In the middle of this economic downturn, this is not something you may want to read. You know how hard things are, and you may be tired of this kind of rhetoric. You may also be familiar with the old saying “when one door closes, another one opens”. What I want to review this week is a simple fact that in any economic downturn, there are new opportunities are being created for those that are nimble enough to respond.
Welcome to 2013. The economic downturn is slowly getting better, and many remodeling contractors are beginning to see signs of a recovery. It has been a challenging 4 years. With lower real estate values and all the financial uncertainty, homeowners have been scared, and they have had reason to be:
Lower real estate values
I’m going to give you a valuable “tip” that will pay you not only for the time you spent reading this article, but provide you with thousands of dollars of ongoing value if you implement what is noted here. What I’m referring to is the use of a carbonless memo form to document meeting notes every time you meet with the homeowners you are working with. Let me explain what I mean.
If you’ve been reading this column for any amount of time, you already know I’m a big fan of Michael Gerber, author of the book “The E-Myth.” He summarizes the small business owners’ dilemma well: when any successful small business grows, and an owner finds themselves doing more and more things just to keep up, they inevitably find themselves at the point where they don’t own a business, their business owns them.
Marketing is a numbers game. The more people you can talk with, the more work you will sell. It’s a simple numbers game. You want to leverage and optimize the relationships you already have with homeowners, trade contractors and suppliers. You already know that. What I want to highlight hereis the opportunity to work with additional home service professionals who provide a raft of additional services to homeowners.
Why did past customers choose to work with you? Why did they decide to hire you, and what did you do during your selling process that made them a customer? They worked with you because there was something you did or said during the sale that communicated to them something that was unique that separated you from any other competitors. Whether you knew it or not, you may have communicated your “unique selling proposition”.
I use a day timer, and at the top of each page of the daily calendar, there is a quote for the day. I read one today that left an impression on me. The quote is from Mahatma Gandhi: “There is more to life than increasing its speed.” Every time I read it, it makes me pause and reflect for just a second. “Why am I pushing so hard?” What is the rush?” Everywhere around me, nobody has enough time. Too many things to do, and too little time. We are all running at high speed, like we’re in a race to get somewhere. The problem with this is that there is no finish line. What are we trying to win here, anyway?
I’m a big fan of Michael Gerber, author of the book “The E-Myth.” He summarizes the small business owners’ dilemma well: when any successful small business grows, and an owner finds themselves doing more and more things just to keep up, they inevitably find themselves at the point where they don’t own a business, their business owns them. Most remodelers would readily agree with this statement. As any successful company grows, an owner must be able to delegate day to day activities effectively to the responsible people they have hired. Company wide “systems” need to be created to provide consistent results (processes and outcomes).
The remodeling business is a relationship-driven business model. As homeowners invite us into their homes, we don’t just deliver a successful project, we also engage with every member of the family. Very personal and close interactions can take place on longer projects. We have the ability to create special relationships with the homeowners we work with. No other tradesperson or supplier has this type of “up close and personal” experience with their customers. This personal dynamic separates what a general contractor does from most other professional service providers, with the exception of the family physician. They too, get to know their clients in a very personal way.
Homeowners all have expectations when their job begins. The problems in remodeling begin when we don’t meet those expectations. We all get into trouble when we don’t meet these expectations. That said, here is a simple fact for every professional remodeler-we are in the business of managing homeowner expectations. Understanding this very simple fact is the basis for being successful in your remodeling business. Let me explain what I mean.