Help me turn my dad's construction business around! [Archive]

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GSDog

3rd March 2009, 19:40

Hello everyone.

My dad is the managing director of a small construction business in the South East. It's a family run business and has been going for over 60 years.
It's been struggling recently with more competition in the local area and less work coming in. One of the biggest problems I think is that my dad does absolutely no marketing or advertising. He basically replies completely on word of mouth and has a very negative attitude with growing the business. It almost seems as if he wants the business to stay small and struggle.
After years of telling my dad to get an email address I finally set him up a proper email address and I am in the process of getting broadband in his office (he has only been using phone and fax).

I basically need some advice to turn the business around. I don't want to sit back and watch a family business of over 60 years go down. I'm only 19 and I have no business experience so this is all very new to me.

I would like to know the best places to advertise the business.

Is it worth buying advertising on websites such as Yell.com which charge up to £220/year for "priority advert with web link", etc?
I am in the process of getting him a website built which I think will help and I plan to maybe get some flyers done and start hand delivering, is that a good idea?
I also need to know a good and reliable place to host his website. I have bought the domain name already.

Any help would be much appreciated.

estwig

3rd March 2009, 19:50

Hi GSDog, welcome to UKBF and sorry to hear of your Dads problems.

What kind of construction work does he do?? Domestic, commercial, local, has he got employees or subbies, local authority work, government work, house builder??

Tell us a bit more.

Network Yorkshire

3rd March 2009, 19:50

ok, what kind of builders are you?.. residential commercial etc etc

Network Yorkshire

3rd March 2009, 19:50

same post at the same time...great minds ey!

estwig

3rd March 2009, 19:52

Definitely mate.

:)

GSDog

3rd March 2009, 19:59

Sorry I should have mentioned.

He does residential domestic work, general maintenance, loft conversions, barn conversions, plumbing, etc.
He hasn't really had any big jobs such as conversions in recent years though and I don't understand why... Most of the work is painting, plumbing and general maintenance. The business did do house building in the past (30+years ago now) when my Grandad was director and I think he built 30+ houses in the local area.
I would like to increase the quantity and size of the work he is getting ideally.

He has 3 full time employee's (painter, plumber and builder) and he also uses contractors when needed.

hlsps

3rd March 2009, 20:05

estwig

3rd March 2009, 20:07

You need to get on the local council website and find the list of people who have a planning application, also some councils also list people who have an application into Building Control. Write to them and introduce yourself, don't expect instant answers, it's a numbers game, send lots of letters.

Yell is a complete waste of money, don't do it.

Get a website, lot's of good designers on here, get your portfolio on the website, use PPC, lots of pro's on here will help with you this. Don't know what PPC is?? Google.

estwig

3rd March 2009, 20:20

There's loads and loads of ways to generate business in this line of work, here's a few;

Sign written van
sign boards on every job (your a fool if you don't do this, so cheap and effective)
join the FMB
Does your local council have a recommend a trader scheme, this is really good
photograph your work and build a portfolio
ask every customer for a letter of recommendation, add it to the portfolio on the website.
Good letterheads, business cards, etc

Your in the South East, anywhere near Gillingham?? We is always looking for good trades??

JEREMY HAWKE

3rd March 2009, 20:29

You have stated that you are only 19 with little business experience ..

Well you have shown some real drive by actully going out and taking the bull by the horns and trying to steer your company in a new direction ..

While it may not look good this could be an opportunity for both you and your Dads company ..

This is a chance for you to gain that valuable experience at a young age.You have a real chance for yourself here ..

My prefered way is selling is cold calling maybe not the best way for this but I would also recommmend a few thousand good leflets printed and posted all over the place

Duke Fame

3rd March 2009, 20:41

Where in the South-East? I need someone to makeover my parents place in order to rent it out.

GSDog

3rd March 2009, 20:55

Have a look at the Local Authorities planning portal. This lists all pending planning applications. It also lists contact info. This would be a way of marketing people who are already looking to have work done.

