4 Experienced Pros on How to Bounce Back After a Crisis
Design and building professionals share tips on how they learned resilience by powering through previous downturns
Adaptation is key to survival. How to adapt, though, isn’t always clear. Design and renovation businesses of all sizes face that challenge now amid the fallout from Covid-19. But one way to learn how to adapt to the current rapidly evolving environment is to look to those who endured and bounced back after previous crises. Here, four veteran design and building pros in the US share their tips for resiliency during uncertain times.
Launch a new business strategy
It might sound counterintuitive to start a new business model during a downturn, but it could be precisely the right time.
The 2008 recession hit Hurst and his business hard. “The phone stopped ringing for weeks,” he says. “It was really tough.”
But instead of scaling back, he launched a new small-projects division. “If the phone rang and there was a lead, we were going to take care of it – a new porch, replace a storm door,” he says. “It enabled us to demonstrate who we are as a company to the public. It kept us in front of people that could turn into bigger projects in the future. And it created a revenue source and kept everyone working. We wouldn’t have made it through the recession otherwise.”
In addition, he increased his marketing efforts by 100%, dipping into cash reserves to get the word out about the new small-projects division. “We got our brand out there more than we already were,” he says. “When we hit the recovery, we were top of mind for everybody, and that helped launch our growth. Even now, you should be looking at each situation and asking, ‘What can we do so, when the economy recovers, we’re ready to charge full steam ahead?’”
Recently, once again, Hurst launched a new marketing campaign to let people in the community know his company is available for smaller projects. “We’re expecting people to be in their homes and saying, ‘This room needs help,’” he says. “Either we adapt or die, so we asked ourselves, ‘How do we adapt and make it through this period?’”
He’s also been adapting his business to social-distancing measures. He’s set up micro teams within his company to coordinate video meetings with clients and do virtual walk-throughs of potential clients’ kitchens to keep things humming along.
“It’s wonderful when you get to pick and choose projects, but, when things get tough, you’ve got to change the way you select things and be open to different opportunities,” he says. “Part of that is just how you communicate with your team at that moment. You can’t just flip a switch. It’s kind of about getting everybody on board with that message and understanding that things will change and we need to change and here’s a strategy and get them involved.”
It might sound counterintuitive to start a new business model during a downturn, but it could be precisely the right time.
The 2008 recession hit Hurst and his business hard. “The phone stopped ringing for weeks,” he says. “It was really tough.”
But instead of scaling back, he launched a new small-projects division. “If the phone rang and there was a lead, we were going to take care of it – a new porch, replace a storm door,” he says. “It enabled us to demonstrate who we are as a company to the public. It kept us in front of people that could turn into bigger projects in the future. And it created a revenue source and kept everyone working. We wouldn’t have made it through the recession otherwise.”
In addition, he increased his marketing efforts by 100%, dipping into cash reserves to get the word out about the new small-projects division. “We got our brand out there more than we already were,” he says. “When we hit the recovery, we were top of mind for everybody, and that helped launch our growth. Even now, you should be looking at each situation and asking, ‘What can we do so, when the economy recovers, we’re ready to charge full steam ahead?’”
Recently, once again, Hurst launched a new marketing campaign to let people in the community know his company is available for smaller projects. “We’re expecting people to be in their homes and saying, ‘This room needs help,’” he says. “Either we adapt or die, so we asked ourselves, ‘How do we adapt and make it through this period?’”
He’s also been adapting his business to social-distancing measures. He’s set up micro teams within his company to coordinate video meetings with clients and do virtual walk-throughs of potential clients’ kitchens to keep things humming along.
“It’s wonderful when you get to pick and choose projects, but, when things get tough, you’ve got to change the way you select things and be open to different opportunities,” he says. “Part of that is just how you communicate with your team at that moment. You can’t just flip a switch. It’s kind of about getting everybody on board with that message and understanding that things will change and we need to change and here’s a strategy and get them involved.”
Cross-train team members and learn new skills
Hurst also sees downtime as an opportunity to cross-train his employees and have them learn new skills or enhance existing skills.
Some of his employees are learning green building practices or practising stair design on architectural software. Others are learning new roles within the company or studying up on a kitchen cabinet dealer’s products.
“It’s an opportunity to get better at the things you’re doing,” Hurst says. “Every crisis is an opportunity. You can kind of read the tea leaves with what’s going on, and it will go on for a while and will affect the economy, so you want to get out in front of it. You want to be ready for the moment when this thing breaks.”
Always know where you’re at financially
A cash reserve has been vital to Hurst in making it through tough times. He recommends having cash set aside and good forecasting tools.
