Fast airplane in the skyEver caught yourself saying “That’s How The Other Half Lives” as a G6 Jet lands on the runway next to you?  Me neither – but that’s the scenario I always imagine when hearing that line.  While there is a clear differentiator between traveling on a G6 and traveling on a commercial airline – there is also just as a big of a differentiator between how a cabinet dealership or remodeling business at 5M in revenue operates compared to those below 5M in revenue.

Buckle Up

In a smaller shop, chances are your role is – everything.  Everyone is wearing a million hats.  Family members are almost required to be a part of the business.  They can always fill in when need be with 1 or maybe 2 hired employees.

Business processes are few and far between because a lot of times there’s not enough business to really need a process.  It’s hard to find good installers because installers want consistent, full time jobs which mean the good installers gravitate towards the larger dealerships that can offer them daily jobs.

As a kitchen and bath business breaks the 3M mark, it begins to need to structurally change.  It requires more people and the business will start to pay the price for not having a system in place.  As it grows above 3M, the need to better manage people begins.  Mistakes are multiplied by the number of people and now mistakes become a hidden cost (or very obvious in some cases).

The larger the volume, the more product lines a business can carry and since there’s plenty of revenue they have the capacity to go after other segments like flooring and countertops.

It’s Time For Take Off

The G6 is an aircraft that has a flight management system with a worldwide satellite-based global positioning system.  The first rule of an optimal business structure is to have technology to run your operation – effectively.  The creators of the G6 know this, and likewise, successful businesses in the kitchen and bath industry know this.

In smaller shops, the business structure is one of “winging it”. There could be some excel sheets here and there, and perhaps design software is used as a business tool – but overall a business management system is a side thought.

Thanks For Flying with Us Today

In the end, some of us love flying on commercial airlines, because well, we’re still flying.  Others of us will dream of living like the other half and being on the G6.  Regardless of your company size, in order to fly like a G6, you’re going to need to have a well designed structure, sleek business model and operations that are supported by solid technology.