Im a young (29 yrs) project manager for a custom home builder. Obviously, times are tough here in MI so the company has had to make changes. To make a long story short, I have decided to go off on my own since that has always been my goal. I was hoping to wait until the economy was on the upswing. But that does not seem to be in the near future. I have been in the business since I was 15 with experience as a laborer all the way to mananging mulit-million dollar new homes. I am confident with my on-site skills but I am nervous about the company management side. Other successful builders I have consulted with in my area said to get me “systems” in place first. I am struggling with where to start. I want to get it right the first time and not have to redevelop systems. Any advice out there for a nervous new company owner? Any suggestions on books, sites, etc. regarding this issue?
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David Gerstel's "The Builder's Guide to Running a Successful Construction Company"
Jim Kramon's "Smart Business for Contractor's"
I have cdo.
It's like ocd, only the letters are in alphabetical order like they're supposed to be.
http://www.truenorthcarpentry.net
I stumbled on my old copy of Gerstels book last weekend and browsed through it. Overall the ideas are very good but man does that book seem out of date.
The prices he was quoting for computers and software at the time made me laugh. How could I do without Excel, Quickbooks, and AutoCAD now days?
He didn't have a fax machine because he couldn't justify the cost. Now there 50 bucks and almost obsolete.
Crazy how some stuff has changed in such a short time. I can't remember now if he ever even mentioned cell phones? No such thing as digital cameras. No PDA.
I wonder if he is still in business or has he retired now?Legal Disclaimer: The preceeding comments are for entertainment purposes only and are in no way to be construed as professional advice. The reader of these comments agrees to hold harmless the poster, EJCinc, from any and all claims that EJCinc offered professional advice, ideas, or comments to the reader that may or may not have resulted in the damage, injury, or death to the readers property or person.
"I stumbled on my old copy of Gerstels book last weekend and browsed through it. Overall the ideas are very good but man does that book seem out of date."I understand what you're saying, but I do think that book is one of the best (if not the best) book out there for a general overview of how a successful construction company should operate.Joe Stoddard, who is the moderator of the Computer Solutions forum at JLC, has said many times before that the business owner who thinks a piece of software or communication device will make him successful is wrong.Computers, cell phones, etc. were a lot more expensive, adjusted for inflation, back then compared to today. But, those "tools" are only as effective as the system that are being utilized in (which is what this thread is all about).It is funny to think back on the days when an estimating "system" consisted of a #2 pencil, Big Chief college-ruled paper tablet, and an adding machine.
Jon Blakemore RappahannockINC.com Fredericksburg, VA
You make an excellent point.I have CDO.
It's like OCD, only the letters are in alphabetical order like they're supposed to be.
http://www.truenorthcarpentry.net
I know what you mean, he's mentioning Wordstar for word processing as cutting edge!A little Wordstar history: http://en.wikipedia.org/wiki/WordStarExcel is great, and I'm starting to get into Cad for the fun of it. It makes me shake my head at the old graph paper days.I do wonder what we'll thing of our tech 15 years from now...I have CDO.
It's like OCD, only the letters are in alphabetical order like they're supposed to be.
http://www.truenorthcarpentry.net
When I started I just dove in. Totally self-taught, coming at it from no construction background at all. Just something I always wanted to do, so I said what the heck and jumped off the cliff. Haven't been out of work since. I read a lot of how-to books about construction, but ery few on how to run a business. I read Gerstel 15 years ago. I haven't gone back to it since, but I would think it would be very dated. If I recall it pretty much ignored computers and was pushing something called the one-note paper system or something like that.Don't know how I could keep track of everything without the computer and the the search function. I used to draw perspective on a drafting table, but boy was that slow and inexact. My CAD program is indispensable. I've got a fax machine gathering dust in the attic. Everything runs out of the computer now.I could use some strengthening on my estimating and book keeping. Now that it's three of us instead of just me, I spend way too much unbilled time keeping up with the paperwork.Steve
here's a link to a discussion about systems.......
add your two cents and see if you get some response
http://forums.taunton.com/tp-breaktime/messages?msg=112278.1
aztimber
I have to laugh.
