Contractors - Don't Sit There... Do Something
Friday, October 24, 2008
During a recessionary period, it's easy to focus on all the bad news. Markets are down, consumers aren't buying anything, and our tax dollars are bailing out the big banks. What will make the most sense for you and your business is to focus on the positive. If you're not as busy as before, use this time to innovate.Did you know that most new products and services emerge from major companies during recessions? This is because it's hard to invent something new when you're too busy and the money is rolling in. While a lot of your competitors are crying in their beers, you need to innovate, expand, experiment or shift directions.
An example - say you're a general contractor. You've always been asked by clients about design plans and ideas. But you don't really know what good design is. You'd like to increase revenue by offering designs on all your kitchen remodeling projects. In tough economic times, help your business by studying design, taking classes, interviewing designers, and practicing the craft. When the good times come around again, you have not only added a new service to your business, you have doubled the opportunity for more revenue and higher profits.
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Labels: Contractor Advice, Small Business Advice
Helping Others Save Money
Tuesday, October 14, 2008
Have you ever told a client how to save money while you were working on their project? Told them ways you could cut corners but still complete the job with quality?If you continue to give this good advice, it could really boost your business. A recent survey by Ad Age found that 80 percent of those surveyed had changed their buying habits. They are eliminating luxury items and even some necessities. They are worried about the economy, their 401(k), and their jobs.
This means your potential clients are going to be focused on cuttings costs and saving money.
And that is where you come in. No matter what type of work you do, you know ways to help people save money. You know there are less expensive products to use, cheaper materials, and things the client can do - on their own - before and after their project. Could giving this advice cut into your bottom line? Yes. But it could get you business where you might not have any at all. And it could get you a referral or two.
Here are Some Things You Can Do:
- If you have sales people making cold calls, have them pitch ideas to help people save.
- Give advice over the phone when a potential client calls.
- Type up a money-saving tips newsletter and pass it out in your neighborhood.
- Call your local newspaper and offer advice. The journalist will like it because it keeps people reading the newspaper and you'll like it because your name will be mentioned in the column. For free.
- Put free tips and advice on your website.
- Start a blog and put in all the tips from your newsletter.
People will appreciate it, feel comfortable hiring you, and pass on your name to friends and family. In tough economic times like these... those referrals can be gold.
Do You Have Time to Do These Things?
Probably not. I understand that the last thing you want to do when you get done working is sit and type out a newsletter. Or call your local newspaper and talk with a journalist. You're tired.
But these activities don't have to all be done. Or any of them all done at one time. Pick a project or two and break them down into small steps. Write out when you'll perform those small steps at particular points in your day. Stick to the plan and before you know it... you've got those projects done.
However, if you just look at the entire project and all the little things you might need to do, it can seem daunting. If you focus on those first few steps, and only those, you'll be more motivated to start.
It's a great way to help you through the hard times when the phone is not ringing quite so much.
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If you like what you see, you can upgrade to a Premium Membership and contact all your future incoming leads. It's that easy.
Labels: Customer Service, Economy, Small Business Advice
Contractors - Save Now... Pay Later?
Tuesday, October 07, 2008
The financial markets are in disarray. Consumer confidence is way down. And your phone is not ringing (much.) To keep your business going through the tough times, should you tighten those purse strings? Definitely. But is it time to pull the plug on your marketing efforts?One school of thought is to hunker down and not spend a dime on anything. Hope you have enough cash flow to ride out the storm. When things return to normal, you can start purchasing those ads in the paper, buying leads from online services, and sending out direct mail flyers.
The other school says this is a mistake. This is not an ordinary economic downturn. No one knows how long it last. People may be forgoing the expensive kitchen remodels or garage additions, but... they still own a house and it will need some work. They are going to be looking for a reliable contractor. If your competition continues to advertise and market their services during this downturn, they will be getting the jobs you need to stay in business.
Suspending your marketing campaigns during rough times seems like a great idea because you're saving money. But if you're not bringing in new business, you won't be bringing in new money. And when the old money is gone, the economic recession has just become an economic depression.
Labels: Economy, Small Business Advice
Is it Time to Diversify?
