Remodeling numbers good news for handyman business

The Remodeling Market Index (RMI) continued to climb in the third quarter of 2013 rising another two points. This is the highest reading since the first quarter of 2004, according to the National Association of Home Builders (NAHB). I believe this is another sign of a strengthening economy and good news for anyone considering a handyman business.

Improving economy is good news for handyman and remodeling franchises

The RMI's current market conditions index rose from 54 in the previous quarter to 58.
You know this is the highest reading since the creation of the RMI in 2001.
What does that mean? For those not familiar with the RMI it's an indicator of remodeling activity and confidence. Being above 50 indicates that more remodelers report market activity is higher as opposed to reporting it lower.
Increasing home equity and home sales, and a strengthening economy, definitely have an impact. We see it in our own network. Across the country our franchisees are producing some great numbers.

The exciting thing is that all of the three major components of the RMI's market conditions index increased in the third quarter. Minor additions and repairs increased from 55 to 58 while maintenance and repairs increased from 57 to 59. Even major additions and alterations increased from 51 to 55.

The growth in home equity and home sales has given home owners confidence to remodel, repair and do handyman upgrades that they had put off during the tough times.We expect the demand for remodeling services to continue to increase however at a more gradual pace as the housing recovery makes progress.

Do you think this is a good sign?

Entrepreneur, baby boomer and now handyman franchisor

Welcome to the entrepreneur and baby boomer club. I have lived and worked in four different countries, owned businesses in three, was born in Scotland, immigrated to Canada at age forty six, came to the U.S. at age fifty two and bought House Doctors at age fifty seven. I think that entitles me to be a member of the entrepreneurial baby boomer club and now I'm a handyman franchisor

Harris Poll says 90% agree entrepreneurship driver of economic growth

You know in a recent Harris Nationwide poll an overwhelming 90 percent of Americans surveyed agreed entrepreneurship was a driver of economic growth in the US. That is a very strong endorsement of the importance of new-business creation in the U.S.
When a poll is so overwhelming in its findings we should take notice. As a franchisor I'm lucky enough to see the impact entrepreneurs have on the economy every day. We open two new franchises a month. Each new franchise employs three people. Then they grow and employ six, seven, maybe ten staff. We're planning to open three to four hundred of these franchises in the U.S. Remember that there are thousands of other franchise companies in the U.S. thinking the same way.

The survey, sponsored by the non-profit Center for Productive Longevity in Colorado also found 87 percent of all adults surveyed agreed small-business success was important for the future of the U.S. economy while 63 percent said people over fifty should be encouraged to start a new business
We're finding more and more baby boomers are interested in the House Doctors franchise. The tough times over the last few years have created a huge pool of potential entrepreneurs who will make great small business owners. Many from the corporate world had a successful career working for someone else, now they have the opportunity, experience, and skills, to do something for themselves.
99 million Americans are over 50 and I believe that entrepreneurship is a viable option for many of them.
It may be the last positive impact that us baby boomers can have on society. Many of us have the same attitude. We want to continue to contribute to the world as opposed to drawing from it.

Do you think us baby boomers can still have an impact?

Remodeling numbers good for handyman franchise

Zillow Digs Home Improvement Survey in September showed 52% planning to remodel in the fall. Those numbers are still remaining strong as we head towards Winter. Our professional handyman and home improvement franchisees are still keeping very busy as people are still planning to remodel before the year end.

Final quarter always strong in handyman business

Since I've been involved in this industry I've always seen strong fourth quarters. It starts off getting busier in September then builds up momentum before slowing down just before the holiday period.
This year seems no different with many franchisees recording record revenue numbers.
The Zillow Digs survey in September was showing at that time that more than half their homeowners were planning to make a home improvement this fall.
According to the survey the most popular rooms for remodels would be the home office and playrooms and we are finding that as the monthly data comes in from our network.
The survey has been right so far. We are continuing to see strong growth and the data we pull from  shows more technicians working on indoor remodeling projects another point the survey raised.
Not surprisingly one more interesting observation of the survey was that more than one-third of homeowners listed the most popular sources for ideas for home improvements to be online.
Around 48 per cent of younger homeowners and 47 percent of homes with children found their inspiration online. This trend of looking online for ideas is definitely growing. I remember that not long ago we didn't trust anything that we read or saw on the internet. How quick things seem to change especially when technology is involved.
Sites like Zillow Digs do a great job of helping homeowners get inspired. At House Doctors, we recently launched our new website www.housedoctors.com. It too includes more images and visuals and a gallery and ideas page for customers to view. We are not quite at the Zillow Digs level but it's a start.
The Zillow Digs survey also shows homes with children more likely to be planning three or more home improvements (median spend of $1,500) as opposed to homes without children ($1,000). Overall, younger homeowners and homes with children are significantly more likely to be planning a home improvement. All very interesting data.
What do you think?

