June 13, 2011
Nation's Building News

The Official Online Newspaper of NAHB

FONT SIZE:  A  A  A
20 Clubs
Remodelers Beating the Downturn With Participation in 20 Clubs

Members of several Remodeler 20 Clubs report that involvement in their respective groups has been pivotal to helping their business prevail during the challenging times confronting the industry.

“It’s critical,” says Scott Mosby, CGR, CGB, CAPS, CGP, president of Mosby Building Arts in St. Louis, who credits his Remodeler 20 Club for helping him maintain his business during the downturn.

Remodeler 20 Clubs are groups comprised of remodelers in noncompeting markets who share information about their businesses, lessons learned and much more to help peer members thrive.

“When I got involved with my Remodeler 20 Club more than a decade ago, my annual sales were $900,000 and I had 13 employees, said Mosby. “In 2011, we’re doing $10 million with 75 employees.”

For Mosby and others, the 20 Club functions as a board of directors where participants can share ideas, help each other with benchmarking, coordinate their operations with the ebb and flow of the economy, learn leadership techniques and keep up with trends in the remodeling market.

Starting Out in the Club

In the late 1990s, Bill Shaw, CGR, GMB, CAPS, CGP, president of William Shaw & Associates in Houston, began working with a business coach when he realized he needed a longer term solution to help grow his company.

Shaw learned about the Remodeler 20 Clubs and put in an application to join Club 2, which has labeled itself the Parrotheads.

“I was fearful that I would start backsliding into old habits after doing all the work with the business coach,” said Shaw. “For me, it was a board of advisors of my peers across the country that I could turn to for advice, information and accountability.”

The first meeting was hard for Shaw because he learned that although he’d been in business for 13 years, he didn’t know what he was doing, especially concerning financials.

“I was so horrified at what I had been missing for 13 years,” said Shaw. “That was tough, realizing I had spent so much time doing things wrong. I knew I had to make the next 10 years count or I would have nothing to show for it.”

After the first meeting Shaw realized he had to make a lot of changes to his business model, which was hardly the best. He didn’t have a niche market, a mission for his company or a vision for what the company should achieve.

As a result of the experience, Shaw shifted his business to specialize in design/build and transformed it into the company he leads today. 

NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, and president of Associates in Building and Design Ltd. in Fort Collins, Colo., joined his Remodeler 20 Club because he was interested in learning more about business and what steps he needed to take to grow his firm.

He started reaching out to his NAHB remodeler connections and exploring options for getting help. After meeting some members of Remodeler Club 2 and expressing interest in the group, Peterson joined.

“At the first meeting I was scared to death that I would hear things I didn’t want to hear. And I did! They asked me ‘why are you doing it that way?’ on everything from financials to processes,” said Peterson.

“The first meeting was pretty intense. You’re going to get dissected. But what I learned is still in play today.”

The Long-Term Benefits

While opportunities to socialize and gain support from fellow remodelers is helpful, Shaw feels that the companies that prosper most from the 20 Clubs have leaders willing to listen to their peers and make changes based on their advice.

“You can be in and get nothing out of it,” said Shaw. “To grow your business both in the short-term and long-term and become successful requires listening, taking the advice and making the changes necessary.”

Preparation before meetings also helps, as do connections via phone, email and online in between the in-person meetings.

“The feedback is instant and helpful. If anyone calls from the 20 Club, we’re talking,” said Mosby. “Staying in touch also helps track trends and plan the business for this year and the next.”

Carol Longacre, CGR, GMB, CAP, with Longacre Construction in Lewisville, Texas, and another Remodeler 20 Club member agrees.

“It’s made running a business easier,” she said. “We can bounce ideas off the 20 Club ‘board of directors.’  We get honest feedback on our ideas and we share documents — things you can’t share with local council members.”

Longacre credits her 20 Club for helping to make 2009 the company’s biggest year — increasing her gross profits by 20%.

“The Remodeler 20 Club taught me how to understand my financials so that I could make better business decisions. It has also taught me how to manage people better and has helped me stay financially solid through this recession,” she said.

Benefits Get Personal

“I probably would not be doing what I’m doing today, if it weren’t for my 20 Club — not only as a business and industry leader, but personally as well,” said Peterson. “I have grown quite a bit and now I have the confidence to mentor others and to lead and to share my successes with them.”

“It starts with getting out of your shell and realizing you can’t do it all by yourself and looking for help,” said Shaw. “There are a lot of people who spend their entire career never being interested in help. They typically will never grow and they have to struggle to stay in business.”

“Remodeler 20 Club members tend to be some of the best companies in the country,” said Mosby.

“Now that I have two sons, we’re coaching them in their careers and our peer groups are providing internships with some of the best companies in the nation,” added Mosby, which is helping him tremendously with succession planning for his business.

Why Join a Remodeler 20 Club

Several remodelers see joining the Remodeler 20 Club as a part of the business development process. Shaw advised remodelers to first join a local remodelers’ council and get involved in the NAHB community.

Once a remodeler develops a taste for information, learning and business growth, it may be time to explore joining a Remodeler 20 Club.

In exploring whether it’s time to join a Remodeler 20 Club, Peterson suggested that remodelers consider:

  • Where they are financially
  • What they expect from their investment in joining
  • What knowledge and experience they have to contribute to the group

“But if you join a Remodeler 20 Club, take away these two words: listen and implement,” said Peterson.

“I don’t understand why more people don’t do it,” said Longacre. “If you can’t spend three days away from your business to work on your business, then you truly need the 20 Club. You need the help to be more professional and grow your business.”

“It’s been the single largest thing that changed me. The business, my life and the career futures of my coworkers would be very different without it,” said Mosby.

“It’s another valuable tool that your association helps provide to help you stay in business through hard times,” said Peterson.

For more information on the 20 Club program, visit www.nahb.org/20clubs; or email Christopher Slye at NAHB, or call him at 800-368-5242 x8241.




Learn How to Run a Successful Remodeling Company

The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

To view or purchase this publication online, click here, or call 800-223-2665.




'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

To view or purchase this publication online, click here, or call 800-223-2665.

 

Also in This Issue