Thanks. I just found my local planning application portal and it is very interesting, but how would I go about approaching these people?
Would it be best to just drop a leaflet through the door?

You need to get on the local council website and find the list of people who have a planning application, also some councils also list people who have an application into Building Control. Write to them and introduce yourself, don't expect instant answers, it's a numbers game, send lots of letters.

Yell is a complete waste of money, don't do it.

Get a website, lot's of good designers on here, get your portfolio on the website, use PPC, lots of pro's on here will help with you this. Don't know what PPC is?? Google.

Thanks estwig, I have found the local planning application website. I had no idea this was available.

I will read about PPC now. :)

There's loads and loads of ways to generate business in this line of work, here's a few;

Sign written van
sign boards on every job (your a fool if you don't do this, so cheap and effective)
join the FMB
Does your local council have a recommend a trader scheme, this is really good
photograph your work and build a portfolio
ask every customer for a letter of recommendation, add it to the portfolio on the website.
Good letterheads, business cards, etc

Your in the South East, anywhere near Gillingham?? We is always looking for good trades??

That's very helpful again estwig. I know he has the work vehicles sign written and he definitely uses sign boards. His letterheads and business cards look smart and professional but they do need updating with his email address and website link.
I will definitely look into your other idea's.

Unfortunately we are not near Gillingham. :(

You have stated that you are only 19 with little business experience ..

Well you have shown some real drive by actully going out and taking the bull by the horns and trying to steer your company in a new direction ..

While it may not look good this could be an opportunity for both you and your Dads company ..

This is a chance for you to gain that valuable experience at a young age.You have a real chance for yourself here ..

My prefered way is selling is cold calling maybe not the best way for this but I would also recommmend a few thousand good leflets printed and posted all over the place

Thanks Jeremy.

It is really quite exciting having the opportunity to do this and I know I will learn a lot at the same time.
One of my biggest challenges now is changing my dad's ways. He hasn't really changed anything since he took the company over 30 years ago and I think it's time the company headed in a new direction.

Can anyone recommend any good places to get professional leaflets printed?

estwig

3rd March 2009, 21:00

Good luck with it mate, compared to your Dad with 30 years in the trade I am probably one of the young upstarts taking business away from the 'old boys'.

If I can help, ask.

Oh yea, leaflets ain't that good an idea.

cmcp

3rd March 2009, 21:03

I agree with Jeremy it sounds as though you're very motivated.

So it goes beyond your father to his father? Any further? Great selling point! GSDog Builders and Sons Est 1912.

I'm working with a friend's family business at the moment, and it's been pretty tricky to persuade them to go online but we're getting there!

safia

3rd March 2009, 21:03

Hi,
Iam in Scotland, don't all groan at once. We have 'Business Gateway' here, I am sure there will be an equivilant in England. They are very helpful whether you are are starting out in business or wishing to grow your business, they offer free advice on all aspects of business. Well done with what you have got going so far.

maxine

3rd March 2009, 21:05

I think you have done great too with suggestions you have made and think this is an opportunity for you and your Dad to bring a bit of freshness into the business. Things like website and proper email address must certainly improve things.

There is nothing wrong with a business being small provided it is profitable. Sometimes you can take on a load of extra work to only make the same amount of profit as you did with a smaller volume so have a good look at your prices and your costs for labour, materials etc.

I personally think that ads for residential trades in yell.com are worthwhile though I know not everyone shares that view. A weblink is beneficial on yell.com in my opinion especially while you are sorting your website and SEO out. (little tip though - get the main add under the painting classification as it is a lower profile and cheaper category than building & plumbing with a weblink then add your building, plumbing, garage conversions as a 2nd/3rd/4th classification :))

Flyers also good as if you deliver enough of them you will catch people at the time they are looking or perhaps haven't got around to sorting something out yet. They don't have to be expensive so maybe do a bit of a test first.

The other thing that would be interesting to know is if you are a) not getting very many enquiries or b) whether you are quoting for work but not actually getting the jobs. Why don't you have a look at the quotes you have done over the last 3-6 months and see out of those what the trends are for work that you did or did not get ie; was it for all work types or any trades in particular? was it for any any location?

