Developing a business strategy that works
Sal Franco’s business strategy has helped make Whiz Builders a successful home-building company that employs 36 and keeps 26 subcontractors busy.
A simple business strategy – understanding the value of time and the importance of relationships in business – has propelled Sal Franco from a start as a bathtub refinisher to successful home builder in a little more than a decade.
Less than 15 years ago, Sal Franco started in construction resurfacing bathtubs. He saw there was a need, learned how to do the work, and started working. That business strategy led to remodeling kitchens and baths, and then home remodeling and today, Franco and partners Felix Rodriguez and Dennis O’Neill head up Whiz Builders, a successful home-building company that employs 36 and keeps 26 subcontractors busy.
And the customers keep coming back. Franco says if no new work came in, the San Diego-based company would be busy for the next six months. But work does come in. All the time. Largely because of the relationships he and his company have built with customers and suppliers.
A successful business strategy starts with learning to communicate
Franco says he’s found communicating well with customers and suppliers has helped to build strong relationships and trust. With those as the foundation, he built his business strategy and was able to grow his business.
“My father-in-law once told me, ‘You’re going to have to become a boss really fast because you’re not the greatest at working for someone else’,” says Franco. “So I began to think about how I was going to go about that and I started learning how to communicate with people.”
Something as simple as asking questions and then listening to the answers has been a big part of his successful business strategy.
“There is plenty of help available,” he says, “but you have to learn to ask questions and listen to the answers. There are many programs out there to help you keep your business growing and to help you manage it, but you have to ask about them and get the information.
“Go to your favorite vendor, develop a relationship with someone there and then learn all they can teach you. I didn’t know anything about this business when I started, but I asked questions and I learned and it worked.”
Value your time
This year Whiz Builders will build 12 new homes as general contractor, so controlling costs has become essential.
As his business began to grow, Franco says he soon saw he was going to have to learn to use his time wisely.
“I remember when I worked in Oceanside, Calif., and all of my time was being consumed,” says Franco. “I’d pick up my materials at Home Depot early in the morning, drive to Camp Pendleton Marine Corps base, work the entire day and then come back to the store just before it closed so I could gather materials for the next day’s work. I was working from very early until very late and there was little time for anything else. That’s when I realized how important my time was and knew I had to learn to apply it more effectively.”
Franco started with something as simple as having someone else pick up and organize materials. He started using will calls and deliveries to save time. And because his preferred supplier had a program that would maintain material lists for him, he used it.
“Back then I was doing house flips, so the materials I used were about the same on every job,” says Franco. “Having my materials lists on file with the vendor saved so much time. When I called for materials, they knew what I wanted.”
That, he says, was when “I stopped spinning my wheels and began to move my company forward. It’s important to realize all of the things we can do when we have more time, like bringing in more people to help us.”
But valuing time is a lesson that can get away from you as business increases.
“About three years ago, I was like a chicken with my head cut off – running around everywhere – and I already had 25 employees,” says Franco. “I was going from job to job, more than 15 of them, and in one year, I put 83,000 miles on my truck. I had no time for anything but work.”
Again, Franco changed his focus and spent his time doing the things that were most important.
“The time I saved has allowed me to do additional work when it was presented to my company,” he says. “And that has had a major impact on the company just in the last three years.”
Franco credits his supplier with helping him save a significant amount time.
“All I have to do is make a call and the product is going to be there,” he says. “It’s going to get ordered, it’s going to get delivered, and all it took me was five minutes to process the order. And at the same time I’m using that time to talk to someone and continue to develop our relationship.”
Controlling costs
This year Whiz Builders will build 12 new homes as general contractor, so controlling costs has become essential.
“You need to know where your money is going and where it’s coming from,” says Franco. “If you don’t, you don’t know if your business is making you money or costing you money. For many years, I was putting money into my business and even today there are jobs that have cost me money and I know sometimes that’s part of doing business. But you can’t be successful if it happens very often.”
To control costs, says Franco, you have to know what you’re spending money on, what things should cost, and what you’ll be able to bill for them. That means good accounting and good accountability from a vendor you trust.
“I build my houses from the ground up with Home Depot materials,” says Franco. “I don’t go to plumbing warehouses, lumber yards, paint stores, cabinet suppliers electrical outlets – all my product comes from The Home Depot. After years of doing business with The Home Depot, I’ve found they give me the excellent prices.
“It’s true, for example, that I might find a product somewhere else that will cost $12 and at The Home Depot it will cost me $12.25… yes, I am paying 25 cents more, but I’m getting excellent service, quality products and convenience, and I’m continuing to develop a relationship that is good for my business.
“I don’t have to have my framer going one place to pick up tools and another place to negotiate prices on materials – only to find the materials aren’t in stock. Using The Home Depot for almost all of my purchases saves all that time, calling, shopping, negotiating, picking up materials at multiple locations and waiting for a product that isn’t available now – and that helps me control costs.”
–By Pam Sturgess
