IS YOUR SALES MANAGER YOURS SALES LEADER?

It's 8:00 AM and your sales reps are just getting started on their workday or should I say "It's already over"!  How can that be?

Everybody I know gets a dose of bad news before breakfast.  They listen to the news or read the newspaper or they watch TV and what do they see? 

Unemployment is rising, businesses closing their doors, foreclosures, bailouts and many more articles that condition them that even if they try to sell, the deck is stacked against them.

So what can your Sales Manager do to combat the bad news invading your sales force?  Funny you should ask.  Here are some suggestions that just might help keep both your Sales Manager and your Sales Reps from catching the Recession Fever!

Communicate, even…over communicate.   Open and honest discussion about the present state of our industry helps to relieve the angst that the team is experiencing. The Sales Manager may be part of the leadership chain, but the team looks to their direct leader for guidance and support and that’s the Sales Manager.

Hold the team accountable.   While empathetic and understanding, the Sales Manager needs to remind the team of the task at hand. Direction provided to the team should be clear and team members should be held accountable for performance.

 Coach them.    Little things can help your team regain their sales edge. Suggest that they not start their day by watching the morning news. Have them read the news online so they have total control over which news to become informed. They control the information saturation point, not the television media. This doesn’t mean that the Sales Manager or the Sales Reps should be little  “Polyannas”,  it simply means that “Bad news in means Bad views out!”

Lead by example.   While challenging, Sales Managers need to put on their game face and show confidence. Keep the conversation on the task at hand, not external influences. Smile! If the Sales Manager walks around showing stress, the sales team will mirror that behavior. They will think something is wrong and sales paralysis enters.

Be visible!  When the number of closed door meetings increases, sales people speculate that something is wrong. While a productive meeting may be taking place inside, on the other side of the door, the entire sales team is talking about what the Sales Manager and the rest of the leadership team is discussing in the meeting. In the absence of direct knowledge, the sales team will guess the meeting is about gloom and doom. Limit the closed door meetings.

WHO OR WHAT IS IN CONTROL OF YOUR SALES TODAY?

What is controlling your sales, income and business growth today?

• Is it the economy?
• Is it the credit crunch?
• Is it foreclosure market?
• Is it buyer’s fears about the future?

Too many business owners and salespeople are ready to pass the buck and blame any of these external factors for their lack of sales today. They are missing the point.

The saying has never been more true - “If it is to be, it’s up to me.”

Modular Home Builder is partnering with BuilderRadio to bring you a series of urgent webinars to help you Take Control of Your Sales. This series of 6 seminars will be presented by industry veterans who have been through housing recessions before and not only survived, but thrived.

The presenters, titles and dates of the Take Control seminar series are:

Wednesday, March 18 2:00pm EST

Robert August – If Not Now, When? Today is the Best Time Ever to Buy.

Learn to calm buyer’s fears and get them excited about buying now.

Wednesday, April 1 2:00pm EST

Ross Robbins – Creating Killer Sales Scripts

How to plan your comments and responses to connect with buyers emotions.

Wednesday, April 15 2:00pm EST

Brian Flook – Internet Marketng: 5 Keys to Success Online

Discover how your buyers use the Internet, and how to be where they look.

Wednesday, April 22 2:00pm EST

Roger Fiehn – How to Become a World Class Salesperson

Strategies you can apply guaranteed to make you rise to the top.

Wednesday, May 13 2:00pm EST

Melinda Brody & Mary LeBlanc – Build Rapport to Build a Home!

Discover how to help your buyers want to know, like and trust your.

Wednesday, May 27 2:00pm EST

Bill Webb – Mining Your Database for Hidden Sales

Your greatest source of new sales may already be in your rolodex!

For more details or to register, click here. http://www.builderradio.com/Webinars2.html

Taking Control of Your Sales will be presented as webinars that you can attend over your computer right from your office. Or, if you don’t have access to a computer with speakers, you can attend by phone. And, each seminar will be recorded so everyone who registers can download the presentation to listen to again and again of for use in sales meetings, even if you don’t attend the live presentation!

So, gather your group together for each of these special presentations to help you find more buyers, cut through the fear, and close more sales now.

Seminar Fee:

Individual Seminars: $37 each.

Entire series: $185 (Best deal – you’re getting 6 for the price of 5!)

Who should attend:

Salespeople, Realtors and agents who refuse to let arbitrary circumstances and events control their careers and are personally committed to becoming the best they can be;

Sales Managers who are responsible for achieving target sales goals and want to get your sales force united and working together to accomplish that goal;

Marketing Managers who are looking for ideas on how to restructure your marketing to connect with qualified, capable motivated buyers ready to buy now.

Business Owners who refuse to participate in the housing recession and want to take control of your sales now.

Don’t leave your sales up to chance; register today for all six Take Control of Your Sales seminars today. Click here to register. http://www.builderradio.com/Webinars2.html

TOM PETER'S ADVICE DURING TOUGH TIMES

If you had but just one management guru to help guide your business during these tough economical times, you would have a hard time finding one that knows the rules of the road better than Tom Peters.

His book, In Search of Excellence which he wrote in 1982 and his Thriving on Chaos in 1987 are "must reads" for every business owner.

On his website, tompeters.com, he recently had this to say to sales organizations about running a business in this time of "significant and sustained economic disarray."

"Instant, mindless cutting of R&D or training or salesforce travel in the face of downturn is often counterproductive...or, rather, downright stupid.  Tough times are in fact golden opportunities to get the drop, and the longterm drop at that , on those who respond to bad news by panicky across-the-board slash and burn tactics and moves that de-motivate and alienate the workforce at exactly the wrong moment"

SOUTHWESTERN PENNSYLVANIA HOME BUILDER WINS $1ooK

Jay Adamski, of Adamski Construction in McDonald , PA , has been named the winner of a $100,000 gift toward his next home project from Excel Homes, the nation’s largest custom modular home manufacturer. Excel Homes’ “Is It Modular” promotion asked traditional builders like Mr. Adamski to test their knowledge of modular and pre-fab building methods. Mr. Adamski, a traditional builder for more than 30 years, was selected at random to receive $100,000 toward his first modular building project.

“As a builder for 30 years, I am always looking for new ways to keep up with industry changes and trends,” said Adamski. “There’s a lot of buzz right now about the quality, design, efficiency and value benefits of modular and pre-fab construction techniques, but the current market has made it hard to try new ventures. With Excel’s help, I’ll be able to move forward with a new modular townhouse project this year.”

Excel Homes President and CEO Steve Scharnhorst (right) presents a plaque to the winner of Excel's $100,000 "Is it Modular" promotion, builder Jay Adamski of McDonald PA.

President and CEO of Excel Homes, Steve Scharnhorst says, “This promotion was designed to allow builders to experiment with modular building and see why the modular process is so efficient in today’s changing market. We are excited that Jay is interested in learning about modular building and will be using the money to develop a commercial townhouse project. His immense experience and passion for building will easily relate to the modular world. We couldn’t have awarded a more qualified builder.”

