“There is nothing new under the sun”. That is, until someone thinks of something new. And if you  happen to be a home builder (or remodeler) who is growth-minded, looking to scale, capture market share, and create real enterprise value, understanding and embracing this (simple) principle will be what makes your growth possible and sustainable.

“Growth” is a largely misunderstood principle in the home-building industry, because we do not associate the word with the root issue responsible for stopping (or slowing) it. Growth is not “more” of something (sales, revenue, profit, leads), but actually less of one primary component: Waste. “More” of something is an outcome. Getting to growth mode depends on our understanding of waste and our strategies to control it.

So what’s new about waste? We all know what it is, or at least we think we do. The word “waste” suggests things like excess material and inefficiency, or mistakes and rework. And yes, those all qualify. But on a larger scale, waste is whatever interrupts or stops our creativity and innovation. This mindset is where complex growth issues get solved, often before they ever happen. And only when immersed across the entire spectrum of an organization’s culture does real growth take place. And it can be almost unstoppable.

Properly thinking about waste fosters a mindset of habitual learning and productive change, the fundamental components of scalability. But there’s more. Creating an environment for learning and change means getting out of your own way and releasing the latent creativity and innovative spirit of your team. Top builders (production, custom, and portfolio) are using these principles now, while you’re reading this, and leveraging them into massive competitive advantage.

Start by distinguishing process waste from interpersonal waste. Process waste, as described above, is a good starting place – it’s everywhere. And with a little focused effort, just about every company on earth can find and squeeze out waste in hours, not days, recognizing quantifiable advantages, not just in cash but many other areas like time, customer satisfaction, referrals and overall profitability.

But while those things are all important and significant, interpersonal waste can be a death sentence for sustainable growth because how people relate, communicate, and collaborate is how complex problems get solved. And that is the defining attribute of a scalable company. Creativity and innovation can only thrive when we take down the (invisible) barriers to healthy and transparent communication and build up our people as the valuable thinkers and problem solvers they can be. Can we not opt to think of them more as creators than consumers?

Author Jim Collins said that good is the enemy of great, but the real enemy is waste; wasted intellectual capital, wasted relationships, wasted time untangling personnel problems instead of finding new solutions to old problems. And while we’re wasting those precious resources, someone else is capitalizing on them to become an industry leader. Why not you?

It’s incumbent on leaders aspiring to scale and grow to teach people how to think independently and give them space to achieve their highest potential. Given the opportunity, most will embrace it and run with it, and thoughts of waste will be redirected toward creative and innovative solutions. That kind of culture is what every customer wants, and every merger-oriented enterprise buyer looks for. But it’s not easy. If it was you probably wouldn’t be reading this.

What’s your plan for sustained and profitable growth? What needs to change? Legacy Business Leaders has the answers you need to help make your leap to self-sustaining success in the home building and remodeling industry.  How can Legacy help accelerate your organization’s growth?  Check out our one or two-day onsite Accelerators. Being together in person creates a dynamic climate for teaching your team how to overcome process and interpersonal waste and set the stage for profitable growth. For more info click here and fill out the form to receive a prompt reply with more details.

Also, feel free to head over to the Legacy website and schedule a no-obligation conversation to find out if coaching could be a good fit and strong ROI for you!  Or check out and download any of the Builder Templates there as well.  We’re here to accelerate your path to growth, optimal profit, and lasting success – results guaranteed!

Wishing you the best!
Legacy Business Leaders, LLC
Fred Reikowsky, LPBC
fred@legacybizleaders.com
O: 330.470.1300
C: 330.936.2823