“When you’re worried about cash flow, nothing is more reassuring than having really good forecasting tools that tell you where your money is, when it’s coming and where it’s going,” he says. “Seeing in real time where projects are at and where cash flow is has always been for me a powerful tool.”
Hurst says six months of overhead in liquid assets is a good benchmark, but everyone’s situation will be different.
Find more business resilience advice here.
Hurst also sees downtime as an opportunity to cross-train his employees and have them learn new skills or enhance existing skills.
Some of his employees are learning green building practices or practising stair design on architectural software. Others are learning new roles within the company or studying up on a kitchen cabinet dealer’s products.
“It’s an opportunity to get better at the things you’re doing,” Hurst says. “Every crisis is an opportunity. You can kind of read the tea leaves with what’s going on, and it will go on for a while and will affect the economy, so you want to get out in front of it. You want to be ready for the moment when this thing breaks.”
Always know where you’re at financially
A cash reserve has been vital to Hurst in making it through tough times. He recommends having cash set aside and good forecasting tools.
“When you’re worried about cash flow, nothing is more reassuring than having really good forecasting tools that tell you where your money is, when it’s coming and where it’s going,” he says. “Seeing in real time where projects are at and where cash flow is has always been for me a powerful tool.”
Hurst says six months of overhead in liquid assets is a good benchmark, but everyone’s situation will be different.
Find more business resilience advice here.
2. Diversify, Be a Fixture in the Community and Never Give Up Your Principles
Who Eddie Jones, architect and co-owner of Jones Studio
Location Tempe, Arizona
Year started 1979
Eddie Jones started his architecture practice in June of 1979 in Oklahoma, working out of a spare bedroom without a computer and using equipment from his college days. “I didn’t have any expenses,” he says. “And I found out it takes a long time to starve.”
He recalls a time in the early 1980s when the oil bust hit Oklahoma hard. “I remember waiting in line for [petrol],” he says. “The scariest part was inflation. I wanted to buy a house, and every week that went by, $10,000 was added to the price of the cheapest house. But as I’ve learned in all my years, that too would pass and this too will pass.”
Diversify your business
During those lean early years, which brought Jones to Tempe, Arizona, he did whatever he could to get by and keep working. During the day, he’d work on his own projects, designing homes one at a time. “All I needed was one house to survive,” he says.
At night, he’d moonlight for older, more established architects. “I would go in late at night and do renderings for larger firms doing work overseas,” he says. “One has to be resourceful. Don’t give up. You assess your abilities that are valuable and you find people that need them.”
Who Eddie Jones, architect and co-owner of Jones Studio
Location Tempe, Arizona
Year started 1979
Eddie Jones started his architecture practice in June of 1979 in Oklahoma, working out of a spare bedroom without a computer and using equipment from his college days. “I didn’t have any expenses,” he says. “And I found out it takes a long time to starve.”
He recalls a time in the early 1980s when the oil bust hit Oklahoma hard. “I remember waiting in line for [petrol],” he says. “The scariest part was inflation. I wanted to buy a house, and every week that went by, $10,000 was added to the price of the cheapest house. But as I’ve learned in all my years, that too would pass and this too will pass.”
Diversify your business
During those lean early years, which brought Jones to Tempe, Arizona, he did whatever he could to get by and keep working. During the day, he’d work on his own projects, designing homes one at a time. “All I needed was one house to survive,” he says.
At night, he’d moonlight for older, more established architects. “I would go in late at night and do renderings for larger firms doing work overseas,” he says. “One has to be resourceful. Don’t give up. You assess your abilities that are valuable and you find people that need them.”
Soon, Jones’ brother Neil joined the company and suggested they get into public projects to diversify their business in order to be more flexible during uncertain economic times. They started small, taking on a job with the Arizona parks department, which led to another job and so on. Now, nearly four decades later, Jones Studio is designing buildings on the campuses of Arizona State University and Arizona University.
Just before the 2008 recession hit, Jones Studio was awarded the largest construction project in the state of Arizona, a project that lasted seven years. “And, as luck would have it, after that, we landed another contract for a big port of entry in California that was funded by Congress, so those continue to go on. Getting us into those markets has made me feel much more secure these days.
“Diversify the kinds of projects you’re taking on,” he says. “Try to get public projects. The first step in anything is to ask. You probably won’t win an RFQ [request for quote] submittal the first five or 10 times, but unless you put yourself out there and start inserting yourself in the area you want to be involved in, by definition it will never happen. One has to set their fears aside and work hard and fail. Then there will be that one time when you don’t fail.”
Be a fixture in the local community
Jones credits his company’s community involvement as a key factor in his longevity and resiliency over the years. His firm built and owns the building they work in, and they use it frequently as a free community space, hosting speakers in conjunction with Arizona State University. They’ve had senators and Nobel Prize physicists and historians give talks in the building. They regularly host children’s architecture workshops and events for Black History Month and Women’s History Month.
