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Streamlined Business Data Can Help You Through Downturn
From an owner’s perspective, nothing is more important during a deep downturn than knowing the exact status of your business, or where and how to quickly get critical information that will help you survive.
A cluttered database and record system — with its accompanying inaccurate record keeping — will prevent you from getting the timely, vital information you need to work through the downturn and position your company for the market’s eventual return.
So, take the time now to clean out the old data in your computer system, trim and streamline your systems, increase the productivity of your database and regain a mastery of your business.
Here are several steps you can take:
- First, recognize that the more unnecessary data you have online, the tougher it will be to find the information you need. Think “efficiency.” In this case, less really is more.
Even if your system has infinite storage capability, don’t overfill it with unimportant information. Separate the current information and data that is pertinent to your company’s ability to move forward.
- Consider what you need to have perpetually versus periodically.
In other words, store the information that you’ll need on an ongoing basis as well as information that you’ll need from time to time — and create parameters that will enable you to get the information you need quickly.
Systems can’t deliver what you need without your manipulation; however once you set the right parameters, you can increase your efficiency tenfold.
- Know your history.
Figure out what information you needed in the past — payments, bids, product costs, warranty calls, employee records, plan and option details, job cost details, project reporting — and determine how vital these categories are now.
Some of this information may be job-specific and can be archived and eliminated from your database, but some may be valuable for future jobs and references and should be kept in your database so it can be retrieved quickly.
Every accounting, sales and production (purchasing) application has master and transaction files. Your vendor or consultant can help you identify what these are.
Once you have a list of applications and files, determine how to keep what you need and eliminate the obsolete data.
If you have a little trouble figuring out what to keep and what to discard, think of your data as clothes in your closet. If you haven’t worn it or used it in two years, you probably won’t in the future.
How to Manage Your Transaction Data
The usual shelf life of your payment, job cost and general ledger data should be two years. All jobs within a community should be kept online; however, you may want to summarize the detailed data a year or so after closing to reduce the files.
On the production side, bids (and unit prices), should be kept online as long as you are comparing active vendors and like products.
For example, you may want to compare the cost of building a plan using different vendors or compare two similar plans that have specification changes so you can see the differences in construction costs.
Never remove a vendor or bid that is still be attached to a live job. Budget data should be kept for every job that is still in the building cycle — as well as the current year.
The same principle applies to plans and options. If the details are in use or if the plan and option series will be copied to a new series, keep them online.
However, you should purge obsolete pricing and bid data as well as information about vendors who no longer do business with you. The same goes for plans and options. The bill of material details, if you never plan to use them again, can be removed without removing the library containing the plan or option name.
Organizing Your Master-File Data
In an accounting system, master-file data are general ledger accounts, old financial statement formats not in use, vendors, obsolete employees, tax codes, liability insurance records and job information.
Bear in mind, you may need the job information if it remains part of (populates) your warranty history system longer than you expect.
Production information that can be purged includes subcontractor information to clean up, bid files, 1099 data and old schedules that are no longer used. These can be deleted when they are not attached to any live or forthcoming job or project.
As for your sales system, I would suggest that your clean up salesperson and broker records and eliminate community specifications that are several years old or older.
As you move through this entire clean-up and streamlining process, you will discover capabilities you never dreamed existed.
Once completed, you will have a system that works for you. You’ll have data at your fingertips that is pertinent, and you’ll produce reports and queries that are relevant, accurate and up-to-date.
The bottom line here is that by simplifying and trimming your database, you will be putting yourself in a position to move forward.
Bill Allen is president of W.A. Allen Consulting and a longtime contributor to NAHB’s Business Management & Information Technology Committee. His company, headquartered in Redmond, Wash., provides information technology consulting services and process management assistance to the home building industry.
For more information, e-mail Allen, call him at 425-885-4489 or visit the W.A. Allen Consulting Web site at http://waallenconsulting.com.
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Build Buyer Interest, Generate Leads With Videos on YouTube
Social media marketing has become, quite frankly, an essential way to do business and one of the premier sites the home building industry should use is YouTube.
We in the industry work with prospective buyers who are savvier than ever — due in large part to the information they glean from the Internet.
However, no matter how savvy the buyer, they still seek the most fundamental of all sales concepts — they want to trust the salesperson and company they are working with. After they have gathered all their information, they want to be validated. They want to work with real people with real insights.
