Home Builders

Home building business

The housing market is one of the more consistent markets in the United States, with suburban lifestyles and wide-open spaces allowing young families and individuals to purchase new homes. For those looking to break into home building, however, it is difficult to get a business started and stay afloat for a long period of time. As someone who has worked in home building and whose family owns a construction company, I have some first-hand experience with how a home builder rises from piece work to success in the crowded home building field.

The first step for any home builder is to take a survey of the construction and building trade in their city or region. One way to distinguish a business is to look at any glaring needs in the home building market. For example, in a city where larger construction companies are able to leverage their financial advantage in the home building market, it is advisable to get involved in custom home building or home building in a certain area of town. As well, focusing on a particular area of home building like specialty garages or sunrooms can yield great dividends through word of mouth.

Another important step for home builders is finding a reliable resource for home building materials. One option is to use popular retailers like Home Depot or Farm and Fleet. This option is best for those with little experience in home building because these stores have employees that are experts in their particular aspect of home building or repair. However, utilizing local or regional wholesalers for resources like lumber or brick offers cheaper prices on larger quantities of building materials. Both options have their virtues, though home building is an expensive endeavor and using wholesale materials can save a lot of money down the road. It is important to look at wholesalers, however, because the quality of product can vary and finding a storage center too far from your business can put a hit on your fueling cost.

Hiring the right employees for your business, whether its one other person or a group of contractors, is important to maintaining quality service. Experienced carpenters, roofers, and other home building personnel can be found by talking with fellow home builders who typically have a good knowledge of available workers in the area. As well, taking on apprentices for certain positions not only fills a need (as many apprentices know how to do basic handy work in the first place), but also provides a long-term investment in loyal workers. Finally, it can be a great idea to hire local college students for summer work. Not only do these temporary workers fill a need during a particularly busy time of the year, but a few of these students may turn out to be interested in home building.

The most neglected aspect of home building is the financial and administrative side of the business. One way in which a home builder can get off on the right foot is to hire a top-flight administrative assistant who can learn the industry and deal with finances. Another way to get started in home building is to declare your business as a limited liability company (LLC). The LLC designation for a home builder allows for more flexible tax status, independence from a board of directors, and greater protection from litigation. Aside from administrative assistance and LLC status, a home builder can better serve himself financially by taking an active role in community events and charity. For example, a home builder can lend their services to the local Habitat for Humanity chapter and help build a new home for a lower-income family.