Expanding Your Market: Dos and Don’ts for Your Growing Business
In the ever-growing home services market, navigating the waves of competition, customer demands, and ever-changing industry trends is no small feat. That’s why our recent podcast episode of HVAC Success Secrets: Revealed was so special. We hosted Michael Bears, a seasoned trade veteran and current Sales Manager at Free 2 Grow. His insight is invaluable from decades of experience and the successful founding and selling of four home service businesses.
During our chat, Michael talked about helping businesses add new divisions to their home service offerings. He shared stories of companies jumping in too quickly, seeing only the promise of more money. Luckily for us, Michael also shared awesome advice on how to grow a business the right way!
Stepping Up Your Game
If you’re contemplating adding a new division to your home service business, consider your current business offering and assess whether you are ready to take on more work.
In a rapidly growing business, the excitement can often overshadow the groundwork. Michael further elaborates, “Make sure you have everything in place for your current venture and that it’s running autonomously.” This sets the stage to ensure you’re not torn between two demanding commitments when diving into that new venture. He rightly adds, “…then you can focus your energy on that new venture because you can’t do it and focus only half your time.”
Three Golden Nuggets to Stand Out
In an industry as competitive as HVAC, setting yourself apart is crucial. When adding plumbing or electrical to your business, you’re now entering markets that are just as crowded and competitive. Michael generously shared three key insights to help those considering adding to their business services or those who want to improve their current business.
1. Have Key Players in Your Line-Up
The foundation of any great service is its technicians. Michael emphasizes, “Make sure the technicians you are sending out are the best of the best.” First impressions matter in the service industry. “You can’t have someone on a first call or a first try on a new relationship and have them monkey it,” he warns. Essentially, ensure your team is ready to deliver quality every single time. This means proper training of new employees and having processes to keep all team members on the same page.
2. Price Yourselves Accordingly
Financial dynamics in the HVAC industry are intricate. Pricing is a delicate balance between staying competitive and ensuring profitability. Michael poses some introspective questions: “What are your competitors charging? What can your market bear for you to charge?” He asks, “Where do you need to be to ensure you’re at least above that 40% profit margin?” These inquiries are fundamental for businesses looking to carve a niche while staying financially sound.
Don’t undervalue yourself just because you’re new to a market. While you might attract some new customers, others might question if they’re truly getting their money’s worth.
3. Offer Something Unique
What’s your unique selling point (USP)? Michael underscores the significance of carving out a niche distinct from competitors. “Whether that’s your customer service or your warranties, you must have something that sets you apart,” he clarifies. He paints a vivid picture of this with his perspective on customer service: “You’re not just purchasing a piece of equipment from me, you’re buying me.” It transcends the mere transactional nature; it’s about building trust and forging a connection. In today’s saturated market, businesses that can craft memorable experiences often find themselves at the forefront.
Gleaning Wisdom from Michael's Journey
Michael Bears’ vast experience in the HVAC industry lends a seasoned perspective that’s hard to come by. His emphasis on a grounded approach, the right team, smart pricing, and a unique proposition are essential pointers for anyone looking to expand or elevate their HVAC business.
Michael’s roadmap is invaluable as businesses seek to thrive in this growing market. Each piece of advice resonates with his broader philosophy: Ensure your foundation is rock-solid, then build upon it. If you missed this enlightening episode with Michael Bears, we highly recommend giving it a listen!
Until Next Time,
Evan and Thaddeus