Starting a home improvement business can be a big move & your way to great success. But in this day and age, the competition is fierce. Often, you are competing with other contractors over a limited set of customers, especially in the home improvement industry that comes with location barriers. As per a report by the Small Business Administration (SBA), approximately 20% of businesses collapse within a year.
If you are the proud owner of one, you would want your business to be in the other 80%. So let’s understand some reasons small businesses are vulnerable to failure.
Mentality To Sell
A common mistake that is hidden behind an important task. The first problem of a business is the wrong selling mentality.
Don’t get us wrong, selling your services is crucial for a successful business, but the right attitude comes first. The aim should be to entice customers and provide them with a pleasant experience. Happy customers directly contribute to sales. That is not all! They recommend you to others. That results in an increased reach without an investment. Here are some more reasons how having good customer relations boost your business.
Small Niche
Jack of all trades and master of none could be bad, but what’s worse is not growing at all.
If you have expertise in just one of the many areas in home renovation or construction, it is up to you to expand your niche. A small niche will get you only a few inquiries. Even with a high conversion rate of inquiry to customers, a small niche will get finite results.
Rigid Strategy
Every good business has a well-thought business strategy. It illustrates what the business aims to achieve and how it plans to do that.
Out of the many things that differentiate an excellent strategy from a bad one, a major point is a rigid plan. A rigid strategy sticks to its plans and principles regardless of anything. Practically, it is a bad idea. Some problems cannot be anticipated. You should be willing to update your strategy in accordance with the latest trends.
Taking Steps Too Early
The aim of any business is to grow. This means calculated risks and taking steps regularly in the right direction.
Avoid taking steps too early. A business grows at a certain pace. Allow it to grow and do not overestimate that growth. This will lead you to think your business is ready for the next big step when in reality it is not. Follow the old saying of this being a marathon, not a race.
Mismanagement
A big obstacle to a successful business is the mismanagement of assets.
This category is huge and covers all types of resources. Mismanagement of human resources, raw materials, time, capital, etc. results in a decline in productivity. Do not be scared to impose strict rules if it is for better workflow.
Avoiding these mistakes will help you survive the scare of failing. Another way of increasing profits is by lowering working costs. Here are ways to protect your business against staggering work costs.
At CustomFin, we completely understand the struggles of small home improvement businesses and are here to support them with the perfect solution. We link with contractors to provide financing for their clients that substantially increases their chances of cracking a deal.
