I have been approached, on numerous occasions, over the past few years, from existing and future builder clients.  There is a common theme and this is one of “How can I become more efficient in my day to day processes as a builder and put more money to the bottom-line?”  I wanted to take this opportunity to share some thoughts in order for many of you to begin thinking about change and the importance of change within your homebuilding company, in order to compete in this extremely tough building climate. 

First, you need to have a plan.  This sounds to basic, but many builders shy away from actually taking time to take care of the internal operations and would rather do deals and build homes.  This is common for a majority of small to medium size builders.  But, it is essential that you stop and walk away from the day to day in order to be able to look objectively at your organization? 

Do you have a business plan written out?

o   Does it contain goals and objectives from the staff or worker bees, not just from managers and executives? 

 o   You need everyone in the company’s input as they bring a different perspective.

Do you have a technology plan?  Many builders do not educate themselves as well as they should on the changes of technology and often times read an article or listen to a smooth talking sales representative, or just feel they have the best already and they “Do not know what they do not know”.  There have been huge advancements in software for builders over the past 10 years.  Do your homework! 

o   Define your business plan – provide input from every staff member – “round table discussion”

 o   Establish the criteria you want to tackle first – Sales, Purchasing, Accounting, Estimating, etc.

 o   Make sure the products talk to one another and are not “islands of information”

 o   Select technology suppliers that meet your criteria.  There are not many left that are still viable, so this will be a short list.

 o   What is the reputation of the technology vendor? 

 o   Have you called references? 

 o   Many times builders believe the sales rep and do not check the rep and/or the vendor out. 

 o   Is the vendor truly committed to this market? 

 o   Are they improving their software continuously? 

 o   Are the encouraging their clients for enhancement requests?

 In order to get the creative juices flowing, here are a few thought provoking questions you may want to consider when defining your business/technology plan.

 It all starts with your product database. 

 o   Does it require revamping? 

 o   Have you done the necessary research on what the buyer wants and what the market will bear? 

 o   Have you examined your competition, especially those that are selling and building homes? 

 o   Does your overall footprint need to change, aka, get smaller?  

 o   Should inclusions in the homes become options to lower your starting price and allow the buyer to determine if they want these options or not?

 How are you generating leads?

 o   Are you using a CRM system that not only tracks leads and provides follow-up tasks, but does it allow to go from a lead to a perspective buyer into selection of a lot, base plan and option?

 o   Does it create buyer contracts and then update your operational software for easy job start and purchase order creation?

 o   If not and you are using only a CRM system, designed for anyone and not for residential construction, you are wasting time and money with generic CRM solutions.

 How are you communicating and working with your trades/subs?

 o   Do you communicate via e-mail or a portal, for those vendors that have or want to use current technology? 

 o   Some builders are now requiring their vendors to adopt technology if they want to work for this builder.  Result, improved communication and lower costs and mistakes.

 o   Builders have seen a dramatic decrease in delays and warranty requests when they have reached out to their vendors and listened to their needs to improve communication. 

 o   Do you have quarterly vendor meetings? 

 o   Do you listen to their input? 

 o   Remember they are the one’s building the home and the builder needs to be an effective listener and project manager in order to meet buyer expectations and control costs.

 Are you using Scheduling?

 o   Does your scheduling integrate back to sales, so that once you are past a phase of construction, the sales rep cannot sell something past this stage?

 o   Does your scheduling system allow for remote entry via current technology; iPad, iPhone, Droid, Palm, Blackberry?

 o   Does your scheduling integrate back to accounting to be able to track anticipated closing date thus cash flow from the closing?

 o   Does your scheduling system provide “Autopay processing”, which eliminates invoice routing and approval, let alone wasted time doing data entry, when the purchase order just needs to be approved, when you are satisfied with the vendor’s performance, and creates an invoice to be paid automatically.  We have seen reductions of 80% of wasted staff time in this area alone.

 Does your accounting system handle the needs you have as a production builder?

 o   Does it provide consolidations of all of your various communities into one financial picture?

 o   Is every company, division or community in a separate database, not allowing for easy consolidations and a “True” financial picture?

 o   Can you provide intercompany accounting functions from one entity or division to another?  Example:  From a land division to the building division on lots purchased.

 Some other gotcha’s

 o   Are you dependent on Excel to provide reporting or analysis information?

 o   Does the data within your system transfer from one department to another, or is there manual entry involved?

 o   Do you have to establish workarounds in order to get the reports or information from your technology?

 o   Do you have staff that are afraid of change or “fine tuning” your infrastructure and would rather stay with your old methods, which is a recipe for disaster in this market.

 o   Do you perform a process review or “check-up” of you company at least annually, just like you would in a yearly physical with your doctor?

