2022 Entrepreneurs of the Year: Buildertrend Founders Recount Challenges and Insights

Editor’s Note: The Midlands Business Journal is proud to name Buildertrend founders Dan Houghton, Steve Dugger and Jeff Dugger as the 2022 Entrepreneurs of the Year. Sponsored by Entrepreneurs’ Organization, the award recognizes a homegrown entrepreneur who has exemplified the grit and determination to build a company from the ground up. This trio has not only exemplified this drive but has given new meaning to growing a company in Greater Omaha.  If Buildertrend founders Dan Houghton, Steve Dugger and Jeff Dugger had thrown in the towel every time things got rough the company would never have made it past year one, let alone through The Great Recession or the COVID-19 pandemic.  “There’s been a lot of bumps along the road,” Steve Dugger said. 

Leap of Faith

In fact, if they had stopped when they couldn’t obtain financing the company wouldn’t have existed.  “We had a lot of conviction,” Houghton said. “We convinced ourselves that this idea was a really good idea, with or without investors.”  He jokes that it may have also been because they were so young when the trio founded the company in 2006.  But it could also be said that together they made a good team, each specializing in a different aspect of the company, but able to cover each other when needed.  “[My advice]; go into business with people that you trust,” Jeff Dugger said. “I would trust these guys to the end of the earth to do things that would be in the company’s best interests.”  Operating lean in the beginning helped when The Great Recession hit in 2007, lasting until 2009 and hitting the company’s primary demographic, residential contractors, hard. At the time they had between five to eight employees.  “I think we learned a lot by just putting one foot in front of the other, keeping our heads down, and powering through,” Steve Dugger said. “I think because of what those [employees] did, we still have an element of scrappiness in our company DNA.”  They agreed that the recession, albeit stressful, was a blessing in disguise as it ended up weeding out competitors while increasing their business.   “The lesson learned there was don’t throw in the towel too early just because things aren’t going your way,” Steve Dugger said.

Staying True 

Their resolve was tested again in 2020 when COVID-19 began to creep into the Midwest, prompting companies to lay off or furlough employees to conserve resources.  “As a leader of a company, the biggest challenge is to focus on what you can control,” Houghton said. “I can’t control pandemics, but I can control how we spend money and what we do at the company.” Faced with the question of what to do, they considered their biggest asset.  “Our biggest asset in the software industry is definitely our employees,” Steve Dugger said. “We wanted to make sure that we kept this family together and didn’t have to start over.”  The team decided to ride it out for as long as possible without sacrificing staff members. Buildertrend went remote, and leadership worked to support staff members who were grappling with major lifestyle changes.  “It made us realize really quickly that our company is a lot bigger than just the four walls of our headquarters,” Jeff Dugger said.  Buildertrend has over 900 employees in 36 states and is used in over 100 countries.  The decision paid off as the construction industry remained strong. As companies considered work-from-home or hybrid business models, demand increased for Buildertrend’s target demographic, residential contractors.

Power of the People

Buildertrend, as a company, is currently using a hybrid/flexible work schedule, and is currently only sitting at about 50% capacity at its corporate headquarters in Omaha.  In some ways, Steve Dugger said, it’s selfish that as employers they want their employees to return to the office full time. But, it also has to deal with the culture they’ve cultivated and won multiple awards for.   Buildertrend has been named one of Omaha’s Best Places to work since 2019, as well as one of Inc.’s Best Workplaces since 2020.  Benefits include traditional perks such as health, vision, and dental insurance, as well as creative perks that employees can select from, such as tuition reimbursement, student loan repayment, and child care assistance.  The goal, according to Houghton, is to thank employees for choosing to work for Buildertrend by offering them benefits that matter to them.  “Is there life better outside of the walls of our organization because they work here?” Houghton said.  To that end, removing barriers and encouraging employees to get involved in their community have been central.  The company, which has offered paid volunteer time off for years, launched the Volunteer Spotlight Award in 2021 to recognize dedicated employees.  Winners receive a $1,000 bonus and a $1,000 company-sponsored donation to a nonprofit of their choice.  In 2022, Buildertrend doubled its paid volunteer time off hours to 16. 

Leading by Example

In 2021, the philanthropic arm called BT Cares, distributed over $90,000 to nonprofits. At the beginning of 2022, it announced a 22% increase in donation dollars.  “It is an awesome feeling to be able to give back to the community we grew up in and share that success back,” Jeff Dugger said.  It’s a reminder, in some ways, of where they started as three guys in a basement.  “Now there’s people that are building lives around our idea,” Steve Dugger said. “I think that’s pretty special.”

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Advice Shared

“Don’t throw in the towel too early, just because things aren’t going your way.” -Steve Dugger  “If you see an opportunity, go for it, because somebody else will.” -Dan Houghton  “You don’t necessarily need to win a ton of people over with your idea to start something. You shouldn’t rule out bootstrapping it yourself.” -Jeff Dugger 

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Company Milestones

(Info Courtesy of Buildertrend):

 2006: The company is founded in July, and by October they have hired their first employee and moved into their first office.  2007: Buildertrend expands to Canada and gains another employee. They have 17,500 users.  2008: The Great Recession hits, but Buildertrend ends the year with 80% growth, 8 employees and 14,000 users.  2012: Buildertrend launches its first app for iOS and Android. The company has 20 employees and 100,000 users.  2014: The company reaches 70 employees and 200,000 users.  2015-2017: Buildertrend hits 300 employees serving 530,000 users and moves into its new headquarters.  2018: Buildertrend launches Onsite Consulting and Buildertrend University. There are 400 employees and 700,000 users. Habitat for Humanity of Omaha names Buildertrend its Corporate Sponsor of the Year.  2019: Buildertrend celebrated the 500-employee milestone with a new brand platform, including a new logo. It is serving over 1 million users. It makes the Omaha’s Best Places to Work list for the first year.  2020: Buildertrend was named one of Inc.’s Best Workplaces, and was recognized as one of Omaha’s Best Places to Work for the second year.  2021: Buildertrend acquires CoConstruct, and launches a partnership with Home Depot for its Pro Xtra loyalty program. The company is recognized by United Way of the Midlands as the Volunteer Organization of the Year. It is recognized on Inc.’s Best Workplaces, and Omaha’s Best Places to Work again.  2022: Buildertrend launches Takeoff. It is named to Inc.’s Best Workplaces and Omaha’s Best Places to Work lists. Its customer service team receives a Stevie Honor from the American Business Awards. For the first time, it sponsors a complete build with Habitat for Humanity and employees donate 2,527 construction hours.

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