Contractor Update

Referrals are the lifeblood of any small service business. Sounds like common sense but you'd be surprised how many contractors and service professionals do not make an effort to get additional business and referrals from past clients.

Even if you do large, one-time jobs for clients, you should always be reminding your previous customers about your business. If a property owner doesn't need your services, they may know people who do. The most important thing to do is keep your business name on the tips of their tongues. Don't make them dig out your business card from the junk drawer. Or try to remember you from two years ago. It won't happen.

There are a number of things you can do - You don't have to do all of them but you need to do some of them:

• Occasionally call past clients to make sure things are good.
  
• Send out monthly or quarter newsletters in email or direct mail form.
  
• Send out promo items they can use - fridge magnets, calendars, mouse pads, T-shirts, anything that will keep your company name in front of them.
  
• Mail them holiday cards every year with a coupon inside.
  
• Drop off flyers or mail reminder post cards to them.

Set aside some of your marketing budget to do whatever you can to increase your referrals. When things slow down for the holiday, take some time to put together a marketing plan that includes reaching out to previous clients.

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Not a member yet? Join at no cost. Get a free Contractor Directory listing. See if we have had any past construction or remodeling job leads for you in the past. If you like what you see, you can become a Premium Member and expand your business.

It's that simple.

Labels: Contractor Referrals, Referrals, Small Business Advice

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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Are you a contractor looking for more construction job leads, remodeling leads, or leads for whatever services you offer? We can help.

If you're not already a free member of ConstructionDeal.com, you can register your business at no cost. Select your cities and services and see if we have a past history of leads in your area. If you like what you see, you can become a Premium Member and start getting more qualified leads today.

Labels: Contractor Advice, Small Business Advice

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

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

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.

Labels: Small Business Advice, Small Business Marketing

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

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

I get email questions from contractors around the country. Here's one that comes up a few times and I wanted to address it here in the Contractor Update:

"I sometimes feel guilty when I tell customers how much I charge? Any advice?"

Many contractors feel like they are asking a lot for their services. They're quite sure they're losing business to others who charge much less than they do. Since many homeowners and business owners don't always know how much your products and services cost, they balk at paying a higher price.

But if you provide a quality service and you are proud of your work, you should never feel bad telling clients your cost. It's important to not flatly state your prices and leave it at that. You'll need to sell your service to justify it. Even if it's just a quick phone conversation. Explain to a potential client that you do great work and they may find someone cheaper but that they will get what they paid for.

If you feel guilty or give in too quickly to a price reduction, you'll only cut into your bottom line or into the quality of the work you do (to finish under budget.) Be proud of what you charge and your clients will sense that confidence that they have found the right professional for the job.

Have a question? Email me at Tim (at) ConstructionDeal (dot) com

Labels: Contractor Advice, Small Business Advice

Taking big chances in a down market, with consumer confidence at its lowest levels ever, can be risky for any business. Many want to avoid risk because it could mean failure and loss. A lot of companies have gone under because they would leap before they would look. One thing to consider - if you're not taking any chances, you're not doing anything.

Failure to innovate and change with the times or the market or the consumer has killed just as many contractors as has a lack of cash flow. If you decide not to become a new dealer for a fancy new product or avoid an expensive but time-saving tool, it's possible you have avoided failure. But failure is the only way to truly achieve great success. Without trying new systems, new materials, or learning new trades, you will get passed by those who are not afraid to fail.

The trick is to look before you leap, not to avoid the leap all together. Make smart decisions based on what your company can handle. But make those decisions when your gut tells you it could be the right move. Here at ConstructionDeal.com, we're always brainstorming new services and new ideas. We go forward with many of them and if we fail, we learn from the experience.

Oscar Wilde once said that, "experience is simply the name we give our mistakes."

If you're not already getting plenty of leads from us - take a chance on ConstructionDeal.com. We'll help you find qualified leads that can bring in more work and more revenue for your business.

Labels: Small Business Advice

Most of us have had that perfect employee working for us at some point. Many of you may have lost those special workers when they decided to move on. You remember how hard he or she was to replace. Here are tips to attract and keep those really special (and hard to find) employees:

Hang On To Your Workers

• Whether the worker is a technician, salesperson, subcontractor, or secretary you want to make sure he or she is invested in your company. But not in a monetary way (although, it does help.) It's important to empower your great workers. Empowered employees are generally happier and stay with a company longer. Empowered means you give them goals related to the success of the business, give them chances to be more creative in what they do, give them access to the same resources as everyone else, and give them the chance to organize their own time.
  

• Praising good work does not make good workers stop working hard. Give those special employees special recognition when they deserve it. People not only enjoy a job well done, they enjoy being recognized for it.
  

• People work to take care of their families. Keep family emergencies and situations in mind and allow them time to work things out. Don't let anyone take advantage of it but when they understand you know that family is important, they will go to the ends of the Earth for you.
  

• Let the best work with the best. If you bring in rude or abusive clients only to force your best workers to deal with them, just for the sake of a buck, you could lose these people. There will always be difficult relationships in any business, but bring back a disrespectful client or not helping in a bad situation will push quality employees away.

Great workers are terribly hard to find. When you find them, you'll inevitably lose them. But taking steps like these can help make sure they stick around for a long time. You'll never know what you've got until it's gone, they say. Make them a priority and they will help your business grow for a longer period of time.

RELATED POSTS:
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To keep those job leads coming in, and to keep those star workers busy, don't forget that you can subscribe to ConstructionDeal.com today! For 5 years, we've been helping contractors grow their businesses and we can help you, too.

