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During Lean Times, Seek Opportunities Outside the Box
By Karen Dry and Linda Hebert
The latest in a series on the tough choices business owners may have to make to survive the housing downturn., this article is an excerpt from Building Women magazine.
 You’re digging in your heels and working your business plan.
Things aren’t great, but you’ve been able to find and capitalize on a few projects. Or maybe you’ve examined your core business and discovered what you do isn’t going to provide the revenue stream to help you ride out the market.
Either way, it’s time to diversify and expand.
“My business wasn’t doing well at the start of the downturn, so the decision was made for me,” said Michelle Roberts, founder and CEO of Chatham Hill Residential Design and Build, LLC in Boston. “My clients began asking about green-friendly homes and I saw the need to move in another direction. There was a void of expertise in this field and I thought — ‘Why not fill it?’”
The health and energy efficiency trend in home design led Roberts to start a new division in her company, Ecohealth Homes, which provides conceptual design and consulting services for sustainable modular and structural insulated panel home construction.
Opportunities like these exist in any market. The key is to find them. They will help you capture even more market share when the market bounces back.
“Don’t give up and seek resources,” said Roberts, who went to building products and material suppliers to learn about their products and services and to build partnerships.
“These partnerships gave me support and a sense that I wasn’t alone, which is especially important in a down market,” she added. “This experience sharpened my business and negotiating skills. It also forced me to educate myself in a new area and trust my instincts.”
So, where can you look to diversify and expand? Consider these opportunities:
Adjunct Markets
Identify markets that complement your current company and see if you can provide a service in those areas.
- Look Outside the Box. For example, a model home merchandiser might be able to diversify and expand into a custom furniture retail store or custom home remodeler. A contractor might diversify by offering additional services such as professional purchasing for builders who have downsized their purchasing departments. A mortgage lender could diversify or expand its business by offering investment real estate packages to international investors.
- Don’t Cut Your Prices. Slashing the cost of your services sends a horrible message to customers. Your value does not diminish because of lean times. Focus, instead, on customer satisfaction and delivering the most you can for the dollar you are charging.
- Expand Your Territory. The services you provide may be fresh and innovative in a neighboring market. Don’t be afraid to look for business in another state or even internationally.
Don’t Stop Marketing
We said it before, but it’s worth repeating. When you’re tightening your belt, do not stint on marketing or freeze your advertising.
- Marketing. You may think you’re saving money by cutting back, but, you will find yourself making up for it and then some with a last minute, poorly executed marketing blitz conducted during a desperate moment.
- Advertising. It’s all about visibility. While you may not be able to afford a full-page ad in your favorite industry magazine, there are many ways to advertise, so consider HOW to make the most of a limited budget.
One example is to co-op your advertising with a favorite vendor or even a collection of vendors. Another option is to find new publications with growing circulations in your market.
- Public Relations. Targeted press releases and calls to editorial staffers can go a long way. You can benefit from a brief mention about your design work, completed jobs or an award you’ve won. Work to get published in trade magazines and local publications.
You can also look for opportunities to be included as an expert in other media outlets — TV, radio the Internet — that cover various aspects of the housing market, which is a pretty popular topic these days.
Another option is to submit a presentation or offer to sit on a panel at a trade conference.
Invest In Yourself
Investing in your future is critical. Sometimes, it’s the very thing that will save your business.
- Education. Seek additional training and education. It will separate you from your competition now and in the future. If you can afford it, invest in educating your staff, too.
- Networking. Now is the time to increase your networking efforts 10-fold. Build contacts in the industry and discover alternative solutions to your goals. When you network with people who do what you do, you’ll realize that you’re not alone in the struggle.
NAHB Women’s Council Vice Chair Karen Dry is president of Garrett Interiors, Inc., an interior design company based in Westlake Village, Calif. specializing in model home merchandising along with residential, commercial and hospitality interior design. For more information, e-mail Dry, or call her at 818-991-3487.
Linda Hebert is the chair of the Women’s Council communications subcommittee and president of Diversified Marketing & Communications, of Pleasanton, Calif. For more information, e-mail Hebert, or call her at 925-577-5300.
Next: Exiting gracefully.
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