By Andrew Hunt
Running a residential construction company can be a tough job, especially in today's competitive market. Besides delivering a well-built product to the customer on time and under budget, builders also face the same day-to-day business challenges as any other business. But thanks to a number of government, non-profit and commercial enterprises, builders today have access to a host of resources to help them keep their businesses running smoothly and let them focus on what really matters: building quality homes.
The major organizational issues facing builders are similar to the challenges found in all businesses; they include employee hiring and retention, human resources and leadership training. Without a competent grasp on each of these, even the most quality-conscious builder may not have a successful company.
Getting off the ground
Starting a new business can be risky, and doing the leg work to get educated on the process can mean the difference between success and failure. Finding resources to help can be as easy as surfing the Internet:
- The U.S. Small Business Administration (SBA) was created in 1953 as an independent federal agency to provide aid, counsel and information to people looking to start or improve their small businesses. For builders, the SBA can be especially helpful in understanding labor laws, safety issues, and marketing and communications. In addition to the online resources, the SBA offers Podcasts and videos by mail.
- The National Association of Home Builders (NAHB) has created a web portal that looks exclusively at the art of business management for builders. Biztools offers members articles and resources that cover everything from strategic planning, to information technology.
Head hunting for help
Part of managing any business is hiring and retaining qualified employees. Having a staff that will grow with your business can provide years of continuity. Employees are arguably one of a company's most important investments and assets. The costs associated with a high turnover rate, especially in leadership positions, can hamstring a builder.
Word of mouth and want ads may help land newer and less experienced workers, but when looking for someone to step into a management or leadership role, it's often better to seek professional help.
- Organizations such as Schaffer Associates specialize in placing qualified workers in the construction, building materials, plumbing and electrical industries. By focusing on executive-level positions, Shaffer Associates can provide builders with a list of possible candidates and help find the right match quickly.
- NAHB's Career Center offers members access to an extensive database of workers nationwide. The website allows prospective employers to view work job seekers' experience, location and resumes. Builders can also use this site to post job openings. The same service is offered at a slightly higher rate through ConstructionJobs.com for non-NAHB members.
Keeping on the Cutting Edge
Leadership and human resource training within the building industry often take a back seat to sales training or the hands-on training related to the construction of the home. But once a builder assembles the core players to manage the jobsite and the office, keeping the team engaged and up-to-date on the latest management practices is critical. Investing in training for employees not only helps grow them professionally, it also encourages loyalty and longevity with a company.
- The American Management Association (AMA) is a global non-profit membership-based association that offers a wide-range of management development and education services to both individuals and companies. Established in 1923, the AMA offers seminar based training, conference engagements, and also blended learning options for builders.
- Human resources can be a moving target for many builders. HR.com offers businesses a chance to network with one of the largest community of human resource executives on the Web today. Staying connected in the back office can help smooth challenges from the model home to the jobsite.
At the end of the day, the business of doing business should not get in the way of builders providing their customers with a top-quality product. By making sure the foundation of your company is footed on good business sense, builders can free up more time and energy to focus on what they do best: build homes.
Andrew Hunt is a freelance writer who specializes in topics related to building and construction.
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