At 29 (1985) I was working for the biggest custom home builder in our small market. I went on my own doing small jobs in a very bad economy. I thought in a 5-10 years I'll be building homes and talking with the big shots.
Well I'm still doing the small jobs.
I didn't even know what systems were back then.
My skill sets were still pretty raw, even though I thought I was pretty good.
I don't know what kind of work or business you envision, but It probably won't look like the one you have been working for.
No sense getting payroll systems figured out if you can't land enough jobs to hire employees. Times are tough in MI I here.
If you have been doing project management then you probably don't have any idea how the jobs are estimated or how to price your work.
Estimating and learning how to charge enough to cover your overhead and profit are your 1st big hurdles.
My wife is organizing an after school bible club with 100 kids and 20 volunteers. She said this week was the best so far and she has learned so much. She said " I just wish I didn't have to learn it all the hard way".
That's the best way to learn.
Just get started, you won't have all the systems right the 1st time, or the 2nd or the 3rd. You won't even know what you need to know until you are confronted with it.
Rich
AMEN Bro. Cargin!! Can ya feel it. One day a light will shine down on you and the heavens will open up and tell you to vote for Barac...
Sorry, Wrong Sermon.
Kyle
I don't get it.
What are you trying to say?
Rich
"I don't know what kind of work or business you envision, but It probably won't look like the one you have been working for.
No sense getting payroll systems figured out if you can't land enough jobs to hire employees. Times are tough in MI I here."'
That was a quote from the Reverend Barack Hussein Obama.
There's nothin like a little sermon to put someone in their place. I personally think that it's a lot better to encourage someone when they are about to take a big step then try and convince them that their thinking is all wrong.
It's good that he's worrying about this stuff now. More businesses go under from lack of planing than planning to much.
I hardly think that was a sermon, and quoting "Barac" [sic] was just plain weird.I have CDOIt's like OCD, only the letters are in alphabetical order like they're supposed to be.http://www.truenorthcarpentry.net
Edited 11/7/2008 9:59 am by True North
Kyle
I'm sorry. I didn't mean to preach or discourage him.
Just be realistic about the future business
I have to laugh because when I was 29 I thought I knew it all and I knew nothing.
This guy is so much further ahead then I was at that age and yet there is still so much he doesn't know. You won't know it until you walk down that road. and there are many guys more experienced than me here at BT to help him. If you ask they will help, trust me.
There was a guy on here a year ago that was planning on going out on his own and was making plans ad naseum and yet I don't think he ever made the plunge. He was trying so hard to be perfect that it probably always eluded him.
I encourage him to go out on his own. But I don't think you can have the historical cost data that his former employer had on labor costs. You have to have a good head for estimating or use a estimating program to supplement. I can give him links that others here at BT have mentioned if he wants them.
A good CPA can help him set up his books and figure out if he should incorporate or not.
Again I am sorry if I came off wrong.
Rich
Yeah, I guess I just take it personal because I've had so many people who try and but in to my business and tell me what I should and shouldn't do. It seems like everything that I've tried to do there has always been people lining up to tell me what I did or will do wrong. And through that I learned that it's so much better to be encouraging then to discourage. I still think that it's appropriate to point things out that maybe they didn't think of. Not that you did, but I would never tell someone that they have a bad idea. But instead, steer them with suggestions that will get them thinking on the right path. Many people when they are trying something new have a lot of excitement and drive, but they also have a lot of nervousness. When people start questioning their ability and knowledge, then sometimes the nervousness can take over and seed self doubt.
When I was 26 my employer helped me get started. About one year later both of us were talking and he told me that he had more work than he had ever had. That was in 1981. Business was the best for me when interest rates were high and worst during the past few years when interest rates were low. I built high end homes for people who had lots of money.