With this technology in hand, McVaugh has stepped up his holdings and has expanded into new “local” markets. Recognizing that land development is “another extension of the business,” the firm is moving outside of the traditional land holdings inside Hous-ton's beltway and establishing a presence in two of Houston's most upscale golf communities: the Royal Oaks community and the Carlton Woods development inside The Woodlands, Texas, which will include an 18-unit upscale patio home product. “We're testing (the functionality of our system) in The Woodlands, since it's an hour away from us,” says McVaugh.

McVaugh is also making plans to move into a subdivision in Sugar Land, Texas, and considering developing three separate projects in Clear Lake along the Galveston Bay area. With a profitable business strategy in place and technology to support it, the expansion opportunities seem to be limitless.

“I've looked at some other markets,” admits McVaugh. “If I found a real hot market somewhere and I just couldn't stand it, I could be tempted. But, so far, I haven't found another place that's exciting enough.”

Lisa Marquis Jackson is a freelance writer based near Dallas.

McVaugh Custom Homes
President: Jim McVaugh
Focus: Builds semi-custom and high-end custom homes, priced from $500,000 to more than $1 million.
Employees: 23
Founded: 1991
Web site:www.mcvaugh.com
Notable: Same designs and finishes used in multi-million dollar homes also used in less-expensive offerings; elaborate internal Web-based system, which controls back-office and jobsite functions, unique for a small builder.

Bench Support
McVaugh finds professional groups useful for learning and sharing experiences.

Growing from a $5 million operation to more than $27 million in three years was not without its challenges. And according to company president Jim McVaugh, the support of peers he met through personal and professional groups he joined helped him make the key transitions smoothly. “I realized I had to develop a great team of people as I made the move from doing everything personally to becoming an executive.”

After joining the NAHB's Builder 20 Club, Mc-Vaugh was able to develop a more effective set of standards based on the business models of other builders who were willing to share their experiences. “That did more for my construction business and knowledge than anything I have done prior.” He also credits mastering a steep learning curve to The Executive Committee, a group of CEOs from other Houston-based industries. “We sit down on a monthly basis and discuss our challenges,” says McVaugh. “Whatever issues I have, it gives me a board of directors to go bounce things off of. There is a lot to learn from people out there if you are willing to take the time to ask.”