Nate Alley

Haven’t got much time on your hands? Click here to read the key points.

In this Pinnacle Post interview, Nate Alley - Managing Director of Sentinel Homes Waikato - shares his journey from starting his own building business at just 19 and navigating early challenges like the GFC to becoming a franchise owner of Sentinel Homes. He opens up about the pivotal moments that shaped his career, including overcoming business failures due to a lack of contracts and systems, the critical role of strong professional support, and his innovative waste project initiative that's setting new industry standards for sustainability. Discover Nate's powerful insights on leadership, lifelong learning, and how he reframes stress to prioritise health, family, and a meaningful legacy. This is an inspiring read for any young professional, aspiring entrepreneur, or builder looking for wisdom beyond the blueprint.

Q: What did you want to be when you were growing up?

A: I come from a family full of builders, so there wasn't anything else I really wanted to do apart from build houses or something related to that. I used to love drawing pictures, and they were always of houses. There was a period where, if I wasn't going to be a builder, I was going to be a farmer, just for the love of being outside. I also loved sports and had dreams of the Olympics but that was shot down pretty quickly!

Q: Tell me about your journey from finishing school to going into building.

A: I was actually reasonable at school; I was quite good at math and loved PE (Physical Education), but I was really frustrated with school. I was in third or fourth form at high school and they were teaching us how to write a haiku poem in English class. I refused to do it and I was probably a bit cheeky as I told my teacher, "Miss, you tell me a moment in my life where I'm going to need to write a haiku poem and I'll write it." She sent me straight to the principal's office.

At 15, the principal told me my time would be better spent elsewhere. It wasn't because I was an idiot; it was because I was wasting my time at school, and I wanted to be out working and making money. I left school having just turned 16 in fifth form, which was during the Global Financial Crisis (GFC), and I didn't understand at the time that no one was getting jobs. I moved from Tokoroa to Hamilton and went door knocking. A builder told me to do a pre-trade course to get a foot in the door in construction, so I signed up to Wintec at 16.

During my pre-trade course, I went back to that same builder for part time work experience. When I finished the course, he said he couldn't give me a job because they didn't have the work. I had formed a good relationship with the foreman and just turned up to work the next day at 7:30 AM and worked for nothing. I kept turning up, and after about three or four days, he called me and offered work until Christmas. I never left. I worked my a** off, and they gave me a job and my apprenticeship. I was qualified at 19.

I had formed a good relationship with the foreman and just turned up to work the next day at 7:30 AM and worked for nothing. I kept turning up, and after about three or four days, he called me and offered work until Christmas. I never left. I worked my a** off, and they gave me a job and my apprenticeship. I was qualified at 19.

When I left school early, my friends and family thought I was wasting my life and wondered why I'd go into a trade when I could go to university and be a doctor or lawyer - a “professional”. I hated sitting in a classroom, so I didn't want to leave school just to sit in another classroom. Interestingly, I was qualified at 19, and a couple of my friends who told me I was an idiot for leaving school, went to university, quit after a year, and did apprenticeships. They were starting at 19 when I was already qualified. That was really validating for me, proving I probably made the right decision and followed what I always wanted to do. Now, we build houses for doctors and lawyers.

Interestingly, I was qualified at 19, and a couple of my friends who told me I was an idiot for leaving school, went to university, quit after a year, and did apprenticeships. They were starting at 19 when I was already qualified.

Q: You went out on your own straight after qualifying at 19. Why did you go solo rather than with someone else?

A: I was young, I had an ego, and I thought I knew everything. Over the years, I've been humbled plenty of times to know that I knew nothing, and I still know nothing. At the time, I was working for a person who was doing well, but he was a "turkey". I initially had imposter syndrome, thinking I couldn't go out on my own at 19, especially when most people at that age were still first-year apprentices. However, this person had lots of work, a nice car, and a nice house. I came from nothing, raised by my mum who was on the benefit for much of my life, so I looked at his nice house and car and thought, "That's the dream." I just said, "If this guy can do it, I reckon I could do it," and that's the main reason I did it at the time.

Nate on the tools in his early days.

Q: What was it like going out on your own, getting accounts, tools, and processes in place?