I KEEP TELLING YOU TO BRAG ABOUT YOUR BUSINESS

Here is another example of going to the local newspaper and telling them that you are building a modular home in their town.  The Walton Sun, a newspaper serving the panhandle of Florida was contacted and they came out and wrote a story that will be more helpful to the builder than all the advertising he could do in a year!

One of my rules is to contact the local media when you’re about to set a house and if only one reporter shows up and only takes one picture, it’s still better than anything you could put into advertising.  Here is a great example of this:

Not your typical block party

February 25, 2009

Suzanne Preston, The Walton SUN

Neighbors on Wood Beach Drive in Santa Rosa Beach came out to watch as workers hoisted several pre-built pods into place on Feb. 19 and 20.

"It isn't everyday you can watch an entire house be built," said Gerry Lee, owner of the modular home being constructed.

"Making sure of the final plans is the biggest part of the process," Lee said. "When the house arrives it's too late to make changes. The house will be put together in just a matter of hours."

Lee, a local agent with Premier Property Group which sells modular homes built by Haven Homes, began finalizing the home design in November 2008. Once the final plans were agreed upon construction of the modular pods began in a manufacturing facility.

Neighbors watch installation of 11 pods that will become a two-story modular home in Santa Rosa Beach.

"We didn't have to worry about weather delays," said Lee. "With traditional construction delays are part of the cost overrides. When we were told the price, it was fixed from that moment on."

Knowing the final cost and having a set date for installation are two main reasons for selecting a modular home, according to Lee.

Building a modular home isn't much different from traditional construction. The advantage to a modular is the time frame.

"This home cost us about what it would if we had gone with typical construction," said Lee. "The biggest difference is the time-value of money and having a fixed price. We'll be enjoying our home in less than three months, instead of waiting until sometime next year."

It doesn’t get much better than this!

CHINESE INVESTORS HEADING TO AMERICA

Well, it seems as though Hillary Clinton will get her wish.  China will not stop investing in America.  Her plea has been heard loud and strong.

Chinese citizens are  heading here to buy our real estate and finding unbelievable bargains.  Between the foreclosed properties and the drastic price reductions, they are finding homes that originally were being offered for $2 M now selling for under $1M.

Now wealthy Chinese businesses and even their government are looking to buy into the American Dream.  For years they have quietly been investing in our economy but now that might become quite the explosion….heard ‘round the world.

They are looking at every area of our economy including pharmaceuticals, automotive, tech and bio-tech companies and even some of more basic industries like housing and commercial construction.  The only areas in home construction they seem to be interested in are products that are made in the US that can be outsourced to China and then sold back to us through our distribution channels and those that they can streamline and be in the driver’s seat when the recession ends.

That would include some of our Modular and Manufactured home plants and companies.  Remember years ago when the Japanese started importing cars to the US and we all laughed at the Datsuns and Hondas showing up on our shores.  They successfully campaigned to get the US to accept them and in the end they started building factories here with parts shipped in from Japan and sold through our dealerships.

Can you imagine the impact the Chinese could have if they bought some of our closed housing factories for pennies on the dollar, retooled them for higher efficiency and started selling through a builder base that is always looking for the lowest price they can get!!! 

This is an actual design for a Chinese modular home!

Can we keep them from doing this?  I doubt it and maybe we don’t want to.  Can you imagine a house with Energy Star and built to Green standards filled with Chinese parts and sold for less than most US companies can build them.  Sounds like it might be a good way to help get our housing industry out of our recession.  Maybe they could hire my cousin, a drywall contractor that has seen his business drop by 80% in 2 years!

EMAIL ETTIQUETTE

Did you know that 88% of Internet users have email.  And there are some rules when using this easy and fast way to communicate with your prospects and customers.

I’ve talked about email before but apparently a lot of builders still think that email is somehow less important than a “real” conversation.  That simply is not the case!  So here are some rules about sending and answering those business emails.

BE POLITE:

It never hurts to remember those 14 letters that can make or break your email; Please and Thank You.  And do you know if the email recipient likes being addressed by his or her first, then go right ahead.  But if your first email is to a new prospect, should you address it “Mary”?  If the recipient is expecting a more formal or even more than casual greeting, you’ve just shot yourself in the foot.

SET A GOOD TONE:

With the occasional exception of headings, never use ALL CAPS in the body of your emails.  It looks like your shouting at them.   Depending on who you are writing to or answering and about what subject, try to keep it businesslike. 

WHAT’S YOUR POINT:

Get to the point.  I don’t know how many emails you get in a day, but I sometimes get a couple of hundred and when one starts going on and on, I save it and think I’ll get back to it later.  I rarely do.

NO ABBRVIATIONS:

Don’t use abbreviations in your email except to friends.  You don’t make a good impression when you write…”Plz gt back 2 me.  That b gr8t. CU l8tr.”  If you sent that to a new prospect, I can almost guarantee you that you would not get a return email unless your sending it to a teenager.

NO CUTE NAMES:

Look at your email address.  Does it say “Sexyguy@thebuilder.com”  Make sure your email name matches the importance of your email.  Save the Sexyguy for friends.

SPELLING COUNTS:

Dont mke speling misteaks.  It mkes yor emals loook terible!  If you can’t spell, at least use a spell checker!

ATTACHMENTS:

I never open an attachment unless I know the sender.  If you don’t know who they are and you really want to view the attachment, send them an email and ask who they are and how they got your email.  If they don’t answer back or you get a bounced returned email, erase the attachment and email immediatly.

NEW HOME BUILDING APPLICATIONS FALL TO RECORD LOW

All areas of the country are showing drops in not only new home construction but in what is considered a barometer of future growth, building applications are way down also.

Economists were predicting January to show annual housing start to be 530,000 but instead they dropped to only 466,000! 

Building applications also dropped to a record level of 521,000, the lowest total in 50 years.

More than 2 million American homeowners faced foreclosure proceedings last year alone.  Reports indicate that number could climb to over 10 million in the coming years depending on the severity of the recession.

If you build house in the Northeast, you saw the market drop by 42.9% to an annual rate of only 36,000 units!  The Midwest fell 29.3% to 53,000 annual units; the South dropped 12.8% to a new low of only 246,000 units.  Construction in the West fell by 12.8% to 131,000 new housing units.

The number of new housing starts last year totaled 906,200; a record low; from 1.36 million in 2007.

New housing starts in 2008 are predicted to drop from last year’s total of 906,200 to a forecasted 466,000 this year.

COMPUTER TECHNOLOGY TERMS

HERE COME THE LAWYERS - PART II

I predicted that the lawyers would get involved in the Chinese drywall problems in Florida and the other states where the drywall was shipped.

Now a law firm has put up a website to "help" the victims of this terrible ordeal!  I can hear the sound of lawyers rushing in to jump on this latest bandwagon.

Just in case you actually live in one of the houses effected by the tainted drywall, here is a link to a lawyer's site:

Chinese Drywall Claims

CHINESE DRYWALL UNDER FEDERAL INVESTAGATION

The U.S. Consumer Product Safety Commission (CPSC) has launched a federal investigation of problems caused by high-sulfur Chinese drywall, according to a report in the Wall Street Journal .

