When my husband, Frank Castjohn, and I started Renovate, Inc. on October 13, 1981, we were 34 years old with a 4 year old son, Nick. Like so many American employees, we had dreams of being more. We wanted the success and freedom that comes with owning your own business. America is the land of opportunity and we wanted our chance at the American Dream.
As I recall, we started out with $14,500.00 worth of tools, a pickup truck and $2,500.00 in the bank, a $2200.00 house note and dogged determination to succeed. The odds for our success were slim if your only consideration was the financial data you saw on paper. There was no formal plan, but there was a dream and burning desire to succeed. Failure was not an option. Having just recently completed the Emerging 200 Class on development and implementation of a Strategic Growth Action Plan, sponsored by the SBA, the reality of our start is a sad commentary on our preparedness. However, I have heard it said that determination is equal to, if not superior to, preparedness. In our case, I would say that was definitely true.
We were prepared in that we knew how to do the actual work. We learned management through the school of hard knocks, learning from our mistakes. We both had very good instincts and often made major decision based on gut feelings rather than hard facts. This worked for us.
Looking back, I can clearly see how life’s twists and turns positioned us for growth as a couple, as people and certainly as business owners. We were blessed to have jobs that we truly loved. When you love your work, it loves you.
Love of construction began for Frank at a very young age. His parents bought and remodeled old houses to create rental units to help support the family. Frank began helping with renovations at 6 years old. By 14, he was working with Boh Brothers Construction as a laborer building roads and bridges during the summer months. When we married at age 19, his full-time work history began.
From the early days of our marriage, Frank worked for Gervais F. Favrot Construction Company, a heavy commercial construction company. He started out as a Carpenter Apprentice, rising to Carpenter, then Foreman. For 17 years, he did residential side work, on nights and weekends. He loved the challenges of heavy commercial construction, but he was very ambitious and he wanted more.
When he decided to quit his job and go wholeheartedly into business, I was not thrilled. I grew up in a household where my father worked at a job and brought a paycheck home every Friday. Having a young son and a sizeable house note, I can honestly say, I was terrified. I had confidence in Frank, but I was uncomfortable with the financial uncertainty we were sure to face.
The plan was to start the business, with Frank doing the physical work and me handling the paperwork. I had worked for 11 years at Owens-Illinois in their accounting and sales departments, and had graduated with a degree as an Executive Secretary. Between us, we would get the job done.
I don’t recall talking about the business in terms of a beginning and ending date, retirement, succession planning or any other traditional planning tools. It was just what we were going to do to make our mark. Two old sayings come immediately to mind, “Ignorance is Bliss” and “You don’t know what you don’t know.”
By the second year, Frank had grown the business to 140% of the national average for remodeling companies. By the third year we doubled that growth and life was good. We were so wrapped up in getting the job done; we did not see the Oil Bust of 1984 coming. In one year, business fell 79.5%. The economic forecast for the New Orleans market was dire, with a 10 year projection before business would return.
New Orleanswas our home. It was where our family was and where we wanted to raise our son. We decided to ignore the recommendations to relocate and to buckle down and do whatever was necessary to remain in business. I would get a job if necessary and do paperwork for the business at night.
In May of 1988, the Shell Norco Refinery exploded, damaging most homes in the city of Norco, LA. The next day, I saw an article that listed three insurance companies who would be handling claims. Despite being terrified of making a cold call, I determined to pay a visit and introduce Renovate, Inc. to them and ask what it would take for us to be part of the reconstruction. To my surprise, each company was receptive and helpful, giving me contact information for the head people involved with the claims.
For the next 8 months, we worked 20 hours a day, seven days a week. We did not have a computerized estimating system and this was before FAX machines were readily available. We grabbed the opportunity and ran as hard and fast as we could and did an excellent job. The payday at the end was we had made our way into the insurance restoration market, ahead of the curve for insurance as a niche market.
For the next 18 years, insurance restoration was our primary market. During those years we did 300-400 insurance claims each year. It was reasonably stable, unaffected by the national economy and although it required high performance levels and outstanding service, we were proud of our contribution.
Just as the 1984 Oil Bust, knocked us down, there have been three other periods of downturn over the past 30 years, including the housing bubble implosion of 2008 that affects the economy still. As I look back on the events of major downturn over the past 30 years I can see that we always rebounded and achieved greater success on the rebound. In each case, our faith and determination caused us to find a way up to success.
In 2000, Nick joined the company full-time. He had worked since he was 14 during the summer months as a laborer, estimator, and computer technician. He brought the enthusiasm of youth and technical knowledge, so essential in today’s business world.
He had a particular passion for new construction. He loved and excelled in every aspect of new construction and its management. He became proficient in plan design and saw great opportunity for growth in the surrounding parishes.
