Tuesday, July 22, 2014

Why Don't Modular Home Builders Use Business Plans?

If business plans are so important, why don’t modular home builders use them?

I’ve been asked that many times still don’t have a good answer.  I do know that builders that write a business plan and follow it are 50% more successful and are less likely to go out of business within 3 years. Companies with a Business Plan have 63% higher revenue growth and 100% more profit than ones without a plan.

So, let me ask you; “Why haven’t you written a Business Plan yet?”

Without a Business Plan, here are some of the problem areas that won’t be addressed:
  • Poor Management Systems
  • No Overall Vision
  • Lack of Market Planning
  • Not Understanding the Competition
  • No Strategic Plan
  • No Established Performance Measures
  • Inadequate Financial Planning
I can just see you now.  You will look like a firefighter stepping on each of these areas and trying to put out one fire while another bursts into flames.  Soon, you’ll look like a drunken clog dancer and finally you’ll just fall over and your business will fail.

Please, start preparing a business plan today.  Even though housing is better this year, many builders will go out of business simply because they have no roadmap to success.

If you don’t have a clue where to start, just drop me a line and I’ll send you some info….FREE, of course.

1 comment:

Anonymous said...

Could the same be said of factories?
HMMMM! In case you need more evidence why are franchisees more successful than start-ups. You guessed it - proven systems, a defined vision, at least an initial evaluation of the competition, performance measures, and evaluations of financial performance. Considering many small builders look at 3-6 homes a year as a success when they could be at 12 or more with a vision, plan, and performance measurements.