Jeremy mentioned cold calling and I do this for our plastering & plumbing business and manage to capture the odd few jobs this way but it is a hard slog calling residential customers but it does work if you are prepared to put the hours in as you are contacting people before they have gone out looking for quotes. You can also call businesses aswell (just be careful of TPS checks for both business and residential customers). This can be good where you pick up small jobs but after you have done a small job the customer will come back to you for larger jobs :)

Also, have a look and see if you can improve the way your quotes are presented, the timescales that they are turned around, and always follow them up relentlessly and be prepared to haggle a bit if you need the work and want the job.

Estwig can give you loads of advice on the sales process too :)

Good luck :)
Max

estwig

3rd March 2009, 21:08

Your too kind.

Still luving your posts Max!!

:)

Richie N

3rd March 2009, 21:12

Hi, welcome to the forum.

Have you tried www.gumtree.com (http://www.gumtree.com) the site is free (except London, not sure of your location), they have a dedicated building services section for posting work offered and you may also find some posters requiring services.

Also, maybe do a mailshot to previous customers to recommend services to friends and family, offer some incentive in the way of a discount.

muppetdave

3rd March 2009, 21:17

GSDog

There's quite a number of things that you need to look at here, and like the others my first question was also going to be 'what type of building work'!

Unlike the others though, I wouldn't necessarily look to change the types of work that you go for... controversial I know. If he gets well known for picking up the smaller jobs but delivering good quality, they can be just as good for margin, and given the current circumstances *could* be more prolific than perhaps larger jobs. That said of course there can be the benefits associated with the larger projects.

One thing I would certainly look at in your case would be referrals. Nice bottle of champagne for every successful referral over a certain value or something? You could also do this for estate agents/HiPs people.

I have other ideas, but my brain isn't working right now! Good luck though.

maxine

3rd March 2009, 21:20

Think that is a really good point that cmcp raises there... I mean, how many building firms do you know that have been around three generations in the residential market? Will surely go a long way to demonstrate reassurance and reputation :)

Also another site you might be interested in is www.myworkman.co.uk (http://www.myworkman.co.uk) as very handy for general building leads :)

And whilst I am on a roll I would just say too that don't try and change your Dad too much just make the most of both of your strengths :) I have just done some work with my Uncle who will be the first to admit he is very traditional and old school type builder (no texting, no emails just shedloads of paper everywhere) but I have learned loads from him and vice versa

muppetdave

3rd March 2009, 21:22

I'd suggest Trust Mark isn't a bad route for a bit of 'recognition' also.

estwig

3rd March 2009, 21:24

Think that is a really good point that cmcp raises there... I mean, how many building firms do you know that have been around three generations in the residential market?

Hello :)

...................

apeebles

3rd March 2009, 21:25

I just wanted to add how great it is you are trying to help and motivate. It's always worth looking to business link for some free advice. Not saying that they are perfect but it may help give your Dad some ideas. Some of the other ideas recommended on here sound brilliant especially from the people who are in the trade already. ie. Look at the planning permission website.

Good luck

Alistair

muppetdave

3rd March 2009, 21:41

I forgot to add in both of my posts, good luck in dealing with your Dad, it's never easy but you seem to have a great attitude. I hope that he is the receptive sort, so that your work really makes a different (learnt from having a farming father who won't change despite good advice and wonders why he doesn't get on...)

Tej

3rd March 2009, 21:47

muppetdave

3rd March 2009, 21:50

All kudos to the lad.. but don't take anything away from his dad. He has been going for 30+ years.. and still going. So.. old values can't be all that bad.... and he must be doing something right!
How many can say that these days.

Sorry - I think you mis-read as that wasn't my point, and I'm not knocking his Dad. My point was more along the lines of there may be a challenge if the OP wants to make significant changes - hence my original post along the lines of why not develop the existing model rather than try and change it.

