How to make your first million

Here’s an example of how one builder (we’ll call him Bob) built a million-dollar business in just over a year

Not only has Bob significantly grown his business, he receives emails like this from his customers:

“You have provided such outstanding, detailed, up front and specific service exactly tailored to our needs and budget. We really appreciate it and pretty much find it impossible not to choose your company as a result.”

Below are the four simple steps Bob made an integral part of his business model. Give them a try and see if it helps your business.

Follow up every enquiry

From day one, and while still learning how to sell, Bob made a point of following up every single enquiry and making personal contact with the homeowner. He didn’t win every job but kept going and never lost confidence in the sales principle ‘people buy from people’.

It was time intensive; many small jobs that didn’t make a lot of money could have been handled over the phone, but by visiting every potential customer and asking the same set of questions every time, he gained a first-hand understanding of what was important to the homeowners in his area.

Bob also found out what frustrated them when they dealt with his competitors in the area.

While it’s true that people may be the same the world over, every local community has its own particular set of quirks and idiosyncrasies. Knowing these gives you a healthy advantage when you’re selling your services in and around the community.

Try asking yourself the following questions:

• What are the peculiarities of the potential clients in my area?
• What frustrates them about builders?
• How do I tailor my approach to them?

Advertise to specific needs

Because Bob was learning more and more about what was important to the homeowners in his city, he was able to target his simple advertising flyers and brochures to address these matters, then the phone started ringing more often.

That’s when he also got to know the kinds of problems that local homeowners were facing at that time of the year. Using this knowledge, he focused his advertising on their specific needs. He wondered if others in the immediate area were likely to be facing similar situations, because they share the same micro-climate and their homes were of similar age and construction.

He found that in winter, he was dealing with roofs and drainage; in spring, he was working more on small renovations and decks; then in autumn, Bob’s attention was more focused on kitchens and bathrooms.

When he looked at the marketing material of other builders in his area, he discovered most were running with the same advertising month after month, irrespective of the season. They listed everything they could do, even though they hardly ever did most of them.

Homeowners generally only need one thing repaired at a time and a long list of services is confusing. When he focused his advertising on their specific, seasonal needs, it seemed to stand out more than the rest. The proof? The phone rang.

Guarantee against frustrations

Homeowners tend to select builders they think will give them the least inconvenience. Repairs and maintenance can be frustrating, and everyone has heard the bad news stories. All people want to be treated well and with respect, so Bob devised this straightforward four-point guarantee:

1. To start within 14 days.
2. To only invoice for actual work done.
3. To repair any poor workmanship at no cost.
4. To professionally clean up.

They may seem like small things, but they are important to the homeowners in his area.

What is important to the homeowners in your catchment?

“Many builders fail to take advantage of what is probably the best and cheapest marketing in the world – asking for referrals

Ask for referrals

Many builders fail to take advantage of what is probably the best and cheapest marketing tool in the world – asking for referrals. It may seem self-seeking, self-promoting, self-centred and desperate, but it doesn’t need to be.

Bob simply learnt to ask his clients if they had any friends or family that could do with some advice about maintaining or repairing their homes. Because he had proved reliable and trustworthy (like the majority of builders), his clients were willing to put him in touch with their friends and family.

When he visited them, he treated them in exactly the same way as he treated the referrer and received similar results. As Bob’s company grew, he trained his staff to do likewise and, as the list of satisfied customers grew, leads started to come in for larger jobs.

Sometimes the simplest approach is the best. Bob was able to quickly grow his business by taking this approach and recently enjoyed an overseas holiday with his family. Try it out and maybe you could, too!

About The Successful Builder

Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at www.TheSuccessfulBuilder.com.