8 MARCH 2021Many contractors find or develop a niche in their market, but that market may be a moving target. The local market might change, expand or contract depending on technology, product development, the economy, and customer demands. You should consider every request for an estimate or proposal as an opportunity to gain insight and monitor the market's direction. The consumer may be better educated and exposed to new products that you might not even be aware of, and they'll typically base their buying decisions on that exposure when requesting an estimate. Think about this as research that for all intents and purposes is done for you and, if used wisely, can help determine the trajectory of your company and even present an opportunity to grow. When planning for expansion, or when an opportunity to expand presents itself, keep two goals in mind:1. It's logical to expand based on your strengths and the kind of work you are best equipped to handle and do best. Network with your current customers to try and connect with prospects that are in the same line of business as they are, (perhaps its gas stations or convenience food stores for example). Because of your familiarity with this type of work, you'll be able to estimate more accurately and increase your chances of getting the job. Your reputation and expertise will precede you. Having a crew and a vehicle equipped to specialize in this type of work will only serve to further your effectiveness and compliment that reputation. Some of the factors to consider when planning for expansion are, financial gain, profit, economic benefit, equity building, and effective asset utilization.2. Identify which areas of the industry are growing, and get there ahead of the competition. Being at the forefront not only gives you the opportunity to make higher profits, but it also helps you establish a longer track record of expertise in this new growth area instilling confidence in your customers. Recognize and take advantage of the fact that there are manufacturers and distributors of these new products and specialized items that will be glad to provide training on installation and service. Sometimes, this type of training and or demonstration can be accomplished at the same time you're on the job doing other, more familiar work. Determine the dollar value of the jobs you can do efficiently. While the dollar range is important, you must consider all factors including labor, material, overhead, profit and taxes. The markup, material/Expansion, Growth, StabilityMike Holt, CEO at Mike Holt Enterprises, IncCXO INSIGHTS
< Page 7 | Page 9 >