A: There definitely wasn't anything in place, which resulted in me taking some clients to court because they owed me money. The judge said that I did nothing wrong, but I couldn’t get paid because there was no contract in place. It took me a couple years to work my way out of that. It was a steep learning curve.

Starting a business in New Zealand is actually one of the easiest things you can do; you register a company online, and you're a business owner. The barrier to entry is very low, and I don't think that's necessarily right. I didn't know how to claim or pay GST, or anything, to be honest. I was googling invoice templates. I didn't know how to put money away for taxes. I was building the plane as I was flying it. I genuinely believe there should be some minimum expectation of what you should know when starting a business in New Zealand, particularly in trades. We see young builders make all the mistakes all the time. I learned the hard way that you need a team: my accountant, lawyer, and bank manager are three key people in my organisation now. You don't even know where to find those people when you start out. I had an accountant who wasn't proactive, just sending invoices at the end of the year with no advice.

I didn't know how to claim or pay GST, or anything, to be honest. I was googling invoice templates. I didn't know how to put money away for taxes. I was building the plane as I was flying it.

Q: How did Sentinel Homes Waikato come about?

A: Sentinel Homes wanted to expand into the Waikato. They were after a young, hungry and keen builder and shoulder tapped me as I fitted the bill at the time. That was 11 years ago and we celebrate 10 years of Sentinel Homes Waikato in a couple of weeks! Sentinel took my enthusiasm, keenness and drive and wrapped some systems and processes around it – basically putting guardrails around the business which was great for me.

Q: What are the main differences between running your own personal company and owning a Sentinel Homes franchise?

A: It's largely around the support. That's been massive, especially over the last five years, going through COVID and the economic downturn. We didn't have to do it on our own. We had other franchises to talk to and people in the business who had experienced market cycles before who provided good support.

Nate and some of the Sentinel Homes Waikato team.

Q: What are some additional examples of support that Sentinel Homes offer? Do they help with fit-outs for new buildings, for example?

A: When I say support, the money flows one way generally – we pay them. It's really around business support. This includes things such as going to market for new suppliers or subcontractors, help with systems and processes, staying ahead of the curve with project management systems, accounting packages, and the whole tech stack. Marketing has been a real eye-opener. It was something I knew nothing about 10 years ago, and now we do really well with our marketing through the learning and guidance we get. The moral support is significant, just having people you can bounce ideas off. I appreciate being part of the group. People ask why I don't just do "Alley Homes," but I don't need to. I get what I need from this, and I already have that brand of trust around me and I love the people.

Q: It's been a bit of a roller coaster economy-wise over the last 10 years. How did you get through those times?

A: From 2015 to early 2020, it was great. We grew steadily, gained market share, and had wins. Everything felt positive until COVID started disrupting things, which was a really stressful time. We couldn't get on-site to build houses, and if we're not building, we're not making money. Yet, we had overheads in excess of a million dollars a year, which was very scary and eye-watering at the time. We couldn't invoice anyone but had these overheads to carry. I don't wish it on anyone; it was a rough time.

Everything felt positive until COVID started disrupting things, which was a really stressful time. We couldn't get on-site to build houses, and if we're not building, we're not making money. Yet, we had overheads in excess of a million dollars a year.

But to be honest, where I'm at now, those business challenges pale in comparison to some other things. I lost a close family member a couple of years ago and went through a divorce in the last two and a half years. Those things are harder than anything you'll face in business. It's all perspective. Business is as stressful right now as it's ever been, but I have to remember that if I thought in 2015 we'd be where we are now - with show homes, winning House of the Year, a team of 20, and great culture - I would have said, "That's my dream!" We've exceeded my best possible outcome and I have to remind myself of that and be truly grateful.

Where I'm at now, those business challenges pale in comparison to some other things. I lost a close family member a couple of years ago and went through a divorce in the last two and a half years. Those things are harder than anything you'll face in business. It's all perspective.

