The Six Key Fundamentals to Success
In our previous blog, The Seven Attitudes to Success, we explained that we believe that there are seven key attitudes that are critical to business success. Now we’d like to share the six key fundamentals to success. When starting a remodeling business, your main goal is to be successful and earn strong margins. Now the question remains, what are the key fundamentals to run a successful remodeling business?
When starting a remodeling business or any business, it is critical to have a clear vision of where you want company to be. For example, at DreamMaker Bath & Kitchen our visions statement is:
To serve and enrich peoples’ lives with dignity, excellence, humility and respect, while encouraging and inspiring others to do the same.
Your vision statement should be kept short, so it’s easy for staff to remember and be compelling. The vision statement guides the direction of your business’ efforts and articulates what you would like to achieve. American author, Michael Gerber said, “…a large business was a small business that thought large at the beginning.” So put a plan in place to make your vision a reality.
Written systems within a business create efficiency and gives the ability to multiply and duplicate efforts. Systems do take an investment of time, money and energy, but in the end, the results will speak for themselves. When first starting your remodeling business, start with a small system. For example, create a system with how your phone is answered, and move to the increasingly more complex systems. With 20+ years in the remodeling industry, DreamMaker has turned their experiences into learnings to create systems that have helped remodelers across the country grow their businesses. Our systems started out small, but we have taken the time to really build and implement them into our business model, so our franchisees don’t have to.
When building your team for your business, it’s important to start with recruiting “A” players. In our blog, The Four Secrets to Recruiting “A” Players, we go into detail about the system we have created to help our franchisees find the right people for their team. To DreamMaker, recruiting means going out and finding the best people for the pay, benefits, culture and opportunity your business provides. Recruiting and hiring “A” players is the only way to replace yourself and move your company to the next level.
When running a successful remodeling business, it is important to keep track of your numbers. You might wonder, “what numbers should I track?” As a business owner, there are multiple data points that need to be tracked for your company to be profitable. A few of the numbers to be tracked, include closing ratio, cost per lead and cost per sale. When you are able to track where you are making a profit and where you are losing money, then you can pay yourself a salary you deserve for the jobs you perform. You can also know when it is time to grow your team and hire “A” players. The key to running a profitable business is to know your numbers and pricing your jobs so you can make a profit and earn strong margins.
In the remodeling industry, it is all about capturing and keeping customers. Research has shown that many customers will choose a remodeler from referrals given by a relative, friend or neighbor. To receive such referrals, you first need to create a product or experience that provides tremendous value in the customer’s mind. Then create a proactive marketing plan to encourage clients to give referrals to those looking for a remodeler.
Along with marketing, it’s imperative that you build a business on values and create a respectable name people can trust. At DreamMaker, we have created our Code of Values™, which informs the way DreamMaker franchisees treat customers and the way that we treat franchisees. Customers know they are being cared for, and our franchise owners know it too, because we hold ourselves accountable to these biblically based values.
At DreamMaker, we have created a business model that factors in both the seven key attitudes and six key fundamentals to success. If you are interested in learning more about how you could start a successful remodeling business with the help of DreamMaker’s systems, then click the button below to download our franchise kit.