Eden Exchange recently interviewed Jared Kemp who is the Director and Franchisor of RedKem Constructions franchises. In this Director Briefing, Jared discusses his journey with RedKem Constructions, their point of difference in the market and how they are proven at providing their clients the best possible service and final product in the market.
Eden Exchange: Thanks for speaking with us, Jared. Firstly, can you tell us a bit about the spark that ignited RedKem Constructions? What is your background and experience?
Jared Kemp: I started in the residential construction industry 15 years ago now, building and renovating large custom luxury homes as a carpenter. I then took the plunge and started RedKem Constructions seven years ago.
Eden Exchange: In simple terms, what does RedKem Constructions do?
Jared Kemp: We renovate and extend homes to create beautiful function spaces where families can create lifelong memories. Our projects also include second story additions, house raising and building in underneath, as well as home extensions. We also have the ability to undertake cosmetic style renovations like bathrooms and kitchens.
Eden Exchange: What went into the decision to make RedKem Constructions a franchise?
Jared Kemp: Over the years, we have trialled and tested all our sales and marketing strategies. We’ve worked hard to implemented systems that create a stress-free and flowing process – from initial contact all the way to handover of each project. We have also implemented a KPI and numbers team to stay on top of our financials.
When we got to the point where everything was well documented and all systems were in place and exceeding our expectations, we decided it was time to expand RedKem Constructions.
There’s a horrifying statistic that 4 out of 5 building companies go out of business within 5 years, and the reason behind this is that there’s no actual system or strategy in place for success.
If only I knew then just how hard it was in the early days, I would have no doubt looked into a franchise system myself. It took a lot of hard work and long hours, but RedKem now has a solid system in place that has stood the test of time.
Eden Exchange:Are there any trends you’re seeing in the construction and renovation markets? Why is it a good time to be servicing the industry right now?
Jared Kemp: You’d have to be living under a rock to be unaware that housing prices across Australia have reached astronomical proportions. Particularly in Melbourne and Sydney; many first home buyers are priced out of the market, young people are living at home for longer, and existing homeowners are turning to renovations as an alternative to selling due to current market conditions.
With interest rates still at record low levels and more and more homes moving into the 30-35 year age bracket, and in dire need of a revamp – there has never been a better time for homeowners to dip into their mortgages in order to finance renovations to their existing homes.
With land running out in capital cities new home building is set to decline over the next couple of years. The gradual strengthening of renovations activity is coming at the right time and with RedKem Constructions voted Queensland’s builder of the year by the HIA, we have a market advantage.
Eden Exchange: What else would you say sets RedKem Constructions apart from the other builders in the industry?
Jared Kemp: We are the only renovation builder in Brisbane to win QLD builder of the year consecutively, and we’ve also been runner up for Australian builder of the year twice. We also win multiple renovation awards, which all our franchisees can also use as marketing leverage.
Eden Exchange: RedKem Constructions is the only builder that offers 24/7 online access to clients on their projects. How has the response been to this offer, and how do you go about delivering on this promise?
Jared Kemp: Instead of the large overhead of opening up a showroom and forking out a lot of money to purchase tiles, tap-ware etc. we opted to run a cost effective online access system. Our clients can access this system via our website and make their selections from home. It also shows our clients the construction timelines for their own individual project, as well as financial and state of the art communication at their fingertips to give them peace of mind.
Eden Exchange: Where do you expect to see the greatest demand for RedKem? What has the market response been like to date?
Jared Kemp: Brisbane, Sydney, Melbourne and their surrounding suburbs have been experiencing high demand. We also received great responses in these areas when testing our marketing and advertising strategies.
Eden Exchange: What are the next steps in the development for the company? Where do you see RedKem Constructions in six months, or a year from now?
Jared Kemp: We aren’t a volume builder or a volume franchisor by any means, nor are we going to cramp franchisees into unrealistic areas. When we find the right franchisee for the right area, I will personally ensure they are up and running successfully before we move onto the next franchised area.
The setup we have is designed to create success, not only for us, but for our franchisees too. If our franchisees implement the strategies we have set up then they will be well on their way to a successful business and an enjoyable work life balance.
Eden Exchange:Can you tell us a bit more about some key achievements and challenges the company has encountered so far? Do you see any potential future challenges?
Jared Kemp: Our biggest business challenge so far was the initial four years of business when we didn’t have the knowledge that we do now. Lucky for us we ended up the 1 out of 5 builders that end up making their business a success, so we can now pass on that knowledge to our franchisees.
Eden Exchange: What do you look for in a franchisee? Do they need to have any particular skills or qualities to be able to succeed in RedKem Constructions?
Jared Kemp: Ideally our franchisees will need to have a carpentry background, experience in site management on renovation projects, as well as a low rise builders license.
We ensure that we hand over all of our projects to high-quality builders, and franchisees with previous renovation experience is top of our priority list.
Eden Exchange: What does RedKem offer in terms of the training process and support for their franchisees?
Jared Kemp: Over the past two years, we have developed an online operations platform which our franchisees will have access to while running their business with RedKem.
During the initial setup, we will be going over all aspects of the platform and show all onsite and in-office activities. This will generally take around one week of full training. After the first initial week, we will organise a Zoom online meeting every Friday for three months, with one every month after that, to ensure each franchisee is implementing everything correctly for success.
Eden Exchange: And finally, what would you say to anybody who may be considering looking into becoming a franchisee with RedKem Constructions?
Jared Kemp: If you think you fit our description and have the confidence that you can also carry out your projects to our award winning standards, then please get in contact with us and we can start discussing how you can join our award winning team and family at RedKem Constructions!
EdenExchange: Thank you Jared, it’s been a pleasure.
About the Business
Why build with RedKem? As a small building company we are mindful of the number of projects we undertake, ensuring all our resources go into your project and we don’t compromise on our award winning quality workmanship. Over two generations, we have hand picked our small team of licensed tradesmen who pride themselves on the attention to detail that ensures we hand over your project to your exact specification.
Stress free building experience.. We’ve heard the building horror stories, Terrible communication, Budget blowouts and the question ‘When is our project actually going to be finished?’ That is why we provide you with our 24/7 online client access where you will have colour and product selections, schedules, budget tracking and much more at your fingertips during your whole project. Giving you peace of mind and ensuring we execute your project to the exact specifications you provide.