New Jersey homebuilder grows home repairs franchise

Here's more information on another House Doctors franchisee. I hope you find it interesting to read some information about our franchisees. As you can tell I'm excited to give you a little taste of what they are all about. We're proud to have John Barba on board. He is a New Jersey homebuilder who only this year won a prestigious Custom Home of The Year Award with his building company Barba Builders and is again finding success by offering clients in Morris home repairs and home improvements through his House Doctors franchise..

Third generation homebuilder grows home repairs and home improvements franchise

John tells us that Barba Builders clients were asking him if he could do smaller to mid size repairs and renovations because they couldn't find a company that offered the same service, quality and reliability that they had experienced with Barba Builders. John decided why re-invent the wheel. He would look for a franchise that already had the model and systems and procedures that would enable him to service the growing needs of his clients in that market space. So to cater to smaller to mid size repairs and renovations he opened House Doctors of Morris.
John is not new to the industry. He has over thirty years experience. He is a third generation builder. His grandfather came to the US and started building in 1913 developing not one successful building business but two.
John says that it was a proven business model, a Brand that was poised for growth and the right culture that attracted him to House Doctors.
He reckons one of the reasons that House Doctors is growing nationwide is because of the culture of continuously pushing for excellence, sticking to your word, maintaining a high degree of professionalism, and always doing what you say you're going to do.
John now reckons that across his two companies he can provide his clients with a full range of professional building services. Anything from home maintenance on the growing to do list, to smaller remodeling jobs or even a complete larger custom home building project John is confident he has it covered.
He is now able to offer his customers a whole house package backed by a level of service and reliability second to none. House Doctors of Morris is already being well received in his local community having won a coveted customer satisfaction award based on client feedback.

Is John on the right track with his business?

Texas engineer builds successful handyman franchise

Following on from my other posts on some of our successful handyman franchisees allow me to introduce Dave Mauldin. Dave had spent most of his career in information technology with Texas Instruments and Compaq before becoming a House Medic Franchisee. House Medic is our sister company that we use in some States as an alternative to House Doctors.

Texas Engineer runs home repair business in Austin

Dave who has made a successful transition to become a House Medic Franchisee now offers Austin residents professional handyman services, home repairs and home improvement services.
Dave was born and raised in Texas and after his successful corporate career he took an early retirement package and is now building a team of professional handymen who work on busy homeowners to do lists. Dave thinks that the need for professional handymen is obvious. Our population and our properties are aging.
He admits that when he started looking for a business he didn’t even know that a franchise in home repairs existed. House Medic handyman service is growing nationally by giving people like Dave the opportunity to get into business for themselves.
Dave says that he bought his House Medic because of the growing market and the professional model. He immediately hired a professional CSR, a great guy he has known for years, Markus. Dave's handymen are experienced, insured and screened and then trained to provide excellent customer service. His customers are then confident that the work performed on their home will be completed to the highest standard.
Dave will tell you that he felt all of his skill sets were a great match with House Medic. The culture in House Medic is to follow through with what is promised and not to let people down. Dave is building credibility in his business, with that approach, with support of his community and neighbors. He is building a company that people in his community can trust to do what they say.

Do you think Dave's approach to business is the right one?

6.4 % Home Value Increase Good For Home Repairs

The third quarter Zillow Real Estate Market Report shows the U.S. Zillow Home Value Index standing at $163,000 as of the end of the third quarter. This is a good pace for the market and good for home repairs, home improvements and a handyman franchise.

Home value pace good for home improvements

Report shows the home value index up by 6.4 percent  year-over-year and up 1.2 percent from the end of the second quarter, but unchanged from August. This is a good pace for recovery and keeps us out of the boom and bust cycle. This new pace of home value appreciation has even brought a number of markets back from the edge of entering possible bubble territory again. This pace is good for handyman services and home improvements. When people are confident that we have a growth that we can sustain they invest in their properties.

