I believe that down markets fit in the “if it doesn’t kill you, it makes you stronger” category. I’m motivated to improve my work and business and position myself for a recovery, however slow it may be.
Today I’m winterizing windows in a Victorian with that interior shrink wrap film. This is for a customer who can’t afford new windows or new traditional wood storms, but I talked them out of cheap, cheesy, aluminum storms. I did build them one wood storm and wood screen for a large, prominent window and hope to get to build the rest later–as they can afford it.
Yesterday, I gave a presentation to the local historical society about the history of my home and shop (an old inn and dance hall) and my showed slides of my renovation efforts, and made a brief mention of my business as it relates to historical buildings. You never know what will come of things like this.
Got a thank you call this morning from a tile guy I recommend, he is getting the back splash work in a home I worked in. I invited him to replace a couple of cracked tiles… that few hours of work has lead to a couple more days of work.
I struggle to make ends meet with teenagers and orthodontists to support, but I’m still investing in improving and marketing my business…
…anywhoo, I gotta run, but what are you doing to up your game… the future belongs to the optimists, who, in spite of the odds, never give up. I may be wrong, but at least I’m happy. :o)
Replies
We are celebrating our 10th anniversary this year as a company. We are going to have a big Holiday party inviting all my vendors, subs, and past clients. This party will be in conjunction with my wife's real estate clients.
Even though it has been a tough year, we have much to celebrate and I want to thank everyone who has helped get us through the past ten years-most importantly those folks who are a consistent source of referrals.
I have refocused my communications with clients to let them know about all the work we do. Most tend to pigeonhole you in terms of what you did for them. So I have kept monthly mailings to these same folks to let them know about the energy tax credits and the importance of home maintenance.
I have also forced myself to get out to more parties and gatherings. That additional networking will payoff in the future and has generated a few projects this year. For example, a birthday party for a neighbor's one year old (not my favorite type of get together) has generated a $60k screen porch project and and a $100k kitchen remodel and addition.
I don't go to these things looking for work, but usually the discussion with new acquaintences lead to "so what do you do?" type talk. You got to get out there.
Thanks for the optimism. I can't help but be optimistic. Things will eventually turn and when they do, my clients know I am ready to help. During this time I have communicated alot with potential clients and believe I have nearly $2.5 million in quality projects once people feel confident enough to proceed with projects. I am not throwing these number out to brag or show off.
I believe I am sowing the seeds for lots of work when they are ready. I may not have been working on as much paying projects, but business development is one the hats most of us wear.
I just revisted a quote in my daytimer
"Your living is determined not so much by what life brings you as by the attitude you bring to life; not so much by what happens to you as by the way your mind looks at what happens. Lewis Dunnington"
Best of luck to everyone
Bruce
Edited 10/26/2009 10:28 am by Hiker
Cmon guys! The world is ending. We have had multiple threads that said so. You guys CAN'T be getting along.
Seriously, great job and continued success.
The world isn't ending, just--one may hope--the unsustainable, disposable, me-first, buy-now-and-borrow-more-later economy.
What's interesting about Brian's post is that he's involved in preservation and restoration work rather than building new, 7-year-life-cycle McMonsters or dumpster-ready tract houses. That he should be doing better than others chasing after the little new construction out there shouldn't really be surprising.
My BIL in Ohio has been building multi-million-dollar custom spec houses for twenty+ years; he is smart enough to know that's not going to work any more and has gone into re-insulation of existing homes, for which there is apparently enough of a market to keep him nice and busy.
In the meantime, he and my sis have been forced to take back a McMansion they'd built for themselves 20 years ago and had been unable to sell at any price once they moved out of it 6 years back. They'd rented it for a couple of years, got stiffed by the slimeballs who boogied without a trace owing them 6 or 9 months rent, and wound up having to replace half the kitchen and all the carpets.
OTOH, he was able to sell the house they'd bought when they put the Monster on the market--a moderate-priced brick ranch on 3 acres north of Columbus--to the first buyer who saw it...at his asking price. I think he told me the house was on the market for a grand total of four days.
