NAHB’s 20 Clubs Program Celebrates 30 Years of Helping Members Build Stronger Businesses

The NAHB 20 Clubs program is celebrating its 30th anniversary this year, demonstrating the significant value it continues to offer club members.

For the past three decades, the 20 Clubs program has helped nearly 2,000 builders, remodelers, developers and other industry professionals strengthen their businesses, become better leaders and boost their bottom lines.

"The goal was to improve the home building industry by making each 20 Clubs member more successful, more profitable and more efficient - all so they have more enjoyment with running their business and more free time to enjoy life with their families," said Allan Brandt, a retired custom home builder based in Denver and the founder of the 20 Clubs program.

Since the program launched, it has established more than 90 clubs, each consisting of 20 home building professionals from non-competing markets. Twice a year, club members come together to share their business expertise, talk through challenges and discuss real-world solutions to improve their business operations.

The program facilitates a secure setting in which members can confidentially discuss financial information with their peers and develop strategies for sustaining and growing their companies. It also helps create a network of like-minded professionals that club members can reach out to throughout the year for business advice.

To honor the program's 30th anniversary, NAHB spoke in-depth with Brandt about the impact of the program on its members, as well as key changes he's seen in the industry over the years.

Why do you think there was a need to create the 20 Clubs program?

20 Clubs founder Allan Brandt

Previously, small custom builders, production builders, and remodelers did not readily have access to [similar professionals] to discuss challenges, ideas or to compare financial information - except for other builders and remodelers in their own markets who, understandably, would be reluctant to discuss this type of information with competitors.

The 20 Clubs program addressed that issue by bringing together a group of 20 builders or remodelers - of similar company size and type - from different markets to openly discuss their financial information and serve as a mutual board of directors for one another.

It also provided them with the opportunity to benchmark their financial statements with their peers using information they knew was real and accurate. As a result, builders could actively take steps to improve their business, be more successful and reduce the risk of company failure.

What would you say are some key benefits of joining a 20 Club?

The benefits are far greater than one would imagine. Improving each 20 Club member's net profit before taxes is the bottom-line goal. Also, learning how to be a more effective CEO at managing the process instead of doing the process yourself - all while creating more free time in your personal life is a big benefit.

I've received several personal letters over the years from 20 Club members thanking me for founding the program, because they said it ultimately helped saved their business or even their marriage - and in one case, the member said it truly saved his life. It is rewarding to know how impactful the 20 Clubs program has been for its members.

Compared to when the 20 Club program first started, what are some of the biggest changes you've seen in the industry?

Technology has changed the residential construction industry for the better - and also for worse. Builders and remodelers can use technology for estimating, scheduling, purchasing, sales, customer communication, customer service and to better protect their business from litigation. In these areas and many others, technology is a benefit.

On the other hand, thanks to the internet, buyers often believe they are "cost experts" on everything that goes into a house. However, the price they are quoted [often] doesn't include delivery - especially not on-time delivery - installation and the warranty from a reputable trade contractor.

Even still, the benefits of technology outweigh the negative aspects, so in the long run, it makes the builder more efficient and profitable.

What do you hope members gain by joining the 20 Clubs program?

There are so many advantages for club members, it would be difficult to list them all. But some of the key takeaways for them include:

• A better understanding of their worth in the marketplace, as well as learning how to capture that value in their pricing.
• The ability to create, motivate and manage a team of employees.
• The necessary skills to improve their interaction and relationship with clients.
• Strategies for building a business, not just building homes.
• Knowledge on how to expand into other sectors of the industry, if they desire.
• Understanding the importance of retirement planning for themselves.
• The ability to improve the quality and enjoyment of their business and personal lives.

What advice would you give to someone who's interested in joining a 20 Club?

If they are attending the International Builders' Show, learn about the benefits by visiting the 20 Clubs Lounge and talk to the staff or talk to 20 Clubs members who are in the lounge. Or, talk to builders in their market who are 20 Club members about the benefits.

Most importantly, submit your application to become a 20 Clubs member today. The sooner you apply, the sooner you will become a member and can start benefiting from membership.

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View testimonials from 20 Club members highlighting the advantages of joining. (NAHB member login required.)

NOTE: The above Q&A was edited for clarity and length.

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