The Journal said the commission is focusing on whether the sulfur-based gases emitted from the drywall are corroding household wiring and posing a potential safety hazard, spokesman Joe Martyak said.

Earlier this week, the South Florida Business Journal reported U.S. Sen. Bill Nelson requested the probe.

The Florida Department of Health was tracking more than 90 complaints related to Chinese drywall, 15 of which are in South Florida.

THE POWER OF "ONE"

You may think that "one" is a very small number, something that can be easily overlooked, but when you put the power of "one" to work for you, sales will follow as sure as the morning  follows the night.

Make "one" more cold call every day.  One extra call a day equals 260 calls in a year.   How many meetings could you set up with this number of calls and how many of those meetings could you turn into sales?   Consider your current conversion ratio and think of the impact on your business.

Suggest "one" additional item to every customer.  Too many sales people are focused only on getting the initial sale.   However, almost everyone has additional items, products, or services that could be beneficial to their customers and make you additional money.

Read "one"  book every month. Expanding your knowledge will help you become more successful.   Read books related to our industry that will provide insight in helping you improve your skill in specific areas of the home building business.

Pause for one moment longer than usual before responding to a prospect’s question or request.   Known as the "pregnant pause", this often prompts the other person to blurt out something they had not intended to say.   The secret behind this strategy is that most people are uncomfortable with silence and will begin talking to fill the “dead” air space.  Remember, the first one that speaks - loses!

Send one more thank you card or note.  Very few sales people make the effort to thank their customers.  You can stand out from the crowd by sending handwritten notes to thank customers for their most recent order or your meeting with them.  You can also send a note when you see their company mentioned favorably in the news.  If you think other sales people do this, think again.

Although it is a tiny number, one can make a very powerful impact both on your top line sales and bottom line profits. One extra sale every week or month can make a significant impact on your sales by the end of the year.

The next time you think about giving up on a high-potential prospect, consider the fact that you might be just one phone call, email, or letter away from making the sale.

BRACED WALL TERMS AND FAQs

Because our industry uses the term braced walls so much, I searched the Internet for some easy to understand definitions and answers to modular home builders most oft asked questions.  I stumbled upon Weyerhaeuser’s website and found just what I was looking for.

What is wall bracing?

A system of specially constructed exterior, and often interior, wall segments attached to the roof, floor and foundation that resist lateral (sideways) loads from wind and earthquakes.

Wall Bracing Requirements

Wall bracing requirements are based on code provisions from the International Residential Code (IRC), the International Building Code (IBC) and the Uniform Building Code (UBC). The majority of the country uses the IRC to brace residential homes. All codes require wall bracing in conventional light-frame wood construction. The IRC has 8 traditional methods and two newer methods that provide narrower alternatives. In general, the 8 options require a minimum of a 4' x 8' panel of specified material nailed into stud framing at a specified location with a specified stud quality required. The most common wall bracing is a 4' x 8' sheet of wood structural panel sheathing (OSB or Plywood) nailed over studs 16" to 24" on center. With the number of windows and doors in today's home designs, it is sometimes difficult to fit in four continuous feet of wall to act as a brace. In these cases, alternate methods and prefabricated panels are often employed. To find specific information regarding conventional wall bracing, see Conventional Wall Bracing.

Prescriptive vs. Engineered

In most residential construction, prescriptive design is allowed using the IRC requirements as a 'menu' of building options. When using prescriptive design, a Design Professional of Record (DPOR) is not required. In general, areas with a Seismic Design Category (SDC) of D2 or less and a wind speed category under 110 mph allow for prescriptive design. Some large or complex custom homes may require a DPOR simply because the design is such that IRC methods cannot support the structure. A DPOR is usually required for homes built in SDC greater than D2 and wind zones above 110 mph. Additionally, some counties or municipalities require a DPOR for all homes built in those areas. It is always best to check with a local building official to determine if a plan for a particular area can be built using prescriptive design.

Wall Bracing Terms

Braced Wall Panel:
A braced wall panel is a section of a braced wall line that has the ability to resist lateral forces created by winds and seismic events.
Braced Wall Line:
A braced wall line per the International Residential Code (IRC) is an exterior or interior wall line that contains braced wall panels within 12.5 feet of both ends (or 8 feet in Seismic Design Categories D0, D1 or D2), and 25 feet on center throughout the length of the braced wall line. Braced wall lines must occur every 25-35 feet depending upon your Seismic Design Category and wind zone. Braced wall panels are permitted to be offset from the braced wall line up to 4 feet on either side of the braced wall line. An offset greater than 4 feet is treated as an additional braced wall line.
Prefabricated Panel:
A prefabricated panel is a manufactured wall panel that is equivalent to a braced wall panel for use in a narrow section of wall. These panels can be used as a substitute for the 8 traditional methods of wall bracing. When calculating the percentage of bracing within a braced wall line, each narrow prefabricated braced wall panel counts as 4 feet of bracing.
Eight Traditional Methods of Bracing:
Methods used to construct braced wall panels used in light framed structures (See Wall Bracing 401 for individual descriptions, recommendations and images).
Continuous Sheathing:
Continuous sheathing is a method of bracing a wall that requires the entire wall line to be covered with wood structural panel sheathing meeting all the provisions set forth in the IRC, which includes special nailing details at corners.
Conventional Construction:
Conventional construction is a level of design generally based on traditional construction methods and materials that have a history of good performance for specific building types and sizes. Both conventionally-specified and pre-calculated members and connections are prescriptively specified and may be combined to form a structure or structural assembly.
IRC:
IRC is an abbreviation for International Residential Code. This code details acceptable building practices used in one- and two-family dwellings and townhouses. It is commonly referred to as a prescriptive building practice.
IBC:
IBC is an abbreviation for International Building Code. This code provides guidance to designers and engineers for the design and installation of building systems through requirements emphasizing performance.
Shear Wall:
A wall designed (engineered) to resist lateral forces parallel to the plane of the wall. The difference between a shear wall and a braced wall panel is that a braced wall panel has predetermined construction details (materials, length, nailing patterns, anchorage, etc.), whereas the construction details for a shear wall are determined through calculations by a design professional.
Ductility:
Ductility is the measure of the ability to resist loads while experiencing large movements that are outside the elastic range. This attribute increases life safety by helping the structure remain standing while being subjected to large displacements.
Damping:
Damping is the ability to absorb energy in a controlled, predictable manner to reduce movement of the structure in an earthquake. Products with good damping characteristics act like the shock absorbers in your car - absorbing energy during movement so the car shakes less.
R Factor:
R factor or Response modification factor is a seismic design load reduction factor based upon the entire structural frame system that accounts for ductility, damping and other compatibility characteristics.

To answer your braced wall questions, visit Weyerhaeuser’s FAQ page.  Very interesting and easy to understand.

DEFECTIVE CHINESE DRYWALL COULD JUST BE THE TIP OF THE ICEBERG

Drywall from China has been imported to the US for years.  Only in the past several years has some of it been bad.  Is this the last we will see of problems with material supplied by Chinese factories?  Well, I certainly hope so but with more and more building materials coming from China, I wouldn’t count on it.

