Qualified Remodeler Magazine

JUN 2017

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/835806

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Page 6 of 60

is month, we begin a series of occasional "business benchmarking" articles. e goal is to shed light on some of the fundamental concepts of running a remodeling and home improvement firm. In this series, the focus is on accounting and finance. We speak with experts to take the guesswork out of a topic; and in this issue, senior editor Kyle Clapham tackles overhead. We begin with the topic of overhead be- cause it is the cornerstone of any business. You cannot accurately price your jobs with- out knowing your overhead. Too many great craftsman and project managers have made the leap into en- trepreneurship without knowing what it takes to set up a chart of ac- counts and make choic- es between their overall business costs and the costs of running each job. Margin and mark- up will be covered in a future issue this year. We hope that for some of you this article (and this series of articles) will give you enough information to get started on an educational track—through NARI, NAHB, NKBA and others—in which you improve the level of op- tics and control of your business. It can make all the difference. For others who already op- erate at a high level, we hope this article is a reminder of some of the intricacies involved in overhead and potentially injects a new in- sight that could lead to an opportunity for improvement. | any of you truly manage your business with great knowledge and skill. In fact, it is a great perk of this job to know some of the best business leaders in the industry. Amongst them, it is easy to see the clear trade-offs they make between revenue and margin to hit profitability targets. As most of you know, more revenue does not necessarily translate to greater profits. Top remodelers, through experience and ed- ucation, know how to balance profits with goals for owners, employees and customers. On top of it all, they take pride in their craftsmanship and a job well done. We at the magazine see evidence of this craftsmanship in the hundreds of masterful design award entries we receive each year. However, this level of business know-how is not the norm. Tracking data from Harvard University and others suggests a so- bering figure: 20 percent of new remodeling firms are out of business within five years of launching. As Les Cunningham, owner of Business Networks, says in this month's article on how to calculate business overhead: "e biggest lie in remodeling is if you do good, quality work you'll be successful at business." At Qualified Remodeler, we view our role in the industry as an aid to remodeling firms. rough our educational events, our news and analysis on QualifiedRemodeler.com, our annual Top 500 rankings, our Master Design Awards and our articles within the print edition, we seek to increase the level of professionalism in the industry. Remove the Guesswork At Qualified Remodeler , we view our role in the industry as an aid to remodeling firms. M 6 June 2017 QR QualifiedRemodeler.com EDITORIAL DIRECTOR'S NOTE Patrick L. O'Toole Published by SOLA Group, Inc. 1880 Oak Ave., Suite 350 Evanston, IL 60201 847.440.3000 Publisher and Patrick L. O'Toole Editorial Director Patrick@SOLAbrands.com Ext. 103 Senior Editor Kyle Clapham Kyle@SOLAbrands.com Ext. 107 Associate Editor Kacey Larsen Kacey@SOLAbrands.com Ext. 105 Proofreader Nancy Mueller-Truax Audience Development Mike Serino MSerino@magservgroup.com Creative Director & Tracy Hegg Production Manager Tracy@SOLAbrands.com Senior Graphic Designer Erika Nygaard Editorial Advisory Board Stephen Gidley, GMB, CAPS, CGP, CGB, CGR, CPRC, CR Jeffrey Holloway, CKD, CBD, CGR Michael Nagel, CGR, CAPS Scott R. Sevon, CGR, CAPS, GMB, CGP, GMR Donna Shirey, CGR, CAPS, CGP Kenneth P. Skowronski, CR Midwest and West Paul DeGrandis Sales Manager Paul@SOLAbrands.com Ext. 100 Midwest Sales Manager Jessica Fidrocki Jessica@SOLAbrands.com Ext. 117 East Sales Manager Beth Emerich EmerichB@SOLAbrands.com Ext. 101 National Automotive Tom Lutzke Sales TLutzke@ACBusinessMedia.com Literature Galleries/ Mike Serino Classifieds Mike@SOLAbrands.com Ext. 102 Digital Programs Tim Steingraber Manager Tim@SOLAbrands.com Ext. 106 Projects Manager Heidi Riedl Heidi@SOLAbrands.com Ext. 111 A preferred publication of the National Association of the Remodeling Industry and the NAHB Remodelers

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