This is where a vehicle like YouTube can be your most influential tool.
Videos bridge static information and the visual. They give your prospective buyers a view into your product and your personality. In addition, they function as a lead generator as well as a lead qualifier.
YouTube Is Simple to Use
With YouTube, you can shoot a short video and upload it to the site within minutes. YouTube then provides you a link that you can copy and paste into an e-mail to your prospects, or post on your Web site, blog or other social sites you may have, such as Facebook or Twitter.
All you need is a video camera and an idea.
The video camera can be as simple as the video feature on your cell phone or hand-held Flip Cam, which generally retails for less than $250.
YouTube technology is easy to use. But in case you’re a technophobe, don’t worry. Someone in your office, or just about any high school student, will be able to upload a video for you.
What you will probably find more challenging will be creating and developing the ideas for videos that will distinguish you and elevate you above your competition.
The following are a few tips on what to do when making your video — and what to avoid doing.
Video Do’s
- Brevity Is King. Your marketing or product video is not your parents’ vacation footage. You are working in a medium where viewers have a short attention span, so think of your videos as fast food for customers. Make your point and show your product quickly.
- Authenticity Rules. Be personable. You don’t have to take professional acting classes; you just need to be yourself. Smile and remember to be friendly. Think trust and remember, you are showcasing how easy it is for people to get along with you in a sales environment.
- Frequency. Post videos and update your footage regularly. There are virtually no hard costs associated with uploading videos, so you have no excuses for keeping outdated information online for all to see.
- Be Original and Spontaneous. Carry your video camera with you at all times and be ready to record anything that is remotely interesting or informative in your line of work.
- Brief Customer Testimonials Are Very Powerful. Anyone can write a testimonial, but with a video testimonial, the viewer can look into the eyes of your customers and gauge their sincerity.
- Archive Them in One Location. Create your own YouTube TV station. It’s free, simple, quick to do and can be customized with your corporate colors and logo.
What to Avoid
- Bad Lighting, Bad Sound, Too Much Background Noise. You don’t need to be Steven Spielberg to produce a decent video, but use some common sense when it comes to the quality of your videos.
- Disrespecting the Copyright Laws. If you wish to use music, photos, literature and other videos, conduct a brief Google search to see if you are infringing on any intellectual territories. There are plenty of royalty-free pictures and music available for your videos.
- Distasteful, Off-Color, Unruly, Offensive or Objectionable Material. Can you be edgy and interesting? Absolutely. How is objectionable defined? I don’t know, but I know it when I see it. So will you.
- Not Integrating Your YouTube Videos With All of Your Other Internet Marketing Strategies. YouTube videos should be a component of a well-thought out marketing plan. In the housing industry, videos are not a business plan in themselves, they should be a component of your overall marketing landscape.
- Copycat, Copycat. It’s okay to take an idea and expand it to make it your own. Be as original as you possibly can and avoid copying the video ideas of a competitor or colleague.
- No Contact Information. Every video you produce and post should include your contact information. A simple e-mail or Web site address is sufficient. As with other marketing, your goal is to have prospective customers contact you for more information. Help them out.
- Not Combing Your Hair. Think about the impression you wish to make and dress accordingly. If you want to project a highly professional image, wear business clothes and film the video in your office with you behind a big walnut desk. Or, because you’re selling a lakefront community, casual attire is more appropriate as you film your video on an outside patio overlooking the lake (possibly with a mojito cocktail on the table).
- Keeping Your Videos a Secret. Market it. Market it. Market it. If you are going to make an effort to shoot video footage, by all means let the world know it’s out there.
There are other video storage sites available, such as Viddler.com and Flickr.com, that you can use as well. Each has its own special features, but YouTube is by far the most widely used and is universally recognized.
Keep in mind that, as with most other forms of marketing, video marketing is a work-in-progress. The more you work with it, the more it will work for you.
Paul Montelongo, CSP, CGR, is a nationally recognized speaker, author, syndicated columnist, entrepreneurial consultant and an international authority on sales motivation. He works with businesses and organizations around the country to build team responsibility and personal morale. Visit www.youtube.com/plmontelongo for video evidence and his blog at www.paulmontelongo.com/housingblog for social media marketing proof. For more information, e-mail Montelongo, visit Paul Montelongo International, based in San Antonio, or call 210-541-5553.
This article originally appeared in Nation's Building News.
