While it may seem counter-intuitive to think about expanding your business in a slow market, when you look at most subcontractor business models it makes sense.

Presently we are not in a down market, but the cyclical nature of our economy makes a downturn inevitable. The high cost of fuel right now is the big problem and no one knows if the market will correct back to an affordable zone, or if we are to be permanently stuck in the European fuel cost model. Looking at the global economy and using past as prologue, I would say that fuel prices will stay high for the foreseeable future. So get ready for a post-election downturn.

It is easy to say, “It’s a tough market out there, I’ll just pull back and wait for it to improve.” The problem with that type of thinking is it’s a negatively self-fulfilling prophecy. At what point would you deem it alright to ramp up your business? Do you hit the beginning of the upswing (when there is an upswing) or do you catch it in the middle?

As I mentioned in a previous column, trying to predict or beat the curve is a fool’s errand. You and your business are subject to all the vagaries of the marketplace all the time, so why try to simply “ride it out” by deliberately slowing yourself down?

Getting Aggressive

There are things you can do to streamline your business—make yourself leaner and more efficient. However, once you’ve done that, you will need to get aggressive in your approach, not shrink back until things improve. Instead of pulling back in a slow market, move ahead and ramp-up your efforts. There is always work to be had for the contractor who looks for it. In good times you can be selective (to a degree), in hard times it pays to be less so.

Doing things that you have never done before, such as cold calling prospective clients, architects, engineers and the like can bring good results. If you can’t make a personal appearance at their offices, utilize the social and digital media outlets and compose a letter of introduction, along with your qualifications and send it along with your business card or contact data, to as many prospective contacts as you can find.

Getting noticed online is a hard target to hit. You, of course, are going to be one of many ads a prospective client might get. How do you make yourself stand out in the crowd? Be professional! A sloppy or slap-dash letter will say more about you than anything else.

Producing a professional, interesting and informative introduction is key. At best you might get a job. At the very least you might make a friend or start a relationship that will bear fruit later on. Either way, you will get your company name out in front of people that may be able to do you some good, if not immediately, then down the road.

Known Customers

In a service context, why not send an e-card or letter to past customers offering special pricing on various services? This method is not new, but be creative! You won’t be spending money on broad market advertising, but will be narrowly focusing on known customers for hardly any out-of-pocket expense. Offering to do free inspections of their plumbing or HVAC systems is a well-known method of generating service and remodel work or, at least, making contact with your customer base and keeping your name in front of them. 

If you aren’t super busy (and even if you are) doing this type of customer service will pay big in the future. If you are busy, and your service people are particularly personable (and knowledgeable), there is a good probability a free inspection will generate more work immediately. Just don’t fall into the trap of selling your customers a service or product they don’t need.

Honesty is always the best policy and your customers will hold you and your company in high regard if they perceive that you have been straightforward in your dealing with them. Conversely, selling a customer something they don’t need, or which is questionable in their mind, will always come back to bite you.

Know Your Market

Keeping abreast of the status of projects in the geographic area in which you do business is a must. If you do work in a small town as opposed to a major metropolitan area, keeping track of projects is much easier. The downside of doing business in a small town is your competition is fewer, fiercer and more focused. In a large metropolitan market there may be more competitors, but there is also more work available and there are less “insider” issues to deal with (or at least they are not as intense).

As mentioned above, consider also using the internet and social media to broaden your reach. If you aren’t well-versed in those areas then learn and become fluent. If you can’t or won’t learn, then hire or subcontract someone who can get you to a good place online. The Internet has become the major superhighway of commerce and personal information and has become a critical tool for doing business in the 21st century.

Stay Positive

Keeping a positive attitude is, arguably, more important than anything else. The contracting/subcontracting business is a rough one, not for the faint of heart. If you are in business today, you are to be congratulated for just staying solvent, but you can’t stand still, or you will get run over. 

Make a plan. It doesn’t have to be an elaborate plan, but you need a plan of action that makes sense for you and your company. There is a saying in the military; “every battle has a plan… and the first casualty in battle is the plan.” Never be so invested in a course of action that you can’t change it. Being stubborn is sometimes a good thing, but being blindly tied to a course of action that isn’t working is not.