This may be one of the scariest New Years on record for business owners. The downward trend in housing and retail continues and even the President admits that it will likely get worse before getting any better. While times aren’t looking too dark for remodeling contractors, it may be time to cinch the proverbial belt a bit.

That may translate into a reassessment of company goals. Setting goals is essential to a successful business, especially in the hardest of times. Simply set feasible goals.

If your goal is to top last year’s sales or profits, you must ask yourself if that really is the wisest goal in the midst of an economic slump that has spread well beyond the housing industry alone. Instead, calculate what money you need to make, what items you can do without or must have, and a few reasonable perks you want to give yourself or your employees. Then figure out how you go about getting those things, whether it be a dollar amount or a certain number of contracts or whatever. But make this your goal and then head out there to achieve it.

Consider gathering your employees for a company meeting. Lay out the goals in front of them. Create an incentive that goes something like this: If we can reach this level, we all get this bonus. If we reach this different level, we all get this. And so on. Hard times are good times for pooling resources. And remember that just as sure as you want to make money, your employees want to keep their jobs.

Just as important as setting goals are the means by which you achieve them. Taking small steps such as getting to know clients and your community can make a big difference. Homeowners will be on the lookout for contractors overselling their projects; perhaps now is the time for a more straightforward approach. The free-for-alls of yesteryear may be gone, but homeowners still want to remodel, we just have to convince them it’s worth their while.

Whether the goal is to make record profits or just to break even, every contractor is going to have to work hard to do it. But it’s a new year and a new administration (which could mean any number of things for small businesses) and traditionally a time for optimism and looking forward. This year is no different in that regard.

Despite the crippling cold coursing through the country right now, summer and the remodeling season will be here before we know it.

How could eliminating the desires of homeowners from sales pitch succeed? For a few reasons, said Richardson:

• People are conserving their cash right now,
• But they are also motivated to protect their most worthwhile asset: their house.
• The average U.S. home is at least 32 years old and coming due for repairs or upgrades.

Essentially, in tough economic times, with less money and higher energy costs, recreating a home to perform better for its owners is a wise sales approach. Sure the homeowner may want a new bathroom or kitchen, but that’s just not in the cards right now. But efficiency upgrades — insulation, windows, doors, passive solar design, and other remodeling projects that could in fact save money and preserve the home in the long run — these are winning points.

Via Qualified Remodeler