Business Development For Architecture, Engineering & Construction Markets
CASE STUDY: Construction Management Company
Several years ago Ron consulted with a CM company who was doing about three-million dollars. A business plan and a marketing plan was put together, and implemented. They started to grow using a two prong attack: they had a construction management company that also did general contracting, and they had a 24/7 facility maintenance company. The strategy is that each one could support the other if they ran into hard times. New construction required funding while facility maintenance was paid out from operations. It worked, and they grew. Ron visited them recently, and was talking with the president who was the owner, and a project manager came in looking for direction of a current price. He was told to bid it high, because they couldn't take on anymore work. This was when the economy was the worse. They had grown into a fifty-million dollar operation.
CASE STUDY: Residential Drywall
A residential drywall and painting contract was also hard hit in the Chicago suburbs. The company was doing approximately four-hundred houses per year, and within a year they went down to zero. The owner sold the business and after conducting a market research project he ended up acquiring a 24/7 emergency repair: fire, water and storm damage as well as bio-hazards. Because of flooding, snowstorms and occasional tornadoes in the Chicago suburbs, he projected it was a lucrative field. But the real reason he went into the business was that he could use all of his construction experience, framing, drywall, taping and painting and bid on the actual repair work. By this time he had built a rapport with the owner and they trusted him. The real beauty of the business is that there was no owner financing - it was all paid for by insurance.
CASE STUDY: Painting Company
A residential painting company in the Chicago area focused primarily on residential projects. When the slow economy arrived the housing market was the first hit, and found most of his business gone. Instead of going out of business, he did one of the things we discussed, and looked for a niche that was prospering. In the end he determined that concrete grinding and floor finishing was desperately needed in the RUST BELT that runs from Michigan around the Lake and into Chicago and up into Wisconsin. He traveled to another state, bought equipment, took instruction as to how to run it, and came back and started to advertise. The result, he had more work then he could handle.