Developing An Action Plan For 2010
There has been some positive movement in the market over the last four months and
some are saying we may have finally hit the bottom, but we are still not out of the woods. This economy still has many construction companies worried about their businesses. Consumers are still uneasy and not making major purchases due to depressed home values, rising unemployment and stricter lending practices.
This recession has created a new paradigm shift in how consumers will buy moving forward. Price is now the top priority with many consumers and the result is a move away from larger home improvement projects. This shift away from larger projects continues to plague many builders and remodelers. Many contractors have worked hard to cut costs, continue to market for new leads and in certain areas of the country have struggled to keep their doors open over the last year.
This challenging environment along with running a company in survival mode can make it difficult to focus and plan for the coming year. If you have not started planning for 2010 now is a great time to start. Many businesses have plans that outline goals a year, three and five years out but today it is important to focus on short-term planning. Due to the current recession, I recommend that my clients plan in one month, three and six-month cycles. A short-term planning approach helps them set goals that are measurable and tested much more quickly. As a result, this helps them adjust or shift to market trends helping them stay in the game.
Since we are in uncharted territory, it is important to understand the shape consumer spending will take over the next few years. To get started, take the pulse of buyers in your market by conducting a survey of all active and inactive prospects along with past clients in your database. It is a new world out there today and a great way to get a feel for what buyers are thinking is to conduct a poll.
What remodeling and home improvement projects are attractive to buyers today and why?
What do buyers feel is important to them when it comes to their homes today? Is it a greener more energy efficient home, creating more comfort, or an adaptable accessible home?
If considering a project, when will they move forward with a project?
Price being a top priority today, what concessions are buyers willing to make to realize the project for the budget they have in mind? Are they willing to perform some demo work, job site protection or clean up to realize their project?
All of this information is a key to formulating a plan for a new direction. Conduct a SWOT analysis to determine current strengths and weaknesses that may have an effect on the changes you are planning to make. What do you do well that can easily transition into a new niche? How can your strengths help you leverage the competition over the next six months and in the coming year? What other factors outside of the economy are contributing to your losing business? Is it a weak marketing plan? Do you require more sales training? Has reducing staff affected your ability to respond effectively to clients? These weaknesses must be addressed if your plan is to be effective. In developing your plan, make sure you also gauge what the competition is selling. Why have you lost market share to them?
Armed with this information, shape or develop the unique selling proposition for your new service or niche that resonates with buyers and generates the profits your business requires. Maybe you elect to integrate a tiered pricing system (good, better, best) that aligns particular products, materials, level of customer service and quality with the buyer's budget. Alternatively, you may choose to create a series of bathroom renovation packages that do not require design, eliminate the homeowner selection process, and give you the ability to sell at a competitive price and yield strong profit margins.
Maybe your company focuses on only producing all Green kitchen projects.
Upon determining your new direction, lay out a strategy for the next six months that begins to generate leads and builds awareness about the new you. Develop a new marketing and sales strategy that supports your new plan. Make sure your marketing is fresh, stands out from the competition and that buyers see the value of doing business with your company. Make a statement that will get the buyers attention. Something unique similar to "Raleigh's Only All Green Deck Builder". The buyers know whom they have to call if they truly want a total "Green" deck. Tweak your website, newsletters, and other marketing materials as needed to convey your new service or product.
With the holidays around the corner, now is great time to start looking ahead to 2010. So set a couple of days aside to re-evaluate your company to determine how you can alter, modify, or diversify some existing products or services that make your company more attractive to buyers over the next three to six months. Think outside the box, how can your business generate a niche product or service? What need has been created by the recession that is currently not being addressed? How may you meet a need that is currently not being met, or how can you create a need? Albert Einstein said "Insanity is doing the same thing over and over again and expecting different results." If you are not planning or taking actions to adjust to the current market, you may be putting your company at risk. Planning a shift in a new direction does not have to be costly but failing to could. Go forth and prosper!
by: Jesse Morado
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