Starting out and looking for some general advice on marketing/drumming up business
Hey all,
I’m relatively young (32) and have started a small construction company. I’ve been working in the residential carpentry field for most of my life and have done it all from sweeping jobsites to supervising entire jobs, hiring/firing, swinging a hammer, layouts, etc. etc..
My foray into starting my own construction company started almost accidentally. I built an addition on to my sisters house and her visitors were impressed by the work and asked me to do some work for them. That led to me taking a job gutting an entire cottage to the framing and rebuilding it.
I really do love the business, the trade, the interaction, the stress and the headaches. When my plate is overflowing I feel very much alive. I love problem solving on the fly (last minute customer colour changes, material delays, etc. etc.) and I am doing well at managing it all effectively when things do go wrong. It’s not often things go wrong but when something is not on schedule I can deal very effectively.
My “customers” thus far have been very satisfied with the work of my crew and myself as I really do strive to produce the best work budgets will allow (some of my customers had smaller budgets than others) and I go the extra mile if I can.
With all of this being said and the construction season in my neck of woods bearing down FAST I’m curious as to drumming up some more work and some marketing tips that the “pro’s” might have.
Is it appropriate to ask my past clients for referrals or testimonials? Would an ad in the local (only one actually) be productive?
I really would like to make a go of this because I would like to provide secure continous work for my crew and I just really enjoy the work. I want more of it!
Any and all tips, advice or ‘real talk’ is welcome and much appreciated! I love working with older folks and learning from their experience and I enjoy the ideas of the younger crowd as well.
Thanks for your time!
Thomas, New owner of Indian Line Construction 🙂
Replies
By all means, mail letters to your former clients, with a simple flier, asking them to refer their friends/neighbors to you. No one should be offended/put off by this.
Thomas
Best of luck in your endeavor.
Nothing beats the direct referral from a prior customer. They do the prequalitying for you. You'll find that their leads produce a higher return of jobs hired because their prequalifying has also been taken care of. Don't mess up on the first one, and you'll reap the benefits for many years to come.
There are some methods that you can use to keep your name in the minds of your previous customers-gift card, bottle of wine, a framed picture of something interest specific to your client, if you also like photography. Something as simple as your real nice business card affixed to a magnet if you see their refrigerator decorated with "frig art".
Yard sign-not the generic, but something real nice if the project is of more that a few days-you'll want to become familiar with local sign ordinances so it doesn't get confiscated or look out of place. This will be an indirect referral in that specific neighborhood.
Good readable truck signage might help, tho every tom (sorry) dick and harry now can be on your call list.
Door hangers to remind the neighborhood that you are working on the block-on them your talents and maybe a brief blurb apologising for and requesting information regarding any incovenience your job might cause. This is nice as it puts your resume in their hand while also showing your caring attitude in your business.
It's nice to be able to pick and choose what jobs you take. Even nicer to not have to. Nothing beats the direct referral.
Take anything that comes down the road at the beginning. Nothing will get you jobs faster than being on the job. Have your name and number on your vehicle and maybe a yard sign.
Network with other contractors and you'll find some work that can be subbed to you.....there is always someone with a project even in the worst of times. When I moved to Reno a few years ago in the bottom of the worst recession in one of the hardest hit areas of the countyry it took a long time to get in with some of those types, but it has paid off.
Look to the money....not the largest numbers of projects. In Boise everyone was going broke on new construction, and most remodeling wasn't much better in the hard times, but there were always well paying jobs in a small niche in the historic distric popular with professionals....the 100 year old houses often needed major improvements....a small job often turned into larger jobs for that client and refferals to friends needing major remodels. For those skilled at that game there was always work. Now in Reno the money isn't there, but in other small pockets. Some big projects up at the lake (Tahoe) have fat budgets and pay well, other smaller jobs around the lake can pay well, but in town there are clients who appreciate good work it's just a matter of finding them. Advertising, even craigslist, can bring one person in a good niche who leads to another and another. Retired school teachers and others aren't as impacted by the recession and many appreciate good work....again small jobs turn into big ones.
If I was to knock on doors I'd do it in cul de sacs....a higher chance everyone knows everyone and one small project can lead to other large ones. Same goes for gated communities, or anything with a homeowners association, especially around a golf course. Think "follow the money" and you'll do good, especially if you have any personality at all. If you dress like a slob, clean up your act....in general get used to networking so talking with clients is easy.....
Network....go to networking events as practice if nothing else. I was just at a networking event and came away with a few great leads.... Even if you hate facebook get used to it....add everyone you can and once in a while drop a hint of what you do.
The first thing I have done when moving to a new area is to call every licensed contractor in the area....do that every week and it wont take long for people to remember your name....and they know you're persistent and will start to give you small jobs to try you out....then larger ones.
I've never had any luck whatsoever with mass mailings but it might be because I don't do it much. Don't forget to be creative with craigslist. Put ads for doggie door installs in the pet area, about garage construction in the automotive area, etc. One good carp can almost be kept busy off of cl alone if you do it right - a buddy of mine has done just that.
Check on building permits - check out the projects and ask around for the person making hiring decisions....often it's a matter of being in the right place at the right time.....the more you put yourself out there the more lucky you'll get.
If a new business relocates to town, try to get your name to the executives moving to town - they often want a new house remodeled somehow and they won't know anyone in your town.
