scale your business and make the most of these recent trends.
Leap recently spoke with Jonathan Moore, CEO of NorCal Remodeling Group, to discuss his company’s ability to grow from $1 million to $12 million. By automating his workflow, NorCal was able to better understand their numbers, make adjustments to drive higher margins, and provide a better customer experience that led to this amazing growth. Let’s dive into the best tips to help you build a better, more successful remodeling business.
Learn How to Build a Successful Remodeling Business
According to RubyHome, home remodeling is a $400+ billion industry with no single company holding 5% or more of the total market share. Moreover, home remodeling’s average annual growth rate (AAGR) is 4.4%.
As you can see, homeowners are opening their wallets to make improvements around the house. And the best contractors have the right processes and operations to capitalize on the demand.
“We want to make sure all of our systems are tight before we push and expand and really penetrate the market that we’re in,” Jonathan Moore told us during the webinar. “We’ve steadily grown through that with the help of Leap and a few other services.”
Are you ready to take your company to the next level? If so, consider the best tips for building a successful remodeling business. For example, this includes:
Small improvements can lead to huge growth. However, many contractors don’t have the processes in place to shed light on their inefficiencies. And as a result, they can’t make any adjustments if they can’t recognize the problems that are holding their business back.
By focusing on the key areas above, you can maximize your business efforts and build a better reputation with homeowners. This will give you the chance to scale your business and minimize the growing pains as you bring in more leads and schedule more jobs.
Customer Experience and Sales Journey
You can’t build a successful remodeling business without resonating with homeowners. In general, each customer’s experience during the sales journey will not only determine if you are building trust, but also dictate if you close the deal or not.
In today’s world, homeowners are more informed than ever before. They’ve most likely already done their research before reaching out to your business. You can expect every homeowner to have a general idea of costs and the best products on the market.
And if they’ve reached out to you, then they’ve researched your company and like what they are seeing. Now it’s your job to close the job and not waste anyone’s time.
To do this, you want to present your services in a professional manner that is clear and concise. You don’t want to be digging through product sheets and samples or struggling to price a job correctly.
Training and Onboarding Your Sales Reps
The foundation to building a great sales team is effective and efficient training. You will want to streamline this process so that every sales rep is confident and prepared when they meet with homeowners at the kitchen table.
“If we didn’t have effective systems in place, everyone would be frazzled. I’d have massive turnover and it would be a big issue,” Jonathan explained. “The fact that we have automated systems in place, it lessens the phone calls, right? It lessens the amount of extra work that is needed. Our main focus is how can we be more efficient? How can we automate absolutely everything?”
Sales automation allows you to plug new reps directly into the software and easily train them. This saves you countless training hours and prevents common errors that can occur once a new rep starts scheduling appointments.
“Keep it easy on the sales reps,” Jonathan added. “Don’t make them think, make it automated.”
Control Your Pricing
Pricing errors are one of the leading reasons why some remodeling businesses don’t survive, much less grow. If a job isn’t priced correctly, you’re going to cut into your margins. This includes outdated pricing and out-of-stock products.
With sales automation, you can gain control over your pricing and make immediate changes within the software to ensure your sales reps are selling updated pricing changes.
Once you implement a price or product change, the software will update throughout your organization and will reflect in each user’s account. Now, you can rest easy knowing your reps aren’t underselling a job or offering products that are no longer available.
Financial Tracking and Analysis
To build a successful remodeling business, you need to have a complete understanding of your financials. And this starts with good reporting and tracking. With new technology, you can manage every job, your costs, and revenue in one easy-to-use application.
This helps you measure success and where you can widen your margins. And to grow, you need to monitor key performance indicators that help you analyze your company’s job costs and labor hours. Are you effectively managing your cash flow and earning a profit? New technology helps you better recognize and organize this data so that you can adjust and improve.
Automate Your Workflow
Being a remodeler comes with many challenges. Every project is unique and there are many details to hash out along the way. In addition, tasks begin to build up and can be difficult to manage.
This is where automating your workflow can make all the difference. The goal is to reduce redundancies and automate repetitive tasks. This saves you loads of time and makes your entire business more efficient. And as a result, you will save more money.
Have you noticed that while each project is different, there is a list of the same line items that must be addressed? If so, automate these items within software instead of doing them one-by-one each day. With the right processes, the flow of information within your business is streamlined and more secure. This will empower your team to sell more jobs and provide a better experience for customers. Everyone wins and your company can begin to really thrive.
Build Your Business with the Leap Platform
At Leap, our platform grows along with your business. The software is completely customizable to meet the needs of every remodeler.
We also partner with manufacturers, financing companies, measurement tools, imaging technology, and more to provide further value as you continue to grow your business.
It’s the right sized tool that helps you maximize your operations and scale without any growing pains. To learn more, fill out the form below and schedule a quick demo with one of our experts. Now that you’ve learned how to build a successful remodeling business, it’s time to utilize these tips and apply them to your company. Our team at Leap is here to help you do just that!