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Slightly off topic but when I first started off I targeted the wealthy areas thinking it would be rich pickings and got very little response, the ones that did wanted a cheap price but high quality service!
The less desirable areas of town were the most profitable also the OAP's.
I found that the key was to never dismiss a certain area / property type I just needed to find out where my services were required by “testing the water” by carding a few different areas and gauging the response I got. I do use different flyers to offer different services but these are based more upon the service than the clients social background.
Saying that I think it is important to define what our target client base should ideally be and of course the service(s) we offer rather than being a jack of all trades and then really push it but aim to have a sensible balance of across all household / business types.
My OAPs will be my saving grace this year as the credit crisis begins to hit the typical two income families.
Commercial work is okay but again I never know if they will be able to pay for the services at the end of the 30 day period.
Estate agents with the letting market can be a good source of revenue but it takes time to get your foot in the door.
This winter we have seen a large number of small business units being empty and a quick letter to the letting agent / land lord picks up some work but again you need to be careful about getting paid.
Networking with other local companies have always been a good source of new work, not just gardeners but other businesses where we have been able to pass leads on to etc. Drive way companies and cleaning companies are a useful source of new business and it works both ways.
This year I will be actively chasing contracts for Housing Associations and blocks of flats and aim to complete one tender per month if possible. I fear that price will be the primary driver and many of the large companies will go in at a low price just to secure the work and hope to pick up on uplifts. Something I can’t afford to do.
It will be a hard year we all need to up our game and that means being more professional and customer focused. We will see more one man bands with B&Q lawn mowers chasing after our work and under cutting our prices. Yes we will loose a few clients to these but then they are not the type of clients I want!
We need to spend our time and money wisely to get more business at the right price and not be afraid to turn work down if it doesn’t make sound financial sense. Forming alliances with others in the trade and helping one another out will be the way forward.
You have made a lot of good points, but wanted to pick up on this particular one. If networking has been a good source for leads I am wondering if anyone has considered joining a local group like their local chamber of commerce? Have you been/or a member and what are your thoughts? Is being part of such organisations of benefit to small to medium businesses, or another waste of money?
Did try BNI - Waste of time - the group I joined wanted to be seen to pass leads on but I didn't find them to be that profitable. I think it is all down to what you ask for and taking time to build up the groups trust. I did ask for contacts in particular commerical fields and I guess if I had more time I would of stuck with it. Getting up for a 6:30AM start and then having to dash back to yard to make sure the vans all got out on time or more importantly the staff turned up if just didn't work for me.
With BNI you can visit a chapter three or four times before having to join. This way you can try out a number of different chapters to get a feel for how they may benefit you before parting with the cash.
I get more profitable work from the local cleaning companies and other businesses that we are not directly in competition with. So yes networking works but takes time and trust. The problem I find is do I work on the business or in the business - It's a hard juggling act!!
Haven't advertised in over a year and still have too much work (thankfully) ;-)
In a lot of ways I guess we are lucky, as board members our role is to work on the business, and not so much in the business - or not so lucky. It does cause some concern to me when I hear small businesses, especially those who do contract work when they say things like this, though do appreciate that getting on getting the job done is vital for survival.
During peak times I would imagine time is in very short supply, and work does not stop when you get home. However do you spend time on the business during the off peak/quiet times?
This is a typical sentiment which encapsulates something that has been troubling me for awhile now, it is an assumption that things remain static.
It totaly disregards the amount of advice currently being given to people in dealing with their finances during this troublesome time - that we begin to question everything we spend money on. We are a number of families I know of who have made drastic changes to our lives, either to survive or increase disposable income to maintain current lifestyles. We no longer use a bank or building society, our local credit union provides basic banking facilities without debilitating charges if things go wrong, our fuel supplier is one which does not charge us for having meters, and provides cheaper fuel, likewise all but one of our bulbs are economy bulbs using a fraction of the electricity normals one do. Freecycle means we no longer go into debt so that we can get decent furniture or other things, though there are some things we obviously need to pay for.
Finding good hard working people is getting a lot easier. Not only that but many of them are prepared to work for a smaller return. Take your choice, East Europeans, Australians, South Africans to name a few are some nationals that have made inroads into businesses where hard work and low returns are making it harder for 'natives' to get jobs. Often with lower living costs and so able to work for a lower pay, and work hard. 18 months ago our own book keeper warned us some of our costs were too high and we should consider 'employing eastern europeans to lower our costs'.
I am in a niche market in which this is a major problem. We carry on doing a good job, but ignore the policies and procedure, and other basic things which are essential for the rest of our market. In part because we are not currently regulated. There is an assumption things will carry on with no change, which flies against everything else that is going on, and a growing number of people believe it is only a matter of when, not if.
I hope your business continues to succeed and grow. But to play devils advocate what percentage of your business can you afford to lose without other work coming in before your current operations becomes endangered? What steps have you taken to identify if this begins to happen and what strategies do you have in place to combat this?
Doing the research into your own business now, and putting in strategies now surely makes more sense then leaving it until your time is spent chasing work to sustain your business?
I don't stop! December and Jan were spend confirming work for the coming year and getting things sorted for the start of the season. By Jan I have a fairly good handle on what the year should be like and rewrite my business plan - This year it is only to grow the residential client base by about 30 to 50 high value clients. Other plans are to complete local tenders for HA's but being realistic it is probably more to get the company name out to these orgs and cherry pick just one that fits nicely with my company profile but only if I can return a profit on it.
Once we start the season it is flat out but I have every other Monday off to handle the paper work etc. I monitor daily how the business is progressing and ensuring we hit our targets. Every evening is more paper work and getting schedules changed etc. I reckon I turn off at 10PM watch the news and try to get some sleep.
I get your point..but my first statement was that word of mouth works...it is working for me and new business is arriving all the time, I can't do it all, if my situation where to change at all I may be tempted to check out other avenues as you suggest. For me it's working, has worked and is continuing to work, most of my customers wouldn't know a credit crunch if it hit them in the face, should I need to concentrate my efforts in another direction to gain business I will take suggestions from this thread into account.
As for foreign workers stealing my business, I don't think so..! If the people who own large estates that I work for want to have the cheapest labour possible they wouldn't have employed me to start with ? what they do want however is someone they like, works hard, they trust and gives them the results they want...I do all that and more.
I know things don't remain static, I was made redundant in 2007. My work has been constant all seasons since, being fully equiped, insured and trained for chainsaw work has helped too.
When things start to look bleak I shall adapt. For now I will concentrate on the job in hand, building relationships with my customers and trying to accomodate everyone.
All the best
Mark
I hope I don't cause offence, but to clarify I think there are various categories 'immigrants', migrant workers, students on working holidays, immigrants and assylum seekers. As we appear to be speaking of mainly migrant workers then I completely agree with you.
There is no way they could build a life in the UK on the wages many of them are willing to accept, but are used by businesses to cut costs at the expense of local communities. I agree with you about giving a decent wage, instead of a minimum wage, but the minimum wage was a step forward in protecting wages for many people.
What I tend to find is my customers are effectively inviting me into their homes, there is an initial set of barriers set up but once we all understand/respect and like each other an important bond is made, I'm no longer carrying out a contract I'm a friend working for the better good of their families enviroment, taking the worry of a large garden from people who work long hours away from home to be able to afford the place, I help them be able to enjoy their space when they do have the time, instead of it becoming a millstone around their necks.
Working in someones home has very different dynamics than say, when you go shopping for something ??
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