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Earn AIA Credit at NAHB’s Custom/Design Conference
The 2009 Custom Builder Symposium + Design Institute will offer two pre-show courses and eight conference sessions that have been approved for American Institute of Architects (AIA) credit. The event, held November 6-8 at the Hilton San Diego Bayfront in San Diego, Calif., features hands-on, collaborative education with a focus on the intersection of building, design and technology.
Two of the conference’s pre-show courses earn AIA credit:
- Green Building for Building Professionals
This two-day course discusses strategies for incorporating green building principles into homes without driving up the cost of construction. You will learn how green homes can provide buyers lower maintenance, better indoor air quality and better long-term value. Techniques are also discussed for competitively differentiating your home products with increased indoor environmental quality as well as energy and resource efficiency.
Designation Credits: CGA, CGB, CGP, GMR
- Business Management for Building Professionals
Learn the management skills that give industry leaders the edge. This course will give you a solid foundation in those best business practices so valuable to smaller businesses: planning, organizing, staffing/directing and controlling. By using case studies and sample forms, your instructors give you practical and applicable tools for management success.
Designation Credits: CAPS, CGA, CGB, CGP, CGR, Master CSP
The following conference sessions are also approved for AIA credit:
- Solutions and Profitability: Home Technology In the Design and Build Process
- Technology Trends for the Design and Build Industry
- Strategic Thinking for the New Reality: Creating AND Executing a Blueprint for your Business, Part I and Part II
- Inside Out! - Architectural Basics
- Interactive Design Charrette for the Custom Builder
- Design Application Workshops- Creating and Designing Product Using a Team Approach I
- Design Trends-Design Solutions I
- The Real World - Residential Case Study
Register and get course and session details at www.nahb.org/Custom.
The National Association of Home Builders is a Registered Provider with the American Institute of Architects Continuing Education Systems. Credit earned on completion of this event will be reported to CES Records for AIA members by the Provider. Certificates of Completion for non-AIA members are available upon request.
For more information, visit www.nahb.org/Custom or call 800-368-5242 x8338.
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White House, Hill Leaders Consider Extending Home Buyer Tax Credit
Facing rising political pressure to spur job growth and a housing recovery, Washington turned a sharper focus this week on extending the current $8,000 tax credit for first-time buyers beyond its Nov. 30 expiration date and expanding it to a wider circle of principal home buyers. Following some encouraging remarks from White House Press Secretary Robert Gibbs, NAHB on Oct. 6 said that home builders were ready to work with the White House and Congress to extend the credit and help bolster the lackluster economy.
“The tax credit has clearly had a positive effect on housing demand and in the job market,” said NAHB Chairman Joe Robson. “We stand ready to work with President Obama and the Congress to extend and enhance the tax credit to help reduce foreclosures and excess housing inventories, to stabilize home values and to push housing and the economy on a glide path to recovery.”
NAHB estimates conservatively that the current tax credit has been responsible for some 200,000 additional home sales since early this year, resulting in a net increase of 187,000 jobs. Extending the tax incentive through Nov. 30, 2010 and making it available to all income-qualified purchases of a principal residence would result in an additional 383,000 home sales and generate 347,000 new jobs in the coming year, according to NAHB economists.
At an Oct. 5 press briefing, Gibbs said that “there has been quite a bit of success” with the home buyer tax credit, and he added that the President is considering extending it to strengthen the economy and create jobs.
“Housing is the best opportunity to put this country back to work,” said Robson. “Prompt congressional action on the tax credit is a crucial first step to shoring up the fragile housing recovery and leading the economy to higher ground.”
A Meeting in the Oval Office
The New York Times reported on Oct. 7 that extending the credit was briefly mentioned in a meeting in the Oval Office the day before between President Obama and Democratic congressional leaders Nancy Pelosi, (Calif.), speaker of the House, and Sen. Harry Reid (Nev.), the Senate majority leader. Congressional aides indicated that a tax credit extension is being viewed as an option for stimulating the economy and job creation and extending it beyond first-time buyers is being considered.
In a statement following the White House meeting, Reid said that, “we need to continue working toward ensuring that more families can stay in their current homes and continue efforts to strengthen the housing market by extending the tax credit.”
“There’s under consideration whether we extend the first-time home owners’ credit,” Pelosi told reporters the next day in Washington. “And the question is, would that be just first-time home owners or would you open it up to other purchasers of homes?”