One thing that's been really good for me is reframing stress in that way, to see that stress is a privilege. I asked to be here. It's stressful, but that's what I asked for, I deal with the stress because I'm growing and doing the things I wanted to do. There was a time when a hard conversation with a subcontractor might have kept me up at night, but now that's easy. Going through a divorce or losing a loved one, those things are tough and even that's nothing compared to what some people have to deal with. Siya Kolisi, the Springbok captain, when asked about the pressure of a World Cup final, said, "Pressure? That's not pressure. Where I come from, pressure is not knowing where your next meal is coming from". When you hear that, or see what's happening around the world, you realise we are so lucky. It's embarrassing how comfortable we are that we can turn our nose up at instant coffee. The pressure we deal with is nothing, but our perception is our reality, so reframing it is important.

One thing that's been really good for me is reframing stress in that way, to see that stress is a privilege. I asked to be here. It's stressful, but that's what I asked for, I deal with the stress because I'm growing and doing the things I wanted to do.

Q: Are there other ways you try to deal with stress and pressure? Do you stay active?

A: At my lowest, I was overweight and had no practices for looking after myself. I'd get home at 4 AM sometimes, grab a quarter pounder from McDonald's, get into bed with my clothes on, and my alarm would go off at 5:45 AM. I did this for a while, and one day, my alarm went off, my eyes opened, my mind said "get out of bed," but I just couldn't move. It was scary; I thought I'd gone too far. That was a massive wake-up call, especially with my daughter being only 3-4 months old. The pressure of a family and a young business hit me.

From there to now, I'm down about 16 kilograms. I prioritise my health and wellness. It's very rare that I won't do at least an hour of training a day. I've done a couple of Ironman events, which was a life goal, and I'm doing GODZONE at the end of this year. Meditation is something I go to when I need it, and I'd love to do it consistently. Journaling too. I talk about building a trellis. The analogy is, your trellis is what everything can grow around, and if it's strong, it can withstand the wind and weather. For me, the trellis is my daily habits: exercise, food, sleep, all of these are now non-negotiables. I learned this the hard way by not prioritising them. This helps reframe challenges; what felt like a big deal 5-10 years ago just isn't now because my trellis is stronger and I can reframe things.

I talk about building a trellis. The analogy is, your trellis is what everything can grow around, and if it's strong, it can withstand the wind and weather. For me, the trellis is my daily habits: exercise, food, sleep, all of these are now non-negotiables.

I also live by the mantra: "Do hard stuff by choice." If you choose to do hard things, then actual hardship becomes much easier to cope with. Things like the divorce, if I hadn't had those tools and hadn't been doing hardship before that, it could have defined me. I look at some training sessions and think, "I can't do that," but then you get in the mixer, do it, and at the end, the feeling of "I didn't think I could do that, but I did" opens your mind to what else you might be capable of. Pushing yourself into things like public speaking or saying "yes" to this interview, even with imposter syndrome, helps. Our mind always tells us something will be worse than it ends up being because it’s trying to protect us. For example, I signed up for an ultramarathon before a marathon, and an Ironman before I knew how to swim. When you're constantly expanding that bandwidth, you improve by default just by trying, and you learn even from failures.

I also live by the mantra: "Do hard stuff by choice." If you choose to do hard things, then actual hardship becomes much easier to cope with.

Q: You're still young in your journey, but looking back so far, what have been the career-defining moments that have shaped your career to what it is today?

A: It's probably things like that first business that more or less failed. That was extremely humbling and a big hit to the ego. I think COVID was a real big one. I listened to Kevin Biggar a few years back; he talked about how when a storm comes, you can either put your sea anchor out and ride it or paddle through it. He won the Trans-Atlantic rowing race by paddling through the storm. I think that's something we've done really well despite the last few years being hard, we've still moved with real intention. We haven't been victims of the market. We focused on what's in our control, not the market itself. I believe we've increased our market share, brand equity, leadership capability, and team ability. We're in a really good spot now to grow and be a good business, so I'd say that's quite critical.

Going through some of the personal challenge has been defining too. I go to counselling regularly, not because anything is broken, but it keeps me grounded and aware. It helps me stay humble. Our egos are our enemy. The minute a leader thinks they've cracked it as a leader will be the minute they're a s*** leader. We do well from a leadership perspective here, and I'm proud of how we run this team but the minute you think you're doing really well, something will happen with your team that smacks you in the face with a brick.

Our egos are our enemy. The minute a leader thinks they've cracked it as a leader will be the minute they're a s*** leader.