So let’s see what else could be coming our way.

China supplies our industry with the following items for our homes.  This is by no means a complete list, but you have to ask yourself what problems we could be facing if the steel, finishes and other materials are not up to par with what we used before we started buying from China.

• Exterior doors and windows.
• Interior doors, both hollow core and solid wood
• Laminates
• Kitchen and Bath cabinets
• Kitchen cabinet door fronts
• Cast Iron bathtubs
• Granite tiles and slab granite.  This has to make you wonder why this product is so hot right now.
• Floor tiles, bathroom tiles, decorative wall tiles and other ceramic tiles.
• PVC bathtubs, showers and shower doors
• Locksets, hinges, cabinet knobs and other small hardware.
• Heat Pumps
• Hot water heaters
• Gas and oil furnaces
• Power and hand tools
• Nails, screws and hangers

and the list goes on and on and on.

We, the builders have asked for cheaper and cheaper products.  We’ve also asked for new innovative things for our houses.  So where are the manufacturers supposed to look?  Germany or Japan?  The only real answer is China.  So the next time you go to WalMart, just think, the same companies that are manufacturing the bad dog food, the poisonous toys and the tainted drywall are also importing food that you eat and materials to build your houses.

STAIRS, STAIRS, THOSE WACKY STAIRS

I love looking at unique architectural details and stair have always been one of my favorites.  My only questions would be…How do you get these past the latest IRC regulations?

 

To view other stairs and a whole lot of other neat stuff for you and your home, visit:

http://www.toxel.com/

CHAMPION HOMES RELEASES PRODUCTION FIGURES

Here is a roundup of last year for the biggest manufactured home builder in the US.  They produce both HUD and modular homes.

They operated 21 homebuilding facilities in 14 states in the US and five facilities in three provinces in western Canada. They sell their homes through more than 1,600 independent sales centers, builders, and developers across the US and western Canada.

Last year they acquired ModularUK which is located in East Yorkshire, U.K. and is a producer of steel-framed modular buildings serving the healthcare, education and commercial sectors.  With this expertise, do you think we will see Champion entering the steel-framed modular business in the US?  Wouldn’t surprise me in the least.

In earlier years they also acquired SRI Homes in western Canada and Caledonian Building Systems Limited in the UK giving them a tremendous international presence.  They had previously taken over two US companies, North American Housing and Highland Manufacturing Company, LLC.

Now for the more sobering news.  Champion’s HUD divisions shipped only 81,900 homes in 2008 compared to 373,000 just ten years ago.  It was their lowest production in 50 years!

The modular side of the company didn’t fair much better.  While not releasing how many modular homes they sold, a company spokesperson said that shipments were down 33.8% from the previous year.

With the slowdown in the manufactured housing seeing no turnaround soon, Champion Homes and others in that industry will be looking to close or mothball many more plants.

A CEO'S VIEWPOINT ON THE ECONOMY

I just received this article from Steve Scharnhorst, CEO of Excel Homes in Camp Hill, PA.  He is frustrated with the negative news about the economy and the housing industry.  At the end of the article are his comments about the downturn we're in.

Steve says "Our Economic Situation is serious but is also in need of some truth. But let’s face it. Bad news sells."

The following excerpts are from a speech given by Utah Lieutenant Governor Gary Herbert.

“Bank Closures at an All Time High in 2008”. Hogwash!
        -In 1989 there were 1,004 bank closures.
        -In 2008 there were 30 bank closures… On average there are 94 bank closures per year

“Foreclosure Rates Show No Sign of Slowing”. Baloney!

-During the Great Depression Foreclosure Rates were 50%

-Nationally today our Foreclosure Rates are 3% (1.4% in Utah)

“States Unemployment Funds Run Low”. Ridiculous!

   -During the Great Depression Unemployment ran at 25%

   -Nationally today our Unemployment is 7.2%

It is time for us, the news media, real estate agents and mortgage pros to blitz the narrative across the net. Accentuate the positive.

From CNBC: Why This Recession Seems Worse Than '70s and '80s By: Albert Bozzo, Senior Features Editor

If you think this recession is the worst since World War II, chances are you weren't born or working during the downturns of the 1970s and '80s, you're listening to President Obama too much or you're a white-collar worker in financial services. If all three are true, you may even think we’re on the verge of another Great Depression. At this point, the only thing that may be true is your age and employment status.

“The current situation has nothing in common with the Great Depression,” says economist Steve Hanke of the Cato Institute and Johns Hopkins University. “The sooner they [in Washington] stop spinning the bad news story and say nothing, the sooner we’ll be more confident.” Hanke is not alone in dismissing what appears to be a potent cocktail of misinformation and doom and gloom, wherein the current recession—now in its 13th month—is already considered worse than the 16-month ones of 1973-1975 and 1980-1982. “We were pretty scared in ’82; things looked horrible for awhile," says Bob Stovall of Wood Asset management and a 55-year veteran of the securities business. “I don’t think you can say it’s worse than then; its different. You have changed the landscape but you did that in the Midwest when you forced a lot of rust-belt companies to the wall." “This time it's financial firms going out of business, instead of manufacturing ones, and the jobs are going with them," explains Stovall. “I do think that's part of it,” says Robert Brusca, chief economist at Fact & Opinion Economics, saying that. “They’re the ones making the pronouncements. People in the financial sector are getting crushed.” They’re not the only ones selling doom and gloom, though. “I don’t remember a president talking down the economy as much as President Obama,” says economist Chris Rupkey of Bank of Tokyo-Mitsubishi. “The economy is very psychological. There’s a herd instinct.” That herd instinct kicked into overdrive after the sudden collapse of Lehman Brothers, when many say the economy fell off a cliff and a classical cyclical downturn merged with a nasty one-of-kind credit crunch. So yes, economists agree things are bad, but they need to be put into perspective.

Employment

At this point, the current recession is worse than those of the '70s and '80s by only one statistical yardstick, and that’s the unusually quick ascent in the jobless rate—from 4.4 percent in March 2007 to 7.6 percent in January 2008. “People are reacting so adversely to this is because the job market has become so weak,” explains Brusca.  But even though the sharp decline in payrolls over the past three months has been stunning, it is not as bad on a percentage basis as one period in 1974-1975, according to David Resler, chief economist at Nomura International. Resler says the economy would have to lose some 767,000 jobs a month over a three-month period from the current employment level to match that miserable performance. During the 1973-1975 and 1980-1982 periods the unemployment rate almost doubled (4.6-9.0 percent, 5.6-10.8 percent, respectively), which means a peak of about 8.6-8.8 percent this time around. In further contrast, during a ten-month stretch in 1983-1983, the jobless rate was above 10-percent. Nevertheless, that’s nothing compared to the Great Depression when the unemployment rate went from 3 percent to almost 25 percent in four years and national income was halved, notes Hanke in a recent column. 

Growth

Thought it may be little consolation for the millions of unemployed, GDP is considered by economists to be the best and broadest gauge of a recession.

