Contractor Update

Some common questions received at our customer service center involve how we get our leads, whether leads are real, and how the whole process works. I think there may be confusion about how the Internet is fast-becoming the method of choice for homeowners to find service professionals.

Many contractors are spending a large portion of their advertising budgets on phone book ads. And it is a good idea to make sure your company is listed and in the public eye. But contractors may not be aware of how many people are using the world wide web to fulfill their needs.

If their need is a new roof, plumbing repair, or landscaping services, more and more people are going online. For example:

• Nearly 95% of all airline tickets are reserved or purchased online.
  
• Online sales during this past holiday season were up 25% while brick & mortar stores had only a modest increase in sales (close to 5%.)
• 98% of homes in the high income bracket have Internet access.
  
• People are spending more time on the Internet than watching television (averaging 8.9 hours per week in 2006.)
  
• As of December, there are 211 million people online in America. This is more than 3/4 of all Americans over age 12.

All this means is that people are searching online for information, shopping, planning, and looking for help. They're coming to Construction Deal to find companies to help with home and business remodeling and repair projects. There are several services that can provide you job leads. However, Construction Deal is one of the few that verbally qualifies leads to make sure we have the right contact information, that the property owner is truly looking for help, and helps keep them informed of the process.

Here are some more interesting stats about online usage:

• For the first time, more women are going online than men. And, women now make 75% of all the home remodeling and repair decisions in the modern household, as of 2006.
  
• 68.5% of users consider the Internet a very important or extremely important source of information for them - up from 56.3% in 2005.
  
• The number of online purchasers has risen to it's highest percentage in any studies of the 'Net. Over 51.1% of Internet users have made a purchase online.
  
• Homeowners are using the Internet at work for personal reasons, which explains why many are posting jobs through online services, like Construction Deal and not using their yellow pages. 85% of Americans can access non-work related websites while on the job.

Our renovation, home repair, and new construction leads have come to us online from all over the country. You can tap into our knowledge of the Internet to provide you additional jobs to help your revenue grow and your business expand. Some online services may promise you a lot of leads but never qualify them. Several online services even charge you for leads without letting you review them. Many make you buy a minimum number of leads. We do none of these things. We may not have as many leads as they do -- at this time -- but we provide stronger leads than any other service today.

And we're continuing to add additional resources to bring in more jobs for our network of members. If you're interested in becoming a member to review local leads, you can join for free. If you're satisfied with the 60-day history of leads we've had in your area, you can add one of our premium plans to your membership to get the contact information for all current and new leads that continue to pour in on a daily basis!

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

Would you like free advertising? Free publicity? How would you feel if you could hear your company's name on the radio, in print, or even on television at no charge? There are ways to make this happen but it will take some initiative.

Whether you live in a small town or a large city, it is a great idea to become an expert on your segment of the industry. I don't mean that you need to take classes to get better at your job. I'm going to assume you already know how to do your job and do it better than your competitors. When I say "become an expert", I'm talking about selling yourself and your abilities by letting people in the media know you're the expert. If you're the best and no one knows it, does it matter?

If your local newspaper has a Home or Real Estate section, take the editor out to lunch. Let the editor know you're the expert in your construction, remodeling, or repair field. Let the editor know you'll pass along information on trends you are noticing or news you've heard. Become a source of story ideas. Let the editor know you're available if they need a quote or statement on a breaking news story. By keeping that relationship up, you'll find your name and your company's name in print on a regular basis.

Create an audio tape with you answering questions on your specialty. Performing can be a daunting prospect but if you practice, be yourself, and talk about what you know you might be able to create a credible audition tape. Send that tape in to your local talk radio station - they might have a time slot to fill and have an interest in airing a home improvement show.

Here's an example of a local expert - on the radio station KOST FM in Los Angeles, they have an "Experts on Demand" on their website. The designer for Zeffrey's Custom Woodwork is interviewed on getting the right custom cabinets installed.

If you're not interested in performing "on air", you might be able to write a newspaper or website column. If you know you can write about your job, answer questions, and inform readers it could be a great way to gain free publicity for your company by being an expert in your field. Construction Deal even has several website blogs where you could pass on information to our readers. It gives you a chance to show and share your knowledge and give free publicity to your company. Joe Welch of Stained by Design has provided us with several articles on acid stained concrete and it has sent a lot of business his way. Here are a few samples of Joe proving he's the expert:

Acid Stained Concrete Flooring
More on Acid Stained Floors
Exterior Care: Acid Stained Concrete

If you'd like to contribute to one of the Construction Deal blogs, please let us know. The more the homeowners know about what you do, the easier your job can be. And if you can gain free publicity out of it, that's even better. Once people consider you to be the expert, they will continue to come to you and ask for you help. It's a great way, if you can make the time, to expand your business!

Here's a sample of the other blogs that could use contributions from contractors and service professionals. Take a look at them and see if you have any advice or expert opinion to offer:

Find a Fencing Contractor

Find a Renovation Company

Find a Brick Installer

Find a Roofing Contractor

Find a Countertop Company

Find a Kitchen Remodeler

Find an Electrician

Find a Flooring Company

Find Fire Sprinkler Installers

Find Home Technology Installers

Labels: Advertising, Publicity, Small Business Advice, Small Business Expansion

As a small business owner in the construction industry, you might be considering ways to expand your company. Expansion is not for every company. However, if your business has maintained steady profitability, your service area has potential for growth, and you have systems in place to handle the growth then it might be time to expand:

1. Add a New Service - If you're an electrician, you might consider adding low voltage installations to your list of services. If you're a residential remodeling company you could include home additions as an avenue for growth. The great thing about adding a new service is that you have an excuse to promote it. You'll be able to contact every past lead and every old client to let them know you now offer new services. It could lead to more business and more referrals.

2. Expand Your Market - If you currently work in one city or one county, you could expand and advertise in new locations. Many conduct business near another state -- it makes sense to get licensed in that other state and offer services there. It could mean hiring another crew or adding additional vehicles to cover the new ground so having available financing could be an issue. Increase slowly to test the waters and pull back if it's not feasible. You may end up doing well in a new market because those customers may be sick of or tired of their choices of service professionals in their area.

3. Open a New Location - Similar to expanding to a new market, you might consider opening an office or hiring a crew in a new city or state. You'll need to focus your marketing efforts in that area as well as maintaining your current marketing projects for your area. It will also mean frequent travel to the new location to ensure quality of work. Pay attention to advice from any crew you hire because they'll know more about suppliers, competitors, and potential clients.

4. Partner Up - Merging with another service competitor or a company in a different line of work could provide an increase in market share. Another company may have a lot of great workers, tools and equipment, and a long list of referrals but is being poorly run. By acquiring a company in bankruptcy or merging with a strong competitor, you can quickly expand and maybe even double revenues in your area. There will always be problems of merging technology, management styles, and visions for the business. Make sure you have an exit strategy if the alliance does not work out. Have that strategy in writing in the form of contracts.

5. Work New Categories - If your company only focuses on commercial work, residential work, or contracts with the government, you might consider expanding into one of the other categories. It's certainly not an easy task to make this sort of switch. It is not a fast transition to make because it requires extensive retraining, retooling, and better infrastructure for the business as a whole.

Whenever you're planning to change your company by expanding it:

- You need to make sure that you won't be affecting your current business or quality of your work

- You have financing in place to handle the change

- You have employees with the right skills to handle additional work and paperwork

- You are ready to delegate work to others and that they're ready to handle higher demands

- You have the support system to handle any length of transition to your new business model

Labels: Business Expansion, Small Business Expansion