Q: Would you say that putting one foot in front of the other and pushing forward is the main thing that has enabled Sentinel Homes Waikato to keep growing and succeeding?

A: It's definitely a part of it. Over the years, there have been plenty of hiccups arise that have been outside of our control. We try to focus on concrete steps - here's a situation that sucks, what can we do about it? What's our next concrete step? Sometimes it's just "eating the frog" – doing the thing that's going to suck and doing it now. We try to move with speed. There's the old saying: "People overestimate what they can do in a year but underestimate what they can do in 10". The more steps you can take, the more steps you will take. It's about not procrastinating and doing the hard stuff. A quick s*** outcome is better than a long s*** outcome, and a quick no is better than a slow no. An example is doing training in the morning; get it out of the way, otherwise, it takes up rent in your head all day. Doing it in the morning makes you feel like you've owned the day.

The more steps you can take, the more steps you will take. It's about not procrastinating and doing the hard stuff. A quick s*** outcome is better than a long s*** outcome, and a quick no is better than a slow no.

Nate and some of the Sentinel Homes Waikato team.

Q: What would you say are your career highlights and lowlights?

A: The lowlight is having that first business that didn't do well and having to close it up. In saying that, I'm proud of how it went; it wasn't a complete failure, and I didn't owe anyone any money.

For highlights, accolades are easy to lean on, such as how well we've done in House of the Year awards. Another massive highlight for me was when Ash, our Head of Delivery, won the emerging leader award at the Waikato Business Awards last year. She started with us eight years ago in admin and accounts, and now she's an amazing leader. As a business owner, probably the biggest highlight for me is that I work so flexibly (I wouldn't say fully part-time) but I'm able to pick up and drop off my kids from school every day that I have them. I take them on holidays and am very flexible with my time to allow me that time with them while they're growing up. That is success to me. Also, the team we have now; I genuinely love coming here every day, and that culture is great.

Q: You also have a cool initiative called the Waste Project. Can you tell me more about that?

A: It has very little to do with me, but our Operations Manager, Jono, is really passionate about waste. He approached us in 2023 saying that we need to manage waste on site better. It was coming out of COVID, which was the worst time financially to sink money into something like that but we just felt it was the right thing to do. We don't have any skip bins on any of our sites now. All our waste gets diverted to a yard we lease, and we repurpose it, turning it into cabins and all sorts of things and it's becoming its own entity. This is only used on Sentinel sites at the moment, but we're going out to market now to expand. We've spent the last couple of years making sure the model works and it's definitely been an investment; we've put six figures into it easily, but again, it's the right thing to do. We've diverted hundreds of tons of waste. The cabins we've built are now housing people, which is a real positive. There's massive potential; we're now trying to take waste from other builders to make it bigger. It could work for any construction site, anything with waste.

We don't have any skip bins on any of our sites now. All our waste gets diverted to a yard we lease, and we repurpose it, turning it into cabins and all sorts of things and it's becoming its own entity.

We're trying to be an example to the rest of the industry, to show that if you put in the effort, you can do better with your waste. For the longest time, it's just been cool to throw everything in a skip and make it someone else's problem, but that's not good enough. Having kids definitely changes how you feel about that; I'm always thinking about what the world will look like for my girls and grandkids. We need to be kaitiaki (guardians). I see it as an investment you can't put a price on. What price do you put on having a workplace you want to come to every day? I'd happily make half as much money as long as I had enough to live and loved coming to work, doing good things for the environment and community. That's what life's about. My grandfather passing away was a real eye-opener for that; he didn't have two cents to rub together, but he wasn't alone once in the last three months of his life. I know people with more money than they can count who die alone. So, what do you want to leave behind?

My grandfather passing away was a real eye-opener for that; he didn't have two cents to rub together, but he wasn't alone once in the last three months of his life. I know people with more money than they can count who die alone. So, what do you want to leave behind?

A result of The Waste Project. A tiny home built solely from recycled construction waste!

Q: If a young builder came to you wanting to go out on their own, what advice would you give them?