When Hurricane Katrina hit in 2005, we expected to a major part of the recovery. Instead, we found ourselves crippled. We lost our office to significant flooding, and most of our employees lost or experienced significant damage to their homes. Although we had insurance, we had huge losses, in excess of coverage. Like our customers, we were affected by delays in reconstruction, material shortages and the rising cost of labor. With our office disrupted so significantly, we had to make that a first priority. During the reconstruction, our phone equipment started to fail due to corrosion. We could make outgoing calls, but could not receive incoming calls. We lost three months of incoming calls before we were to a place where the new system could be put in place due to construction dust. Consequently, the income generated by the storm was negligible for Renovate, Inc. We were forced to remove ourselves from insurance claim rotation because of our inability to respond timely.
In October 2008 the national economy entered the deepest recession since the Great Depression. By then, most of the New Orleans area residents who had insurance, had rebuilt or relocated. From past experience, we knew it would be at least seven years before there would be much residential construction. We were pondering our options and considering retirement.
On October 19, 2008, our lives changed forever in a way we did not anticipate. I returned home from shopping that Sunday to find that Frank had died, unexpectedly. This gut-wrenching blow was crippling. Except for Nick’s strength and ability to hold it together, while taking on an entirely new role, 2008 would have been our last year in business.
For the next two years I floundered, trying to find my direction and purpose. Frank and I had met when we were 16 years old and married at 19. We had enjoyed 42 years of marriage and were true partners in life and business. I was lost without him. I went back to school at Delgado, seeking a degree in Interior Design. I had 25 years experience assisting our customers through whole house interior finish selections. I expected to expand on that talent with a license as an Interior Designer. Due to licensing requirements, I realized this was going to take me at least seven years to attain a license and it did not make sense to pursue further at my age. For the first time in my life, I quit and decided to see what else I could accomplish within a year that would bring additional work to the business. I began online classes for certification with the National Kitchen and Bath Association. I continued to work, three days a week during these two years.
Nick carried on and worked diligently to secure work in a tight market. We were selected for a number of state sponsored rebuilding projects and we are currently working with the Road Home to rebuild homes for people approved through their Small Rental Property Program.
Since 2008, Nick and I have buckled down and have been figuring how to survive the current economic downturn, just as Frank and I did in 1984. We have taken advantage of the slow period to position ourselves for our most aggressive growth since beginning the company, 30 years ago.
During this period, Nick studied CAD drawing and become proficient in home plan design. He earned every certification offered by the National Association of Home Builders and National Association of Remodeling Industry. In addition, he has been certified as a residential and commercial lines insurance adjuster and by next week, will be a Certified Construction Dispute Resolution Mediator and Arbitrator.
This year, I have completed the Emerging 200 Class, sponsored by the SBA. This is a class of fellow CEOs and business owners, designed to teach strategic planning while working on your own business. The class and shared experiences of the group has been inspiring and motivating. As I said in the final class last night, when I started the class in May, I was lost and now I am found. During the course, I have come to see our corporate path clearly and have developed a plan with Nick to get us to our goal.
We are poised for exponential growth over the next three years. We have upgraded our technology equipment and software, streamlined our management processes, honed our skills and developed a growth plan. We have survived three of our worst years in business without a layoff, maintaining our key employees and our integrity. We are a better company today than we were, with more to offer our customers. Since our beginnings our mission has always been to be better today than we were yesterday and to share our talents and knowledge with our customers, who are our lifeblood.
I have had the rare pleasure of working with my son towards a common goal for business success in a very difficult time. I have been able to witness, first hand, his strength of character as a man and son, and see the fruits of our labor as parents, in action. Nick and I have been given the unusual gift to watch each other grow in spirit, knowledge and determination over these past three years. It will bring me great pleasure to be party to the success of our growth plan.
Over the next three years we will expand our services in five strategic markets as well as expanding our territory. The prospect is exciting and invigorating. Today, especially, we applaud our customers who have helped us grow over the years. It has been our lifelong joy to know we have been able to makes our customer’s dreams come true in their home and business ownership. We have been blessed to work at jobs we love. It has made the time go by quickly.
From a young couple’s desire to be part of the American Dream, we have provided training and steady income for 30 years for hundreds of employees and seen some to go on to follow their American Dream of business ownership. We have repaired well over 10,000 properties over the years and have enjoyed excellent relationships with those customers. We have developed life-long relationships with customers, key employees and subcontractors and served the community through our participation in a number of civic associations, including the Better Business Bureau. We have done what small businesses across America do every day. We create 80% of the jobs in America and we do that through the confidence of our customers, the American people.
As Nick and I look forward to the next phase of growth for Renovate Inc. with enthusiasm and excitement, we must pause and thank each of you that have made our dreams come true. Thank you for 30 years of loyalty and confidence in our ability and commitment. It has been our pleasure to serve you these many years. We look forward to a continued relationship with our past customers and the opportunity to introduce ourselves to new customers. We continue our commitment to service through improved processes, industry specific education, job efficiency and exemplary customer service.
It has been our pleasure,
Karen Castjohn, CEO
