Tuesday 19 December 2017

There Are Only So Many Ways to Grow Your Restoration Business

Posted by at 9:00 AM in

There are only so many ways to grow your restoration business. Here are the most likely game-changers:

  • Marketing local professionals
  • Becoming full service
  • Becoming a program contractor

That’s it. That’s all there is.

Which of these will you choose to accelerate your company growth? You may decide to choose all 3.

Market Local Professionals We all know that marketing insurance adjusters, agents, plumbers and property managers doesn’t produce the results they once did. Many contractors would choose a different growth strategy than this if there was one available to them. They know no other way, so they compete against every other restoration company in their marketplace for meager results that requires an enormous amount of time and energy.

Become Full-Service This means adding construction services and completing the entire job from water damage dry out to repair and rebuild. Some contractors have seen the financial benefit of full-service contracting but with little personal background in construction services are afraid to take it on. Like any other aspect of contracting you can learn to “manage” rebuild services. By this I mean you can learn the skills to manage construction services while subcontracting all the actual labor to others. Many before you have successfully done it and you could do it too. With an average rebuild of $12,000 (including O&P), and a potential for achieving 45%+ profit the prospect should be seriously considered. It is not as daunting a task as you might think if you have the proper help and support during the early months of development. A good rule of thumb is to multiply your company’s mitigation revenue by 3 to identify the potential and probable revenue your company can generate through construction services without increasing the size of your customer base at all. If you are an average sized mitigation company earning $500,000 of annual revenue for mitigation services you should generate no less than $1.5 million in revenue from your construction services. Not a bad way to go, and grow!

Become a Program Contractor This too represents a huge opportunity for many contractors. How many contractors do you know who have discovered the benefits of receiving direct assignments for which you do not bid or compete. Having payment sent directly to you with the contractor’s and customer’s name included puts you in charge of processing the payment alleviating the fear of not getting paid. The percentage of claims being sent “through TPA channels” increases with every passing year. For those jobs the only way to get them is to have them assigned to you. If you are not on the “program” you could well have the job taken from you by the carrier and “given” to another contractor. We have all been there and it is heart-breaking when the job is taken and given to someone else. The jobs received are varied to include; water mitigation, rebuild, roofing, large loss, and fire services. For this you pay an average fee of 5% for each job completed. Would you pay this for a steady stream of work? There you have it!

There are only so many ways to grow your restoration business. Which one is your next choice to accelerate your company’s growth?

Reference – 6-Month Coaching Plan: The Revenue Generator – The Ultimate Revenue Generator for your Business Sales Growth