Interview Entrepreneur Owns Operates a Business Conduct

interview entrepreneur owns operates a business conduct a critical analysis company. Include elements report: Housing Rehabilitation Property Management type nature business (products/services offered) scope business (local nature, national, international scope) person decided business, proceeded business's form (business operated a sole proprietorship, a partnership, a corporation -- individual form a corporation -- a franchise,

Interview: Housing rehabilitation and property management

X is an entrepreneur, the owner of a construction company that currently engages in the rehabilitation of older properties and the construction of new ones. The business is primarily local in nature, and is focused upon helping future and existing homeowners realize their dreams. Sometimes this entails improving or modernizing an existing structure from the ground up, at other times the improvements are more minor. Some recent projects have included creating additions and garages and modernizing older houses so they are better able to withstand the elements and can support modern conveniences. Mr. X also has created prefabricated homes 'from scratch,' working with clients to create their 'dream homes.'

In his role, Mr. X has a wide array of responsibilities. When planning a new home, he must ensure that the building satisfies all local codes and ordinances. This is not simply true for the size and scope of the house itself, but also in terms of how it will support the future owner's electrical, plumbing, and other utility needs. Mr. X works with various contractors and subcontractors to create the house or improvement, and coordinates their efforts to bring the product to fruition.

Mr. X has worked in construction in various capacities over the course of his life, which is one reason why he selected his current line of work. He said he enjoys being his own boss, setting his own hours, and having the unlimited income potential that owning your own business can provide. He also said it was exciting to see a house be built from scratch or to work with an owner on an existing house in a creative fashion. To succeed in the field of housing rehabilitation, particularly for very old houses, he had to embark upon additional self-education, such as learning about the risks of lead paint in older structures and the types of materials needed to modernize such homes while still allowing them to retain their antique look.

When Mr. X first embarked upon his line of work, it was during the height of the housing boom. Many individuals were looking to enter the field of construction because of the excitement generated by high levels of demand and high resale values. Construction was one of the hardest-hit industries by the recent recession, because the 2008 credit crisis originated in the housing market. Consumers are more reluctant to build new houses now. Banks are more reluctant to lend money to potential credit risks and there are more 'deals' available on the open market. Home buyers are less likely to try to construct a new house, when they can buy one fairly cheaply. The market for second homes and income properties has also declined.

However, Mr. X was still able to stay solvent because he was diversified in his business and was able to emphasize different aspects of home construction. When consumers were buying short sale homes or older homes, they frequently needed to contract a large amount of work to rehabilitate the structure. Some people bought very cheap foreclosed homes to rent that had not been lived in for many months. Creating livable foreclosed and short sale structures was another potential source of income.

Still, Mr. X said the construction industry was extremely volatile. It was seasonal in nature, given that certain times of the year are simply not advantageous for building, because of climate-related reasons, and also more people often want to start construction in the summer, when they may have time off from work for vacation. Mindful of this volatility, Mr. X's company is a LCC or limited liability company. The primary advantage of an LLC over a standard sole proprietorship or joint proprietorship is that the owner is not personal responsible for the debts incurred by the company, and Mr. X's own assets could not be used to pay off the business' debts, even if the company became insolvent. An LLC is not particularly difficult to file, legally speaking, nor are the tax forms much more complex than for a standard sole proprietorship (LLC, 2012, IRS). It is also much easier to separate personal from business expenses when a business is incorporated. Standard incorporation is far more expensive, and also means that the business owner has less direct control over the operations, if shareholders own some of the stock in the business. Even if the corporation is very small and is not publically-traded, the owner is taxed twice (first as a business, then as an organization) because corporations are considered fictional 'persons' under the law.

Owning your own construction business, according to Mr. X, is exciting given that every day is different and there was no question he would 'do it over again.' He enjoys working with clients to see their visions come to fruition, and the different requirements and challenges of every new project. The downside was the great responsibility. Dealing with subcontractors and ensuring that they met the specifications of their contract; coping with weather-related problems; verifying changes in plans with the client; and keeping abreast of changes in the law regarding construction and financing were some of the many challenges faced by Mr. X. Mr. X also felt ethically as well as legally responsible to ensure that he found the most capable and reliable contractors for every facet of the work.