The Long Haul: How Years in the Business Can Be Kind
When the job books were thick, it seemed like everyone wanted to be a contractor, licenses were flying out of state offices like pigeons after a gunshot. Now that the jobs are spread rather thin, many contractors are getting nervous, even considering closing up shop. But there are benefits to sticking it out for the long haul. Unfortunately these benefits may take years to manifest, requiring a professional leap of faith, but are real nonetheless for many veteran contractors.
There’s a first time for everything, and this isn’t it.
It is important to remember, no matter how bad a recession gets, that this is not the first go round. Veteran contractors — those who’ve been at it for 20-30 years — have been through times like this. And they’ve stuck it out. It is the reason they call it “building” years in the business. We cannot always coast as we did before the housing bubble popped, but it is important to stay active regardless of the market.
The building never stops, but if there is a shortage of homes to build then it is time to work on building the business. Most longtime remodeling contractors will tell you that a big portion of their client list and their friend list is interchangeable. Lean times are great for building a relationship, building trust with clients.
The first contractor I ever worked for had no sign on the side of his trailer. No T-shirts. No advertisements in the newspaper. The only place he’d ever placed an ad was in his church bulletin. He believed firmly in word of mouth and building a rapport with homeowners. He will drive (and has driven — I was there) 25 miles to fix a screen door. He loved and trusted his craftsmanship and let it carry him through tough times. Even after 30-plus years as a contractor, and despite one of the worst economic crises ever to face our country, he still works.
Rising above the bottom line.
Most successful remodeling contractors have learned that their bottom line is not the bottom line. In other words, they never take on more work than they can do well, and they see less work as more time to hone their skills. And over the many years of thick and thin, they’ve managed to become masters at their trade, steady and prepared for downturns because they’ve seen them before (we all have or we all will), and believe in high quality at a fair price.
This may sound like common sense, but many contractors panic during difficult times. Perhaps forced to compete heavily for work, they become obsessed with the bottom line. They begin offering the lowest prices thinking that quantity is more important than quality. One of two things usually happens: One, they cannot do the work for the price stated, losing out on profit and ultimately their business. Or two, they are forced to provide lower-quality work, which results in more callbacks and repairs, which often results in lost profit and endangered or extinct business.
The long haul.
Many young contractors are struggling right now but, as the late Douglas Adams wrote on his Hitchhikers Guide to the Galaxy, “Don’t Panic.” Only each contractor knows what is truly best for their own business, and sometimes it is smart to cut losses, but there are advantages to building years in the business. From diverse and sharpened skills to community involvement, a long life as a contractor can be very rewarding. Just remember that this is construction and you must love to construct, as any old timer will gladly tell any one of us, possibly for a long time.
Tags: bottom line, clientele, craft, craftsmanship, economy, experience, finding work, high quality, marketing, price, recession, strategy