That may seem also peculiar since the economy actually grew in the first two quarters of this recession, but some of that had to do with the Federal Reserve's early and aggressive interest rate cutting and the federal government’s first stimulus plan which quickly put money into people’s pockets. Given that backdrop, GDP contraction thus far has been modest. It’s down 1.1 percent vs. 3.1 percent in the 1970s period, says Chris Rupkey. And though the economy shrunk at a 3.8 percent annualized rate in the fourth quarter of 2008 and is expected to decline another 4.0-6.0 percent in the first quarter of 2009, imagine the reaction today to the 7.8 percent plunge in the second quarter of 1980 or consecutive swoons of 4.9 percent and 6.4 percent in 1981-1982. "Half of the workforce until now hadn't seen more than 16 months of recession—total," quips Resler. The past two short (eight months) and relatively shallow. During the 1990-1991 recession, the deepest quarterly GDP decline was 3.0 percent; in the 2000-2001 one it was 1.4 percent.  “GDP hasn’t been that weak because the productivity increase is one of the best,” says Brusca. “You get a quarter or two that really knocks the level down,” he adds, and it looks like we’re at that stage now. This time other fundamental factors are playing a bigger role than the past.

“Consumer spending will be bad,” says Resler. “We haven’t had three consecutive quarterly declines in consumer spending since the 1950s.” He’s definitely expecting a repeat of that. It’s Still Bad Comparisons aside, no one is saying the current recession isn’t a painful one, and some see very little reason for optimism.

“I can't identify anything that looks good,” says Dean Baker, co-director of the Center for Economic Policy And Research, adding that business investment—which appeared to be holding up—posted its sharpest decline in 50 years in the final quarter of 2008. “I'd be shocked if we have growth this year,” says Baker, even though he expects the Obama administration’s stimulus plan to have a sizable economic positive impact. So may the words of the President and his advisors, say economists.

“It’s not surprising that politicians exaggerate this,” says Resler, who predicts “The tone of the message is going to start changing immediately; now that we have the stimulus in hand, you enhance it by saying positive things.”

Tunnel Thinking

For all the comparisons with other recessions, exaggerated or not, the most meaningful one may be its duration. It is also the toughest. The consensus is this recession will end sometime between the second half of 2009 and the beginning of 2010. The pessimists say wait till next year—period. David Jones, CEO of DMJ Advisors, is among those who see “hints of stability.” By that he means, the rate of decline in areas like retail appear to be slowing.  “We'll see the same thing happening on the housing side in the next couple months,” says Jones.  “I'm just waiting for the shift in people’s expectations,” adds Rupkey.

From:  Steve Scharnhorst

So given everything you just read and my position you know what is coming next…. Don’t buy into the herd mentality. 

There are two kinds of people in the world…those who wait for something to happen to them and those who make things happen for themselves. The media led by our new president has had an agenda for the last 12-15 months, beat up the economy to get elected, and then beat it up some more so we can pass a spending bill that rewards our philosophical allies.

Ok, it’s done, so the good news will start right? Yes, sort of. The administration now needs to downplay the expectations so it won’t be an overnight change in attitude and message, but make no mistake, the message will and already has started to change. The CNBC article you just read is one of the first signs. It is written by bright people who say maybe we have hit bottom and maybe we overreacted. It even calls out some of the hype that was full supported by the media.

CHINESE DRYWALL COULD BE IN 100,000 NEW HOMES

What started as just an odd smell emanating from the drywall in new houses in Florida has become a major problem for builders throughout the US.  Homes in Michigan, Virginia, Georgia, Mississippi, Alabama, Louisiana, Texas, Maryland, North and South Carolina, New York and New Jersey are now suspected of having the tainted Chinese manufactured drywall.

During the time that the drywall used by home builders, the building industry built about 7 million homes.  So statistically not a large percentage of homes are effected.  That is not comforting for the home owners who did buy homes with Chinese drywall.  To date, I can’t find a single occurrence of any modular manufacturing company using it.

So far 86 separate lawsuits have been filed including many class action suits.  Lennar Homes filed their lawsuit and is suing just about anybody that can even spell the word drywall.  Even the subcontractors that Lennar paid to hang and finish it are being named in Lennar’s lawsuit.

Now it appears that about 100 different Chinese manufacturers made this type of drywall and if history tells us anything, Chinese home building products will now be put under the microscope just like the pet food was when dogs starting dying from contaminated pet food made there.  Some of the biggest pet food brands were caught off guard.

And who can forget the Chinese toys that were recalled by large US toy companies?  Now the housing industry is getting burned by the Chinese and soon we will start seeing their automobiles hitting US showrooms.  Can we say “inspections?”

To be fair, not all Chinese drywall entering the US is bad.  A lot of it meets or exceeds our standards but just like our own recent problems with peanut butter, people start to think that all peanut butter is suspect.

SHOW OFF YOUR HOME ON “MODULAR HOME BUILDER”

All modular home factories and their builders/dealers talk about how they can build just about anything for anybody.  Well, here’s your chance.  For the next month Modular Home Builder is asking every builder, factory, sales rep and dealer to send in pictures their best and most difficult homes.  Then we’ll put them on Modular Home Builder with a link to your site.  Free Advertising!

It’s time to show the country what we, as an industry, can do!  So, if you’ve got a house that you would like to see featured in an upcoming article about “today’s modular homes”, just send a picture to modularhomebuilder@gmail.com.  We are also looking for great interior shots.

You and your company will be given full credit!

Jakobsen & Bowe LLC ; Leesburg, VA

EXCEL’S “ENERGY STAR” SHINES BRIGHT

I hear a lot of modular manufacturer’s telling me that their homes are Energy Star approved and today I found one that appears to be head and shoulders above the others.

Excel Homes and it’s sibling company, AvisAmerica, both located in Pennsylvania have put together a program that not only explains Energy Star in a way that is easy to understand but the brochure they have produced tells every customer just what they are getting in the Energy Star package.

If someone has put together a better presentation, I haven’t seen it yet! Here are the cover page and back page to a bright, colorful and easy to understand Energy Star brochure.

BEING GREEN AND ECO FRIENDLY CAN’T SAVE FACTORY

What was started as an effort to produce green modular homes has taken a completely different route…they are out of business.

Apparently building the West Coast Green’s 2007 showhouse  in partner ship with Sunset magazine didn’t help it stave off the closing of their Oroville, CA factory.

I am always sad to tell you about plant closings because it means people no longer have jobs but this one is even sadder because their time was now but I guess even being green couldn’t help during a recession.

ANOTHER LOUISIANA TOWN READY TO BAN MODULAR HOMES

I swear that the people of Tammany Parish in LA are the missing links of evolution! 

Nobody could make this up.  So here is the whole story with my highlights.

By Chad Ruiz
St. Tammany News
Published on Wednesday, February 11, 2009 9:09 AM CST

Portable buildings in Folsom have been banned for nearly a year now and at next month’s Board of Aldermen meeting, Village officials will be voting to renew that ban for another year.

Thanks to a majority vote last year, a moratorium was placed on the movable structures becoming an eyesore, Mayor Marshell Brumfield said.
“We were getting a lot of feedback from citizens saying there were too many portable buildings coming in,” Brumfield said.