Labels: Small Business Advice

If your business has more than one employee - you - it is important that you pass along everything you know to help keep your company rolling along. Your company depends on your knowledge, wisdom and experience. I have a philosophy for every small business owner - "Learn it, Do it, Teach it."

When you pass on what you know to a good worker, you'll end up with a great worker. But it shouldn't stop there. Thanks to your training, that good worker has become a great worker and should now teach other employees what he or she knows. When excellent workers leave your company - and this happens to every company - you'll be missing their talents. To prevent this, make sure they learn from you, perform well on their own, and then pass along their knowledge.

This practice of "Learn it, Do it, Teach it" keeps any one person from becoming indispensable. It protects your business. And, as an added benefit, it helps those star workers gain additional fulfillment beyond a job well-done. Helping others learn a trade or craft can be very rewarding.

Pass on your experience and skills to your workers, follow up and evaluate their work, and have them pass on their skills to new protégés. You'll sleep much better at night knowing you did.

RELATED POSTS:
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Construction Jobs, Renovation Jobs, Home Repair Jobs & More!
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Labels: Small Business Advice

Someone was once surprised that my phone didn't have a camera. I replied to the person, "Yes. And guess what? My camera doesn't have a phone." But these days we can't live without our cell phone. It's more than a luxury. It's a tool that helps us conduct business. We wanted to provide you with some tips on how to preserve your phone battery while you're in the field, doing your job.

First, turn off that camera feature. And any other feature you don't regularly use. Besides the camera, disable the bluetooth capability, the video camera, and don't try to connect to the Internet (WiFi, GPS, etc.) These features use a lot of power.

Keep the battery cool. Leaving it in your truck or close to you, in a pocket, will use up battery life. Turn off the vibrate feature - it also requires more power. And keep the battery contacts clean. Dust and dirt will accumulate inside your phone, which slows down the energy transfer. Use a Q-tip and a little bit of rubbing alcohol to clean the metal contacts.

Finally, if you know you're not going to be able to use your phone, or you're going to be in area with no reception, turn it off. Just leaving it on burns up battery life. Keep in mind that batteries don't last forever. Remember not to throw them in the trash when they're done. They can be quite toxic and it may be illegal in your area. Check with the manufacturer to see if it can be refurbished. If not, dispose of it at the retailer or a local recycling center.

Labels: Small Business Advice

Do You Network?

Contractors like to work. What many contractors hate are the things you have to do in order to keep working. Sales, marketing, finances, etc. These are all part of being a small business owner. Near the bottom of the list of all things necessary is schmoozing. But the act of networking can really help you expand your business, especially in a slow economic market.

What is Networking?

Basically, it means you're building business contacts. By creating relationships with others in a similar business or industry, you can help bring in referrals. And it's not just a matter of shaking hands, passing off a business card, and asking people to send work your way. It does require effort. You don't need to become best friends with every contact, but you should get to know people you want in your network contacts. Passing on expertise and sharing information helps others to remember you. Networking works best when you can reciprocate and provide help to others.

Who Should You Network With?

Schmooze with the people who can send traffic your way. People in real estate can help. They know people who own property. By reaching out to realtors, mortgage officers, and management companies, you can be the one they send clients to whenever they are asked. Anyone who supplies materials can be a resource for referrals. Contractors who specialize in other types of work can also be part of your network.

Where Do You Network?

It's not easy to truly network from your office or while you're on the job. You need to have face to face contact to really schmooze. Conventions, trade shows, home improvement stores, real estate offices, seminars, classes, parties, sporting events, just about anywhere. Always have business cards on hand and a smile on your face.

How Do You Network?

• Focus on what you can do for them and not what they can do for you. Think about how much you would want to help a person who is committed to helping you out. Once people know you can be passionate about what they are doing... they're never going to see you as a schmoozer but as someone they want in their network.
  
• Always listen more than you talk. When you make them the center of attention, you'll have a friend for life. Everyone loves to talk about what they do and talk about themselves. But don't just hear them, truly listen to what they're saying. Learn about them and you'll get a better idea on how you can help their business succeed. When you can do that, they'll tell everyone they know about you and your services.
  
• Help them remember you. Always keep the business card on hand. You don't need to through your tri-fold, full-color brochure at them but you should give them a quality card with your name, number, email, and website on it. If you can, make sure the back of the business card is blank so that they can write out a quick note to themselves on who you are and where they met you.
  
• Follow up with them. Don't just get acquainted with someone and then hope you can ring them up for a favor several months later. And don't stalk them by calling several times a day and waiting outside their door with flowers every morning. But follow up a week later to touch base, share a bit of juicy information, and remind your new contact that you're there to help them.

Labels: Small Business Advice

Eco-friendly products. Sustainable practices. Green building. Green remodeling.

These terms are fairly new but are being tossed about by many people. The movement to make and update homes that do not harm the environment is not going to go away. Many of your potential clients don't completely understand it all but they know they want it. They're looking to use products that consume less energy, won't pollute the planet, and save them money.

No matter what service you provide, it would be wise to adopt a greener vision for your business. Not only do your customers want to do what they can to help, they're going to start looking for companies to educate them and provide them with sustainable products and services. By learning all you can now, you can get a jump on your competition. A good place to start is the U.S. Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED). They offer advice on how to get your projects certified, education on energy saving concepts, and accreditation for professionals who have demonstrated knowledge of green building practices.

