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Increase Profitability and Four More Ways Software Can Benefit Your Renovation Business

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Adopting new processes and technology often requires an upfront investment in time but will pay dividends for years. But some business owners hesitate to move away from their existing tools and resources, not seeing the value in anything new. Why?

Ubiquitous mainstream technologies like texting, email, and word processing were once cutting-edge and had naysayers. In hindsight, it seems so obvious that all business owners would have adopted these tools, but of course, there were some who held onto the old methods, only to have the world move on without them. Being an early adopter or within the early majority of new advancements in technology can make the difference between success or struggling to keep up with competitors.

In our eBook, we’ll cover the five ways that business software can make a powerful impact on renovation businesses and hear from fellow builders about how they have benefited from adopting this technology.

Increase Profitability 

One primary benefit of using management software is increasing profitability, which closely aligns with saving time. Management software can aid in increasing profitability by enabling you to:

  • Take on more projects per year by saving time on each project
  • Capture more revenue on each project by accounting for time spent on changes
  • Speed up cash flow by tracking payments
  • Prevent mistakes that cut into your bottom line 
  • Qualify for more tax deductions by keeping track of records and receipts

With Houzz Pro, it’s easy to add in a percentage markup on products in proposals to benefit from trade discounts. These allow you to understand your overall cash flow to track funds and profitability on each project and use these financial insights to plan ahead and shape future projects to maximise profit.

Save Time

By using management software, renovators can save time on each project and on general business tasks. How? Streamlining the estimate process, invoicing, billing, and client communication can allow you to save hours on each project. That adds up over the course of a year and can provide a significant return on the money and time invested to get up and running on the new software.

Software can also help you save time by preventing the need to re-do tasks. One study found that businesses that don’t create accurate estimates can see losses in productivity of 10-20% because of time spent on changes. With project management software designed for the renovation industry, it’s easy to create estimates that account for products, markup, labour, and shipping so you can establish the scope of work and budget, then stick to a timeline.

Houzz Pro customers have told us that using our software can save them eight hours a week. Incorporating a new software like Houzz Pro into your business can mean completing projects faster, not having to work on nights and weekends to catch up, and being able to free up time for other business initiatives.

"The estimation tool is great because it simplifies the process and allows me to send out documents in a professional looking format," says Adnan Sakiri of AAArenovation. "It combines everything in one place. It is extremely beneficial for saving time and staying organised. I also really like the e-signature feature. It's simple and easy to use."

Get Organised 

Proper organisation is key for businesses to be able to operate efficiently. In this age, it’s essential to get records digital for ease of access, safekeeping, and to have files in one place. Management systems also make it easier to train new employees faster and coordinate projects with your network of subcontractors.

With Houzz Pro, you can keep records in one place with a clearly defined system. Client emails, call notes, estimates, project updates, photos and payment information all live on the cloud with a single login. No more having to hunt through stacks of files, email inboxes, call records, and handwritten notes to try to piece together the history of a project or get that expense information you need at the end of the financial year.

"We use Houzz Pro as a cloud service both internally as a team and with clients," says Wade Rosenburg of Home*Work DFW. "That includes managing leads, notes and files like plans, job scope, estimates, correspondence and photos. Everything is now in one place; we don't have to jump back and forth between different systems or scroll through emails to find a file."

Streamline Communication

To streamline communication, many organisations turn to a CRM (Customer Relationship Management) to facilitate and manage their past and potential customers.

A study found that 4 in 10 respondents said that their CRM significantly impacted customer retention, customer satisfaction, sales revenue, and upselling/cross-selling. How? When it’s easier to manage client communication, it makes it easier to provide a great experience that makes homeowners want to hire you back or refer you to their friends. But, the same study found that over one-third of businesses wait five or more years after being founded to start using a CRM. Businesses that wait to adopt a CRM are missing out on the chance to more effectively build a satisfied client base early on, which can pay dividends with the aforementioned repeat business and referrals.

Houzz Pro includes a CRM. You can message directly through it and keep notes, photos, estimates, files, and invoices all in one place associated with each client or project. With the Houzz Pro mobile app, you can take it with you so it’s easy to respond to leads or clients while you’re on the go.

Provide a Stellar Client Experience

Because management software helps your company stay organised and operate efficiently, it’s easier for you to spend time focusing on delighting your customers. A study found that 84% of companies that work to improve their customer experience report an increase in their revenue. With Houzz Pro’s visualisation tools, it’s easy to collaborate with clients and give them a preview of the project to keep them engaged and excited during the project process. Plus, by keeping records of clients and projects, it makes it easier to continue the relationship for repeat projects.

Here’s an anecdote from Houzz founder and CEO, Adi Tatarko: Adi once shared that a decade after her major home renovation, the front door with a custom paint mix needed to be repainted and some outdoor lighting needed to be replaced. Not having a record of the paint colour or lighting product herself, she reached out to the contractor, who did not have the information either. Had Houzz Pro existed at the time of the original renovation, all of that information would have been stored and accessible years in the future when the home needed maintenance. Adopting management software today means being able to impress clients years in the future and win repeat business.

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