The New York Times story also cited warnings from Mark Zandi, chief economist at Moody’s Economy.com, that allowing the tax credit to expire would slow the sales of new homes not facing foreclosure just as sales of foreclosed homes are expected to pick up, which would put downward pressure on home prices. “The economic recovery will not evolve into a self-sustaining economic expansion and risks unraveling back into recession until house prices stop falling,” Zandi said in an interview.
Tax Credit Gains Momentum
In a sign that the tax credit is gaining momentum, the House on Oct. 8 passed H.R. 3590, the “Service Members Home Ownership Tax Act of 2009,” by a margin of 416 to 0. Introduced by House Ways and Means Committee Chairman Charles Rangel (D-N.Y.), the bill would extend the current home buyer tax credit for an additional one year for qualifying members of the military service. The legislation would also waive the recapture requirement for service members who are forced to sell their home within three years because of a change in duty station. (To read H.R. 3590, click here and enter the bill number in the box at the upper center of the page.)
Facing the Headwinds
In an Oct. 7 appearance before members of the House Small Business Committee, NAHB Chairman Robson said that despite signs of stabilizing existing and new home sales in recent months, the industry faces a number of “headwinds” that are continuing to buffet any significant housing recovery.”
While stressing the importance of using the home buyer tax credit to put the nation back to work, he also said there is an urgent need to resolve appraisal problems that have been slowing home sales and to get banking regulators to restore the full flow of credit needed by both home buyers and home builders.
“Not only are we continuing to feel the impact of foreclosures and short sales in the market, but we’re facing a severe credit crunch for acquisition, development and construction (AD&C) lending,” said Robson. “Meanwhile,” he said, “the use of foreclosed and short-sale properties as comps is resulting in inappropriately low appraisals that are effectively sinking one quarter of all new-home sales right now. Add to this the fact that demand and home sales are already showing signs of slowing with the pending Nov. 30 expiration of the first-time home buyer tax credit.”
In a recent survey of more than 500 builders by NAHB, 25% reported that they were losing sales because appraisals were coming in below the contract sales price. Some appraisers, he said, have been using distressed properties – many of which have been neglected and are in poor physical condition – as comparables in assessing the value of brand new homes without accounting for major differences in condition and quality.
“Any prospective buyer would recognize the differences in the value between a well-kept home and a distressed property that is damaged or not properly maintained. The same should be true of an appraiser,” said Robson.
He said Congress can help resolve this issue by urging the Federal Housing Administration and Fannie Mae and Freddie Mac to adopt and enforce guidance that instructs appraisers on the proper procedures for the use of distressed and/or foreclosed properties as comparables.
Lawmakers, he said, can further help put the housing industry back on its feet by exerting their influence on regulators and the banking industry to restore lending for viable home building projects and to take meaningful steps to avoid unnecessary foreclosures on outstanding loans. “This would provide relief for a major sector of the economy that has suffered because of regulatory overkill and the inability of banks to provide the necessary funding and flexibility that would otherwise keep loans performing as scheduled,” he said.
To further promote energy efficiency in new-home construction, Robson called on Congress to make permanent and enhance the new energy-efficient home tax credit, which is due to expire at the end of this year. Section 45L of the Internal Revenue Code provides a $2,000 tax credit to a home builder who constructs a qualified new energy-efficient home that is certified to achieve a 50% reduction in energy usage.
“As the only incentive in the tax code for energy efficiency in single-family home construction, this program will help to ensure that new homes built today and going forward are highly energy-efficient,” said Robson. “We strongly urge the Congress to make the 45L credit permanent and increase the credit amount to $5,000 to pay for a bigger percentage of the higher building costs that are incurred when making a home 50% more energy-efficient.
Revive Housing, Restore America
Through its “Revive Housing, Restore America” campaign, NAHB is continuing to urge lawmakers to address housing priorities. To participate in this ongoing grassroots effort, builder constituents should visit www.nahb.org/ReviveHousingNow. This one-stop site contains information on calling and e-mailing members of Congress, as well as talking points, banners for Web pages, print ads, op-ed letters that can be sent to local newspapers, and more.
To generate public interest in the campaign, NAHB’s consumer-focused Web site at www.ReviveHousingNow.com urges potential buyers to contact their lawmakers and urge them to extend the home buyer tax credit.
