More often than not, I am sat in forums or scouring the internet, looking for new and innovative ways to grow my plumbing and electrical businesses. The internet is such a fantastic place to learn new things. More often than not however, I find either very misguided advice, or none at all. If you took the time to pour through the pages I have, you will find the regurgitated spew of 'provide a good service and your reputation will spread', or the infamous saying of 'word of mouth is the best form of advertising, I have never even put up a poster!'
It can be described as frustrating for a one man operation to hear these words when he is looking at taking his contracting business to the next level of growth and profitability. Sure, there is truth to these sayings, but what happens when the phone is ringing off the hook, and your inability to manage a business creates a scenario where you are unable to service your customers effectively? What happens when the workload dries up for 3-6 months? This is where we see fantastic contracting businesses fall, a victim of their own success. This blog hopes to address these issues, helping small businesses reach their full potential.
But you may be asking how to get yourself to the point where your phone is ringing off the hook. What are the smartest ways to ensure you are going to receive more work down the line? This is a very difficult question to answer. Many people are divided, but here is my opinion:
Your Business
As a one man business, you need to try and take a step back and separate yourself from it. What I mean by this is you need to spend as much time working on the business as you do in it. Most one man businesses get involved in a set routine, and don't spend the time looking at new ways to grow. You need to take time and assess your cashflow, set targets and goals and look at different forms of advertising / marketing opportunities. Separate yourself from it and ask, in all honesty, is it a good business? If this is out of your skill / time range, you should consider joining a franchise and see what opportunities / administrative assistance they offer. As good as you might be at your profession, there are people who are good at theirs and could make this a lot easier for you. Don't be shy in allowing other people to handle some aspects of your business. If you are going to grow, you will have no choice but to allow this to happen.
Competitor Analysis
This is one of the most important aspects you need to get a grip on before you start with your own development. While the jargon might seem a bit intimidating, it is a rather easy process. Simply take out a piece of paper and a pen, and write down your competitors name. Write down the forms of advertising / services that they offer, and ask yourself if you could emulate that, and how it will fit into your cashflow. Do you think the ROI will be worth it? Find out what your competitors are doing, and you can not only emulate their success, but minimize the hiccups that were no doubt had by them while growing. Do not be afraid to get in touch with advertising companies to get quotes on certain packages and see how you will be able to implement it into your business. In order to get the customers you need to address why they are calling your competitors over you. What can you do to change that?
The Internet
It is almost a guarantee that all your customers have access to the internet in one form or another. Never before in the history of business has there been such an opportunity to engage your customers like there is now. Try reaching them on a more personal level through newsletters, advice and promotions. You could offer a discount for any customer that likes and shares your Facebook page or adds you to their circles on Google +. These can be such a great way for you to reach potentially thousands of customers for slashing a few bucks off the price. It is also a great way for people to indirectly recommend you to their friends and family.
Traditional Marketing
Obviously this cannot be overlooked. Your traditional marketing campaigns should include things like:
- Business cards
- Posters
- Newspaper Adverts
- Radio and Television (If it falls in your budget and gives a positive ROI)
- Flyers / Calendars / Stationery
If you can effectively combine your internet marketing, traditional marketing and reputation (Which the evangelical forum gurus have been waiting eagerly to hear), you should be in a strong position in regards to workflow. Now that you have put in the ground work, and there is a consistent stream of income, you need to take a step back and realize that it is not reliable. If no work came in for 3 months, could your business survive? Could you keep all your staff going for 3 months while you waited for the big contract / tender to start? This is a very extreme case, and more than unlikely if you have done everything above correctly, but if the answer is 'no', then you are doing something wrong. Again, this is where you need to take a step back and reevaluate where your business is. Here are some tips in regards to handling your workflow:
Outsourcing
When the workload starts picking up, you should only spend money that is recuperated through the additional work. Try to minimize both risk and financial outlay through finding a good partner to outsource too. Through this you can have both a steady form of income and have no risk in regards to work drying up. From personal experience, most guys are happy to give a 25% split on labour costs. Try and save this money, and put it towards new vans / staff.
Franchising
One way to take advantage of your reputation as a business is to offer a franchise for other regions. Possible candidates could benefit from your positive web rankings as well as the strong business knowledge you have acquired through getting to where you are. This will also create a steady and reliable stream of income for months to come, and could be there to bail you out when you have tight months. However I would once again strongly recommend that this money is saved and used later down the line to grow your business.
Other Forms of Income
Your plumbing / electrical company doesn't need to have a strictly plumbing / electrical division to it. There are great advantages in regards to tax and security in looking into other forms of income. These are a few suggestions you could implement around your growth as a company:
- Adverts on your website
- Writing articles for advice websites
- Online consulting + Training
- Buying and renting out of property
With a lot of hard work and patience, there is no reason you cannot be where you want to be financially in a few years, using your plumbing / electrical business to get you there. The trick is to stay honest and maintain your same standard of ethics from start to finish. I wish you the best of luck, and I look forward to someone honestly benefit from my advice. If you do, please let me know!
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