A steady annual sustained growth is what we want. People get nervous quickly now if we grow too fast. It may seem strange to say but sometimes its better if the pace of home value growth in some markets slows down. Remember what happened when increasing home values got out of control before. The data shows some markets like California for example have already touched on the edge of bubble market territory again and expensive metro areas that experienced relatively modest declines during the crash have already shown very robust gains during the recovery.
Across the country as recently as July, all of the top 30 metro areas showed positive monthly appreciation, with none exhibiting a monthly pace slower than one percent month-over-month.

People need to feel that we can sustain our growth. Confidence effects our economy more than some realize. It certainly effects the level of activity in the home improvement market. When people feel things are heading in the right direction they spend more on home remodeling projects. I believe we have come off the bottom and are at a sustainable level of growth in home values that should now continue for sometime as people become more confident with their decisions to buy and sell.

What do you think?

General Contractor Builds Handyman Franchise

Justin Bates has been in the Construction industry for 15 years. He even owned his own construction business doing residential homebuilding, additions, and other large projects. He is a licensed general contractor..So why did he decide to become a salt lake handyman and buy a home improvement franchise.

From general contractor to professional handyman

Justin shared with us why he decided with all of his industry experience to buy a House Doctors franchise. "It was the House Doctors Brand and culture that attracted me. I was looking for a proven business model that would cater to smaller jobs and a Brand that I felt was poised for growth. I found it with House Doctors. House Doctors is growing nationwide and one of the reasons for that I feel is the culture of continuously pushing for excellence, sticking to our word, maintaining a high degree of professionalism, and always doing what we say we are going to do. I feel homeowners are searching for a company that they can trust today. This is a growing market but very few companies in it are actually licensed or accredited to do the work. When you’re letting someone into your home to do a job, you need to know that they are competent in performing the work and that they are someone that you can trust."

The National Association of Remodeling (NARI) stats show less people moving and more fixing up their homes so home improvements is in a high growth mode. The need for professional companies in the smaller job market is strong but a lot of people still have had bad experiences when being let down by a contractor or handyman. That's where House Doctors is different. The House Doctors handymen are trained to provide excellent customer service and are insured and scheduled to turn up on time.

The House Doctors model is definitely working for Justin. He's growing a business by building a team of technicians who work on small jobs on home to-do lists, and all the way up to larger projects. He is becoming known as the go to guy for a Salt Lake City deck  Justin is now a preferred installer for TimberTech decks.
His business is booming and with the support of his Salt Lake City customers his franchise is now one of the fastest growing in the network. He is continuing to expand by introducing more products and services like bathroom remodeling to Salt Lake City.

Two New Handyman Franchisees share their excitement

When you start your new business it's understandable that the excitement is high. That's how
Tom Sullivan, a former principal engineer in the nuclear industry feels as he improves homes in Norwich, CT as one of our newest House Doctors handyman and home improvement  franchisees. Shawn Dillon another new handyman franchisee worked as a project specialist for Lowes before joining the House Doctors franchise. The franchise is now ranked as a leading remodeling business and one of America's fastest growing business opportunities today.

New Franchisee Backgrounds

As a former project manager, Tom is now using his skills to provide value to customers and bring security to his family. Tom shared this with me, "As a principal engineer in the nuclear industry, I was used to managing people. I needed a business where I could use those skills to build something not just for myself but for my family's future. House Doctors is that business. Why re-invent the wheel? Even with my experience, I still see the benefit of being part of a growing National Brand. This franchise has the right business model and the core beliefs and emphasis on service, quality and reliability that you have here aligns with what my work experience has instilled in me."

Shawn, 39, knows a bit about professional home repairs and improvements as he began working for his uncle in a remodeling business when he was 9 years old. His goal with House Doctors is to bring affordable reliable handyman services to residents in Fremont, Perrysburg, Oregon and other nearby areas in Northwest Ohio. Shawn told me, "Homeowners can have difficulty finding a reliable contractor. That's exactly where I see House Doctors coming in. If we only hire experienced handymen and train them to provide excellent customer service and insure and bond them homeowners can be confident that the work performed on their home will be completed to the highest level of professional quality."
Shawn like Tom is enthusiastic to service his local community through building a trustworthy and reliable home improvement and handyman company. Both realize with the aging housing stock and more and more homeowners deciding to stay in their homes longer there is a growing need for repairs, improvements and modifications.
They both see a growing need for aging in place products like home modifications and improvements to help people live safely and comfortably in their homes.

Great news for remodeling, less foreclosure activity

While all of our eyes were focused on the goings on with our Government a small fact seems to have been overlooked. September was the 36th consecutive month with an annual decrease in U.S. foreclosure activity, a downward trend that started in October 2010. This is great news for a handyman and remodeling business and the home improvement market in general.