Especially one particular lot, Brumfield said, where the owner preferred leasing the property out under the condition a permanent structure wouldn’t be constructed.

Brumfield described a portable building as a movable structure that’s fully intact when installed. He said it differs from a mobile home.  editor’s note: mobile homes are allowed but modular is banned!

The new moratorium on the structures was introduced at Monday night’s Board of Aldermen meeting and will go up for a vote following a public forum scheduled before next month’s meeting.

The village of about 700 is in the middle of completing their first comprehensive land-use plan, Brumfield said, which is another part of the reason for banning the portable structures, so not to hamper the town’s planning efforts.

However, unlike last year, this year a special amendment was added to the moratorium allowing schools to install the portable buildings to help address the growing student body.

The portable structure ban first took effect about the same time last year when village officials opted to ban modular homes.  editor’s note: Slidell and Folsom are both in Tammany Parish. Here is a link to my article about Slidell.   SLIDELL BANS MODULARS

The village’s Planning and Zoning Commission first approved several modular home installations but after the first was installed with numerous difficulties, including disrupting the village’s main water feed for several hours, officials decided the small roads were not capable of withstanding the large cranes used to transport the prefabricated homes.

Similar bans on modular soon spread across the parish with several municipalities passing their own moratoriums.

Copyright © 2009 St. Tammany News

So I guess the new term for Modular Homes is “Portable Buildings”

IT’S “HOME SHOW” TIME. ARE YOU MIA AGAIN?

It’s time for that right of passage for all new home builders called the “Home Show”.  In some areas it’s called the “Home and Garden Show” but whatever it’s called, are you missing from it AGAIN?

Your first reaction is probably “I can’t afford to do that, it costs $1,000"!” 

I’m sure the 10,000 to 80,000 people that attend these shows instinctively know who you are and can’t wait to dial your number just as soon as they look at the other builders in the Home Show they just visited!

WAKE UP!  Home Shows can be your one big expense this Winter or Spring.  $1,000 to get in front of 20,000 people and actually talk with them…WOW!  And most manufacturers will give your FREE literature to hand out and even supply you with a booth!  Some will even pick up part of the entry cost. 

With that in mind, here are two past articles about home shows that just might help you see the light.

The first is “MIA at the Home and Garden Show.” 

The second is “Home Show Dos and Don’ts”

SOME BIG CORPORATIONS MAY BE GOING DOWN THE TUBES

Here are a list of some of the big companies that are either in deep trouble and might have to file for bankruptcy or will look drastically different if they survive the recession.  There are many others but these are some of the most well known.

RITE AID.  With over 100,000 employees, they are facing mounting losses and if things don’t turn around for them soon, this highly leveraged company may be up for sale.

CLAIRE’S STORES.  Apparently this mall based earring palace with over 3,000 stores and 18,000 might follow their sister company, Linens N Things, by shuttering all their stores.  I guess $1 earrings are now just too expensive.

CRYSLER.  If $4 billion in “found” money from the government can’t stem the tide of red ink and force it to close it’s doors, then maybe the 40% drop in sales should kill it off.  And if you think Fiat’s offer to take over part of the company is going to help…think again!  Wake up call for 55,000 employees.

SBARRO.  If you haven’t been to the mall lately or traveled the Interstate Highway system, then you couldn’t have eaten at Sbarro or met any of their 5,500 employees.  And that’s a major problem for this pizza chain that has a ton of debt due in late 2009.

SIX FLAGS.  I loved these theme parks about a decade ago but the last time I was at one it looked a little frayed around the edges.  With 30,000 employees and their stock down about 85%, you just might be able to buy your favorite ride for a few dollars when they go under.

BLOCKBUSTER.  Can you say Netflix and Redbox?  With two major debts maturing in August, they could be history.  Save some money for the next buy two – get two free sale!  Maybe you can invite one of their 60,000 employees to your house for a night of Indiana Jones movies.

KRISPY KREME.  I told my wife about 4 years ago that Krispy Kreme’s days were numbered.  When I started to see their donuts in every convenience store, grocery store and gas station in America, I knew the cost for transporting the goods and returning unsold goods was going to be their downfall.  It looks like there’ll be no more glazing the donuts for over 4,000 company employees.

SIRIUS SATELLITE RADIO.  Any company that thinks they can hire Howard Stern for over $100,000,000 a year and merge with their only competitor and still make a profit, then I only have one word for you…bankruptcy!  The 1,000 employees at the parent company will have their radios turn off this year unless a higher power intervenes.

MAN vs. BURIED GAS LINE

These pictures are a result of mechanical post hole digging without calling for "locater service". The employee hit an underground high pressure cross country gas pipe. The employee digging still has not been found.  The person sending me this story did not tell me where it happened or when, but it is still a good lesson for all of us.

This is why builders and developers MUST call the One Call system in their state to identify all the utilities that might be on the property they are clearing or digging in.  I was told by one excavator that if a contractor would not call and have the utilities located and he hit a fiber optic cable, his insurance would be cancelled, he’d be out of business and bankrupt by the time he got off his backhoe and back to his truck.

That’s harsh!

OOPS! SOME OF OBAMA’S PEOPLE SHOULD NOT BE ALLOWED TO SPEAK

SALIDA, COLORADA REOPENS TOWN TO MODULAR HOMES

I usually point out when stupid towns, parishes and counties in certain states, TX and LA for example, close their permitting to modular housing equating them with double wide manufactured homes.

Well, it my pleasure to bring you a story of one town in Colorado that is allowing modular homes in after a 6-8 year freeze-out.

Adoption of changes to the land use code to help create affordable housing in Salida has been a plus for potential buyers of modular homes and the builders.

"We haven't been allowed to build in Salida for 6-8 years," Don Dill, co-owner of Great Western Homes, Inc. in Poncha Springs, said.

"When the changes were approved by Salida City Council on second reading in December it was great news for us."

Rick Ormsby, co-owner, said, "We've had customers who wanted to buy homes and couldn't put our homes on their lots in Salida.

"We appreciate Mayor Chuck Rose and the city council and the fact they have shown genuine interest and concern that residents can have the most affordable homes. Our homes, on average, cost about 20 percent less than stick built homes."

Much of the savings in an off-site built home are in condensed time. They can build in 90-120 days compared to stick built which can take a year.

One of the reasons for the change, Dara McDonald, Salida community development director, said, is because modular construction has progressed so much in the past couple of decades and is now subject to the same building codes as frame construction.

"With that in mind," McDonald said, "it just didn't make sense to limit availability of off-site built homes."

Modular homes are allowed in any residential zone in Salida. They remain distinct from mobile homes which remain limited to R4 residential areas allowing multi-family and mobile homes.

Chaffee County adopted International Residential Code standards, replacing the Uniform Building Code.

"Counties in Colorado now are all slowly adopting the (international code)," Dill said.