A: I'd really encourage them to get a good team around them in terms of key advisors, definitely a good accountant. Get your systems in place and grow slow; don't go out and try to win all the work. At the same time, you've got to learn the hard way sometimes too. Get after it; it's not going to be easy, but it shouldn't be. Speak to more experienced people. There have been things that I learned from older builders just by asking them the same question that you’ve asked me. For example, one person told me to put $1,000 per job into a maintenance account and never touch it for a rainy day, and sure enough, we needed it. You learn by doing. Things will pop up, and you'll learn.

Q: What are your thoughts on personal brand and networking?

A: It's super important, there's no two ways about it, particularly if you want to own a business, and especially in a town like Hamilton. This place is small, and your reputation is so much of what your potential is. If you have a bad reputation, there's a ceiling on what you can do; if you have a good reputation and people trust you, the sky's the limit. A person I met last year said, "Your network is your net worth" – the strength of your relationships with the right people will determine how far you can go. There are a couple of rooms I sit in where my imposter syndrome goes off because I’m amongst some incredible people, but I love it. They share what they're doing, and I come away feeling inspired and hungry. Be a small fish and try to get into rooms with high performers.

Be a small fish and try to get into rooms with high performers.

Q: What does your professional development look like? Are you always trying to learn through courses, trainings, books etc?

A: 100%. I view all professional development as an investment, and some of it is expensive. The Icehouse course, for example, cost $30K, but I just sent Ash on the same course because that's how much I believe in it. I read a lot, on anything. There's that mantra from the All Blacks: "Better people make better All Blacks." I say, "Better people make better builders." Therefore, I read books on childhood trauma, racism, stories of the human spirit, as well as marketing, communications, negotiation, and leadership. Learning is a real pillar for me; I love it. I've focused my professional development on my current needs, such as marketing, communications, and leadership. I'm also doing a foundational coaching course next year to mentor and coach people. It's never-ending and I hope to still be reading books and learning when I'm in my 60s and 70s - 100% lifelong learning.

I say, "Better people make better builders." Therefore, I read books on childhood trauma, racism, stories of the human spirit, as well as marketing, communications, negotiation, and leadership. Learning is a real pillar for me; I love it.

Q: You didn’t do an OE, but what advice would you give to someone in their early 20s reading this and thinking about doing an OE?

A: Go while you can! I don't have regrets about where I am now, I'm very happy and content, but I can't just pack up and go overseas. I have children, a business, mouths to feed. Do that travel while you can but don't rush into it - do it with intent and eyes wide open. Don't just go to waste your life for a year. Go to learn and experience, keep your eyes open, and have some awareness around what you're seeing and what makes you tick. Have a ton of fun, I'm not saying don't do that, but have purpose around it.

If you have a field you're interested in, why not go and work for a firm and do some really good work in an overseas office in your field? You'll get great experience, and your opportunities when you come back will probably be tenfold because you haven't just gone and messed around.

Remember that fun should underpin everything. Have fun at work, fun on the weekends, fun all the time. One of the things I've learned is that if I have a weekend where I've had a bit of adventure and a lot of fun with my kids, the way I show up on Monday is so much better.

Q: What's next for yourself and Sentinel Homes?

A: Keep growing, keep getting after it. I wouldn't say I have a need to be the biggest; we don't want to be a monster of a business. We're happy to be the biggest if we can and build hundreds of houses a year if we can build every single one of them well. The minute we can't is the minute we'll consolidate. I love the people aspect; we want to keep building our leaders. We'd love to keep doubling down on the waste project and build a "whole house of waste". But honestly, I'm really content. We want to keep growing; I can't not grow, I'd lose interest if we weren't growing and getting better but we don't have aspirations of world domination. We have a business that we love, and I get the flexibility as an owner to spend more time with my kids.

Nate and the Sentinel Homes Waikato team enjoying success at Master Builders House of the Year awards.

Q: What's the future of digital innovation in the construction industry in New Zealand?