Having qualified projects under your belt, along with green-friendly products at your disposal, an help your bottom line. Being a leader in the field will help you attract new clients, build repeat business, and offer a great source of referrals. As a green company, you'll be able to market your services easily by letting people know how they can save the planet as well as save money. Green projects reduce waste sent to landfills, conserve energy and water, provide healthier environments, reduce greenhouse gases, and can qualify people for rebates and incentives. All are great selling and marketing tools for a green contractor.

Take some time to learn about the products and practices involved with LEED certification. The more you know, the more your business can earn. And you can make more of a difference.

Labels: Small Business Advice, Small Business Marketing

Many contractors talk to good prospects on the phone and they set appointments to meet with those potential project owners. The ultimate goal is get the contract signed so that work can soon begin. Part of the selling process is to give them your pitch about your services and products you work with. Since price is a concern with every project owner, your first instinct is to pitch your experience, past projects, quality workmanship, and timely scheduling.

You're probably lucky to close 1 in 10. For some, it might be 1 in 5, but in a competitive market some close 1 in 20.

How can you improve on that ratio? Knock their socks off. Instead of pointing out how many years your company has been in business, give your potential client powerful information about how you will be changing their lives. Your pitch could be a lesson or news story titled, "9 Ways Money is Pouring Out of Your House." Or it could be "12 Ways to Improve Your Property Value by 25% in One Month." What about, "Save Money, Save Time, and Save the Planet"?

When you provide tips, techniques, tricks, and valuable information during your sales pitches, several things happen. You will become the expert in their minds. You will
be offering potential clients something above and beyond your services that will have them talking to friends and family. You will be turning the attention of your pitch to the project owner and away from you. And people love to think and talk about themselves. When it becomes about them and the ways that you will help them, you'll see your closing ration creep higher and higher.

Provide them with information that they value, that goes beyond your services and products, and it will create a need over maybe just a want or a desire. And that is the secret to bumping up your ratio.

Labels: Sales Advice, Small Business Advice

The slowdown in the housing market is affecting more than home builders and the mortgage industry. Many remodeling and home repair contractors are feeling the pinch. And for some companies, it's business as usual. One contractor told us business is still good but the jobs are not as ambitious. He said it seemed to depend on what business you are in and what part of the country you work.

If the phone doesn't ring often where you work, it's going to be a matter of riding out the storm. Many are saying this downturn could last through 2008. Of course, most saying these things have a vested interest in a quick market recovery, so it could mean the housing and renovation industries won't come back around until 2009. For some companies, it's going to mean cutting expenses. For others, it will mean finding more work. More than likely, it will mean a combination of the two.

Monitoring expenses and bringing more jobs is easier said than done. But you should resist the temptation to under bid to get a job. Maintaining cash flow is great in the short term, but cutting into your profit margins could really hurt your business. On the opposite end, pushing up prices to give you a higher margin might be tempting as well. But money is tight with many people and higher costs to them could mean even your most loyal customers will stay away or put off their projects.

Labels: Small Business Advice

Research and Markets has recently done a survey of 800 plus people who have had their kitchens remodeled. We thought it would be useful information for any contractors and companies out there who do kitchen renovation projects or who are kitchen designers.

Their study compiled data on the homeowner lifestyles, product shopping and purchasing patterns, kitchen remodeling details, media consumption, market segments, and trends in consumer tastes and preferences.

ConstructionDeal.com wants you to be informed. A knowledgeable remodeler will have a sales advantage over their competitors and our goal is to help your business succeed:

What People Do in their Kitchens

- The American kitchen is widely considered the 'hub' of the home. But what exactly are people doing in there? And how do the activities that take place in the kitchen impact design and the products that are purchased to go into the kitchen?

While the kitchen certainly remains the hub of the American home, it continues to evolve from being a strictly functional place in the home for preparing meals. Almost a third of American consumers now see their kitchen as a place where a variety of activities take place. Increasingly, people socialize, take medicines, manage their household, and care for pets in their kitchen.

- Busy lifestyles prevent the vast majority of people from preparing all of their meals at home every day. Only a third of Americans fix breakfast at home every day. Yet nearly three quarters frequently prepare dinner at home (5+ times a week).

- While the microwave has become as essential tool in the kitchen, the majority use it for the main dish for dinner two days a week or less frequently and dinner is rarely prepared from scratch.

- With cookbooks appearing on the best-seller list, viewership of cooking shows soaring and celebrity chefs becoming mainstream stars, it’s not surprising that more than seven out of ten consumers try a new recipe at least once a month.

The 'Ideal' Kitchen

- People describe their 'ideal' kitchen as "organized", "comfortable", "open", "warm", "family", "light", "happy" and "homey" - key words to use in designing products and marketing them.

- The number one appliance upgrade desired in an 'ideal' kitchen is a cooktop that features a built-in grill, wok, griddle or rotisserie attachment. Also strongly desired are commercial-grade appliances, a larger dishwasher to accommodate a wide variety of dishes, and a double oven.

Men may see appliance purchases as status symbols while women tend to see them with a more functional perspective.

- Innovative technologies in the kitchen with streamlined designs are becoming more mainstream though clearly are still not as hot as more functional products.

Cutting-edge technologies (TV screens built into appliances) have a much stronger appeal among men than women.

- The popularity of kitchen islands continues with the number one design feature on the wish list of survey participants being a central island cooktop.

- When asked which one item they would be willing to splurge on if they were changing their kitchen now, the top products mentioned were cabinets, range/oven/cooktop, countertops, refrigerator, island and flooring.

