Home services have been hot lately. Most people, especially in the Inland Northwest, cannot find good, reliable professional people to do home service work such as handyman, construction, small electrical, cleaning, lawncare, painting, etc. The boom in these industries have allowed a lot of good hardworking people to strike out on their own and start their dream business. However, as we saw in the late 2000’s, this dream can quickly turn into a nightmare. During that time frame, carpenters I know who were experts in their craft were on the sidelines and out of work for months at a time. It was a tough time to say the least. While no one knows if we are heading into another recession soon, it is good to keep some things in mind to recession proof your business and prepare incase work slows down. Here are some things we’ve seen work for people in the home services.
The principles of recession proofing in this article are broken down into three categories: diversify, build relationships, and get finances in check. These topics are briefly discussed below. If you need help with email marketing or copyright content, please contact us.
Diversify Home Services
In a downturn economy, its critical to diversify your services by offering a wider range of services to appeal to different customer needs. This could include essential home maintenance, repairs, and cost-effective upgrades, which are often in demand regardless of economic conditions.
When offering these services, identify and emphasize services that are essential and cannot be postponed, like plumbing repairs, roof repair, or heating system maintenance.
Look for opportunities to expand your service area as well. Often times, you may have to drive further to get the work in a downturn economy. You can plan ahead by offering limited services in new areas to get your name out now.
Build Relationships
The great businesses will make it through. To be great, establish trust and build relationships with existing and current customers. Satisfied customers are more likely to be repeat customers and refer others, providing a stable revenue base.
Maintain a strong online presence through SEO, social media, and email marketing. This can be a cost-effective way to reach new customers and keep top of mind with existing ones.
Provide customers with information on the importance of regular home maintenance, which can save them money in the long run and drive steady business for you.
Build relationships with suppliers, contractors, and other businesses. Networking can lead to new opportunities, collaborations, and cost savings.
Unique Pricing Models
Streamline operations to reduce overhead costs. This might include optimizing scheduling, reducing waste, or investing in technology that improves efficiency.
Offer flexible pricing options to accommodate clients with varying budgets. Consider service packages, discounts for essential workers, or bundled services at a reduced rate.
For larger jobs, provide financing options or payment plans to make services more accessible to customers, especially when they are tightening their budgets.
Healthy Finances
Maintain a reserve fund to help your business stay afloat during tough economic times, allowing you to cover essential expenses and invest in opportunities.
Regularly review and manage your company’s financial health, keeping track of cash flow, expenses, and revenue trends.
The Selway Group 