A: There's heaps of opportunity there. New Zealand has challenges in that space because of our geography, geology (being on a fault line), and challenging climate. There's really cool innovation in Europe, such as speed housing and 3D printing, but it's hard to do in New Zealand. We don't have deserts of flat land suitable to build on; everywhere is a bit of a challenge. We also need to sort out our regulatory environment to make use of that. We have productivity issues in the industry due to red tape and consenting. A classic example is that we have 67 building consent authorities in New Zealand for 5 million people, while New South Wales in Sydney has one for the same amount of people. Those 67 authorities have 67 different heads of building and 67 different interpretations. We're based in Hamilton and build with 11 different councils that interpret the building code 11 different ways. It's ridiculous. We built a house just inside the Hamilton City boundary, and a kilometre down the road in Waipa, it had different inspection regimes. It makes it more complex than it should be. This government is doing some stuff in that space, which is good, but it's very slow-moving. Someone needs to be bold and say, "This is broken".

We have 67 building consent authorities in New Zealand for 5 million people, while New South Wales in Sydney has one for the same amount of people. Those 67 authorities have 67 different heads of building and 67 different interpretations. We're based in Hamilton and build with 11 different councils that interpret the building code 11 different ways.

Q: Do you use much AI or innovative tools in your current business?

A: We make use of AI; are we optimising it? Probably not. We use it to assist us. I love AI and the opportunity it presents, but I'm a big believer in how important the human element is, particularly for us when we're involved in a journey with clients that is very human and emotional. You can't replace humans with robots.

Q: For young professionals in their early 20s thinking about their financial futures, do you have any advice or wisdom?

A: I'm not really good with money, to be honest. Probably the most important thing would be to have a plan. If you're serious about creating wealth, you've got to do it with intention. It's no good to say, "I want to be wealthy one day," but then spend all your money and have no plan for putting stuff away or investing. It's interesting to understand the things they don't teach in school and how important they are. We're in the information age; if you want to know how to invest in property, you can do your own research and access better resources than ever before. Or go and talk to people about it. If someone has the business, the beach house, or whatever you want, go and talk to them. Ask them, "How would you do that? What advice would you give me?" especially if it's in your field. I've done it with older builders, and the advice I can glean for nothing is so invaluable.

Q: What advice would you give your younger self?

A: What I wish I'd known earlier was probably that smooth seas never made a skilled sailor. It took me a long time to understand that the hard stuff is the good stuff. Every hard thing I've had to go through has made me better. If I'd known that and had been able to take stock of it at the time, I probably could have made things a bit easier for myself, but then I had to go through that to learn it.

What I wish I'd known earlier was probably that smooth seas never made a skilled sailor. It took me a long time to understand that the hard stuff is the good stuff. Every hard thing I've had to go through has made me better.

Q: If neither time nor resources were a constraint, what ultimate goal or dream would you pursue?

A: For the longest time, I thought the goal was to build up a business, sell it, and retire. But what I've probably learned is, if you do that, then what? You need to do what spins your wheels. I'm doing what spins my wheels; I love working with my people, I love building houses. I learned the hard way when I built my dream house on two acres, and I was more unhappy there than I'd been in the small house I renovated. It was everything I thought I wanted, but there were fundamental things I wasn't looking after, and I was unhappy.

My current dreams include moving into being able to help other business owners, and honestly, help young professionals. That's why I'm heading into that coaching space. I would love to have an influence in sort of reminding people how good we've got it. We are so lucky to be living here in this day and age with all the comforts. I think it's easy to forget that. The grass isn't always greener.

Nate speaking at Master Builders House of the Year awards.

About Sentinel Homes Waikato

Sentinel Homes Waikato is a trusted leader in residential construction, renowned for delivering custom-designed homes that blend style, functionality, and affordability. With a commitment to quality craftsmanship and client-focused service, the team at Sentinel Homes Waikato guides homeowners through every step of the building process. Their award-winning designs and dedication to sustainable building practices are helping shape vibrant communities throughout the region.

Visit the website here: https://www.sentinelhomes.co.nz/locations/waikato

About The Waste Project

The Waste Project NZ is at the forefront of environmental innovation, dedicated to reducing waste and promoting circular economy practices across New Zealand. Through creative community initiatives, education programmes, and practical recycling solutions, The Waste Project NZ empowers individuals and businesses to minimise their environmental impact. Discover how this passionate team is inspiring positive change and shaping a cleaner, more sustainable Aotearoa.

Visit the website here: https://www.thewasteproject.co.nz/

Nate’s LinkedIn: https://www.linkedin.com/in/nate-alley-b758615b/