Essential maintenance and repairs will continue to be done, although the tolerance HOs will have for problems like minor leaks and peeling paint will increase proportionately to the decrease in their means. I think a lot of smaller remod guys are going to wind up doing a lot of handyman work and waiting for the HOs to get ready to bite the bullet a year or two hence.
There will be fewer people trading up to bigger and more expensive houses, but many people will be defaulting on white elephants and/or trading down to keep their butts out of the street. Thus first-time home-buyers will have an opportunity to buy larger properties at prices lower than any that have been seen since the Great Depression.
Many buyers will opt for smaller, less expensive homes and put the money saved on purchase will be put into remods.
People who can keep their homes will keep their homes. There will be more renovation than dumpsterising. That should help, too....
As long as we keep Frenchy away from that printing press, we oughta be OK. ;o)
Dinosaur
How now, Mighty Sauron, that thou art not broughtlow by this? For thine evil pales before that whichfoolish men call Justice....
Somewhere in the last year I heard a great phrase
"a recession is a terrible thing to waste"
The point being made was to take advantage of this time to making yourself and your business better and focus on the future instead of focusing entirely on the news media because things will get better-they always do and you will be the first in line when it happens.
Thanks
Bruce
Hi Bruce,Good post. Sounds like you are doing some smart things. I don't think I planted enough seeds when I was buried in work. It is like someone said about planting trees... there are two times to plant trees... 20 years ago... and Today!I'm now back to just myself and I'm doing well if I gross 100K in a year. This year will be down some, but I plan to be as smart as I can and try to make more opportunities. I think there is always something out there for me. I just have to find it and go after it.All the best,Brian
I wish I had paid more attention to the seed planting in August 2008. We had two whole house remodels lined up for the the end of 2008 and first part of 2009 and I got complacent with my business development efforts. Those two projects would have gotten us into first quarter of 2010.
Early november 2008 both projects went away due to financing issues. Needless to say, business development efforts needed to be kicked into high gear. This year has been tough, but we have stayed fairly busy, but off by about 35% compared to 2008. This probably could have been avoided or minimized if I had not gotten complacent in August 2008.
I now view business development as equal in importance to production and quality and this mentally allows me to put down the bags for a few hours a week and do whatever business development task I have set aside and going to birthday parties for my kid's friends.
Thanks again for initiating the post.
Bruce
That is interesting Bruce. I've never gotten really slow during this downturn, but I have taken some goofy jobs to stay busy. I've also changed from a new construction trim guy into a remodel and woodshop guy. This has not been as profitable. Bidding is more competitive, prices often lower, and I'm not as efficient at doing the diverse work of remodeling and I often miss something I should have included in the bid, etc. This is just the learning curve of a more diverse workload (if I could remain more specialized and stay busy, I would). It has taken a couple of years, but I'm getting better at dealing with those challenges.I did land a bath/laundry remodel yesterday, and today I landed a commercial hand rail install (oak on rail brackets, no balusters). It is 8 stories of stair rail, so I'll get a workout too. :o)The electrician is taking a turn at my mudroom/hall/home office job, so I'm repainting my apartment today to get it looking good to rent out.Busy through the holidays now. Keep thinking positive thoughts.Brian
Great idea Bruce. Just curious, did you have any luck with that lead?
They have not called back. I got the sense they did not want to pay me for developing plans and specs because they had a artist rendition of the space and felt that should suffice.
THanks for the lead-always willing to take a shot.
Bruce
"Your living is determined not so much by what life brings you as by the attitude you bring to life; not so much by what happens to you as by the way your mind looks at what happens. Lewis Dunnington"I'm tired from a long day of givener...however...a great thread! and a great quoteI am working on a much needed project that came to me as a result of why I started teaching...to help get work. I gave up teaching a few years ago... a former student called me out of the blue to quote on changing out 9 sealed units in a older character home...I quoted high but I remember what he said when I gave him the proposal...when can you start?...now we're taking off trim and insulating around the windows-T & M with quoted labour prices that include overhead/profit... tough work but satisfing and pays the bills-there is overhead and profit in there as well...not 67% but MIP-money in pocket...gotta like thatcheers,silver
Hey Silver,
I am glad things are moving forward for you.
