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In my post about learning to destroy your competition, I detailed the importance of cutting ties with your direct, local competitors. It’s vital, however, to recognize that this ONLY applies to them. In almost every other scenario, it’s in your best interest to seek out and build solid, reciprocal relationships with as many people and business owners as possible.
For example, if you specialize in Las Vegas air conditioning repair, look to establish relationships with Vegas-based appliance repair, plumbing, and painting companies. Ask for their construction business cards and give them a handful of yours. You’d be surprised by how often homeowners will group several different home improvement projects together, and when they ask the guy fixing the leaky pipe under the sink if he knows of any good AC repair companies, odds are good that he’ll tell them about you. He’ll do this not because he’s a nice guy, but because he knows that by sending you business, you’ll probably send him some down the road.
You’d also be wise to join as many local clubs and business organizations as possible to further spread the reach of your contact network. Become a member of the Better Business Bureau. Join your area’s chamber of commerce. Become a sponsor for a fundraiser or youth athletic team. If the numbers make sense for your business, join a contractor referral network. The bottom line is that you need to get your name out there and build as many business relationships as you can. You want the customers that result from networking because they’ll have a certain amount of trust in you right off the bat, they’ll be less likely to balk at your pricing, and, best of all, they’ll come with no acquisition cost. I don’t know about you, but I’ll take free construction leads any time I can get them!
The relative lowering of your advertising costs is in fact the greatest benefit of building long-term relationships in your city. You’ll always need to spend money on marketing, but with each successive year the customers will come to you in greater and greater numbers due to your efforts in networking, fostering business relationships, and performing quality work.
Even if you already know how to become a contractor, you’ll also need to learn how to be a good communicator. If you’re naturally shy and don’t like to talk to people, now is the time to try to improve yourself in this area, because your more gregarious, talkative, and assertive competitor could quickly leave you in the dust when it comes to establishing a network of lucrative relationships.
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.