Among the benefits of "off-site" construction are:

• Improved structural integrity - homes are built in modules. More engineering structural components allow them to be transported efficiently from the manufacturing plant to the building site.
• Controlled environment - materials and workers are not subject to prolonged exposure to the environment.
• Improved energy efficiency - with 6-inch exterior walls, 4-inch interior walls, engineered roofs and floors built as single components, air filtration is minimized. "Off-site" constructed homes can easily achieve energy programs and certifications.
• Fewer cost overruns - 80 percent of the price of the home is locked in.
• Improved speed for project completion
• Decreases environmental impact of construction.
• Neighborhood friendly - off site construction dramatically reduces the amount of heavy equipment and other disturbances on a job site.

LAWYERS JUMP ON CHINESE DRYWALL BANDWAGON

Enter the lawyers!  Now two Miami-based law firms have launched the latest class action lawsuit targeting manufacturers of Chinese drywall.

The plaintiffs, Jason Harrell and Melissa Harrell, filed suit against Knauf Plasterboard Tianjin Co. Ltd., a Chinese company that manufactured the defective drywall installed by their home’s builder, South Kendall Construction Corp.

The Harrells purchased a $360,000 home in the Pine Isles portion of Keys Gate in January 2008, and moved there with their two children, according to the complaint filed by them on behalf of all similar Florida homeowners with Chinese drywall problems in their homes.  The Harrells allege that drywall installed in their new home and those of their neighbors, emits destructive and harmful toxins and renders the homes "essentially uninhabitable."

“The Harrells thought they were buying their dream home,” attorney Joseph Givner said in a press release. “Instead, they stepped into a nightmare.”

Problems with drywall from two Chinese manufacturers have been identified in some South Florida homes built in 2005 and 2006. State officials are tracking more than 70 complaints associated with various builders.

The complaints include an odor of rotten eggs, metal corrosion in air conditioners and health complaints. Eight complaints come from homeowners in Miami-Dade County, two in Palm Beach County and one in Broward.

Knauf has acknowledged the complaints about its drywall. The first class action was filed Jan. 30 ­on behalf of homeowners by a Bonita Springs law firm. Another product liability case was filed this week by Miami-based homebuilder Lennar Homes. Those suits targeted Knauf and another manufacturer, along with suppliers and installers. Lennar also installed the tainted drywall in the Florida Lieutenant Governor’s new house.

PALM HARBOR POSTS LARGER THAN EXPECTED LOSS

Things in our industry keep going from bad to worse.

Modular home builder Palm Harbor Homes Inc. posted a larger loss in the third quarter of fiscal 2009 compared to the same period last year, attributing the decline in earnings to continued weakness in the overall housing market and within the company’s industry. Their third quarter ended December 26, 2008.

The company’s sales declined from $140.6 million during the same period a year ago to $89.6 million in the most recent third quarter.

Third quarter the previous year saw Palm Harbor build 400 modular homes compared to this years 260, a drop of almost 40%. Modular homes built the first 9 months of this year declined to 819 from 1,273 last year.

MODULAR BUILDER BIDS ON AFFORDABLE GREEN HOUSING

East Hampton on Long Island has land available for an affordable subdivision.  Five builders are vying for an opportunity to build the houses in the Green Hollow Woods, the affordable housing subdivision being developed.

The five companies were chosen as finalists from among seven that had responded to a request for proposals issued by the town. One is a modular builder.  The town board included specific criteria, such as energy efficiency, in the call for proposals and will select three builders.

To maintain economies of scale, each company chosen will be guaranteed an opportunity to build a minimum of 7 houses, with a maximum of 12.

East Hampton will retain ownership of the land in the subdivision, while future residents, already selected by a lottery overseen by the town’s Housing Department, will obtain mortgages to finance the construction of their houses. They will choose from among the models offered by the selected builders.

The prices of the houses offered by the five companies range from $160,000 to a high of $243,115. At a future meeting the town board will be presented with financial information on the prospective residents regarding the mortgages for which they could qualify. The board will consider the cost of the houses offered by each builder in making the selections.

Mr. Glennon of Handy Hands, Inc,  was the sole modular builder that made the cut.  He puts up modular houses made by Simplex Industries of Pennsylvania, which also had representatives on hand Tuesday. Simplex houses won an industry award for the “best green modular home design,” the company said, and meet both the National Association of Home Builders’ green building and Energy Star standards.

The eight modular models would range from $182,000 to $239,000. Several could be built with an unfinished second floor in order to save on up-front costs, Mr. Glennon said, or with finished or unfinished “bonus rooms.”

FLEETWOOD CLOSES PLANT IN TEXAS

Feeling the pinch of a slow economy, Fleetwood Homes of Texas will close its production facility on Foundation Drive and transfer a handful of employees to its plants in Belton and on Gholson Road.

About a dozen employees will lose their jobs due to this move, said Ray Parma, general manager of local operations.

Fleetwood, which has done business in Waco since 1951, has seen its employment in Waco slip from 340 at the beginning of last year to the current level of 185. Employees have been gradually released as Fleetwood deals with a challenging economy, tightening credit and the loss of jobs among those who might want to buy a manufactured home.

“We’re trying to hang in there because we are a low-priced alternative in the housing industry,” Parma said.

Parma said Fleetwood will “mothball” the plant on Foundation Drive, meaning the doors will close but equipment will remain in place. The company hopes economic conditions will allow it to reopen the plant.

Fleetwood now has only one active plant in Waco. For years, it had three active plants on Gholson Road.

At their peak, the plants in Waco and Belton employed about 1,200 people, Parma said, but that number has dropped to 560, including 375 in Belton, where crews make military barracks for Fort Hood.

50 THINGS TO KNOW BEFORE YOU BECOME A BUILDER

If building homes, either site built or modular is in your future, you don’t want to make too many mistakes getting into this business.   So here are 50 things that might help keep you from a major  “Crash and Burn”!

Planning

1. No Sound Business Idea: Without a sound idea, how will you develop your business plan? Just saying you want to become a builder isn’t good enough anymore, you’ve got to have a good idea why you are going into this business.
2. No Business Plan: Oh no, Mr Bill!  Say it ain’t so!  Without a solid business plan, there is no way that you will ever be able to turn your business into a successful operation and prepare to crash and burn.
3. Market Research:  If you don’t know your market, do you really know your business? You can’t be everything to everybody.
4. Bad Timing: There is a right time to start a new business, and a wrong time. If you roll out your business while the market is in this recession, you may fail before you ever even get off the ground.
5. Good Location: Location is everything.  If your office is going to be in your home, make sure the neighborhood reflects your business.  If your neighborhood is not attractive, save up and rent an office or showroom somewhere else.
6. Choosing Suppliers: There are great modular home factories, good modular home factories and there are some that are just hanging in there.  Choose the one that closest mirrors who you are marketing to.
7. Don’t forget the Competition: Every business and every concept has competition. If you do not recognize it, you are missing something important. Identify your competition before you launch your business.
8. Choose the Right Type of Business: Sole proprietorship, partnership, LLC? Choosing the right business form is vital.
9. Seek Advice: It is important that you turn to successful people for advice in the planning process of your business; otherwise you will not be successful. If you were going to market to seniors, seek out builders that already are successful selling to them
10. Do You Really Know Construction: Simply put: If you’re not skilled in all phases of construction and sales, prepare to crash and burn.

