I’m cosidering throwing in the towel on the little remod business I have had for 12 years…I am getting beat physically and have never been very strong in marketing this company to the public… I think I am going to do something related to the home; with a company which assists home owners in selling their homes without a R-E agent… I feel O-K with selling to the H-O and recall many instances where I left a home on a first visit with a sizeable deposit based on my tiny micro-business’s image or my personality…Any body feel like “CHEWING THE RAG” here with me ?
Scribe once, cut once!
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The guys I try to emulate are the ones that have gotten big enough to run a crew (or more than one crew) and don't swing their hammers anymore. You get older, you gotta quit using your body physically to make money. I figure I've got less than ten years to get out of the field and strictly into the office. Seems do-able to me, but it calls for a different set of sales and business skills that I need to work on.
I don't know much about your work because you haven't been here much, but I know you mentioned having one helper. If you're going to stay in the trades it would probably be necessary to sell more jobs and move up to having 3+ employees in the field doing the work. My guess is that most contractors would name sales as one of their weakest points. Sooner or later it gets less important to be able to build curved stairs and more important to be able to sell $500K+ per year. There are certainly old-timers in the game who are great tradesmen working with their tools into their 50s and even past that (I recently worked with an 80 year old flooring guy).... but most people either get out of it, or build up to a bigger company and run things from the office.
So, how about picking up some of the books on sales and hitting it from that angle? Then all you need is that rare bird... a reliable, skilled lead carpenter.
"I don't know much about your work because you haven't been here much, but I know you mentioned having one helper. If you're going to stay in the trades it would probably be necessary to sell more jobs and move up to having 3+ employees in the field doing the work. My guess is that most contractors would name sales as one of their weakest points. Sooner or later it gets less important to be able to build curved stairs and more important to be able to sell $500K+ per year. There are certainly old-timers in the game who are great tradesmen working with their tools into their 50s and even past that (I recently worked with an 80 year old flooring guy).... but most people either get out of it, or build up to a bigger company and run things from the office."
That middle paragraph is a fine piece of writing.
Tim Mooney
Yes, I considered getting out a few times. The last time was about 2 years ago. Business was slow, and I had fallen off scaffold, and ladders a few times, without getting hurt. I was 37 at the time and realized that this body is not going to last forever.
My wife and I considered buying a small, orthopedic shoe business in the area. In the process of investigating going about the shoe business in general, we realized how much information about running any, business overlaps with what I am doing now. It didn't work out to buy that business, but I learned quite a bit about where my weaknesses are. I'm working on those weaknesses, and once I am more secure in those areas, I will be looking at whether I want employees, or use a lot of subs, or maybe just continue to raise my rates, and pick and choose projects that are not going to trash my body.
I would really like to hear comments from people who have made the transition, or are in the process of making the transition.
Bowz,
I am about half way there. I hired my brother a year and a half ago and trained him (we do handyman work and light remodeling) and have now hired a helper for him and I. I now do the small stuff with him doing the larger work so that allows me more time to do business. We still occasionally take on jobs that we both have to do but generally he is remodeling a bathroom and I am installing a garage door then doign the business thing. I am 47 and hope to be out of the field by 50.
We are advertising more and recently did some remodeling and subbed a room addition for a couple and that worked out real well. I hope to do more of that combined with expanding our core work. DanT
Dan,
Did you bring your brother on full-time or part-time to start? And did you ramp up your advertising, marketing, and sales before or after you hired him?
What I'm wondering is did you have a 3 to 6 month backlog of work to start him out on, or did you sell real quickly after hiring him? Or did you start him on one of your rental properties?
It seems that it would be difficult to estimate, not knowing how he will perform. Yet you've got to have the work there in order to hire him.
Thanks,
Bowz
Bowz,
All good questions. My brother and I own a couple of rentals together and each of us own some seperately. He worked as a welder/fabricator before working for me. I knew he could do the work it was just a matter of getting his skills and vision up to the level it needed to be. And I knew in advance that he and I work well together so that really eliminated a number of the questions of a new hire.
I had 2 months of work back logged when I hired him. He has a family and is the main income so I had to offer him full time and commit to it up front in order to hire him. I also paid a premium wage. The first 6 months were a struggle of me hustling to keep enough work coming in to cover both salaries. I had set back about 10k and never got below 4 but was still nervous at times.
I did up my advertising and used the rentals as a back up. The rentals were a help as I bought one during that period and he did the work on it. He did rental quality work right out of the gate.
Now he does real well. Really came along and likes the work. I am making money with him and the customer like him. As I said we just hired a helper for him and he does the remodels while I do the small jobs and mind the business. If we get a kitchen remodel or something then I am back at it for awhile but hope to change that in the coming 2 years.
I do think you need work for him but what comes first the chicken or the egg? I mean can you sell larger jobs and more of them without capable help or subs? So I think it is somewhat a leap of faith that you will get the work needed. But I would not have done it had I not been to the point of having a backlog of work. DanT
Are you still considering or have you decided? davidmeiland makes good points. It sounds like the business you are considering doing work for is interesting, as that in itself is a great market to get into. What kind of work do you do as far as size and complexity? I would agree there may be room for you to general the jobs and sub out. BTW where are you located?
Keep us posted.
Aryn
Look at my post in work wanted, Houston remodeler or remodeling ,in the attatchment is a roof I pitched over a mansard... Then we sheet rocked the interior, 1600 square ft. I'm working on a Bath remodel. Gutted removed Tub and building out a shower, kitchens are a breeze (lol) mostly...I worked for masters of all mechanical trades,and a couple of carpenters,and have some trade school in High school, and Naval Engineering school (starch) Learned a lot of code and estimation from a concrete contractor (Dad) I had to learn to sell on my own,now I can sell it like I've got my "pants on backwards"(and not care)...Scribe once, cut once!
I know the feeling. The body sometimes does'nt cooperate. It takes longer to recover from a hard days work and the aches and pains just keep coming.
Its nearly impossible for the small artisan/contractor to sell his business or put someone else in the field to do the work. When people hire me the want me on the job.
There are a lot of things that I used to do that I sub out now, like roofing etc.
My goal is to work towards being a clipboard carpenter, building one or two spec houses a year. Maybe putting on my tools for trim and the like. I might as well capitolize on my experience.
It can be tough. I know a lot of people who have left the business. Really have to get big enough to have a crew, or two crews and a book keeper. Climbing and shifting lumber is a job for youngsters. Consider specializing. A good friend got burned out as a carpenter. Bought a Cat bulldozer and started doing site work and excavation. Now he has a couple crews and a dozen machines. If you specialize, you sell to other contracters mostly. Easier to market yourself. Get a piece of equipment that's uncommon in your area. If you like real estate, your other opportunity isn't bad. But, I know a lot of realtors who are really scrambling even in this market. How long is it going to last? If new housing starts go down, remodels will increase. There are a heck of a lot of houses out there.
I've been through what you're going thru now.
I tried keeping the family remodeling business going 9 After my dad retired) for about 8 years before I realized that I really don't like doing the "business" part of the job.
I tried working at my local lumber yard, but I didn't like being in the same place day after day. I lasted 7 months there.
I'm now doing what I call freelance carpentry. I work for several different contractors on a as-needed basis. When one of them needs help, for a day or a week, I work for them at a set daily rate. I've been doing this for about 1-1/2 years now, and I'm doing much better now then when I was working on my own. I still do some small jobs on my own, but I can pick and choose them as I like.
Good luck with whatever you decide.