Q: My business is in residential construction and it has been very difficult to find new projects. What can I do to stay in business until the housing market improves?
A: Well, if we just focus on increasing revenue, one needs to think creatively and make changes. If the market for new homes is weak, then evaluate those markets that are growing. For example, when people don't have money to buy new, they often improve or repair their current residences.
Q: I have already starting bidding on remodeling jobs but competition is stiff. What other markets should I be considering?
A: First, assess your strengths. Major positives may include your network of past customers and suppliers, your employees and their unique talents, access to special purpose equipment and your company's knowledge of the marketplace. Think about how these strengths can be shifted to meet market needs. Examples include working with lenders who are trying to sell foreclosed homes and other real estate; working outside your normal geographic area; finding products or services that correspond to your strengths;
joining forces with another contractor with strengths complementary to yours; and positioning the business so it can sell to local, state, and federal government.
Q: I've been looking at some of these alternatives but don't know what other products or services I could sell. How do I know where to focus?
A: Spend some time researching the market to see what is needed. Start by reading local media (newspapers, journals, magazines, blogs, etc.), talking to others about trends and special interests and paying attention to government legislation. New government programs put in place to help businesses often present opportunities such as the current incentives through the public utility district to install energy conservation devices and funding for public infrastructure projects such as the building of new schools. The U.S. Department of Housing and Urban Development has implemented a number of programs to help businesses participate in an economic recovery like the Public Housing Capital Fund, Native American Housing Block Grants, Assisted Housing Energy Retrofit and Lead Hazard Reduction.
Q: I've never done work for a government agency before.
How does that work?
A: There are a couple of things to consider. If your professional network includes a prime contractor that does government work, be sure she or he knows you would like to bid as a subcontractor. If you want to bid on the work yourself, get a checklist from the WSU Small Business Development Center that lists all the steps you need to take. The U.S. Small Business Administration has an introduction on selling to the government on their website.
Janet Harte is the Washington State University/SEDC-certified business advisor and center director for Clark and Skamania counties. She can be reached at 360-260-6372 or
jharte@vancouver.wsu.edu