Kitchen Remodelers

- One in five households have remodeled or made improvements to their kitchen in the past 12 months.

- People describe their kitchen before the remodel or improvement as 'boring', 'cluttered', 'dark' and 'confining'.

- Clearly, the key driver behind kitchen remodels is that the current kitchen is 'out of date'.

- Designers or architects play a role in about one in five kitchen remodeling projects. As income increases, so does the likelihood of using a designer or architect for a kitchen remodeling project.

If remodelers had it to do over again, 50 percent more say they would use a designer or architect for their kitchen remodeling project.

- Close to two thirds of kitchen remodelers hired outside help to do at least some of the labor on their recent kitchen remodel.

- Some DIYers express a change of heart when it comes to how they would handle the labor next time – more would hire outside help for at least some of the project and fewer would do all the work themselves.

The main reason people choose to do all the labor on kitchen projects themselves is because they enjoy the process. The main reasons they choose to hire out all the labor are lack of time and skills needed.

- More than seven in ten remodelers purchased one or more appliances for their recent remodel or improvement. Virtually all remodelers purchased one or more of the design elements listed in the survey. Four in ten bought furniture and/or electronics for their kitchen remodel. Accessories, such as storage/organization features and cookware, were purchased by six in ten.

- Most all kitchen improvement projects produce a few surprises for the homeowner. The most frequently mentioned are how long the project took to complete and how much it cost.

- Stores, along with magazines, books and catalogs are mentioned most frequently as providing the best ideas for kitchen remodeling projects.

- More than three out of ten remodelers said they would spend more money on a kitchen remodel if they had to do it over, while only seven percent said they would spend less.

Looking at those who would spend more, the key things they would do differently next time are upgrade the cabinets and increase the size of the kitchen.

Labels: Small Business Advice

An unexpected new twist could seriously affect the remodeling, building, and home repair industry. As homebuilders finish off current projects, new home construction will continue to plummet as the glut of existing properties will take time to evaporate. And, as home prices drop over the course of this year and next, available home equity will also dry up. With less equity, homeowners will not be as willing to spend on renovation projects. Another expected trend has been workers and companies transitioning out of new home construction and into remodeling and home repair.

All of those factors were predicted and are coming true. However, the unexpected new twist is what really has economists worried. Over the course of the past two months, the credit industry has severely tightened their lending policies. Because of all the sub-prime loans that have and will continue to go bad, lending institutions have become afraid to approve new loans. Zero-down mortgage products have disappeared. Even people with good credit and down payments can't get a home loan. Their fear goes beyond mortgages, too. People with great credit scores and equity in their homes are being turned down for renovation loans. Others may be able to get a loan but the interest rates are so high that many are walking away.

With credit becoming more and more unavailable, it will continue to drag down the overall housing market. Not only are potential buyers waiting for prices to come down out now they may not even be eligible to get an affordable mortgage when prices do drop. This can only hurt the overall economy. Experts are suggesting the Federal Reserve may drop rates again at their next session in September, but it may be too little too late. If the housing market continues to affect jobs outside of real estate and lending, it could mean a very long and very tough 2008. A recession could be just around the corner.

RELATED ARTICLE:
Top 10 Tips to Surviving Economic Downturns

MORE CONSTRUCTION AND ECONOMIC NEWS:
From the AP: "WASHINGTON -- Construction activity plunged in July by the biggest amount in six months as spending on homes fell for a record 17th straight month."

"The Commerce Department reported Tuesday that construction spending dropped 0.4 percent in July, compared with June, the weakest showing since a 0.6 percent fall in January."

From Bloomberg: "Homebuilders are scaling back to try to trim the glut of unsold residential properties even as companies are still adding offices and factories. The downturn may steepen as lenders make it tougher and more expensive to get financing following the sell-off in credit markets in August."

Also from Bloomberg: "So far, the Fed has refrained from reducing its benchmark interest rate, using other tools to ease tightening credit conditions."

"Federal Reserve Chairman Bernanke and his team lowered the discount rate, for direct loans to banks, by half a percentage point on Aug. 17. The main target rate remains at 5.25 percent."

"Officials acknowledged in their statement that risks to economic growth had 'increased appreciably.'' They next meet Sept. 18, where investors anticipate they will lower rates at least a quarter point."

"The Fed chief said earlier in his opening speech to the conference that the Fed 'will act as needed' should a sustained tightening in credit threaten the economy."

Labels: Construction Industry, Construction News, Construction Trends, Small Business Advice

You may be a plumber (or a builder, or an architect) but you have a second job. You're also a salesperson. You may love or hate this second job, but it a necessary part of any service professional's business. Every time you talk with a prospective client, you have to sell your services, your products, and your self. Project owners are inviting you into their lives and their homes or businesses. They want a company they can trust and who will do the best job.

The tricky part of your salesperson job is not the service you're selling. What makes it hard is how you sell it. Many tend to talk about the products and services they provide. They talk about all the features of a new countertop or replacement windows or a remodeled bathroom. They are actually selling... nouns. A renovated kitchen is a noun. A new roof is a noun. But you should focus on selling what your services and products will do for homeowners and business owners. Start selling verbs. Actions. Results. Solutions.

Replacement windows may have UV protective glass, brass hardware, and between-the-glass blinds but those are just the features of a particular product. Telling a potential client about the energy savings, the improved value of the home, the ease of cleaning and maintenance, and the beauty and durability of new windows will flip those nouns to verbs. When you let people know how their lives will be changed or that they'll be much easier, you've stopped selling and your started informing.