Lower foreclosure activity good news for remodeling market

National Mortgage Professional reports that RealtyTrac U.S. Foreclosure Market Report for September shows foreclosure filings such as default notices, scheduled auctions and bank repossessions, were reported on 131,232 U.S. properties in September, a 27 percent decrease from a year ago. This is great news for the handyman and home improvement market. Even if people are not planning on selling their home anytime soon they may be interested in repairing and improving it. First and foremost less foreclosures is great to see for it is a decrease in the personal heartache and suffering of those who go through the foreclosure process. Secondly with less foreclosures everyone feels better about from having less poorly maintained properties in a neighborhood

At House Doctors we have just launched our new website to take advantage of the growing home improvement market and this reduction in foreclosures will just add to an already booming niche.
September numbers helped drop third quarter foreclosure activity to the lowest quarterly level since the second quarter of 2007. There were a total of 376,931 U.S. properties with foreclosure filings in the third quarter of 2013, down seven percent from the previous quarter and down 29 percent from the third quarter of 2012. This is the biggest annual decrease since the second quarter of 2011.
Let's face it less foreclosures usually means less crime, higher home values and less competition when you come to sell. This all leads to a healthier housing market, more home improvements, and a stronger economy.
U.S. foreclosure starts in the third quarter were at a seven-year low. A total of 174,366 U.S. properties started the foreclosure process for the first time during the quarter, down 13 percent from the previous quarter and down 39 percent from a year ago to the lowest level since the second quarter of 2006.

Handyman services made easy with technology

With improvements in communication, and other technological innovations and the advent of social media House Doctors aims to use the latest advances in technology to help make handyman services and home improvements easier for our customers. We have just launched our new website that is more inviting, easier to navigate, displays our products and services better and improves the process for our customers when they need to find a location and request service

Successful House Doctors site launch

All site launches don't go well. Last week the other major site launched by the Government didn't perform well. I'm glad to say ours was very successful. We have almost doubled our daily visits already.
The successful launch of the House Doctors website is just the first of a number of new initiatives that House Doctors Corporate is working on that will benefit the franchisees and the Brand in the future. Like a number of leading companies we are finding ways to use new technology to improve our systems and procedures.
Think about it we are in the business of helping people and making their lives easier. We maintain and improve their homes. We offer services that can simplify lives. We plan to use technology to help make the process of using us as seamless as possible. Hiring a handyman or contractor that you can rely on has been difficult in the past. Through our new website it's now easy for homeowners to find a trusted, reliable handyman or remodeler.
But our use of latest technology doesn't stop there. At House Doctors our franchisees use the latest on line scheduling software, smartphones and mobile presentation devices, to offer our customers the best home improvement customer experience in the market today.
Technology continues to increasingly impact our lives every day. Think about when you wake up to your alarm, then check your schedule, read your email or text, check the weather, traffic, flights, leave a message, and use your camera and your apps...and all of that from your phone!

In the business world, like House Doctors, many leading companies are introducing the new technology to help them better serve their customers.

Handyman services can help reduce falls

A growing market for a professional handyman company is making simple modifications to homes to make them safer and to help reduce the number of falls. As National Fall Awareness Week ends, numbers show that one third of seniors who are over the age of 65 and one half who are over the age of 80 will fall each year resulting in much pain and suffering and medical costs exceeding $27 billion annually.

Simple home modifications can help

This subject is close to my heart. I lived through it when my own mum fell when she was later on in life. We need to raise awareness of the simple home modifications available that would help reduce the risk.
The pain and the suffering and then the emotional decisions that you need to make afterwards about the persons safety going forward. National Fall Awareness Week raises awareness for a short time but we need to have this subject up front and center all year round. It's really annoying for example that most falls in the home can be prevented by doing some simple modifications.
In 2013, communities in 47 states and Washington, DC participated in Falls Prevention Awareness Day on Sept. 22, 2013.The National Council for Aging is working hard to raise awareness and prevent falls by uniting professionals, older adults, caregivers, and family members to play a part in getting people talking about the issue.
As far as a professional handyman company is concerned, the fact that more than a third of falls happen while bathing or showering, and more than 14 percent happen while using a toilet means something as simple as having grab bars fitted or installing a walk in tub in your bathroom can dramatically lower the risk of falling. All work that a professional handyman company can do.
Our franchisees in House Doctors for example have their technicians working on modifying homes to make them safer by adding grab bars and installing walk in tubs monthly.

Please let me know if this is an important issue for you.