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Increase profits with NAHB 20 Club

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THe National Association of Home Builders (NAHB) began the 20 Clubs over 15 years ago to help member builders make more money with better businesses. The 20 comes from the cap of 20 residential construction executives allowed in each unit.

NAHB-compiled statistics show that by the third year of becoming a member, the builders' net profits have doubled and some have even quadrupled. Members have stepped in to help when fellow members were in trouble like one who became ill and others ran his business for several months, another who had management and financial issues and fellow members did a crisis intervention.

Everything is done confidentially. Applicants are screened and put in groups of similar size and scope noncompetitive businesses from regions outside their own. Member applications are for residential builders or remodelers.

Currently there are 26 20 Clubs in the United States with a little less than 400 members. Before the housing crash, the NAHB had 69,182 members; as of the end of 2011, there were 43,238 NAHB members. Apparently, many are not joining a 20 Club because either they have not heard of them or the dues of $700 per year are out of their budgets.

Possibly they cannot afford the time away and expense of the two required annual meetings. One meeting in the spring is usually held at a resort or conference center as a kind of corporate annual meeting to improve bottom lines. The second is held at or near a member's company site in the fall, usually for planning and noting potential deficiencies to correct and good ideas to be reaped from that company.

A major reason to join is the increase in profit margin from more than financial and accounting advice. The groups will help restructure a business and make sure it stays in business. Another is the education in how others are doing business and collaborating staffs in all areas such as design, land acquisition, marketing, finance, human resources and offered solutions to issues.

Many emails pass between members and to the NAHB in between meetings. They warn each other of issues like when Chinese drywall and Exterior Insulation and Finishing System (EIFS) cladding issues were first noticed. They ask questions on best ways to meet compliancy requirements when time is short, or when other information and advice is needed.

More benefits of forming or joining a 20 Club are that builders can compare honestly contracts and how much is being paid for subcontractors and supplies. Areas of expertise are shared among members. Search engine optimization consultants have been brought in to help improve marketing companies and products on the Internet with better exposure.

For many club members, the groups have become like family with genuine concern for each other and their businesses. Some have said they would be out of business if it had not been for their 20 Club. They call it a life-changing experience. View more information on the NAHB 20 Clubs website or email 20clubs@nahb.org

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