By providing a solution to a need or a problem, you'll make your second job as a salesperson much easier and maybe even more fun. You'll begin to think of your job as helping the people in your community and that's what being a service professional is all about.

If you're not already a member of the Construction Deal.com network, considering registering with our service for free. Choose your job categories and your work radius, we'll show you a past history of job leads in your area. If you're satisfied that we can provide you enough work, go ahead and become a paid member. If not, you can always stay a member for free until we get more business for you.

Also, you will be listed in our Contractor Directory - for free - as a service to all the companies in our network. This means you'll get exclusive calls, directly from people visiting our site, at no extra charge.

We do have a new plan that will put you at the top of Contractor Directory, if you're interested.

Labels: Contractor Advice, Sales Advice, Small Business Advice

The Department of Homeland Security, on August 12th, issued a new workplace rule that could affect every small business in the construction or remodeling industry. This new rule is a crackdown by the Federal Government to keep companies from hiring undocumented workers. It is called the “No Match” regulation and it means that your business has 90 days to match a new employee’s documents to those on file with the Social Security Administration. Failure to do so could mean fines up to $10,000.

This new rule could cause a lot of problems for small businesses. Many companies do not have the resources to follow up on all the human resources paperwork. They will need to make sure each and every employee not only has the proper documents but that the documents are authentic. It could also lead to discrimination lawsuits if companies fire workers who really do have proper paperwork.

The onus will be on contractors and service companies that hire employees to become masters of document checking and making sure the information matches what the SSA has in their database. If the government does find a person not eligible to work in the country on your payroll, it will still need to prove that you knowingly hired this person but it could prove expensive. So, for any new hire, your company has 90 days to verify their identity and eligibility to work in the United States.

Labels: Small Business Advice

More and more, contractors and service professionals have to rely on the latest technology. Computers, cell phones, PDAs, and the Internet fill our lives. Adding to the ever-expanding list, it would be wise for every company to invest in a quality digital camera.

Reasons to Get a Camera
A camera can be an important new tool for your business.

• You can take Before & After pictures for your website and your brochures.
  
• It would also be a great idea to take shots of details of each project - before, during and after - to help protect yourself in case a problem arises or if there is a dispute with your client.
  
• Photos can be used in your print ads - high quality shots can be inserted in yellow pages ads and door hangers.
  
• Digital pictures can be easily emailed to prospective clients.
  

There is a whole host of reasons to make the investment in a new camera, if you haven't already done so.

How to Choose the Right Camera
There are some very inexpensive cameras out there, but you want to consider what you'll be doing with it. Your new cell phone may already have a camera in it and it may be nice to email those pictures to family and friends but the overall quality and resolution is limited. It's not something you want to use for any type of marketing.

• Because you may be using pics on your site, or in your ads, you'll want a decent camera. Look for something with 3 to 6 Megapixels. The more the camera has, the more expensive they are.
  
• Look for decent storage if taking a lot of pictures before you can download them to your computer. Cameras come with 1 and 2 Gigabytes of storage these days. This will allow you to take as many shots as you want. You may take 100 pictures on a jobsite and only use 10 percent of them.
  
• If you need low light pictures, try to find a camera that has flexible ISO or low light settings and adjustments. Many have a flash, which can be handy, but a flash picture can get really "blown out" and not look great in print or on websites.
  
• Most of your shots will be done "hand-held." See if you can find a camera with some sort of image stabilization mode. This takes the shake and blur out of your pictures that are not taken on a tripod.
  

Types of Cameras
There are many cameras out there, from ultra compact (inexpensive) to SLR (professional), but your best bet is to look for a "compact digital camera". They are low priced and have good features to show your work. A compact digital is small and lightweight, which means you can keep it with you at all times.

How to Take Great Shots
Without going in to a complete photography lesson, here are a few quick tips to getting good shots on your work sites.

• The first tip is an easy one, but you'd be surprised how many people still do this -- keep hands, thumbs, and fingers away from your lens.
  
• Don't go wide. Many amateur photographers stand too far away from their subject. If you're a countertop installer, don't stand back and take a shot of the whole kitchen. Make one end of the countertop start just at the edge of your left frame and the other end of the counter stop at the right frame. Or, get even closer to show the detail of the countertop material with a sink and faucet in the shot.
  
• When taking shots with people, try to get them at about waist-high and up. Showing a full length person standing in front of the entire company truck doesn't really sell the personality. Waist or chest high shots, with the company van in the background work much better.
  
• Also, when it comes to people and pictures in general. Each frame is broken up into "Thirds." A top third, a middle third, and a bottom third. Look at any TV show or movie -- you'll see that all the actors heads are mostly in the top third. Their eyes are right on the line between the middle and top third. There is very little "head room" over their heads. Try to put the main focus of your subject near the top third.
  
• Make sure there is plenty of light. Open windows, doors, turn on lights, and use your flash if needed. A dark shot is basically a useless shot.
  
• Practice a lot. The more shots you take and new settings you try the better you'll get.
  

Labels: Contractor Advice, Small Business Advice, Small Business Marketing

Open up your yellow pages to your job category and you'll see ads from companies doing the same work as you, in your area.

They are your competition.

But how much do you know about these other businesses?

What kind of specialty work do they do? Are they offering coupons in the local papers? Do they do emergency services or work on the weekends? What kind of products do they sell? And the most important - - how much of your business are they taking away?