Burden

3rd March 2009, 21:52

I think all the advice above is great - if the business is alright and not going to hit the wall then .. work with your dad and bring both of your ideas and the traditional and modern ways of gaining work into practice!

I know when i was applying for planning i had a few letters ... "i hear you are currently planning blahblah! please send us an email with details and we would be happy to give you a free quote" i emailed them all, it was a free quote after all!

DavidRyves

3rd March 2009, 23:06

In your original post you talk about your Dad's new website and yell.com. The latter can work well with the former - I've seen this with one of my clients - because of the way Google rather bizzarely evaluates and enumerates 'external links' (I'm not going to bore the world with how it does this).

Most important - get the basic SEO right:

Make sure the site is fully W3C compliant - see http://www.w3.org/ and that there are no broken links etc
Make creative use of image alt tags to incorporate keywords
Ensure that each page has unique meta tags for title, description and keywords
Ensure that you keywords actually appear on the page in question in reasonable density (frequency) - and look at long tail/short tail keywords - see (for example - couldn't find a better example in the 10 seconds I thought I'd devote to this) http://www.marketinghub.info/long-tail-versus-short-tail-keywords/
Manually submit the site to Google, Live Search, Yahoo etc. - ensure the site has a good (page 'priority' ranked and accurate) XML site map and robots.txt file and that the relevant validation meta tags or HTML files for search engine validation are there.
Get the site listed on all relevant directories - see http://info.vilesilencer.com/ - use the Google webmaster tools to identify/correct any errors/issues they encounter with the site.

Lots to do - Have fun!

MH1

3rd March 2009, 23:51

As mentioned the length the company has been going is a huge selling point too people who are seeing companies closing down daily on the news, which brings a good PR story in yourself joining the family firm adding another generation.

Personally I would call up the local paper and get one of the editorials done on your company, should give you a bucket load of exposure, they normally offer a double page feature along with a few adverts etc.

Testimonials is what I would be most interested in regarding a website, ask every client, old and new for testimonials, some give willingly, 90% are happy if asked politely. I always stress that although I might shorten a testimonial on my website I will never change anything written, use the ones you like most.

Your local established company has a HUGE advantage over most other companies before the quote is even presented.

Network Yorkshire

4th March 2009, 04:21

Get in touch with your local business link....

Business Link Yorkshire are running a preffered supplier scheme i'm sure there will be something like this in your area.

Do you have any affiliations with businesses that target the same market with non competing products and services?

definitly worth looking at.....

MoneyLender

4th March 2009, 05:01

Maybe your dad has worked enough in his life!

Maybe he has enough work for now and is looking forward to taking it easy and having a nice retirement.

Maybe he will look at you to continue the business as a skiled tradesman and not a button pusher.

If not, I hope you make enough money from the interweb to keep him comfortable.

Look after your parents! They have been working hard all their life to look after you. It's so easy these days!

I sit on my backside and earn 5 grand a day! Is my dad proud? N0!

See what I mean?

Tej

4th March 2009, 07:17

It all boils down to be able to work harmoniously with Dad... and yes.. look after your parents, they have given you a great start, good schooling, good attitude, and above all, judging from your posts.. respect.
Good luck in your endeavours.

bigfish

4th March 2009, 08:45

g5media

4th March 2009, 10:04

Please email the step by step guide to sitting on my backside and earning 5 grand a day to my inbox thx :cool:

+1 :D

@ OP - good luck with this. Regards leaflets / fliers, I'd suggest targetted ones. Such as any property with 'for sale' or 'to let' signs drop some leaflets through the doors (make a note of address, which sign and date) - yo umay get a seller who wants to spruce his house up a bit

check back every so often (eg when walking the dog) and once the sign changes to 'Sold' drop another leaflet through the door or go up and knock on the door and offer your services - you may then get a new buyer who wants to decorate immediately

MoneyLender

4th March 2009, 10:25

If your dad really does need some more work, one idea is to look through the private rented property ads in your local paper.

Call the landlord and see if they require a good tradesman to look after their properties.

It may be irregular but ongoing work.