I frankly found that not listening to news channels all day has really improved my outlook. I realize that unemployment is creeping up, but over 90% of people are working. I realize that houses are being foreclosed, but 97% of all homes are just fine. The news has an obligation sell bad news. Good news does not generate revenue or content for the media.
I also believe that I have very little control over what Congress or Wall Street does, but I have almost 100% control over what I think and do (when the wife lets me).
People are still fixing their homes, it is my job to find them-as a business owner it is a primary task to generate business.
Thanks again to Basswood for starting this thread.
Bruce
Hey Bruce,"People are still fixing their homes, it is my job to find them-as a business owner it is a primary task to generate business."I believe you get what you concentrate on...for one of the first times in my life I think I'm finally getting it...It starts with-realizing that doing that same ol sameo and expecting different results-is crazy in a nutshell.For a long time-I've been telling my wife-Don't worry-my ship is coming in...now I'm seeing it in port, being unloaded and the money showing up in my bank account <grin> I'm working at changing the pictures in mind- to see the bills getting paid, see myself answering the phone...see the jobs I want coming to me and succeeding at completing them to the owners satisfaction and my profit.I'm reading a great book right now on investing in real estate. One of the first chapters is about creating a treasure map of your ideal life...with the point being that real estate investing can help you realize your true treasures...I looked at a job yesterday-a real jackpot...no one wants to touch it because it's someone else's screwup. I looking at it and thinking-
I need this job right now...I really don't think they can afford 50./hr.for me and 20./hr. for my helper + 30 or 40% markupbut they want me to do it...and with myself at 50. and my helper at 20. with 20% overhead/profit
=84.00/hr. I think I can sell that.At the end of the job, I'll have MIP (money in pocket) and another
satisfied customer to help promote my business...I haven't read the rest of this thread yet but any upward spiral in today's market includes savvy marketing and that's an other thing I'm working on...
silver
"'m reading a great book right now on investing in real estate. One of the first chapters is about creating a treasure map of your ideal life."Which book? The treasure map is a good idea. Think big, then start taking baby steps.
Hi Jim,"Which book?" It's Real estate investing for Canadians by Don R. Campbell"The treasure map is a good idea. Think big, then start taking baby steps."I'm frustrated with a few things in my life and I'm trying the baby step approach...silver
I'm taking baby steps too... today I emailed a guy about drawing up plans for an idea of mine to see if I can sell the plans.Was thinking today that I need to not just think of good ideas, I need to aggressively follow through on making them happen.Best,Bass
Hey Bass,Michael Stone had a web seminar about 9 tips to get your phone to ring...funny thing was...there wasn't anything new or radical...What I heard was-do it today...just take your best idea and follow through todaytry to promote yourself/business everyday...I have been anti-marketing for years in the sense that I hate commercialism...and relied on word of mouth-proudly and stubbornlybut now I'm convinced that good marketing is educating your customers about who you are and what you do...the more folks that know about your business-your niche-"your perceived value" -the better chance you have of selling a profitable project...silver
Good to hear you've got work. I've been a little slow, but considering that I've had to do a lot of work on the church parsonage we're supposed to be moving into soon, that's been a good thing.
What's saved me this year is repair work. I've done more of that than remodeling this year. Plus I still do a little of everything. I haven't limited myself by getting into just one kind of work.
I know a guy who pretty much just did moulding upgrade packages for Mcmansions. He's had almost no work this year. He calls me evey once in a while to see if I've got anything. I have brought him on a couple of my jobs, but I don't have that much extra to share.
The economy does seem to be turning around. I've got several customers talking about bathroom and kitchen remodels.
I'm kinda curious about real estate investing in Canada. Is it really much different than statewide?