I think you get where I'm going......
Good luck!
Wow! Those are some great tips! It appears I was getting a case of tunnel vision just doing the same old thing. Thanks a lot man for the tips, I really appreciate it!
Starting Out
Tom,
signage, Keep the signage neat clean and to the point, no excess wording
i.e.: Co. Name Town, State, zip Phone Number w/ Area code Licensed Insured
Don't put your license # on the sign unless it's mandated by law, It's been known to see your number appear where it doesn't belong (someone else's sign for instance, rare, but does happen) On the business card : same info but include your name and the Co. address (get a PO box for the business if your working out of your home) also include some short info about what services you offer, keep it short e.g. remodeling, additions, decks......also include your license # on your cards. also maybe a small graphic (an Indian head? ) or something more generic, but you can brand your Co. with a simple recognizable graphic.
Get letter head, envelopes,numbered labor/services invoices, envelopes and notepads (5 1/2 x 8 1/2).
Co. name, complete mailing address, phone number,and your name on letterhead.
Co. name,complete mailing address, and phone # on note pads
Co. name & complete mailing address on envelopes and invoices.
Don't just take every thing that comes along, be picky trust your gut, if the job isn't something you plan on doing continually don't do it now, keep your standards high. If the customer gives you bad vibes, refer them to some one else, be polite, tell them your too busy, can't get to them for 6 mos. and then give another contractors name, TRUST YOUR GUT!
Do give specific bids. Spec. out what the H.O. will supply, what you won't supply, subs and who will hire them and what they will be responsible for, an estimated time frame. You don't have to give line item pricing but do give progress payment schedules and the total cost for the job. Make the final payment as small as possible 5-10 % depending on the contract size, be as specific as possible on time frame for progress payments so there's no "wriggle room" on the customers end. The more you put on paper the less likely there will be any problems later. Use change orders! Keep a paper trail!
Don't just put hangers on the door knobs of neighbors, knock on th door and introduce yourself, tell them you're working on so-and- so's house and if they have any questions or concerns to contact you directly ( give them your personal cell # , not the office number) Have potential cusomers call your office number (on your business cards etc.) but don't give them your personal cell other than this peticular situation, as they can waste a lot of your working time. answer sales inquiries in the evening from the answering machine on the office number or use an answering service. Have an office number for all your signage, leterheads business cards, etc. and then your own daily use cell number, you can give that number to clients once they've signed a contract.
Good Luck!
Geoff
I'd also add that when it comes to competing with other bids, you can choose to not play that game and avoiding wasting time on a bid that is just one of maybe a dozen!
If I knew I wasn't going to be able to compete on price, had the ability to start right away. and felt the clients didn't know better and were going to go with the low bidder, I'd feel confident in giving a ball park estimate and hourly rate and saying I'd start that day! Closing the deal can mean many different things in different situations, but what it comes down to is getting the client to start the project with YOU. It's not a hard sell, but it is asking for the job and getting them to agree to let you help them.
I had one complicated job where many other contractors submitted detailed bids ranging from $250k to $290k. I said I don't know how much it is going to cost, but after we're done we'll know exactly what it takes to get it done quickly and done well. 100 year old houses are full of unknowns and all contractors add large fudge factors to cover those hidden costs - if we were lucky the client would pay less than any of the other bids. Also pointing out that the fine print in many contracts assumes exsisting plumbing, wiring, mechanica, and framing is up to code and if not will be fixed at a high hourly rate is a sure way for them to go over, maybe way over, a bid price. It took maybe two minutes to simply say I charge $xx per hour for carpenters, XX% markup on all out of pocket expeditures, and consumable supplie/toolss that will be charged to the client are anything that will be used up during the process or are purchased specifically for the project but will have little value afterr the fact (in a long remodel it's not unusual to run a new shopvac into the ground), clients will pay on a weekly invoice every friday at the end of business and prepay for the next week's material purchase estimate. It's not true that banks won't do weekly draws on a construction loan - if a client's bank won't I simply say that the additional fiancing to make my payments inbetween draws is up to them. In the end, this job ended up costing the clients more than their low bid and less than their high bid, but they got much more bang for their buck with me since we changed a great deal of things on the architects plans (for the better).
Make good friends of every architect you can....I worked for an entire year on referals from one architect alone. I've known contractors who focus almost 100% on smoozing architects for new projects - if you are comfortable and professional around them this can be a good way to go.
Keep your ears open and network with new people not just the same people you always talk to - on st paddy's day I sat at a casino bar for a cup of coffee and after asking what the bartender liked and didn't like about the bar we talked a while about some bars I had recently built and whatnot....it came out that there's a large remodel of another bar in the casino planned soon....a quick talk with a few key people and tomorrow I'm meeting with the general contractor in charge of the design and construction of the bar - maybe 800 billable hours if it works out. Talking with guys who know guys and one of them is on great terms with the general and will personally introduce us and vouch for our work. All this before any other cabinet builders even know the remodel is in the works. In passing it was mentioned to another general that if we could use a vacant building attached to his project as a shop that we'd be glad to do some small projects for him in appreciation of letting us use the space - almost free shop space right next to where this bar remodel may happen. All the pieces of this job are coming together thanks to a cup of coffee in a bar I hadn't been to before. :)