At g5 media & bigfish

send me £20 and I'll tell you how to become a millionaire :D

bigfish

4th March 2009, 10:30

Do what I did ? ;)

Nell01

4th March 2009, 10:56

GSDOG
In answer to your question about how to approach these people ?
Planning portal
If it’s the conversion/ extension route you go down. Write to the architects on the portal. Offer to tender on current application or future projects they may have- push the established family business- be prepared to point them to previous work, therefore you would need to contact previous customers etc.-include your email/website for easier reply.
If it’s the smaller jobs you are after write direct to customer/architect on the building standards portal.
You maybe able to find a mutually beneficial contact through previous architects your dad has worked with.
Customers don’t always approach architect firm first though, some of the applications on the portal will be subcontracted from a builder.
helen

Zeno

4th March 2009, 11:09

It almost seems as if he wants the business to stay small and struggle

I think this is your overiding problem. If you Dad is happy with where is company is then it is not your place to change that.

You say you want to turn your Dad's business around but as it stands and based on the very limited information I have, the business provides jobs for 3 people and a living for your Dad.

If he is happy that word of mouth (a very valuable commodity in most many trades) generates enough work and does not want to grow the company then that is his decision.

You are young and ambitious, your Father is not. He does not want to trade the risks and sacrafices of running a large company for the potential rewards.

Minnsy

4th March 2009, 11:19

Another one to look at is www.ratedpeople.com (http://www.ratedpeople.com) not unlike mybuilder.com, but has far more jobs outside of the major conurbations. I think it does cost a few pounds per month, however there are currently over 6500 live jobs.. some of these must be in the South East..

office man

4th March 2009, 11:22

Try contacting a few local estate agents and ask for details of some local landlords - i know a few of these in our area who always have work to offer.
They won't pay top dollar though but it could be a means for some reliable regular work.

Well done on showing some business foresight and posting on here, make sure you Dad reads this thread, he should be proud that you are helping out in today's market place - i am sure between you this can work out.

good luck

GSDog

4th March 2009, 12:33

Wow, I never expected so many replies on here. Thank you all so much for your help and support.
I'm not going to go in and change everything. I will put some of these idea's infront of my Dad and see what he thinks.
I need to have a chat with him and find out exactly what the problem is with the company and see which area's can be improved. I think I could help out with doing some of the estimates and paperwork because I do think he's struggling to get them all done in time and I know he hates that side of things.
When I said that it's almost as if he wants the business to stay small and struggle, I meant he basically didn't want to change. I shouldn't have used the word small because there is nothing wrong with it being a small business, sorry. I guess I am a bit frustrated that he doesn't want to change anything when change is definitely needed.
I haven't yet looked at the finances but I would be very surprised if he is making more than £10K profit a year right now, we are getting virtually no money in ourselves. However, he did say he boosted the turnover last year by 40% which is a great achievement. He said this year has started very slow which is why I am wanting to help.

Thanks again for all your help.

MoneyLender

4th March 2009, 15:03

Well its the credit crunch...

Rather than try and resurrrect you dad's business.

Start one of your own. These days, it doesn't take any skill to do so.

People will tell you it is hard to make money in hard times...Rubbish....it is the best time! Make your money and look after your family.

Stephen Berry

4th March 2009, 15:04

Some really great advice so far - guys, there are many times I am proud to be part of UKBF.

To build on a suggestion by MH1 - the local news. You have some great angles -
"What recession?" local business grows by 40%
Local business gearing up for 3rd generation

Local news grabs something easy - so write the article for them - my wife keeps a local voluntary organisation and a local community campaign constantly in the press - by making it easy for them - writing the draft article, including the photos (although a marketing degree and multinational marketing background is helpful) ..... provided that the article is about the 'news' and not the 'sell' our experience is that they will snap your hand off for it! Phone up, speak to an (the?) editor, e-mail the draft article.
I'd advise getting the web site up first though (including photos of your Dad's work and customer testimonials).
Good luck - let us know how it goes.

scribe

4th March 2009, 21:15