Good question-don't know...But take Thunder Bay- middle of no where...pulp mills are laying workers off...economy is not really expandingbut...it has been called one of the cheapest places to invest in the English speaking world and house prices are going up...folks are coming back from the oil patch out west because they lost their high paying job...sold their home and looking to find something affordable...you can still buy a decent 3 bedroom bungalow for 80 grand...no banks have failed in canada that I know of...and real estate values/prices across the country are slowly recovering ...silver
Are you planning on landlording, flipping or something else?
Landlord isn't my first choice.I'd like to flip...a buddy of mine turned a 13,000 fire sale into 86,000...got 2 large over his asking price...he gets a real kick out of doing it...I'm pretty sure he made 15 large but lots of sweat equity. I want to work smarter rather than harder...Campbell figures it takes about 3 years to start seeing some serious progress towards your treasure map if you're not in a rush...baby steps for me until I have the confidence to buy...silver
Could you elaborate on why Campbell thinks it should take three years to turn a profit on a flip? Something doesn't sound right.
Hi Jim,I said it wrong...I'm just getting my feet wet and started reading Campbell while I was waiting for Condi to arrive from Amazon...I got distracted and just ordered it todayWith due diligence and armed with market information, buy low and sell high...Campbell says you should make money right out of the gate.Slow build...not get rich quick...at least 3 years to see serious progress towards your personal treasure map.The more I glean about real estate, the more I realize that real estate investor is one of the hats I need to wear and as soon as possible...I'm trying to do my due diligence by educating myself...often I'm spread thin between the hats...but I now know that there are huge dividends to be reaped by investing time and money in real estate...on the one hand, I'm trying to get my carpentry contracting business
positioned to make maximum profit for time invested...after all time is a non renewable resource.on the other hand, I'm anxious to get smart enough to start investing and making good money in real estate...silver
"I have refocused my communications with clients to let them know about all the work we do. Most tend to pigeonhole you in terms of what you did for them. So I have kept monthly mailings to these same folks to let them know about the energy tax credits and the importance of home maintenance." This is a great idea-must have paid off for you...do you have a copy of the monthly mailing you sent out...I've been thinking about doing the same-I run into folks and they say- I didn't know you did that... I have a job right now replacing sealed units in an older house and tearing off trim to insulate around the windows...I have a niche- an older home specialist-I need to get the word out... thanks,
silver
Here is the letter in Word.
The key is to keep in touch with clients throughout the year. Some folks I talk to monthly, others quarterly, others semi annually. I sent out the letter and followed up with a phone call a week or so later. Some folks called me when they got the letter.
It is really the keeping in touch and specifically asking them for referrals,
"Hey, if you know of anyone else who would appreciate the type of service we provide, let me know and I will take care of them."
BTW-this only really works if you did a good job for these folks in the first place. (Not directed at you silver, just an FYI for others that may be reading.)
Bruce
Edited 11/2/2009 2:13 pm by Hiker
Thank-you very much, Bruce...great idea...and I always find it easier to start with something in front of me.A daycare where I have done a far amount of work recently sent me a request for a gift for their fundraiser auction. I heard about "carpenter for a day" being auctioned and googled it. I came up with a few hits and put together a one page "flyer" based on what I found.but I also turned up-"renovate a room" where several trades offer their services to renovate a room as a gift for the auction and offered to help put that together next year.today I received an email from the daycare asking if I had time to quote on a couple of projects...It is about getting out there...cheers,si;ver
good for you!
I am doing some similar things.
2008 was my best year ever-- but 2009 has been quite mediocre----- even slightly sub mediocre--- but I anticipated this in the fall of 2008
having the time to think things through solidly now----- it seems so simple to see--- that when I was really busy--I was actually stagnating
in 2006--- I had started moving my area of focus in a different direction-- but a hailstorm in 2007 ended up wiping out those efforts and re-writing my business plan for 2007-2008. I was also pretty busy in the spring of 2009---but summer and fall I have had the time to THINK--with the benefit of 20/20 hindsight.
so-- how m I improving NOW?--well I have time so
1) I have a personal,physical goal I am pursuing--and I have the time to train for it,cross train and pursue it wisley and at the appropriate pace
2) several home repairs on my own place- that I can finally move forward on now that I have the time.
