« July 2005 | Main | September 2005 »

Specializing in Small Projects

August 21, 2005

Author & Date: Wendy A. Jordan 12/2004
Publication: Professional Remodeler
Article Link

Many contractors have a department of the company that handles service work and small projects but rarely do you find a company that actually specializes in service and small projects. Often a company starts by doing larger projects and the service is treated like an add-on department. This profile of D/R Services Unlimited shows that a company can be built around small and service projects with the larger projects treated as an add-on and why this may be a good strategy to think about. The downside to service work is that you have to deal with hundreds or even thousands of small jobs, marketing to find new customers, dealing with customers, problems, invoices and collections over the course of a year.

OK, now look at the HUGE upside advantages: Your revenue and profit base is diversified over many customers. If the work is primarily service based then it is not as cyclical as large project work. The work is not going to be as price sensitive as competitive, large project work so your margins can be substantially higher even considering the higher overhead costs required. Cash flow is much better because you have smaller amounts of money coming in from a diverse group of customers so a single bad job, claim or other dispute will not impact your company. From a marketing standpoint you touch a lot more customers and get your name out in the community a lot more and that leads to more business.

Utilize this article just for sparking ideas about whether a service department is right for your organization or if your existing service department is getting the attention and results it deserves.

Posted by David Brown at 01:11 PM|Permalink | TrackBacks (0)

digg digg this del.icio.us del.icio.us reddit reddit Furl Furl
Spurl Spurl Blink List Blink List Simpy Simpy BlogMarks BlogMarks

Marketing for the Long Haul

August 16, 2005

Author & Date: Stanley F. Ehrlich 03/2003
Publication: Luxury Home Builder
Article Link

This is a common theme across almost all small and medium sized businesses. The owner usually got started by being technically good and was the Chief Marketing Officer that got the company started. As the organization grows the owner starts spending more time focused on operations and less on the marketing. Even later the owner starts spending most of their time focused on the other aspects of running the business such as the multitude of employment laws, taxes, compliance issues, internal operational items such as accounting, payroll and purchasing. The duties of marketing are usually some of the first to be handed off and the amount of time the owner spends focused on marketing usually becomes less and less the more the company grows.

This article is focused on the homebuilder and hits the very basics but is applicable to every service business. It will help you regain your focus on marketing and brand building and why those things are the most critical functions in your company regardless of what the daily fires are. You started your business by marketing and getting the best jobs. Use articles like this to spark thoughts and motivate your team to refocus on the important, not just the urgent.

Posted by David Brown at 05:05 PM|Permalink | TrackBacks (0)

digg digg this del.icio.us del.icio.us reddit reddit Furl Furl
Spurl Spurl Blink List Blink List Simpy Simpy BlogMarks BlogMarks