 I have seen in my over 30 years in working with builders that those that plan their work and work their plan, are the ones creating above average net margins.  They are focused on every aspect of the company’s processes and keep a “finger on the pulse” of each department.  Reduction of staff wasted time, lower cycle time (carrying costs on your home), everyone working from the same play book, are some of the little wins that add up to net margin increases.  Make things happen today!  While the market is slow, make time for you company’s overall health and viability.  Happy Building!

• 0 Comments

BuilderMT Client Newsletter http://conta.cc/dluJK1 via #constantcontact

• 0 Comments

  This blog will focus on the importance of homebuilding and construction technology company staying in close contact with their clients and continuing to offer the technology tools and services that allow builders to keep staff costs low, while growing their construction company and improving internal processes. 

BuilderMT and Sales Simplicity hosted this year’s client conference in Coeur d’Alene, ID.  Based upon the comments we received, by the many clients that attended, we felt this conference was highly successful!  The clients not only learned valuable information about the capabilities of our software solutions, many of which they were not aware of, they did see how to grow their business’ without adding staff.

We also offered a Builder Panel of some top award winning builders as well as the “Voice of the Client”, where the clients requested features they wanted in our software.  This is probably the key to this blog.  BuilderMT and Sales Simplicity have been and continue to be, a “user driven system”.  This way we offer our builders technology tools that fit the way they build homes and not just releasing enhancements for the sake of doing something to generate press in the market.

We are seeing this in the market with numerous builders who are looking to drop our competitor’s products and go with a fully featured and well supported solutions for this market.  Please contact tom.gebes@buildermt.com or check out our website at www.buildermt.com or www.salessimplicity.net . 

Please also review the enclosed summary of the client conference.  2010 BuilderMT-Sales Simplicity Client Conference

Thank you for reading this blog and please provide your comments.

• 0 Comments

BMT – UPG Press Release Final 9-2010

• 0 Comments

BuilderMT – Getting the Most Out of Your Software http://conta.cc/clWuto via #constantcontact

• 0 Comments

Foreclosures are “starts” – so build for less…compete with… http://conta.cc/9Fcpql via @constantcontact

• 0 Comments

Foreclosures killing new-home sales? Build for less than ban… http://conta.cc/brFrGY via @constantcontact

• 0 Comments

BuilderMT’s WMS Integrates

With Explorer Contract Manager

Integration Redefines Construction Software, as Explorer’s Browser-Based Accounting Brings Flexible, Powerful Applications to BuilderMT’s Expansive User Base

Lakewood, Colorado — June 30 2010 — BuilderMT, North America’s best-selling construction workflow software solution provider, today announced that its Workflow Management Suite has integration with Explorer Software Group’s Contract Manager Version 7, a browser-based construction accounting solution.

The integration of BuilderMT’s WMS to Explorer’s Contract Manager redefines construction software.  Now, BuilderMT’s expansive user base has access to a new, highly-flexible accounting alternative, with extraordinary accounting features and analytics that work in tandem with BuilderMT’s award-winning capabilities.  Beginning immediately, BuilderMT clients benefit through a new and exciting upgrade path to Explorer’s Contract Manager, a solution with global reach that already serves the largest construction companies worldwide.

In addition to sophisticated analytics that go far beyond standard credit-and-debit accounting, Explorer’s Contract Manager also offers such features as unlimited user-defined fields and dashboards, Key Performance Indicators, the ability to calculate in multiple currencies, using multi-national tax systems, and even multiple languages.  Additionally, with an Excel-like interface and a report wizard, Explorer can output fully-formatted Excel workbooks and allow users to design their format in Excel-like grids, all while merging data across multiple servers and companies.  Because the Explorer Contract Manager is browser-based, users also benefit from the proven cost avoidance offered by a “hosted solution” for IT infrastructure, security, and personnel.

“This is a fully-integrated Production Management solution for homebuilders, and it offers exceptional functionality,” said Tom Gebes, BuilderMT’s president. “Combining the world-class operational benefits of BuilderMT’s WMS with the leading-edge technology of Contract Manager Version 7 will provide expanded business opportunities for our customers and prospects alike.”

“Explorer’s Contract Manager solution is a real-time, one-time data entry solution, and we have now brought that to BuilderMT users,” said Jim McFarlane, president and CEO of Explorer Software. “With BuilderMT’s integration to Explorer Contract Manager, production homebuilders are able to seamlessly manage their building projects and simultaneously update their back-office accounting system.”

About Explorer Software

Explorer Software Group is the leading provider of software solutions for the construction industry worldwide offering a broad range of solutions for small, mid-sized and large enterprises. Explorer’s construction accounting solutions offer rich functionality, a highly-flexible application platform, a full application suite and best-in-class customization abilities. The software and services are designed to produce meaningful increases in revenues and margins to contractors.  Learn more: www.Explorer-Software.com

About BuilderMT

For the construction industry at large, BuilderMT provides highly-customizable workflow and building-process-management software that works in tandem with leading accounting systems and other wireless and jobsite productivity tools, such as CRM and warranty management. Over the past 13 years, BuilderMT systems have been purchased by over 825 corporations and more than 7,000 individuals, as the Company has maintained its status as the sector’s best-selling, most-award-winning software product. Combined, the Company manages construction for around 20% of the U.S. new-home market. BuilderMT is widely recognized as a leader in process-driven, best-building-practices for builders, as well as customer service, warranty applications, online training, and innovative wireless applications. To learn more, visit www.BuilderMT.com, or call (888) 757-1991 ext 105.