For more information, contact Greg Brown at 1-800-368-5242, ext. 8421.
This article originally appeared in NAHB's Washington Update.
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Online Registration and Housing for 2010 Builders' Show Open
Online registration and housing for the 2010 International Builders’ Show (IBS) in Las Vegas on Jan. 19-22 — the single, most important and largest industry event of the year is open and NAHB is offering red hot deals on housing and exhibit passes to members who register early.
- Free Exhibit Passes for NAHB Members — Register by Dec. 11
NAHB members will be able to walk the show floor for free all four days of the show, if they register by Dec. 11. The exhibits will feature the industry’s leading suppliers displaying their latest innovations. Show exhibitors will also be available to discuss attendees’ specific challenges.
- First-Time Member Attendee Registration — Reduced
Members who plan to attend IBS for the first time are eligible for the first-time attendee registration rate of $100, which enables them to attend any of more than 175 educational seminars and tour the exhibit floor all four days.
- One- and Two-Day Education Passes
New at IBS, attendees can purchase one- or two-day passes for IBS education seminars. Passes will be available for education sessions held from Tuesday through Thursday, Jan. 20-22. All seminars on Friday, Jan. 23, are free. To take advantage of these passes, attendees must choose the day(s) they will purchase when registering for the show.
For more information and to register, visit the IBS Web site at www.BuildersShow.com.
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2009 Designee of the Year Application Open
NAHB is now accepting nominations for the 2009 Designee of the Year Awards in the following categories:
To be eligible to receive a Designee of the Year Award, candidates must be active designation holders and in good standing. Members of the designations’ governing bodies and home builders association staff members are not eligible.
“Our Designees of the Year exemplify the most esteemed qualities of our industry,” said Benjamin Graham, GMB, of The Graham Companies in Middleburg, Va., and chairman of the NAHB Education Committee. “They give to their communities through mentorship, influence and innovation. In everything they do, they elevate the image of NAHB’s designations and housing professionals. They are setting a tremendous example for the rest of us to follow.”
The Designee of the Year Award winners will be selected by the respective governing bodies based on criteria set for receiving each award, including a review of the answers to the questions and the support documentation submitted.
To Apply
Nominations for the awards may be made by any person or organization actively participating in the respective designation program. Self-nominations are also accepted.
To apply, visit www.nahb.org/DesigneesofTheYear. The entry deadline is Friday, Nov. 13.
Winners will receive their awards at the Designation Achievement Reception held during the 2010 International Builders' Show in Las Vegas on Jan. 18.
For more information, e-mail Maria Nande at NAHB, or call her at 800-368-5242 x8435.
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Custom Symposium and Design Institute Hotel Specal Extended*
The NAHB block is closed, but there are still plenty of great rooms at the Hilton San Diego Bayfront. NAHB is extending our deal to give you three hotel nights for the price of two through this Friday, Oct. 16. Just make your hotel reservation first, then register for the conference at www.nahb.org/Custom. Then enter your Hilton confirmation number on the registration form. See our website for more details.
*Open only to the first 150 registrants. You must have reservation at host hotel for a minimum of three nights during the following time period: Nov. 3-9. You can only receive one free hotel night per registration. Conference registration and reservations must be booked by Fridaym Oct. 16. Hotel reservation must be reserved at the Hilton San Diego Bayfront at a rate no greater than the $229 NAHB group rate. Subject to hotel and promotional availability.
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New Home Technology Course Debuting in San Diego
Today’s home building and remodeling environment is growing more complex. Prospective clients regularly seek technologies for the home that were once thought of as extravagant extras. Clearly, consumers want installed technology to enhance comfort, security, entertainment and energy efficiency in their homes. How you address these needs will differentiate you from your competition. Build up your marketability with the latest and most practical home technology information for builders and designers. Be among the first to take the brand-new Home Technology Integration course at the 2009 Custom Builder Symposium + Design Institute.
This new course, held as part of the pre Symposium schedule on Thursday, November 5, provides a general overview of home technology products, trends, resources, sales and marketing and installation practices so that industry professionals can evaluate and profitably offer home technology design solutions that meet the needs and wants of today's customers.
The one-day course is for developers, architects, builders, designers, remodelers, electronic systems contractors (ESCs) and those involved in new and existing home marketing and sales. The NAHB University of Housing developed the course with sponsorship from the Custom Electronic Design and Installation Association (CEDIA).
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