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No matter if you plan on becoming a general contractor or a window cleaner, in the early days of your business you’ll be going toe-to-toe with big, established companies and maybe even some national chains or franchises. You might be inclined to think that this gives you a disadvantage, and in some ways this is true (they can outspend you in advertising, for one). However, it also gives you some distinct advantages over the big boys. Here are some ideas for how to give the behemoths a run for their money.
- Play up your “hands-on” role as an owner-operator. People will be impressed that you, the business owner, took the time to provide a detailed, in-person estimate. They’ll be doubly impressed that you make a point of being on site for all jobs. This will go miles in assuring homeowners that the job will be done correctly and with quality in mind. Compare this with a franchise that sends barely-qualified salespeople and laborers out to do the dirty work and you can see how this is a major advantage for you. Don’t forget to make this distinction clear when you meet with the customer that first time. In my company’s early days we beat out larger, franchise operators time and time again with this technique. Oh yeah, and make sure to send out that signed thank you letter after job completion (you’d be surprised by how many of the bigger companies don’t bother to do this).
- If your business is “family owned and operated”, say so. It gives potential customers the impression that the business is generational and that you’re true, skilled craftsmen. It also lends a sense of accountability because people know that while a new hire off the streets might be more inclined to cut corners or act stupid when the boss isn’t around, a relative of the owner is less likely to do so. There’s more pride when the family name is on the line, and people know this.
- Many people would rather give their money to a local, scrappy company than to a faceless corporation that doesn’t give a damn about the community. It makes homeowners feel good that by hiring you they are, in effect, keeping the wealth “in town”. You can really leverage this advantage by doing all you can to support local events that allow for marketing opportunites. Sponsor a little league team, do free work for charitable causes, or offer discounts to homeowners within a certain radius of your home or office. I’ve had customers tell me that my business’ proximity to their home was the single biggest motivating factor in awarding me the job.
- People root for underdogs. You’ll find that a lot folks will respect your desire to build a business from scratch, and it makes them feel good to help make your dream a reality, especially in it’s early stages. It’s important to note that you shouldn’t make a point of telling customers how new or small your company is, but don’t lie about it, either. If they know or come to find out that you are a newer business most people will still give you a shot if you look and act professional. Lack of experience need not be a roadblock if you can demonstrate superior knowledge, organization, and hunger for success to the potential customer. If given the choice between a friendly, eager business owner who’s been around one year and an apathetic, established company that’s set on “cruise control”, I think most consumers would choose the former.
- Your small business can schedule and perform work more quickly. Many of your customers will put off home improvement and maintenance jobs until the last minute, and so your ability to work them into the schedule quickly will often prove advantageous. Often times the big companies are booked out for a month or more, and this gives your newer, less overloaded company a great opportunity to snag a job from under their feet by being able to get to it sooner. Don’t be embarrassed that you’re only booked out for a week or two – look at it as one more way to gain ground on your bloated competitor.
So there you have it. Five ways to take your larger competitors to the mat. Can you think of other ideas? If so please comment below.
My name is Jeff and I created this blog in 2007 to help and inspire contractors and home service providers. It’s come a long way since then.
hi, i agree with all the ways listed above “to beat out larger competitors”…but in the present economic enviroment i have definately noticed that not having the large overhead of the big coporate companies has helped me win contracts, by being able to be more competative without compramising the quality of the labor.
that’s right, Marc. Sometime being smaller, leaner, and having lower costs can actually be an advantage as you can price more competitively. Thanks for the comment.