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Is Your Business Positioned To Weather A Recession?

I want to share with you what we know about the oncoming economic downturn in the U.S. economy and its direct effect on GCs. Please take a moment to digest this information. It impacts the lives of every owner and team member of every GC in this industry that I love.

Even though a lot of so-called experts are predicting a recession, no one can actually predict a start time. We have seen many indicators of an oncoming recession; the Fed is attempting to control inflation with Interest rate adjustments which will slow the market and we have already seen a 2.7% decline in the housing market. While we cannot predict the future, What can be predicted is the likelihood of a significant recession in the short term to mid-term time period. A substantial majority of true expert, unbiased forecasters, fully expect a considerable decline in our economy in 2022-2023. Few forecast sooner and few forecast later.

We are now in the most prolonged period of economic expansion in the last 161 years, add to that the cash infusion to keep the economy from collapsing over the last two years and current inflation rates. All this will make a market correction impossible to avoid. It will happen.

Here is an important thing to know

You absolutely can insulate your family and your business from the loss and pain that hits GCs harder than almost any other industry.

THE BAD NEWS

It takes most contractors about a year sometimes more to take the necessary steps to prosper, or at worst not go backwards when the recession hits. You CANNOT wait to take action, there will be a point when it is too late, and you will be in financial trouble. If you have never experienced years in a recession, it’s usually not pretty. We’ve been through multiple recessions with our clients, and we know the pain. If you think it won’t happen again or that you will somehow do just fine though it, you simply aren’t informed or realistic. So the bad news is you should not and cannot, wait until it’s underway. It would be best if you took some action now. Please!

THE GOOD NEWS

Taking the necessary steps to prosper through the next storm is not that big a deal. Not costly and not that time-consuming. Even better, 80% of the things you should do to protect yourself and your family are the same things that most GCs need to do to start generating exceptional profits.

Our company can help. At every Aspire field educational program we offer, we have built-in a presentation about what to do and how to do it to give yourself a good layer of protection while lifting profits now. In fact, this is of such concern to us that we have created an entire day-long program to help GCs know just what to do and how to do it to get to a safe zone. Part of that is a substantial customized Aspire Road Map on how to get there. If you would like more information on our one-day training class or if you would like to talk to one of our coaches about changes you can make now to protect your business through the next downturn at no cost, please give us a call.

Whether or not you plan to get out to an Aspire workshop or take me up on the offer for a free coaching session, I implore you to take action today to insulate your company, family, and employees from the coming recession.

 

If you would like to discuss this or any other business strategies, please give us a call at 888-252-8998 or email us at [email protected]

Download our FREE REPORT called Beating the Boom-and-Bust Cycle in the Construction Industry.

NARI members: Sign up today for your complimentary personal coaching session to talk about ideal job mixes and bigger profit margins.

 

How Good Are You At Finding Ideal Customers for Your Ideal Job Mix?

There’s a certain randomness about it. And a certain annoyance about it all. You’d rather be building homes and booking remodeling jobs 12 months out, right?

We all suffer from information overload, and yes, it can be overwhelming. So how can you break through all that noise and find the customers you really want? Are you able to filter through leads – and quickly cull out the good from the bad? Are you able to choose your customers?

Ditch random lead generation

It’s about quality over quantity when it comes to new customer leads. Meaning, that a dozen QUALITY leads are better than hundreds of GARBAGE leads. The key is knowing exactly what your ideal customer looks like – and in the context of the kinds of custom build and remodeling projects that make up your winning job mix. You want customers that match X custom homes, Y whole house remodels, and Z kitchen remodels in 2022.

So, leave behind random and reactive leads – as if “any job is a good job”. Shift instead to targeted audience marketing and qualified targeted leads. That means being proactive and knowing exactly what kinds of customers and projects best fill up your already-known ideal job mix.

Find the right customers to pay for solutions already desired

That is the trick. You want to target homebuyers and owners who already have purchase intent. For others who are thinking about it or getting to know you as a remodeler or custom builder “brand,” – you keep nurturing, educating, and communicating with them. It may take two-plus years for them to be ready for that big investment.

But for homeowners with purchase intent, your goal isn’t so much to build awareness. It’s to find customers who are already researching and considering their home project options – which are plentiful. Convince them that you are the best solution that matches their desires.

So don’t waste your money talking to the masses. Instead, talk to smaller market segments – or audiences – who match your unique value proposition and strengths. Your target marketing efforts will attract higher-qualified leads – and you will have a higher chance of converting them to you.

Remember, Your Job Mix Drives Your Customer Target

The thing about target marketing is that you can’t be everything to everyone. That’s why “mass advertising” doesn’t work for residential GCs. It’s more effective and affordable to pick one or two slices of the market and do them well.

Then intimately describe your audience size – your buyer target – putting a big circle around it. Describe their buying motives and communication preferences:

  • Message: Does your brand and value proposition appeal to them?

  • Medium: Are you reaching them through media channels where they already have purchase intent? (An example is the home renovation section of a city’s online magazine – or posting regular photos and finished projects on Houzz.)

  • Messenger: Who is the voice of your message – is it always you, or have you trained your staff to always lead with your unique value proposition, key messages and in a style and manner that reflects your personal brand as the business owner?

  • Measurement: Test and measure all of it – if something is “off” – is it the wrong message or the right message delivered through the wrong channel?

The more you narrow your audience, the more you can finetune your business processes and measurement systems to customer needs and your business profitability goals.

If you would like to discuss marketing strategy and qualified targeted customer leads or any other business strategies, please give us a call at 888-252-8998 or email us at [email protected]

Read more about how to find and choose Good Jobs and the Right Customers in our popular paper: Why Contractors Take Bad Jobs.

NARI members: Sign up today for your complimentary personal coaching session to talk about ideal job mixes and bigger profit margins.