"Recession – Proof" Your Contracting Business
By planning to succeed (Part 2)
By Paul Montelongo
This is the second in a two-part series designed to help you “recession-proof” your business. Planning to succeed in the face of an economic slow down is primarily a matter of choice. Yes, the forces of the economy will affect your business success. However, choosing to succeed and thrive in an economy that is slowing will largely be a matter of your determination and persistence. Here are a few concepts, that, once implemented, will give you the edge over your competition and allow you to “recession-proof” your contracting business.
Have an Attitude of Prosperity
The most successful entrepreneurs in the world have an attitude of prosperity. In their mind, there is no economic circumstance that doesn’t present an opportunity. It is true that your focus will become your reality. Just try to play golf sometime with the belief that you can’t hit a buried golf ball out of a sand trap with a 58-degree sand wedge. You will swipe at it and miss more times than not. The same is true with your belief about the economic environment in this country. If you choose to believe that times will be so tough that no one will prosper, you likely will fail.
The largest influence in planning to succeed is the absolute certainty that you will convert any challenge into a money-making opportunity. This mindset of expansion followed closely with specific action steps to reach your goals will propel you to succeed. “Those who believe they can and those who believe they can’t are both right.”
Stick to Your Long-Term Vision
At some point in your strategic business planning, you have created a long-term vision for your business. This vision should have included a reason or purpose for your business existence. Now is the time to re-connect to that vision and to the very reasons that you are in business. Your long-term approach to your business creates awareness in you that any economic malaise will only be temporary. You will recognize that it is imminent and you will be prepared for it.
When you understand the long-term perspective of your business, it is easier to adjust along the way as necessary. You will not get caught up in any negativity about the economy. You will continue to look for ways to improve your business, expand your market and create new clients. Even in a “slow down”, there are people and businesses that spend lots of money. They see opportunities to get better deals and quicker service. Why shouldn’t they spend their money with you? Answer – they should!
Know the Role of Technology
Construction industry professionals must become more savvy about the use of Internet technology. You must be more proficient with business communication and services. The Internet allows you to do this. Learn everything you can about e-mail, the Internet, Extranet and Intranet services. Business to Business transactions over the Internet speeds up the bidding process, project management and overall communication. There is efficiency unlike any other when you learn to effectively use technology.
Promotional messages about your company can literally be sent to hundreds of millions of people by having a useful, info rmative Web site. You may not have customers in the Republic of China, but is there a potential customer one-mile from your office that will make a decision based on the info rmation posted to your Web site? Is there an easy way for that customer to contact you and will you respond promptly to their e-mail?
Now, more advanced technology will allow you to educate your customers with video and audio products in your Web site. You can also train your employees, vendors, customers and trade contractors with on-line training seminars. The possibilities are only limited by your imagination. Speed, efficiency and creativity will make the difference for contractors determined to make their business “recession-proof”.
Strengthen Your Team
When the economy gets tight, it is inevitable that there will be lay-offs. In order to tighten your purse strings, you may need to re-arrange your work force. However, there will be employees and trade contractors that you must keep. By taking care of the nucleus of your team, you will get the most productivity from them. Continue to train them to perform at optimum levels. Make sure they are aligned with your long-term company vision and that they know your plans for business growth in the next twelve to twenty four months. Get their feedback to improve your systems for productivity.
Strengthening the team concept will create a synergistic environment. It may require that you commit to enrolling your employees in training programs to learn to take on other responsibilities within your company. When employees and trade contractors are faced with more responsibility, they will tend to find more productive ways to perform their work.
Dedication and Persistence
Unwavering dedication to your profession and to your business is perhaps the most important factor in planning for the future success of your business. Walt Disney said, “ Get a good idea and stick with it. Dog it, and work at it until it’s done and done right.” As one of the three primary material needs of humans (food, clothing, shelter), working with shelter is a good idea. Stick with it. Planning to succeed in any economic environment dictates that you persist and continue to strive for improvement.
Add to your dedication and persistence another essential element, creativity. As a contractor, you are probably faced with many opportunities to come up with creative solutions on your projects. Your creativity skills can be used to generate more business and to look for more efficient ways to conduct business. One of the most important areas of concern should be your customer service. There are thousands of ways to creatively improve customer service. Acquire raving fans with your exquisite customer service. Endorsements from your satisfied customers will be the lifeblood of your business.
"Recession-proofing" your business is primarily a matter of dedication, persistence, and creativity. " There is ample opportunity for prosperity in this country. As The Contractor of Choice, you will view any possible soft landing in the economy as an opportunity to thrive. By planning to succeed, you will “recession-proof” your business.
Until we have the honor to meet in person, remember, “Success is YOUR choice, choose well.”
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