You probably only know a few answers to all the possible questions about your competition. You might not think it's important. You do your work and provide high quality services and products and that should be enough. But when any business is not aware or ignores what their competitors are doing they can easily find themselves passed by. The phone stops ringing and no new business comes in no matter how much they spend on marketing.

Other companies in your area will constantly be improving their services, their staff, the benefits they offer to customers, adding new ways to access their business, and new technologies.

Since it can be hard to really know what they're doing and how they do it, it might be a good idea to a little spy work. You can call them up, as a customer, and find out how they run their business. Ask questions and find out what services they offer and what products their using. You might even be able to find out some costs. You could even have a friend or family member set an appointment with a few local companies to see how they handle their sales pitches, what offers they have, how they do their presentations. Then, they can report back to you on what they find.

It could be that you have nothing to worry about, but it could also give you a chance to catch up with them before it's too late. Way back in the day, IBM sold computers.

What will they say your company used to do?

RELATED POSTS:
Providing Options for your Clients
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Labels: Contractor Advice, Small Business Advice, Small Business Marketing

Every day, my porch is littered with flyers from remodeling companies and other service pros. Most of them try to entice me with a major discount to get me to try their services. I'll see $500 off on a new roof or $1000 off a kitchen remodel. I might even see a Call This Week and Get $50 Off Our Plumbing Service!

The big problem with discounts like this is that it sets up an expectation. An expectation of continually low prices. A coupon or discount might work occasionally to get clients to try out your company. But the issue starts when they come back to you for more work or refer you to friends and family.

Those discounts could mean clients will always expect to get good deals from you which can really hurt those margins. If prices go back up or the next job doesn't include a deal, they could go elsewhere and use someone else's coupon.

Another side effect of offering a dollar discount helps perpetuate the problem. The Journal of Marketing did a side-by-side study of offering $100 off versus offering 20 percent off and found that the percentage discount lowered clients' expectations of future discounts. Both types worked to get people to purchase, but the percentage discount was less easily remembered.

In other words, you give a 10% discount off the total bill, instead of lopping off $1000, the client will not return to your company expecting better prices than your competitor.

Equally interesting was that the more odd the percentage, the less it worked. A 34% or a 22% discount was less effective than a 20% discount. You want to make potential clients work to figure out the amount off, but not make it impossible to do in their heads.

The lesson is - if you offer discounts, go with a percentage instead of a dollar amount and get a better return when clients come back and offer referrals.

RELATED POSTS:
Referral Sales
Top 7 Ways to Eliminate Your Competition
Do You Break Down Your Prices?

Are you a contractor? Service professional? Do you do any residential or commercial renovation, building or repair? We can help.

Are you a member of the Construction Deal.com network yet? As you can see from the advice that we publish from our registered contractors, we're interested in helping you succeed. How many other lead referral companies offer tips, advice, and customer service? Not many... The better your company does, they better the chance you'll stay with us.

Join today. Click here.

Labels: Contractor Advice, Contractor Pricing, Small Business Advice

As a contractor, you certainly have a lot of tools you use on a daily basis. You have one powerful marketing tool that you might not be taking advantage of - your telephone. Your business phone and your cell phone can do more than talk to clients. It can be a marketing communication device. That's a fancy term for saying that you're not always available to answer your phone but your phone can help bring in leads.

The Phone as Marketing Tool
While you're on the job, traveling, or unavailable to take phone calls, utilize your answering machines and your voice mail features. You can record more than just a simple message asking the caller to leave a name and number. This is an opportunity to remind potential clients of the services you offer, the benefits you can bring in to their homes, and the unique selling points of your company (special hours, discounts, coupons.) Your phone message can also provide fax numbers, web site addresses, and alternative phone numbers for better customer service.

Why is Your Phone Important?
It is usually the first point of communication with new customers. And you know what they say about first impressions. If they're not happy the first time they contact you, they may go elsewhere.

Customer Service with your Phone
Calls should always be answered, even if it is a recorded message. If someone is going to be on hold for more than 30 seconds, take a message and call them right back. Hopefully your phone system will have an automated attendant - use this for your marketing messages, but also make sure it is easy to use. Make sure they can "Press 0" to talk to a live person at any time. Finally, make sure your staffs know where you are and can contact you in an emergency situation.

RELATED POSTS:
Get the Contract Signed
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Labels: Contractor Advice, Customer Service, Small Business Advice, Small Business Marketing

Is your yellow pages ad giving you less and less return on investment? There might be a reason for that. As more and more women are making the decisions in the average U.S. household, most appear to be turning to the Internet to find what they're looking for.

According to Burst Media, "Over half of US female Internet users ages 25 and older say the Internet is their main research source," (published June, 2007.) "The Internet was named far more often than other methods. Around 10% or fewer of respondents said they got their information from 'asking family and friends,' newspapers and magazines, television or other sources."

Another interesting fact - even though women are using the Internet as their main source to research products and services, they are going to fewer websites than men. This means that they're checking fewer sources to find what they need (according to Frank About Women's Understanding Online Shopping Behavior Topline Summary.)

If they find you, are you grabbing their attention?

For contractors and service professionals, it's become very important to have a presence on the Internet. Most important would be to have a website. And not just a single-page site with your company name and contact info. If the main decision-maker in the household is using the 'Net to find services and do research, you should be there. You need to provide details about your company, photos, testimonials, and helpful information.

