Title Details

Hank Darlington has more than forty years of experience as a business owner, professional manager, and industry consultant.

Ellen Cheever, CMKBD, ASID is an award-winning, internationally known kitchen and bath design authority and educator.

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, Résumés, 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