If you plan to start restoration business or grow a mitigation only company nothing will double your revenue quicker than adding construction services.
I am a former full-service restoration company owner who start restoration business and I want to share with you one of the best kept secrets in our industry. I began my business as a mitigation-only company but fortunately for me I didn’t stop there. Over a decade of work we became an award winning hyper-growth company and sold our business for top dollar. The smartest business decision of my life was to add construction services and become full-service!
How many tens of thousands of mitigation-only companies exist today who have thought about full-service, but out of fear or lack of understanding have never taken the step?
Rarely does a mitigation-only company grow beyond $1 million in gross revenue. We were at $1.2 million at the time I began asking myself, “Where do I go from here? How do I get to the next level?”
The only good answer seemed to be – add construction, become full-service. I learned early on that when a restoration company shows up at a water damaged home and finds the owners ankle-deep in water, the last thing the customer wants to hear is “we are here only to extract the water and dry the house, you’ll have to find someone else to do the rest.” “WHAT? You mean you don’t do it all? You’ve got to be kidding me! I don’t know anything about construction!!#!” shouts the customer in utter disbelief.
Customers expect that you do it all and they are disappointed when they find you don’t. For a smart business owner this reality shouts “OPPORTUNITY!” That’s right, opportunity! If you are expected to do it all, why don’t you? When I ask that question of mitigation-only contractors I hear a short list of answers:
- The margins are too thin
- It is too much trouble
- I don’t know how
- My franchisor is against it
- I’m afraid
The truth is, it just isn’t that hard! I did it, and I know you can too. Adding build back services can double and even triple your current gross revenue without any increase in the annual number of mitigation jobs you do. Imagine that! It’s true!
Many contractors have figured this out and have discovered that mitigation is not the end all, but the door to greater opportunity and more success. They have come to view mitigation as a feeder for the more highly profitable construction services where the greatest opportunity for growth exists.
For those contractors who haven’t yet figured this out many wonder how to keep their crew busy during seasonally slow times. Too often they spend a lot of money on lead generation internet marketing in an effort to fill idle time. If this sounds like you, today is the day to take your first step toward beginning a construction services division for your company, and get ready to grow!
You can do it. It just isn’t that hard!!
Just look at the numbers involved in this decision. How many mitigation jobs do you do a year? If you captured only 75% of those for construction how many would that be. Multiply that number by $10,000 which is the typical size of a build back job and cut that number in half representing the amount of profit you should earn.
Do this, and you will discover you can make nearly as much construction profit as your current gross revenue doing mitigation only. What an amazing opportunity! What in the world are you waiting for? Additionally, you become more marketable to customers, agents, and agencies because everyone wants to make one call, to one contractor, who does it all.
How convenient is that? Now that the secret is out, are you ready to become full-service? If you want more work, more customers, more money, and more profit – this is the way to do it. Like me, you may find this to be the best business decision of your life!
For more valuable information on starting a restoration business or growing a mitigation company visit my website at http://www.growmyrestorationbusiness.com/blog