And companies still on the fence about Internet lead providers, such as Construction Deal, need to realize that this is where the business is headed. Nearly half of all the jobs posted on our website are from women. People have put aside their phone books and are going online to find what they need...

Will they find your company?

If you're not already a member, register for free today -- see how many leads we have waiting for you. Continue to review your account, at no cost, for as long as you want. When you're ready to become a member, just let us know! Call 866-663-4711 or join online.

RELATED POSTS:
Building a Contractor Website
Where Does Construction Deal Get Leads From?
Top 5 Ways to Expand Your Business

Some More Statistics from the Articles:

"Over half of women said they had shopped online in the past six months. Online shopping increased with household income. About half of respondents with annual incomes of less than $35,000 had bought something online in the past six months, while 68% of households with annual incomes of $100,000 or more had done so."

"Adult female Internet users typically visited four or more Web sites in the course of doing product research, while men used an average of nearly five."

* Source - eMarketer

Labels: Contractor Advice, Small Business Advice, Small Business Marketing

Have you ever received a call or an online lead and thought the job was too small for your company? For example, someone might want a small repair or a seemingly simply installation and it doesn't seem like it's worth the time or effort. While there will always some jobs that are just not for you, it would be a good idea to carefully consider every job.

In the construction and remodeling industry, there is the habit of only looking at each individual job and nothing else. But it's important to look at client and not just the job. If a client needs your services once, there's a good chance the client will need you again. And again. If people trust a particular service provider once, they will go back to that company again and again. Repeat business is the life blood of any company.

If a potential client comes to you with a very small job and you perform with excellence, you could have a customer for life. Sure, the initial job won't be worth much, but consider that you have made a connection that will include the possibility of more work and referrals. It might have cost you a lot of money to reach the potential client with the small job. Why not turn that expense into a long term relationship instead of dismissing it immediately?

The initial sales call or visit to the site could lead to an opportunity to up-sell to the client. They may not know what they need or you may discover a more serious situation. It could even be a chance to sell a regular service or maintenance contract.

I see a lot of ads for service professionals that declare "No Job Too Small" and I firmly believe it's a great way of doing business. You don't know how many doors each new lead may open for your company.

RELATED POSTS:
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Not a Member of Construction Deal?
No matter what size job lead you're looking for, Construction Deal can help! If your company is not even registered with us - for free - you may be missing out on new job opportunities. Register your services, at no cost, to see how many leads we have in your categories and in your area.

If you like what you see? You can become a member for a very low cost. If not? You can continue to monitor your job lead account for as long as you want. REGISTER NOW!

Labels: Contractor Advice, Customer Service, Small Business Advice

At Construction Deal, we're in the midst of a website redesign so I thought it would be important to talk about making sure you get your site right. As a small business owner, you either already have a website or know that you need one. But it's important to make sure your site is effective or it's a waste of time (and money.)

How is a Website Effective?
First, it draws people in. Your clients are bombarded by 3000 advertising messages a day. Add to that the hundreds of emails, text messages, and phone calls. So, they tend to filter, skim, and edit what they see and hear. You basically have 3 to 5 seconds to pull in potential clients when they come to your site.

Second, you need to let them know that you can meet their needs.

Not Just Design - Marketing!
For the first part, a quality website designer can help give you a professional and modern look. Make sure your designer knows marketing and not how to make pretty pictures and flashy graphics. The goal of the site should be to let potential clients know about you and how you can help them.

Include:

• Before and After Pictures
• Testimonials
• Plenty of Contact Information
• A Call to Action: "Call Now!", "Request a Free Quote!"
  

Sell the Benefits!
For the second part, you need to sell the benefits of your company. Whether you're a general contractor, a plumber, or roofing company you need to let clients know what you can do for them. Don't confuse this with the services you provide: "We install and repair..." or "We remodel kitchens and..." or "We Do Everything!"

Every other general contractor, plumber, and roofer probably does the same thing you do. You need to be unique - your website should let them know what you'll be able to do for them. And it should inform them while they should choose you over your competitor.

Some Examples of Selling the Benefits:

• Why Wait? Emergency Service to Your Door within 60 Minutes!
  
• Save Money - We Charge by the Job NOT the Hour!
  
• Don't just Keep Up with your Neighbors -- Surpass Them
  
• Increase the Value of Your Home Today
• Cut Your Energy Bills in Half AND Save the Planet
• Protect Your Home, Protect Your Assets... Protect Your Family
  
• Your Biggest Investment Deserves the Very Best

Look at the websites of all your competitors. How many just list the types of jobs they do. They may list business hours and contact information. But how many really let the potential customer know how their services will affect their lives? Very few.

Put yourself above the rest and provide a tag line or a bulleted list of all the ways your services and products will CHANGE potential customers houses, lives, and pocketbooks. They'll notice you and come back to you when you hit them on an emotional level.

Labels: Small Business Advice, Small Business Marketing, Websites

You've met with the project owner. You've viewed the site. You've discussed your company, your experience, and your strategy. You want the job. The trick is knowing when to pull out the contract. You want to make sure it gets signed.

How can you make sure the timing is right to close the sale? If you have done the following things, it's a good bet the project owner will sign on the dotted line:

You Built a Rapport
Trust is a great commodity. If the client trusts you, he or she will want you to do the work. This doesn't mean that you're extremely likable - even though you may be. It means you both share the same interests and values. Throughout the course of your sales meeting, you have found common interests that bring you together. That bonding builds trust. Trust closes deals.

