While not a new problem, sustainability is among the biggest challenges a business or its leaders are usually confronted with. It is especially difficult with limited resources but all the same, it can be overcome. For modern entrepreneurs, circumstances may keep changing but the fundamentals for growth will always remain the same. Here are five growth tips for renovation business.
No price undercutting
It is important in business to offer fair value for services but it is equally important to charge a fair price. Many renovators “win” a contract by slashing their prices which lowers their profit margins; typically covering expenses plus very little profit.
By doing this, renovators hurt their ability to hire good subcontractors and carpenters and turn to cheap labor. The quality of the finished product or job is thus compromised by price undercutting. Moreover, renovators will have to work 70-hour weeks just to stay afloat supervising cheap labor. To grow renovation business, one should look for customers interested in quality more than the price.
Every business needs to ask itself why it’s doing what it does. Unfortunately, most renovators don’t have a clean reputation. Word around for this image is unnecessary delays, lack of communication, expensive surprises etc. But if excellent, purpose-driven service is offered, word of it will still get around.
An original purpose allows for:
- Consistent focus
- Strong emotional engagement internally and externally with customers
- Continuous and pragmatic innovation
Authentic purpose gives rise to a company’s unique selling point which is products and services with value. Value enables better customer service which leads to happier customers and even greater referrals.
Partnerships and collaborations
Taking more than a business can handle is often damaging especially in areas where they lack expertise. This temptation, however, occurs due to high ambitions. In this current era, there is a lot of talented expertise around if a business knows where to look. It is in the global freelance market.
There are numerous marketplaces providing specialized resources which can be tapped into by way of collaborating with the providers or partnering with them. Low investment small projects can first be tried out to determine viability. Combining resources and authentic purpose will ensure any renovation business keeps growing.
Flexible and adaptive leadership
Our lives and organizations should be able to be arranged in ways that lead to long-term value creation which is one way of growing a lasting business. To realize this, leaders must become what the business needs for each stage of its growth. Since the needs of any renovation business change at each stage, leaders also need to keep evolving.
Adaptive leadership comes from being mindful of individual, interpersonal, and working relationships. Being mindful enables understanding of these relationships for better utilization in innovation and creating services that lead to customers.
Search Engine Optimization (SEO)
Approximately 80-90% of customers check online reviews first before making a purchase or requesting a service. Out of these, approximately 92% of searchers will choose a business on page one. The number one business on the first page will get approximately 40-60% of web traffic. These statistics point to the importance of search engines in generating business and long-lasting growth. Therefore, renovation business should invest and benefit from SEO.
Renovation contractors should optimize their website for search engines to maximize their visibility to their customers. However, SEO is not a onetime process. There are four steps to achieving it according to the Entrepreneur.
It‘s important for a business to be itself and not want to be a big operator than it really is. This will ensure resources are not stretched as well as the presence of transparency which customers value.