There are several plataeus in determining if you are a big or small builder. Not your waist size. I would be considered a large builder if that was the criterea. No, it is determined by the number of houses you build every year.
Let's face it. Most modular or log home builders are small or very small builders. Less than 50 homes a year is small and less than 10 homes a year is very small. Since most modular and log home builders fall into the very small category, let's take a closer look and see if there are some steps you can take to stay in business until this "near recession" ends. You've got to remember, this business has a history of ups and downs. We happen to be in a down!
I've talked to many builders over the years that say they are quite content to build less than 10 homes a year. They have found the secret of being successful. Being big and being happy are not always compatable, especially if you run a very small company.
The "less than 10 homes a year" builder probably has an in-home office and possibly a small showroom/office in a strip center or small commercial building. The public showroom may be open by appointment only and it's usually manned by the builder themself or by a family member. Advertising is limited; maybe a local home show, some job signs and ads in the local penny shopper.
The builder is readily available to the customer and on the jobsite just about every day. The customer knows that the workers they employ are dedicated and loyal. When the house is finished, the new homeowners tell everyone just how great it was to work with you.
You and your family take vacations (when you can squeeze them in) and you belong to many organizations and attend school and church functions.
Then we run into the threat of a recession and everything you've done in the past doesn't seem to be helping much to stave off the creditors. Well, guess what? You're in much better shape than the big guys. You can pick up remodeling jobs from your past customers; such as basement finishing, 2nd floor of cape buildouts, adding decks and patios and possibly remodeling their kitchen or baths. Nobody knows their home like you!! Give them a "Preferred Customer Discount"
If that is slow, stop by Home Depot, Lowes and Sears Home Improvement and offer your company's services for their remodeling programs. They always need good subcontractors.
The bottom line here is that you can do a lot of things the bigger guys can't and probably don't know how to do. Do you really think the management of a med-size builder would even know how to build a patio.....DUH!
You have the opportunity to do so many things to stay in business until this down turn in the economy passes and you will be back building houses before you know it. Sometimes it's a great thing to be very small!
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