“It’s about sincerity, and that counts,” Jones says. “There’s no doubt we’re motivated beyond our own financial gain.”
Just before the 2008 recession hit, Jones Studio was awarded the largest construction project in the state of Arizona, a project that lasted seven years. “And, as luck would have it, after that, we landed another contract for a big port of entry in California that was funded by Congress, so those continue to go on. Getting us into those markets has made me feel much more secure these days.
“Diversify the kinds of projects you’re taking on,” he says. “Try to get public projects. The first step in anything is to ask. You probably won’t win an RFQ [request for quote] submittal the first five or 10 times, but unless you put yourself out there and start inserting yourself in the area you want to be involved in, by definition it will never happen. One has to set their fears aside and work hard and fail. Then there will be that one time when you don’t fail.”
Be a fixture in the local community
Jones credits his company’s community involvement as a key factor in his longevity and resiliency over the years. His firm built and owns the building they work in, and they use it frequently as a free community space, hosting speakers in conjunction with Arizona State University. They’ve had senators and Nobel Prize physicists and historians give talks in the building. They regularly host children’s architecture workshops and events for Black History Month and Women’s History Month.
“It’s about sincerity, and that counts,” Jones says. “There’s no doubt we’re motivated beyond our own financial gain.”
Don’t abandon your principles
Jones cautions against the temptation to sell out your principles in a time of crisis. Taking on work that doesn’t fit with your ideals and what you want your business to be might be hard to pull back from.
“If you start selling out your principles, that’s a slippery slope,” Jones says. “You don’t want to get too comfortable in that. Those personal ideals are so precious. To give up on those because of hard times, that’s probably the biggest loss of all. I’d rather skip meals than lose identity. It’s important that we believe in ourselves and maintain a good attitude and keep fighting. Don’t give up. Keep looking up at the blue sky. It’s a beautiful world.”
Jones cautions against the temptation to sell out your principles in a time of crisis. Taking on work that doesn’t fit with your ideals and what you want your business to be might be hard to pull back from.
“If you start selling out your principles, that’s a slippery slope,” Jones says. “You don’t want to get too comfortable in that. Those personal ideals are so precious. To give up on those because of hard times, that’s probably the biggest loss of all. I’d rather skip meals than lose identity. It’s important that we believe in ourselves and maintain a good attitude and keep fighting. Don’t give up. Keep looking up at the blue sky. It’s a beautiful world.”
3. Live Within Your Means, Know Your Market and Focus on Quality
Who Paul and Nancy Hanson, owners of Heartwood Kitchens – he’s a general contractor and she’s a designer; they also own and manage a kitchen and bathroom showroom
Location Boston
Year started 1989
Paul Hanson started his renovation business in 1989. In the early 1990s, his wife, Nancy, was laid off from her bank job after the fallout from the savings and loan crisis, so she joined the company as a designer after taking classes through the National Kitchen and Bath Association.
Starting their business during economic uncertainty moulded their behaviour for future crises after the September 11 attacks and the 2008 recession. “We started at a time when things weren’t good,” Nancy says. “And that helped us get through future times that were similar.”
Live within your means
The couple learned right away to live within their means, sometimes below it, and to never take out unnecessary loans. “We didn’t extend ourselves,” Paul says. “When you’re in a small business, your personal life affects your professional life. We didn’t buy the expensive car or home. We knew we had a business to support.”
Know your market
What pushed the Hansons through tough times was their knowledge of their local market and community. For the most part, Boston’s age means the city doesn’t see a lot of new-build homes. The Hansons understood this from the beginning and positioned their company to focus on renovations of kitchens and bathrooms.
They also learned that most of their clients were renovating for the long haul rather than to sell. That informed the way they work and the quality of products they use in renovations and sell through their showroom. This knowledge solidified their reputation in the community and earned them repeat clients, even through economic slumps.
“We knew from living here that this is not a transient town,” Paul says. “People have roots here, they stay here. There are people who buy homes, stay in them for five years and move on, but our customers are staying in their homes. They like their neighbourhood. And that’s our business model. It’s important to know your community, know your clients and know your business model.”
Who Paul and Nancy Hanson, owners of Heartwood Kitchens – he’s a general contractor and she’s a designer; they also own and manage a kitchen and bathroom showroom
Location Boston
Year started 1989
Paul Hanson started his renovation business in 1989. In the early 1990s, his wife, Nancy, was laid off from her bank job after the fallout from the savings and loan crisis, so she joined the company as a designer after taking classes through the National Kitchen and Bath Association.
