Do you view computers and software as a way to improve your business or as an obstacle? Your outlook dictates how well technology can help run your business. Technology becomes more valuable once you understand where and how it can help you.

Ask yourself four questions:

• Do you use computers to communicate with your vendors and home buyers?
• Do you use software for calculated and repetitious tasks like estimating and accounting?
• Do you use software to organize daily activities like schedules and task lists?
• Do you use software to integrate business functions like budgeting, tracking selections, purchasing and reporting?

There is no paradigm to determine the exact level of technology for your company. It is something you should evaluate on a periodic basis. As you begin using more technology, you will discover more ways it can help you become more efficient, save time and improve your business.

Target areas of improvement:

Computers and software are most beneficial when used for the following:

• Speeding up and systematizing repetitive tasks.
• Performing calculations and complex functions.
• Sharing information and communication.
• Organizing and documenting.

You should evaluate the types of software tools available to help run your business whether you are a one-man custom home builder or part of a larger company building hundreds of homes. Compare your needs to the capabilities of available software to find the level of technology that’s right for you.

Three Levels of Software Implementation

General and Flexible

Most builders start by using a combination of Excel, accounting and e-mail. Excel can be used to manage lists like schedules, task lists and punch lists, as well as performing calculation functions like estimating. Accounting software, like QuickBooks, can be used for purchasing, budgeting and cash management. E-mail can be used to communicate with, and transfer documents to, trade partners and home buyers. These flexible software applications can be used to meet specific builder needs and are a good starting point.

Application Software

Numerous software applications are available to meet specific needs of builders. Applications include drafting, estimation, punch list, scheduling, change orders and more recently selections and warranty. These applications can be very efficient as they are designed to meet very specific needs and are easy to implement.

Integrated Solutions

Once your business reaches an elevated plateau, you will want to use an integrated solution.  Efficiency jumps once information flows seamlessly through all your business functions. Selection information flows to estimating, sales and purchasing. Change orders in the field can electronically be transmitted and flow to the budget and schedule.

A great place to learn what is available is NAHB’s Technology Solutions Directory. You will be able to find applications to meet your needs no matter what technology level you need.

Business management applications:

Examples where technology can benefit a builder’s business management include the following:

• Accounting and estimating
• Scheduling  and change order
• Task lists and punch lists
• Selections and options
• Distributing blue prints, documents and pictures

Selection decisions or schedule changes are good examples on the use of different levels of technology. Calling all effected parties is time consuming and prone to lose details. Faxing is almost as slow but at least is a documented record. E-mailing multiple parties is fast and well-documented, but not organized and requires your input. Application software can automatically notify all parties instantly and accurately. Integrated solutions can further update effected functions like purchasing requirements and task lists.

If you use technology to improve the efficiency of your business, your construction process can become a tool to wow your customer, increase profits, eliminate confusion and keep your business on track.

Andy Elsbury is the founder of Custom Partnership Network, Inc., which provides consulting services and solutions for home builders to improve their building process. You can learn more by going online to www.selectionware.com, e-mail AndyE@SelectionWare.com, or call 866-585-9222.