Re: “Small business optimism is soaring.”
As a small business owner, we all know it’s important to keep an eye on the little things.
In our last article, we pointed out how Walt Disney kept an eye on his bottom line by looking at his new mouse character who went on to become Mickey Mouse. He noticed that if he cut the number of fingers to only three, it would save him millions over time in saved animation expense.
To produce a short 6 and a half minute film took over 45,000 separate drawings. Disney was on to something when he paid attention to the small “two finger” details.
In our business of renovating homes, the small details will add up as well.
In a recent article posted on USA Today there was an interesting comment:
“Despite the generally favorable environment, small businesses face new hurdles that are increasing their costs. Fifty-one percent of those surveyed said the prices they pay for materials and equipment are higher than last year because of rising commodity costs.”
It got me to thinking.
If costs are increasing, where can we save money on a renovation and still maintain a great product when we attempt to list or lease the property?
Here are three money saving tips on renovating a home.
- Keep the pipes where they are whenever possible. Moving water, sewer and gas pipes is an expensive process. You have to patch the old holes, create new access points. Many times, “easy” moves creates other change orders that will never return to your bottom line.
- Bigger is not always better. Unless your project was built before 1970, many times the size of a kitchen or bathroom is just fine. Additional counter space is useful, but when you buy the extra granite, you realize another additional expense that may not have been included in your initial budget.
- Instead of opening up an entire room, create a pass through instead. The small room will suddenly seem larger and most of the time structural issues will remain a non-issue. A good contractor can help keep you within local building guidelines when it comes to opening walls.
These three simple tips could save you anywhere from 10-30 thousand dollars in additional contractor and material expenses on a single project.
Keep in mind, every home is different. Know your markets.
A row house in DC built in 1937 is very different from a townhouse in Fairfax built in 1987.
The DC row house probably needs everything opened up – maybe even down to the studs – and completely rebuilt.
The townhouse in Fairfax probably just needs new appliances, carpet and paint. It’s probably time to look at the roof and other exterior items. At the end of the day, the expense of opening walls and taking a 1987 townhouse “down to the studs” is unlikely to ever find its way to your bottom line.
There is a fine line between being cheap and being thrifty. Cheap can get you into trouble. Thrifty on the other hand, can put a few more dollars in your pocket at the end of your project.
As our economy continues to improve keep an eye on your bottom line.
Never stop learning.
If you want more tips like these, make plans to join us at our WREIA meeting this coming Monday, May 8th.
We are going to show you not only how to save money – no matter where you are in your career – but also how you can bring in income of 75k (or more) by the end of the year.
Some of our seasoned members will bring in 75k or more in May. But they also know if they can uncover another 75k in “side hustle”, it comes in handy at the end of the year.
Aspiring renovators might like to know how to make their first 75k over the next 7 months. We have you covered too.
Make plans to join us on May 8th. You will walk away with a personalized game plan and strategies you can pick and choose from that most appeal to you and your business.
Bring your questions, bring your wholesale deals and bring a friend.
See you on Monday May 8th!
FOCUS and make 2017 a great year for your business!
Let me know how I can help you,
Washington REIA Network, President
Profitable Property, Founder
P.S. Are you interested in a lender or construction partner for your project? Yes, we do partnerships! We lend to and partner with people all over the DC area. Call the office and lets set up a time to talk through or walk through your project.