• 0 Comments

I recently attended a presentation of a new software technology hitting the market for the production builder.  During the presentation, there were comments that this product was “one database” and “from one company”.  As the presenter was corrected later, this statement was not true.  I began to think about how technology providers into the residential market are focused on what they feel the builder wants to hear and how each of these technology companies are trying to survive in this down market, thus projecting themselves as the “technology savoir”.  Unfortunately we heard this before with BuildNet and I4 Builder, just to name two. 

There currently is no product on the market that is clearly one database or that everything the technology company delivers is from one company.  If they claim they are, something is either weak or missing from the essential core applications for a builder to run thier business on.  Think about building a home.  Back when my father built homes, he use to do everything from putting in the concrete forms to the framing, roofing, cabinets, flooring, windows, etc.  However, even in the 50’s and 60’s, they would still hire out the lath and plaster guys along with HVAC, plumbing and sometime electrical.  Now look at today, Builders are more like project managers coordinating a myriad of trades and suppliers to deliver materials and build the home.  The same is true for technology.  One company means you typically do not have time to make any one module or application great, but “good enough”, for use.  Purchasing, Scheduling, Trade Portals, Accounting, Estimating, Bidding, and Warranty software are the backbone of a solid builder system, but to expect one company to create the best of each one of these is a monumental task and has never happened in this market.

Taking an approach of creating the best operational hub for a builder and aligning yourself with the best service and technology companies in the market, from my perspective, is still the best way to go.  Let the technology company guarantee and ensure the integration and the ability to report across multiple systems and do not let the other technology company’s fool you into believing they are “one system”, “one database” and “one company”.

As I have stated in the past, as a builder, you need to do your homework and figure out what you need to improve your processes, keep you overhead low and continue being a mature well run homebuilding company.  Once you know what your requirements are, find the best company with the same corporate culture and has the reference base you can speak to that has been successful using one product or another.  Do not take the easy way out and ask another builder or even an industry consultant, which product is best for your company.  You are unique and should do this for yourself and you can do this.  You built your company and who is best to make the decision of the process and technology solutions that best fit your homebuilding company.

So, forget about the hype in the marketplace, gather your information, find solid companies with long term reputations and go for it.  The time is now for builders to take advantage of the unique market opportunities that are being presented to you.  But do this in such a way as to enhance or improve your operations so you can grow with little or no increase in overhead.  Good Luck and Happy Building!

• 0 Comments

Between 40% and 50% of new homes built this year are expected to be green, according to a recent McGraw-Hill Construction survey.  That number was 2% of the market (just $7.4 billion) in 2006, so the sector is clearly experiencing exponential growth. Builders are searching for ways to go green, however, one area that seems to be missing from the Green Initiatives, is the use of current technology.  One obvious choice is to reduce a builders construction cycle times. After all, the impact of just one day of construction on a single home is dramatic: General contractors, supervisors, subcontractors, inspectors, and delivery trucks are all arriving onsite, generating exhaust and consuming energy and fuel.

The use of wireless mobile devices communicating between the field, home office, trades, subs, suppliers, etc., is having a dramatic effect on reducing the carbon foot print, let alone making the builder more efficient in their processes.  Reducing construction time by even one day can have a substantial environmental impact, as the efficiencies technology brings to every jobsite can reduce cycle times by days, even weeks.  For example, recent case studies have shown builders can cut off around 10 to 30% of their construction cycle time with the use of these technologies.  The aggregate savings that technology brings to the table has a measurable national environmental impact. 

Many builders are focused on green building materials and manufacturers are supplying green alternatives.  But they shouldn’t discount cycle time reduction and overall operational efficiencies either.  The financial benefits of lopping 10 or 20 days of the building process are clear, but think of the environmental benefit too, and don’t discount how these environmental benefits can help a builder market himself as green.

Not only are wireless and mobile applications allowing a builder to go green, but going paperless is also having a big impact.  Current technologies allow for transmission of plans and specifications via e-mail or on a portal for contractors to bid from.  Purchase Orders and contracts are being generating into PDF’s and sent the same way.  The mass reduction of paper, with the software companies creating “paperless workflow processes”, has an impact on saving our trees just to create paper.

So as a builder or construction company, when you are evaluating yourself as a “Green Builder”, do not forget about your everyday operations and how you can reduce windshield time, reduce paper, thus reducing the carbon footprint in our environment.  Evaluate technologies that offer these types of efficiencies and green alternatives to antiquated software.  Good Luck and Happy Building!

• 0 Comments