Expansion efforts can be a great challenge for a construction business that has no experience doing so. In this three-part article, the Lakeland construction attorneys at Cotney Construction Law are discussing how a construction company can successfully scale out their business model. In this section, a Lakeland construction attorney will discuss whether or not you should tailor your services to a particular niche or extend your services to appeal to a wider clientele.
Developing a Niche
Ideally, when you start a business your focus should be on one particular type of service. For example, if you are a roofing company, you could target opportunities in the residential sector. Although it may seem like focusing on a certain niche will limit your opportunities, in reality, you’re not spreading yourself thin and developing a reputation in this particular market. With a niche, you can enjoy repeat business and referrals because clients will associate your business with a specific service.
Once you have established your niche, you may want to expand your services to cater to more of your clients’ needs. Entering into a new service area can be a daunting task as you need to ensure that you are providing your prospective clients with a service that is both valuable for them and profitable for you. By conducting market research, you can determine if there is a demand for these services and also evaluate price points and whether or not your clients would be willing to pay for these additional services.
Developing Sales Opportunities
As we discussed in the first section, every construction business should have an online presence that clearly defines their brand and the services they provide. There are great opportunities to also utilize the internet for sales opportunities. For example, you can create advertising banners, offer a monthly newsletter subscription to your clients, or offer seasonal deals on services like roof inspections. These are great ways to advertise your brand to prospective clients while simultaneously keeping your business top of mind for your current clientele. It’s also an effective way to introduce your client base to new services you are providing.
For more information on expanding your business, please read section three.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.