You Became the Expert
During your inspection of the site, you've provided a smart solution. You may have talked about how you solved a similar problem on another job. You might have shown the current job won't be as difficult or expensive. When you prove you know what you're talking about, it also goes toward building trust.

You Generated Emotional Response
In any remodeling, building, or installation project you're dealing with fear. The project owner is afraid to invest a lot of money and is dealing with a ton of guilt. Part of your sales presentation is to sell the sizzle of the project. When you talk about how the project will change things for the clients and improve their lives or business, you're tugging on their emotions. Give the features of the product, as well as the overall project, but always sell the benefits.

You Spoke to the Need
The potential client agreed to hear your sales pitch. It means that he or she is interested in completing the project. There is a need or at least a strong desire. When you can ask questions during your meeting to find out what the source of the need is, you'll be able to reinforce how much the project will help meet that need. For example, the client may want to be the envy of the neighborhood. When you speak to that need, it will be hard to not get a signature.

You Answered the Questions
Finally, when nothing is left to be discussed and all the confusion has been cleared up, you should pull out the contract. If you leave anything hanging, your potential client may hesitate. You want to ensure all the questions have been answered before you close the deal.

RELATED POSTS:
The ABCs of Closing
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Are you a member of Construction Deal yet? It's free to become a member. You'll be listed in our Directory for free. You'll be able to review all the job leads we have in your area for free. You can also see a 60-day history of leads for all of your job categories for free. You'll receive more valuable information and news on the construction industry for free.

If you like what you see and want to contact the job leads we have for you, you can do that anytime you wish. Or stay a member for as long as you would like -- when you're ready to add a lead plan, we'll be here for you: 866-663-4711.

Here's what some of our members are saying about us:

"Thanks for letting us know how it works. We appreciate your leads. Your company has been the biggest asset to ours as we started up and continue our business."
- Nicole T. in Atlanta, GA

"I would just like to just take time out to thank you for all you have done thus far. You have been a great big help. I am looking forward to developing our business relationship more as my company continues to grow. Also there are a couple of more up and coming small business partners of mined that I have referred to you all and, they should be in touch with you!"
- James G. in Charleston, SC

"I'm very happy with the way your site works - We're getting plenty of leads. You only get so much space in the yellow pages and more homeowners are turning to the internet. Your site really helps them find a solid company."
- Chris L. in Madison, WI

Labels: Customer Service, Sales Advice, Small Business Advice

Finding new clients is expensive. That's not news. You have to spend money to advertise in the yellow pages, to make flyers, and to buy leads. All this just to let people know about your services. Businesses that succeed and grow don't strive to only find new clients. The goal should also be about retaining previous customers. You know these past clients well and you know they're willing to pay for your expertise because they have already done it.

How Do You Retain Customers?
Don't let them forget about you. If you have done good work for them and treated them fairly, that is a great start! But sometimes they may not think of you for their next project or service call. Whenever you can, set up maintenance contracts or schedule yearly appointments to return and inspect your work. When they sign their initial contract, ask them if they would like to receive coupons or discounts before you release them to the public. Obtain email addresses and send out a regular newsletter. A newsletter can contain "Before & After" pictures on a recent project, any new awards or recognitions for your company, and a list of tips for your clients about the service you provide.

Even sending out holiday or birthday cards and useful gifts (magnets, pens, T-shirts) will keep your name fresh in previous clients' minds. A lot of these tips can take up valuable time and money to see through. But consider - how much does it cost for a new ad in the phone book? These things do not need to be done every day or every week. Small segments of time can be taken up each month or each quarter to make it happen. You may be in the position to hire someone to help. To do so will more than likely cost less than attracting the same amount of revenue from new customers.

If you cannot manage any of these tips, you can still make sure they remember you. Provide your regular quality work on each job, but also give them excellent customer service and keep an open line of communication during every phase of work you do for them. They will remember you when they realize that you are not taking them for granted.

RELATED POSTS:
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Are you a contractor or service professional looking for more business? Construction Deal could be another tool in your marketing toolbox. Register with us for free to see if we have any job leads for your company, in your area. And bookmark our Contractor Update blog for additional tips, trends, and construction news.

Labels: Construction Industry, Small Business Advice

As a business owner, maintaining the reputation of your company is vital. In today's market, you should be concerned about more than bad word of mouth. For years, people have been going online to praise and condemn the services and products of a business.

With so much advertising and media overload, homeowners and business owners are looking online for reviews and recommendations. Do you know what is being said online about your company? A past customer could post a negative or false review of your business on a blog, a public forum, or even put up an angry video on YouTube.

What is scary is that a post, a comment, or review can find its way to the top of search engine results when someone looks online for your company information. It could cost you a lot of work. There are ways to protect your business online. You'll want to frequent sites where people might be talking about you: local forums, home improvement sites, and more. You should also set up a Google Alert for your business, using every variation of your company name (Google.com/Alert) and see if your company name is being discussed. You can also ask your clients to be on the lookout for any negative press they may see online. There are also online services that, for a fee, will monitor the Internet for any bad PR and will attempt to stamp it out (Reputation Defender & Naymz.)

If you come across any negative publicity, don't overreact. State your side of the story and encourage some favored customers to also post good reviews. You can also try to work out your differences with the complaining party. It can go a long way in having offending material removed.

Screaming and threatening lawsuits doesn't work. It will only make matters worse. There are 3 cases pending with lawsuits from contractors against consumers. It's very unlikely these companies will ever get any new business if there's a chance clients will be sued for giving their opinions.

Labels: Reputation Management, Small Business Advice