What moves are you willing to take to get ready for your future? Consider two parts of your business as you decide what to do. Look at both your target market and cost of doing business. (Part One, yesterday. ).
Look at your target market!
What types of customers have you built your business with? Do you have a short list of customers you have targeted to obtain new or repeat business from over the past several years? What other customers have you ignored as your backlog has stayed full? Which customers need what you offer even as the economy might slow in the future? What other services can you do for your existing customers? Which potential customers will gladly consider your company to be on their bid list?
I have noticed I am getting a lot more phone calls from new subcontractors seeking projects to bid. They cold call and ask if they can get on our bid list. There is kind of a desperate tone in their voices. They have to get work or they’ll go out of business. They aren’t looking to build a long term customer base. They’re looking for work to survive until their regular customers call them again.
Before you start blindly calling every new customer target you can think of, have a strategic plan of attack. When I get those cold calls, the salesperson doesn’t have a clue about our company or what we specialize in. Research your targets. Find out what kind of work they do, how they do business, and how your company can help them meet their goals. Pick only potential customers you want to create long time relationships with. Building and growing a loyal customer base takes time and commitment. Not a short term fix.
To enter a new target market, you’ll have to convince potential customers your company is qualified and experienced in the type of work you’re proposing on. You’ll also have to demonstrate how your company can help new customers build faster, better, or cheaper than the subcontractors or contractors they are using now. Be ready to show how you can solve their problems and become a team player. Show them you are in it for the long haul. You are not there to just get on their bid list. You are there to build a relationship and you know relationships take time.
Also consider what other types of project types, locations, sizes, or services you can go after. If you are in the heating and air conditioning business, why not offer monthly service as well? If you specialize in building new commercial projects, consider offering development and construction management services. If you are a drywall subcontractor, consider adding metal stud framing, acoustical ceilings, insulation, painting, and door installation so you can become a full service tenant improvement contractor.
For more, Part One. Part Three, Tomorrow!
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