Unless you are a teenager, you will remember how American industry has changed. In the 1940’s we built smaller houses. Automobile manufactures built bigger cars. Airlines use to pay a distribution channel, called Travel Agents, reasonably well. Cameras used to use film. Okay, got it, things change.
Like any period of change, some fear it while others look for a way to exploit it.
The important question isn’t which one are you; you should already know that. The question is what are you going to do about it? Want a bigger piece of pie? Make the pie bigger. Go sell houses to types of people you never reached before. Or if your piece is still smaller, make it a very rich piece. Here are 3 concepts you must know and be embracing to position yourself for stability now, and growth in the future.
1) Education is key. You might think that you didn’t go in to building homes to be an educator. Think again. Sales and Marketing includes education. Communicating why you are better, why new is better than previously owned, how to buy a house, and how to get a mortgage, etc., are all types of education. The list goes on. So, consider how you are educating, and start doing it better, earlier, in more places, and online (Internet search engines and your web site) and beyond.
2) You already leverage technology. But, are you maximized? The Internet represents a continually expanding opportunity. Paper has it’s place too, but make sure you are really using some system(s) internally, and maximizing the Internet externally with pay per click (PPC) and search engine optimization (SEO) and maybe paying extra to get your site to come up higher, especially if you are an Associate selling to builders, or to consumers! Don’t overlook third party listing services. They can make or break a builder, seriously.
3) Distributed workflow. Lots of industries are specialists at this. Airlines make you find the price. Grocery stores have self checkout kiosks. Banks have ATMs. You have to pump your own gas. There are more examples. Those companies are making money, by embracing, and leveraging, change. Builders can do that too. You don’t have to take warranty calls via telephone. You could flood your website with images, data, links, interactive silent sales tools, videos, and much more. You can utilize trade partners, not just their expertise, but their locations, or other value adds, like their inventory.
It’s about communication, business management, leveraging your human capital, using money (preferably other people’s money), and taking action. You have to take action, and then CONTINUE to redefine how you run your business.
Even if you have already begun to take action, you have to continue to Re-Think, Re-Connect, Re-Tool.
Erik Cofield, CGA has leveraged technology and provided business management consulting for all sizes and types of builders, developers and Remodelers since 2000, including volume, multi-family and custom, to help them improve their business. He is the National Accounts Manager with BuildTopia (www.buildtopia.com), a widely used international construction management software company. He can be reached via ecofield@buildtopia.com.
Subscribe