Starting their business during economic uncertainty moulded their behaviour for future crises after the September 11 attacks and the 2008 recession. “We started at a time when things weren’t good,” Nancy says. “And that helped us get through future times that were similar.”
Live within your means
The couple learned right away to live within their means, sometimes below it, and to never take out unnecessary loans. “We didn’t extend ourselves,” Paul says. “When you’re in a small business, your personal life affects your professional life. We didn’t buy the expensive car or home. We knew we had a business to support.”
Know your market
What pushed the Hansons through tough times was their knowledge of their local market and community. For the most part, Boston’s age means the city doesn’t see a lot of new-build homes. The Hansons understood this from the beginning and positioned their company to focus on renovations of kitchens and bathrooms.
They also learned that most of their clients were renovating for the long haul rather than to sell. That informed the way they work and the quality of products they use in renovations and sell through their showroom. This knowledge solidified their reputation in the community and earned them repeat clients, even through economic slumps.
“We knew from living here that this is not a transient town,” Paul says. “People have roots here, they stay here. There are people who buy homes, stay in them for five years and move on, but our customers are staying in their homes. They like their neighbourhood. And that’s our business model. It’s important to know your community, know your clients and know your business model.”
Focus on quality
Because their clients want to stay in their homes rather than sell, the Hansons focus on long-lasting, quality cabinetry, plumbing fixtures and worktop materials. “Quality products, quality service and quality personnel – those things never go out of style,” Paul says. “Because we know our products and market, we know the people here want to stay where they are, they don’t want to move, and so they recognise quality. That stands the test of time.”
The couple see similarities in the current crisis to previous difficult times, and they remain optimistic that their continued focus on quality will resonate in their market as it did in the past. “I felt like our business had a big bump after 2001,” Nancy says. “People got into this idea of nesting after spending so much time at home. People wanted to invest in their homes again. We’re hopeful that’s what will happen this time.”
Tell us…
Which ideas would you take from this for your business? Let us know in the Comments.
Because their clients want to stay in their homes rather than sell, the Hansons focus on long-lasting, quality cabinetry, plumbing fixtures and worktop materials. “Quality products, quality service and quality personnel – those things never go out of style,” Paul says. “Because we know our products and market, we know the people here want to stay where they are, they don’t want to move, and so they recognise quality. That stands the test of time.”
The couple see similarities in the current crisis to previous difficult times, and they remain optimistic that their continued focus on quality will resonate in their market as it did in the past. “I felt like our business had a big bump after 2001,” Nancy says. “People got into this idea of nesting after spending so much time at home. People wanted to invest in their homes again. We’re hopeful that’s what will happen this time.”
Tell us…
Which ideas would you take from this for your business? Let us know in the Comments.
Who Dan Hurst, co-owner and general manager of Hurst Design Build Remodeling
Location Westlake, Ohio
Year started 1997
Dan Hurst started his business as a remodeller in 1997 before growing into a design-build company. “Now we take on planning, preparing and designing projects as much as construction work,” he says.
Hurst learned resilience during two crises – the September 11, 2001, terrorist attacks in the US and the 2008 recession – and says he feels better prepared for the crisis he and his company are now facing.
Communicate with your team
When the governor of Ohio issued stay-at-home orders and restaurants and other businesses began shuttering, Hurst acted fast. The first thing he did, and that he recommends others do to react to and get through crises, is to immediately begin communicating with your employees.
“If you think you’re communicating a lot, you’re probably not communicating enough,” Hurst says.
And the way your message comes across is important, he adds. You don’t want to stoke anxieties. “Everyone is on edge, uneasy and full of doubt,” he says. “If you can present strength and calm, it’s better for everybody.”
On September 12, 2001, Hurst called a team meeting and had everyone express their thoughts and feelings about what had just happened and what might happen next. “We spent some time sharing and talking about what it meant for us and what to do moving forwards,” he says.
Through those conversations he learned that his team wanted to help, to feel involved and connected with their community. So they organised a blood drive (donation) and raised money for the Red Cross. That fulfilled the team members’ desire to feel as if they were taking action, and it also helped team members to bond with each other.
“Demonstrating that sense of togetherness was big,” Hurst says. “It gave people the opportunity to feel in it together. Like anything, when you go through adversity in life, it’s those character-defining moments that bond people together. I don’t want to say those are opportunities, but in a way they are. Through adversity, you can use it as an opportunity to strengthen your team and build relationships and be better for it.”
When the economy started collapsing in 2008, Hurst once again called his team together to talk about what it meant for the company, how to get through it, and what to do if it got worse. They came up with a message to unite the team and provide a clear direction the company was going to take. “I think there’s a lot of value in that,” he says.