| This highly popular book answers the "whys" and "hows" of developing and implementing systems that enable you to increase productivity. Find out how to set up the policies and procedures you need to become a more effective manager, run a more professional building business, and increase your margins.
Covers each aspect of a complete management system:
- Management activities and strategic planning
- Marketing and sales
- Legal documents and regulations
- Estimating and scheduling
- Human resources
- Accounting
- Financing
- Customer service
- Warranties
Find out how to identify market and industry trends that will yield business opportunities. Whether you are just starting your small-volume building business or you want to refine your current business practices, Basic Business Management will provide you with management guidance you can use to improve your efficiency and profitability.
Introduction
If you ask 20 small-volume builders why they went into business, you are likely to get 20 different answers. Some may have wanted to be their own boss, others may have wanted to create something they can leave to their children - while all probably wanted to make more money.
Whatever builders' reasons for being in business, understanding and applying sound business management practices will significantly increase their chances
of achieving their business goals.
The purpose of this book is to provide information small-volume builders can use to manage their businesses in a professional manner. The chapters cover
both the "whys" and "hows" of developing and implementing policies and procedures that will help ensure builders' profitability and survival.
Obviously, a book that addresses many topics cannot cover any one topic in depth. This book provides small-volume home builders with the basics of
business management and the initial steps they can take to start their business on the road to success.
Thriving as a small-volume builder and developing a strategic business plan are two of the topics of Section 1: Management Activities and Strategic
Planning. When starting a business, builders should create a total quality culture, a strategic plan and a business plan. Chapters in this section explain how.
Section 2: Marketing and Sales explores the many ways builders can market their company to create the image they want their customers to see. It also
looks at the steps builders need to take to market and sell their homes. Diversification is addressed for builders who want to expand their market niche.
With any business there are legal requirements and regulations that must be followed. Section 3: Legal Documents and Regulations explains the benefits and detractions of the different legal forms of organization so builders can begin to understand what best fits their company. This section also discusses
sales contracts between the builder and the buyer and trade contracts between the builder and subs. A discussion of government regulations concerning the environment highlights issues about which builders should be aware.
A builder's profit often depends on his or her ability to accurately estimate the material and labor required for a project. Section 4: Estimating and
Scheduling explores different types of estimates and the accuracy of each. It also looks at scheduling as a way to manage time, labor and materials to
maximize profits.
Builders work with in-house personnel and subcontractors, each of whom has separate employment requirements. Section 5: Human Resources discusses
management techniques builders can use to effectively hire and manage employees and subcontractors. It also explores the role of construction superintendent.
Successful builders manage their people and also their finances. Section 6: Accounting provides methods for managing cost and risks. Basic accounting
principles are discussed along with ways to manage your records and account for your taxes. Job-cost accounting is explained and sample cost codes for
small-volume builders are provided.
Few builders are able to construct homes without some type of financing. Smart builders help relieve their buyers' anxiety by helping them understand the requirements they must meet to obtain financing. Section 7: Financing analyzes financing options and looks at how builders can conduct financial planning and analyses.
Customer Service is the key to long-term relationships with customers. Section 8: Customer Service and Warranties discusses activities builders can do
during and after construction to ensure customers are delighted with their new homes. In addition to steps builders can do to maintain contact with their
customers, warranties and their requirements are discussed.
Table of Contents:
Acknowledgments; About the Author; Introduction; Section I: Management Activities and Strategic Planning; Chapter 1: Thriving as a Small-Volume Builder; Chapter 2: Managing Quality; Chapter 3:Developing a Strategy; Chapter 4: Creating a Written Plan; Chapter 5: Designing an Office; Section II: Marketing and Sales; Chapter 6: Marketing Your Company; Chapter 7: Marketing Your Homes; Chapter 8: Considering Diversification; Chapter 9: Selling Your Homes; Section III: Legal Documents and Regulations; Chapter 10: Choosing a Legal Form of Organization; Chapter 11: Benefiting from Legal Documentation; Chapter 12: Preparing Contracts; Chapter 13: Following Governmental Regulations; Section IV: Estimating and Scheduling; Chapter 14: Understanding Estimating; Chapter 15: Developing a Detailed Estimate; Chapter 16: Combining Estimating Approaches; Chapter 17: Developing a Schedule; Section V: Human Resources; Chapter 18: Managing Your People; Chapter 19: Working with a Construction Superintendent; Chapter 20: Hiring and Managing Subcontractors; Section VI: Accounting; Chapter 21: Managing Costs and Risks; Chapter 22: Managing Your Records; Chapter 23: Following Basic Accounting Principles; Chapter 24: Preparing Accounting Transactions and Reports; Chapter 25: Using Job-Cost Accounting; Chapter 26: Accounting for Taxes; Section VII: Financing; Chapter 27: Conducting Financial Planning and Analysis; Chapter 28: Managing Cash; Chapter 29: Analyzing Financing Options; Chapter 30: Financing Construction Activities; Chapter 31: Obtaining Permanent Financing; Section VIII: Customer Service and Warranties; Chapter 32: Providing Customer Service; Chapter 33: Continuing Customer Service During Construction; Chapter 34: Providing Warranties; Appendix A: Basic Accounts for Small-Volume Businesses; Appendix B: Business Plan for Smith & Jones Construction; List of Figures
About the Author
Dorn Fowler is professor of Management and Director of Graduate Studies at Brescia University in Owensboro, Kentucky. He holds a bachelor's degree in
construction management and an MBA in Business Administration from the Murray State College and a Ph.D. in Business Management from the University of
Tennessee. In addition, he has 20 years experience building custom and semi-custom homes and remains active in his son Rob's home construction business.
Mr. Fowler and his wife Bonita have two sons, Rob and Ian. |
