A Great Balance of Residential, Commercial and Governmental Revenue Can Increase the Value of Your Business & Profits
At the HMI Discovery and Training Seminar we often encourage new entrants to concrete lifting and leveling to think in terms of building a balanced business. Residential work can be looked upon as meat and potatoes contributing to ongoing revenue at the maximum margin and with the fastest payment terms supporting cash flow needs. However, gold can be found in different segments where individual jobs can be larger and recurring.
WHERE TO GO & HOW TO START
I have often been quoted as saying “if you don’t do something – don’t expect anything!” This again applies to expanding your business beyond residential work. Start by denoting segments you think you want to attack and doing some preliminary research/guessing on the size of the market in your area.
SEGMENT DECISION MAKER MARKETING APPROACH
Warehouses Property Managers List Development & Demos
Municipalities DOT/Engineers List Development & Demos
County DOT/Engineers List Development & Demos
HOA’s HOA Presidents List Development & Intermediaries
Retail (Malls/Strips) Property Managers List Development & Demos
New Construction Developers/Builders List Development & Demos
ANTICIPATING DIFFERENT RULES
Depending on the sophistication and scope of your new prospects and your prior contracting experience you may run into new challenges and costs of doing business. Examples include:
- Requirements for Complex Bid Packages
- Requirements for Retainage
- Bonding Requests
- Requirements and Scrutiny of Errors and Omission Insurance
- Fixed Bid Pricing Demands
- Specialized Contracts
- & MORE
Here is where HMI can again help. When you encounter a new demand call us. There are good odds we have seen it before and can help.
AGAIN – ITS ABOUT WHO YOU KNOW & REFERRALS
Like residential, very often commercial and governmental jobs come in as a referral. Working the intermediary lists and taking steps to promote your capabilities can pay dividends. Below is a starting list of actions you might want to consider to get the phone ringing:
- Search Google for “Trip Hazard Attorney’s” in your area. Write them all and introduce your solution to eliminating their client’s problems.
- Search “Commercial Property Managers” in your area. Many large commercial and retail facilities now “outsource” property management to specialists. Find the largest in your area and call them directly to schedule a FREE DEMO.
- Use your local market knowledge of the “largest” facilities in your area. A university or a mall is a great example. Contact their property manager and schedule a FREE DEMO.
- Contact the local municipal and county DOT managers and schedule a FREE DEMO.
- Research HOA Presidents in your service markets: (states maintain lists and lists are available for purchase). Consider a direct mail campaign to these targets. (TIP – local commercial insurance brokers can also help here since many sell blanket liability coverages to this segment.)
- Research State DOT conferences/shows. Many states have meetings for DOT specialists. Sign up and offer FREE DEMOS at the shows.
- Contact every other contractor you know who services your target who can REFER YOU IN!
ONE SENTENCE SUMMARY
“If you don’t do something – don’t expect anything!”
Paul DelFino is a principal of the consulting firm Opportunity Inc. For nearly two decades he has assisted entrepreneurs in growing their businesses, responding to economic downturns and merger and acquisition activity. He has consulted with HMI and RaiseRite for over a decade. His publications include “Avoiding Skewed Entrepreneurial Strategies” available from all on line booksellers.