The start-up marketing challenge (2)

Yesterday, I asked members of the Remodelcrazy.com forums how they solved the start-up challenge. The answer, three people reported, is "business cards" -- lots of them -- but not just blind distribution. It is a selling effort.

Consider this posting of Rory Swain of Servicez Unlimited Inc., a Washington, D.C. area contractor.

My first year in business in D.C. . . . ALL of my business came from handing out business cards. I would give out 20-30 a day seven days a week . . . I also stopped and talked to everyone I handed out cards to.

Usually at least one or two of the persons I gave cards to had a project or knew someone that needed work done.

Within six months of being here I had about 30K worth of work. I worked eight days a week 26 hours a day, 400 days a year . . .

I forgot who it was but some once said on one of the forums I am on that they were handing out cards and shaking hands like they were running for mayor of their town.

Jesse Kirchhoff from Handyman Solutions in Jefferson City, MO, wrote:

"Well made" business cards and meeting people are the cheapest advertising methods by far. I give business cards to waitstaff, grocery store clerks, my doctor, the mail man, billboards, EVERYBODY even if they do not look like your type of client. The old five-foot rule definitely works.

1,000 professionally designed and printed cards that really stand out can be had for less than $300. Reorders are only $60 after that. If your card blends in it will not be remembered.

Join civic organizations and volunteer. Not only do you get to meet and greet people face to face to build trust and credibility for free - but you also get their email and mailing address (which must be used sparingly so as not to abuse)

If you are looking for business cards without breaking your budget ("Free" may be an exaggeration as you have to pay for shipping) , consider Vistaprint.com -- yes, they pay me a commission for the referral.

Finally, SLS Construction in Cullman, Alabama, wrote:

I take it, no five-year plan - limited money?

It depends, what works in his market and who is his target clientèle? Out here I get a ton of responses off two ads that only run me a little over $8 a piece in a small local classified-only paper. In some markets - print is dead (unless you over 40 or 50 or ?) and then it should be mostly Internet based.

Business Cards - they need to be talking to and handing out at least one business card a day, when you have nothing going that day - at least five. (It must have the web site listed, if they don't have one they need to get one.)

Once business starts coming in, then they can start looking at the fully integrated marketing plan. I personally would advise all three being done at once for them - create a web site, small print ad, and network.

Simple and straightforward advice, indeed. If you are starting out in a renovation/remodeling business, you now have the proven success formula. These guys did it, and succeeded.

Getting started -- it can be hard

Today, on the linkedin.com Construction Management Network, Canadian contractor Chris Lowes posed a provocative question:

I joined this group a little while back but haven't a chance to introduce myself, so here goes.

I have over 20 years experience in ICI construction sector. As Matt Stevens says in his book Managing a Construction Firm on Just 24 Hours a Day I'm a "mud on your boots Guy". I worked my way up through the ranks starting as a Carpenter Apprentice to a Site Superintendent with a little Project Management in there as well. I'm a strong believer in continued improvement and in the course of my continued improvement I achieved my Professional Gold Seal Certified status by the Canadian Construction Association.

Having gotten to this stage in my life I decided to go out on my own and have started my own Commercial Construction company. I have plenty of field experience, but lack the business experience of running a construction company. I have worked hard to earn an excellent reputation among the sub-contractors and know once the business takes off I will earn the same reputation with my customers. Here is my problem (that I hope this group can help me with)most of those 20 years experience I spoke of was with a large union general contractor -- their customer base is quite different then mine. The contacts I earned through them are mostly among the trades. I'm finding it difficult to start as people want to see a track record for your company, not just your own.

Should I just remain patient and work through my start up? Or is there another avenue I should pursue? What I'm offering to the market is a professionally run project that comes with my commercial credentials and the total commitment to a project that comes from a small contractor.

I responded with some suggestions -- turns out I had met him at the Construct Canada trade show last week and provided him a referral to someone relevant for his business. But this answer from another network member, who provided his real email address but didn't identify himself directly, speaks closer to the heart of real experience.

Chris:

Great question. I too am recently out on my own and facing much the same dilemma. With several partners I formed a GC firm in 2004. By default of personality it fell on me to become the chief evangelist for that new venture. Like you, I had always built projects for whatever firm I worked, but I never had to figure out how to find that work. I spent two years trying to "invent" myself as a salesman and trying to sell a company that had almost no resume. Once we had some good momentum our financial partner pulled all his money at once and left us high and dry. I left with one of the partners and we struck out again.

So here I am for the second time in three years trying to sell a start up construction company.

Here's what I've learned along the way.

1. The sales cycle is long, be patient. We go to bid next week on a$1.5M project that I've been chasing 18 months.

2. While you work toward the better stuff, consider keeping your business model flexible enough to do other things. We're doing lease renewal carpet and repaint projects for a property company right now to make ends meet.

3. Work all your professional and personal contacts mercilessly. There's no shame in calling everyone who'll answer your phone call and asking them if they know of any work you can do. Just get something going. Even if you have to paint an office, the photo will look good in your brochure and make a little money along the way.

4. Join a couple of good professional groups and network. www.boma.org and www.naiop.org are sites you can look at to get an idea (of) what I mean. Figure out where your client base might be and go do the "grips and grins". And get involved in that group more than just a morning coffee meeting once a month. Get on the golf committee or the government affairs committee or something like that. People need to know who you are.

5. I learned this one the hard way. If you are going to be a construction company owner, you have to be a marketing and sales juggernaut. As soon as you get distracted by managing the work you are no longer finding the next project. By the time you realize you're about to be out of work, it's already too late. Remember #1above. My rule of thumb is that generally the sales work I'm doing today is 12 months out from making me any money. While your men are out doing work today and thinking about the coming Christmas holiday, you need to be thinking about December 2008 and beyond!

Good luck and hang in there. It's tough but it beats punching the clock for "the man".

These suggestions count a whole lot more than anything I could offer -- the person who wrote this response is experiencing, first hand, the realities and challenges most new and start-up businesses encounter. It is hard work, indeed, but ultimately truly rewarding.