introduction xv
Acknowledgements xxi
CHAPTER 1 Getting Started 1
Do You have What it Takes? 2
Evaluate Yourself 4
Before You Start 8
Why Many Companies Do Not Make It 10
Avoid These Common Mistakes 11
Getting Help from Advisors and Mentors 12
Summary 12
Review Questions 12
CHAPTER 2 Planning Your Business 15
What Type of Kitchen and Bath Business are You Going to Operate? 15
Your Business Selection Criteria 17
Deciding on the Right Business 17
Choosing a Name for Your Business 18
Stages of Company Growth 18
Short- and Long-Term Planning 20
How to Create a Strategic Business Plan for a Kitchen/Bath Dealer 21
Researching the Market 33
Preparing Your Business Plan 35
Reviewing Your Plan 40
Summary 40
Review Questions 41
CHAPTER 3 Business Start-up Issues .43
Choosing the Business Legal Structure 43
Other Requirements and Considerations 50
Location, Location, Location 51
Financing the Business 55
A Look at Taxes 60
Selecting Vendor Partners 61
Buying Groups—Sharing Expertise 63
Joining the Business Community 64
Taking Advantage of Outside Help 65
Summary 66
Review Questions 66
CHAPTER 4 Accounting and Record Keeping 67
Why You Need to Keep Good Records 69
Establishing Bookkeeping Procedures 70
Choosing an Accounting System 70
What to Keep Track of 71
Accounting Software for Your Business 73
Record-Keeping and Administrative Needs 74
Hiring an Accountant or Bookkeeper 76
Budgeting for Profit and Cash Flow 76
Summary 83
Review Questions 83
CHAPTER 5 Financial Controls 85
Understanding Financial Statements 85
Chart of Accounts 86
Balance Sheet 95
Cash Flow Analysis 98
Financial Ratio Analysis 103
Gross Margin 105
Ideas on How to Improve Gross Margins 108
Summary 120
Review Questions 120
CHAPTER 6 Protecting Your Business 121
Business Legal Structure 122
Professional Advice 122
Contractual Agreements and Personal Guarantees 122
Extension of Credit to Your Customers 123
Copyrighting Your Drawings 123
Developing an Insurance Program 124
Protecting Your Business from Theft 129
Summary 130
Review Questions 130
CHAPTER 7 Basic Ta x Management 131
Small Business Tax Management 131
Special Rules for Small Businesses 132
Tax Responsibilities 134
Specific Substantiation Requirements for Certain Expenses 134
Hints on Preventing an Audit 135
Help from the IRS 135
Other Taxes 136
Summary 137
Review Questions 137
CHAPTER 8 The Basics of Human Resource (People) Management .139
The Broad Picture of Human Resources 141
Future Human Resource Trends 142
Determining Your Needs 144
Deciding on the Right Compensation System for Your Sales Team 151
Examples of Compensation Plans 155
Resourceful Recruiting 159
Narrowing Down the List: Applications, Resumes, and Testing 162
Art of Interviewing 164
Making the Final Hiring Decision 167
Summary 171
Review Questions 171
CHAPTER 9 Human Resource Management—after the Decision Is Made ..173
The Orientation Period 173
Training and Development 175
Policy and Procedures Manual 177
Creating an Employee-Friendly Work Environment 180
Alternate Working Arrangements 181
Keep Tabs on Company Morale 182
Conduct Regular Meetings 182
Measuring Employee Performance 184
Developing Disciplinary Procedures 188
Defining at-will Employment 189
Terminating an Employee 189
Termination for “Just Cause” 190
Summary 208
Review Questions 208
CHAPTER 10 Marketing .209
Marketing and Sales are not the Same 210
The Big Picture: The Marketing “Wheel of Fortune” 210
Make the Time 214
Your Marketing Plan and Budget 215
Marketing Budgets 217
Knowing Who Your Customers are 222
Are You Offering the Right Product/Service Package? 224
Knowing Who Your Competitors are 227
Business Image and Branding 230
Establishing Your Brand 235
Finding and Filling a Meaningful Market Position 236
Why It’s Important to Have a Great Web Site 237
Develop an Advertising Campaign 238
Getting Your Work Published 240
Social Media Marketing 244
Sales and Selling 247
How to Get Started 247
Your Sales Team Needs a Strong Leader 254
Summary of How to Build a Marketing Plan 256
In Closing . . . 257
Summary 258
Review Questions 258
CHAPTER 11 Professional and Profitable Project Management 259
Introduction 259
Project Management Fundamentals: From Information Gathering to Visiting the Finished Room 260
Summary 265
Review Questions 266
CHAPTER 12 Responsibilities of the Business Owner/Manager 267
The Installation Delivery System 267
Job Site Dynamics: New House versus Old House 268
Job Site Dynamics: Single-Family Dwelling versus Multifamily 269
Installation Service Business Models 269
Key Competencies of Installation Specialists 271
Developing Successful Working Relationships 272
Systematic Approach to Project Management 274
Role of a Manfacturer’s Representative 286
Importance of Job Costing 288
Summary 289
Review Questions 289
CHAPTER 13 Responsibilities of Designer of Record 291
“Win-Win” Strategy 291
Designer’s Role during Project Documentation Process 292
Successful Designers are Detail Oriented 293
Understanding Construction Constraints 293
Summary 311
Review Questions 311
CHAPTER 14 Managing Client Expectations and the Job Site 313
Understanding “Remodeling Fever” 313
Managing the Client and the Project 314
Summary 331
Review Questions 331
CHAPTER 15 Industry Standards for Molding Order Procedures and Cabinet Installation .333
Ordering Molding 333
How to Install Kitchen Cabinets 336
Summary 344
Review Questions 344
index 345