3) computer skills-- I have resisted this for a decade-- but I have to strengthen this area because some of my future plans will be un-mangeable without better computer skills( see #4)
4)- looking to pick up a clean,"beater" lap top-- I want to be able to take pictures on a digital camera from the roof top-- load them onto a cheap laptop in the customers driveway--and then in their home show them rooftop problems on their Slate& Tile roofs that they can't see from the ground. I can then show them similar problems that I have already solved on other houses and how that applies to their situation.
also- with tile- we are dealing with hard to locate, hard/impossible to match accessories. in my area we could easily have a roof with Starter, field tile, ridge cap in 2 different pitches, hip cap, hip starter, left rake trim,right rake trim and valley pieces and various decrative ridge accessories. Even if I can match the size- they may have originally come in 4 possible colors, several different firings/glazes, several different textures---AND the tile may be out of production since 1932!- so-after a nationwide search- IF the exact thing is not possible---- I can show the customer several compromise pieces that would also work- I can also show them immediately what we already have in stock or can obtain within 24 hours locally.
5) I am in the beginning stages of getting a web site up and running for my company.
6) I am shutting down-or at least no longer pursuing---- a couple of product lines. It is very depressing to vigorously pursue---types of work that I don't want to do in the first place. Being so busy the last 2 years- clouded my judgement about this-- but it is time to move on
7)-- my dump trailer-- a want to make a couple of changes to make my trailer even more effective. I bought it in 2008-and it paid for itself in a matter of weeks/months-- but I want to make some slight inexpensive changes that will make it safer,easier to use and more efficient over all.
8) I have ideas for at least 2 more magazine articles that i want to pitch quite soon-- if not to FHB- then to Old house Journal
when I was busier the last couple years- I didn't have the energy or time to even tinker with these things---- but within a couple months will have made some major adjustments--and by this time next year things will have been re-shaped to a remarkable degree.
stephen
Another good post Stephen,My response to Bruce fits with what you are saying too. I sure make a bunch of mistakes... so if I can just learn from a few of them... I'll be learning plenty . ;o)I've been working on getting myself in better shape. More marketing. Better follow up, etc.Have a few more articles in the works too.You know, an iPhone might be good for taking and showing pics from the roofs. The screen is kinda small, compared to a laptop, but the picture quality is good and you can zoom in on details you see larger... Just a thought. All the best, I gotta get back to work,Brian
New home sales were up in September over a year ago..
Permits are up and activity is reported to be up at a time when normally realitors tend to get pretty quiet.
(this year compared to last year)
Some realitors credit the stimulation of an $8000 tax credit as for the reason and fear the slow down following the stimulus.. But that doesn't explain the recent uptick in high end home sales..
I went out on a sort of warranty call for a builder I used to frame for, bigger company, good product that had been sliding in quality during the boom. I was the only sub they wanted back as they felt I had done a good job and was a straight shooter.
They mentioned their frustration with the builder on many issues they had with the job in general and the responsiveness to said issues in particular.
The funny part: they were on a list of referrals from the builder and they were stearing people away. While I think the builder should have done a much better job, I was incredulous they the were shooting themselves in the foot by sending potetial customers to such a dissatisfied one....
Just goes to show, well, not sure what, but I'm sure someone can add a pithy moral to this! Sort of to your point at the end of your post, huh?
I was incredulous they the were shooting themselves in the foot by sending potetial customers to such a dissatisfied one....
I have tried to develop our business and product so the clients are extremely happy at the end of the project. 99% are. This makes showing off past projects a joy.
Bring a potential client to a past project to check out the kitchen or bath or whatever and have the lady of the house gives you a big hug in front the client. Your business card is on the fridge or tacked up on a board.
Then the past client just starts raving about you. Real easy to sell a project after that. Go to five or six such projects and its a done deal.
In terms of the incredulous, I have had former employees (ones that were fired) use me as a reference for a job. I just shake my head when I get those calls from prospective employers..
Bruce