Personality

1. Are You Mentally Strong: It takes a certain attitude to be a successful entrepreneur. Do you have what it takes to lead rather than follow?
2. You’ve got to be Analytical: If you can’t take an analytical approach to the decisions you make and try to rationalize things, you are just kidding yourself.
3. Be Self Critical: As a business owner, you need to be willing to self critique. A business owner who is not critical of his or her self is an unsuccessful one.
4. Lack of Desire: You may be working for a builder right now and think that you can do that because he looks successful and everybody knows he’s an idiot.  I want to make money.  That’s no reason to start a business.  Desire is a burning thing in your chest and without the desire you will crash and burn.
5. Low Motivation: Just like desire, motivation is critical for business success. If you are lacking motivation, perhaps you are in the wrong business. Get motivated or get a job.
6. Over Confidence in Expansion: While expanding may be a necessary part of business, if you become over confident in your ability to expand, your business will surely flop. I have seen many builders get into the restaurant business because they like to eat and think it would be easier than building houses.  Putting up another model home in a remote area might be just as disastrous.
7. Assuming: A lot of builders make assumptions about the business and guess what?  They’re usually wrong.  Get the facts and stop making assumptions.
8. Failing to Take Responsibility: When you are an entrepreneur, you have to accept responsibility for failures in your business; you cannot simply shirk them off onto someone else’s shoulders. Building someone’s home is a lot of responsibility.
9. Procrastination: If you procrastinate, or are lazy, or otherwise simply cannot get things done, you are NOT suited to be a builder.
10. Being Overzealous: OK, you’ve opened your doors, advertised and you’re going to build 50 homes in the first year!  Yep, that’s a real possibility!  

Finances

1. Not Having Enough Money: Cash is KING!  You’ve got to have it in savings or lines of credit. If you are not prepared financially, you will sink.
2. Credit Rating: You will run across situations where loans and other assistance is required, but if your credit is destroyed, your business will crash and burn!
3. Control Your Spending: Overspending on your credit card, for example, without any thinking or research can have a serious negative impact on your financials.
4. Budgeting: Budgeting is a vital part of running a business smoothly, so make sure yours is good! Poor budgeting will prevent you from getting a handle on your finances.
5. Unrealistic Targets: If your financial targets are unrealistically high and you continue not to meet them, your business will never succeed. You need to realistic in setting goals.
6. Be Organized: When it comes to financials, organizing is absolutely vital. Keep yourself organized and keep your financials in order and you will succeed.
7. Be Honest: To yourself or to your employees, dishonesty can destroy the financial standing of a business.
8. Taxes: Pay your taxes as often as you can. Work out a basic plan, stick to it and always be honest about your taxes if you want to prosper.
9. Discounts: Work with your vendors and ask about discounts.  Some offer them if you pay your bills within their terms.  Think of a missed discount as an expense.
10. Set Goals: Plan how many homes you can build and set your business goals accordingly.  Review the number of homes being built and adjust your goals to meet the new numbers.

Advertising

1. TOMA: Top of Mind Awareness.  Create ways that people will think of you first when they are looking to build a home.
2. Update Your Website:   There is nothing older than yesterday’s news and if your website still has offers and open houses from 2007 on it, get on the ball and update it.
3. Word of Mouth: Word of mouth is actually a powerful marketing tool. What are you doing to spread the name of your business?
4. Choose the Right Advertising Medium: Advertising is everything. Choose the right medium or your business may flop. Hard. Remember, 90% of all new home buyers start their search on the Internet.
5. Advertising Budget: Stick to a budget when you pay for advertising. Do not go over your budget no matter what.
6. Track Your Advertising: If you have a website, consider adding “Site Meter”, a free widget that will tell you how many people are visiting your site and what they are viewing.  If you can’t track your advertising sources, you’re doing something really wrong.
7. Picking the Wrong Modular Factory: Is your modular factory doing what it takes to bring you leads and training? If not, they’re the one you need.
8. Choose a Memorable Name: “Jack’s Houses” may be an accurate statement, but will it really draw customers to you?  Your name is half of your branding. Can your customers remember your name?
9. Business Cards: Carry business cards at all time and be prepared to pass them out at all times.
10. Poor Business Cards: Forget cheap business cards. Buy nice, legible and attractive cards. Don’t print them on your computer,  that is so tacky!

Networking

1. Rabbit Hole Syndrome: Detaching yourself from the people around you is an excellent way to destroy your business.
2. Talk  With Other Builders: Networking is a powerful part of business. If you fail to network effectively, you will surely crash and burn.  Get on the Internet and find builders like yourself and find out what they are doing to battle this recession.  Join your local NAHB chapter.
3. Good Employees: Pay close attention to who you recruit and hire. Recruiting is an art: look for employees that will stay for the long term.  Don’t forget, if you hire someone and you get the feeling almost immediately that it isn’t going to work out, get rid of them…fast.
4. Don’t Badmouth Your Competitors: You don’t have to like your competitors, but you do have to cooperate with them. Remember, what goes around, comes around!
5. Offer Your People Benefits: Offering benefits to your staff is the best way to keep them around. If you don’t offer any incentives, they will go on to bigger and better things.   Not every benefit has to cost you a lot of cash.  Buying a gift card to Olive Garden for one of your employees and their family will go a long way.  Happy spouse theory.
6. Staying Informed: Stay informed with what is current in your industry, or your competitors may pass you by.
7. Keep Things Fair: Keep things fair with your competitors. Don’t steal ideas or products. Respect one another even if you are competing.
8. Cold Calling: Cold calling is not the answer to networking. Meet your prospects in person first.  If you really think cold calling is the answer, get the ultimate list…The Yellow Pages!  Surely someone in it wants a home.
9. Don’t Get Too Personal: Getting to know your prospects and customers is a great way to spread the good word, but getting too personal can be a deal killer.
10. Don’t Drink at Work!: Just because there is alcohol in the office or in your vehicle doesn’t mean you have to drink it.  Never drink around prospects, customers or your employees.  One slip of the tongue can cause you to crash and burn!

LENNAR FILES LAWSUIT OVER CHINESE DRYWALL

Lennar Corp. has filed a major lawsuit against a lengthy list of manufacturers, suppliers and installers whose products or services were used by the company in the construction of its homes carrying Chinese drywall.

Now installers have to cover their a**es!

The suit from the Miami-based home builder over the drywall issue comes on top of two class-action suits filed on behalf of homeowners in Sarasota County and North Fort Myers.

Gases being emitted from the Chinese-made drywall have been tied to corrosion eating away at the guts of people's homes. Some Southwest Florida residents say the gases also have been harmful to their health, a charge the builders and manufacturers dispute.

Lennar filed a 105-page lawsuit late last week in Miami-Dade circuit court. Lennar also is suing both Knauf Tianjin and its German parent, along with a second manufacturer, Taishan Gypsum.

Both Knauf and Taishan have shipped millions of pounds of drywall to Florida and other states since 2006.

Hang onto your hats folks, this is just beginning!