Question: What percentage of your new jobs are based on the word of mouth of your reputation vs. your own marketing? And if you do marketing what have been effective methods? How would someone just starting out in contracting attract new business? Thanks in advance for your answers!
Answer:
Busted, this is one item that I do not track as well as I should. I can definitely say that the percentage is growing year over year, and is probably around 10% of my calls right now. I can honestly say though, do not keep all your eggs in one basket – many well-established contractors ran into a brick wall because they relied on referrals only when the rug was pulled out last year from under them.
For your next two questions, they are actually tied together – as in what works for me, may not work for you. In my area a small local classified only paper is at the top for calls received, followed by the Yellow Book, my website(s), and then the associations I belong to, NARI, BBB & the Cullman Chamber of Commerce.
For someone starting out, first work on your five-year plan. It should help you identify who your clientele is & how you are going to reach them. A website (even a 1-page site) is necessary in most places – i.e. if you are not on the web, you do not exist. Even if you are in an area like mine, developing your site will help give you a leg up on your competitors later. A real email address based on your website name is also necessary. Who would you really consider contacting; SLS_gz21@your isp.com or Info@SLS-Construction.com? Business Cards are also necessary and should be carried with you at all times. Your website address & phone number should be on all your materials.
Other resources: Just because your phone rings, doesn’t mean you will survive if you don’t understand how to run a business. I would suggest looking into SCORE, the SBA, and your local Chamber of Commerce, along with other trade specific forums that are out there like www.remodelcrazy.com or www.contractortalk.com to help you not only survive but hopefully to flourish.

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