How to Grow A Remodeling Company?
How to grow a remodeling company can learn a lot from the old adage – “If you keep doing what you’re doing you will keep getting what you’re getting”. Can you live with that? That is true in nearly every area of life including for remodeling contractors who want to grow their business.
Many remodeling contractors have hit a wall. It began in 2008 with the Great Financial Recession. For many it took a couple of years to hit, but hit it did, and hard! You have fewer employees and you are doing less work than just about ever before. You feel a bit desperate with worries over how to regain your size and momentum but you are bewildered over what to do.
Read on – you may be in for the surprise of your life.
The answer may be as simple as expanding your focus beyond traditional remodeling services to embrace the market of insurance related damage repair services. The average size of a damage repair job paid for by insurance money in the U.S. is $10,000 and there are a lot of them all the time in every market. You need no new equipment and no new workers to do this work.
You are equipped to do it right now, today! The big question is how do you get into this market? It really is not that hard. Here is how the industry works.
When a homeowner is ankle deep in water they are going to call one of three individuals:
- A plumber – calling out, “Help me, turn off my water.”
- Their insurance agent – “Now what do I do?”
- The 800 number on their policy – “Who can you send to help?”
Plumbing contractors come in contact with water damage nearly every day. But how do you properly relate to them in order to gain referrals from them? Insurance agents are endlessly marketed by restoration companies looking for more work so how do you properly relate to them in a way that could lead to more work? The majority of insurance companies use Third Party Administrators (TPAs) to manage their claim volume. The claim comes in and it is immediately assigned to a preferred contractor.
There are 8 National Third Parity Administrators and most remodeling contractors could be added to half of them in 180 days. You just need to know who to contact, how to present yourself, and how to effectively navigate their application process.
My company was active on nearly 30 preferred contractor programs for insurance companies and this was the most significant boom to our growth to nearly $5 million in less than 9 years. For those hit hard by the 2008 Recession you will be interested to know that Forbes’s Business Magazine awarded my company with the Colorado Best in Business Construction recognition and published an article about us in their magazine titled, “One Construction Industry NOT in Recession.”
This reality is in itself a game changer for many remodeling contractors who are caught by every shift in the economy. When the economy is up so is business but when it is down business crashes. Insurance damage repair construction work remains constant regardless of economic and recessionary pressures.
This is a wonderful construction niche to build a remodeling business around. There are some wonderful open doors just waiting for you to pass through that could lead to a substantial uptick in jobs and revenue in the insurance damage repair marketplace.
If you are interested in how to grow a remodeling company download my FREE eBook HOW TO GROW YOUR RESTORATION BUSINESS today!! Everything I write for restoration contractors has direct application to a remodeling owner who wants to grow a remodeling company in the insurance damage repair industry. Visit me today at www.growmyrestorationbusiness.com for more valuable information and services.