Tuesday, September 30, 2008
For those who are general contractors who perform all types of services, it can be easier to find qualified work during har economic times. But for small businesses that specializes, times like these can be tough. Is it time to diversify?With consumer confidence at its lowest level in fifty years, people are reluctant to make calls to get their improvement and repair projects completed. Fewer leads coming in can mean fewer jobs. To stay in business, keep your cash flow strong. So, this brings up the question - should you generalize your services and take on a broader range of projects? As always, it depends on your business. If you have enough work lined up for the near future and you have cash flow to expand marketing efforts, you should be okay. However, you should think about expanding the number of lead sources you have.
If you have some work still ongoing but the phone has stopped ringing, it could be another story. To stay liquid and stay in business, it might be wise to use your marketing budget to bring in a broader range of jobs. If you have the expertise to add additional services to your business lineup, you may be doubling or tripling the amount of jobs you can bring to your business. That may be enough to get you through the tough economic times. You can return to your specialization later.
Being a specialist in this industry means your services will always be in demand if there is little competition. But demand can drop when worry takes over. Take a second (or third) look at your business and make the necessary changes.
Will Wall Street Affect Main Street?
Tuesday, September 23, 2008
It's been a wild, bumpy week in the financial world. Does the doom and gloom in the news affect you and your small business? Under normal circumstances, no. But these are not normal times. Two things are going to affect you and your business through the rest of this year.First, your potential clients are watching the news and are worried about their stocks, 401K accounts, and insurance policies. This will sharply affect consumer confidence through the rest of the year. If people are worried about their money, not only will they not risk a high-end remodeling project but they may also skip on needed repairs and regular maintenance.
Second, as banks and investment firms circle the wagons, there's going to be an even greater tightening of credit. They'll take even fewer chances in the coming months and so it will be harder for folks on Main Street to get to the money they need to hire you.
Those two factors could severely impact every contractor and small business owner in the construction and remodeling industry through the rest of 2008.
We haven't had this sort of pressure put on the financial industry since the Great Depression so we're moving into uncharted territory. Fear of the unknown could prove harder for all service professionals to close those deals.
Keep an eye on your ConstructionDeal.com Contractor Update page for more updates in the coming weeks.
Labels: Construction News, Economy
Contractors - We Don't Trust You
Friday, September 19, 2008
According to a new survey by the Better Business Bureau, consumers don't trust you. Well, not you specifically. A survey on trust was conducted along with the Gallup polling group. They found consumers are less trusting of companies they regularly do business with. Contractors were among the least trusted industries, along with grocery stores, auto dealerships, financial institutions and wireless providers."The decline in consumer trust causes serious problems for businesses," said a regional president for the BBB. You could see this survey as a result of a very down economy. But you could also see this as an opportunity to gain an advantage over your competitors.
When it comes to your business, consider and evaluate how you can put trust into everything you do. Does your phone book ad convey trust? What about your sales efforts? What about building trust on the job site? Do you offer any guarantees? Do you promise to make it right if something goes wrong? Do you belong to any associations, such as the BBB, NARI, ASID or any other letter combination that could show you are serious about your craft?
Build trust with potential clients. They have many alternatives to choose from, but if they feel they can trust you and your business they will come back and they will refer others to you. That is how you stay in business.
Labels: Contractor Advice, Small Business Advice
What Is Your Business Name?
Tuesday, September 02, 2008
As a contractor, you can make two choices with your small business. You can try to be all things to all people or you can specialize. And it always depends on what's right for you. But you need to make sure your business name matches the type of work you do.For instance, if you're a contractor who does it all - from painting to plumbing to design services - then you should probably not name your company Frank's Interior Painting. The same holds true for companies that specialize. Joe's Contracting Service won't help your business if you only install custom staircases.
If you started out as one type of company, like interior painting, but have branched out to cover more work then your company name must keep up. Think about all the places you are listed - in the phone book, in the ConstructionDeal.com directory, in the newspaper, on the radio. Whether it's on a business card or in your email address, you need to be consistent.
Many fear making a business name change because it's a lot of work or it's listed in too many places. But the key to getting the work you want is to have your business name represent your business. If your name is too vague or too specific, you could be losing business. Potential clients need to believe you can do the job for them.
Your company name says a lot more about the quality of work you provide than you think.
Labels: Small Business Advice
