Back Again

A horrible sales season in summer 2007 at Neal Communities culminated in a tense meeting with top executives.

Neal Communities President Pat Neal, who co-founded the firm in 1970 with his father, Paul Neal Jr., told his team big changes would be necessary to survive the imminent downturn. The firm was close to completing its best year ever, with $128 million in sales, but Neal had seen enough recessions to know a big one loomed.

Nothing would be untouchable in a move to reshape the company. That included a new business plan, marketing strategy and customer approach. Everything from new floor plans to new landscaping.

Now, nearly five years later, that September 2007 meeting stands as a launching pad to a remarkable turnaround Neal orchestrated.

For starters, the company has returned to $125 million annual sales territory — after it dropped to a low of $62.52 million in 2009. Plus, the Lakewood Ranch-based firm, which builds homes in multiple Manatee County communities, has also led a resurgence in homebuilding on the Gulf Coast. Indeed, many other firms, both local and national builders, have begun to emerge from the malaise.

That success, and Neal's work ethic, enthusiasm and spirit that brought it, is why the Business Review named him Entrepreneur of the Year in 2012. Neal previously won the award in 2005. Back then, the firm's sales grew 72% over three years, from $64 million in 2002 to $110 million in 2004.

While that growth is impressive, it was accomplished in the heart of the boom. The latest three-year growth sales figures, up 102%, from $62.52 million in 2009 to $126.32 million last year, occurred during the crux of the recession.

Moreover, Neal, 63, is buying land again, and he's even hired a staff of three full-time employees devoted to the task. The firm is also expanding geographically, going into Lee and Collier counties.

“I mostly gauge my success against plan,” says Neal, “because we don't have many local competitors.”

That plan, says Neal, is like a hockey stick, and he projects the curve of sales will turn significantly upward in 2013. It's a metaphor Neal preaches often to his staff.

The growth, adds Neal, will come from seizing opportunities that arise from the recession. For instance, the company recently bought undeveloped land with 500 home lots in the Boca Royale Golf & Country Club in south Sarasota County.

“Our stated vision for now is to buy broken communities, primarily from banks,” says Neal, a native of Des Moines, Iowa. “The fun part is seeing the satisfaction of a community created. I don't have much aggravation anymore.”

Snapshot: Pat Neal
Born: Des Moines, Iowa

Education: University of Pennsylvania, Wharton School of Finance

Family: Wife, Charlene Neal, who runs the firm's interior design division, Charlene Neal pureSTYLE. The Neals have two children, John Neal and Michael Neal.

Political career: Served in the Florida House of Representatives from 1974-1978. Served in the state Senate from 1978-1986. Chaired several committees, including the Senate Appropriations Committee and the Committee on Natural Resources.

Neal Communities: Co-founded business with his father, Paul Neal Jr., in 1970. The Lakewood Ranch-based firm has since built more than 8,000 homes.

Get Happy
A coffee-stained sheet of paper with the heading “Happiness in 2012” is taped to the right-hand corner of Neal's desk. The list includes:
Happiness:
• Involvement with people;
• Expressing and understanding emotion;
• More interaction with family and friends;
Personal growth:
• Strength of will, character;
• Taking more time for fun, balance;
Success for me:
• Grow business to 450 homes, 600 in 2013;
• Continue to grow 2013-2016;
• Involve Stewart, Michael and John (Stewart is Neal's nephew; John and Michael are his sons.)
• Earn 20% ROAA (return on average assets) or more in 2013+

Click here to read about a day in the life of Pat Neal.