There are only three ways to grow a business: increase your customers, increase the number of times those customers buy or increase the price at the point of sale.
In order to do any of that, you’ve got to know the secrets of the business. That’s where Frank Gandora comes in. The president of Creative Hardscape shared a few tips based on more than 30 years of experience in the industry at GIE+EXPO in Louisville, Kentucky.
Here are a few of his insights:
Think outside the box.
“Ninety eight out of 100 businesses use tunnel vision to do their jobs. They don’t think outside of traditional methods,” Gandora said. So instead of looking at how your competition or your colleagues do business, look outside of your own industry and see what you can learn. For example, if you’re struggling with new sales, look at how an expert in the insurance industry does it.
Look at the big picture.
The majority of businesses operate tactically instead of strategically, he said. Instead of focusing on how to make your boss happy, look at how you can separate yourself from the competition or how you can find a way to take some time off. “Look for the connection no one else sees,” he said.
Focus on sales.
“The only reason a business exists because some type of sale is made, and we forget about that,” he said. “Sales will pull you through anything. If you’re creating cash flow, you can go on day to day.”
Even if your business isn’t turning a profit, you can still stay in business during a tough time, like the Recession, if you’re able to keep making sales. Of course this isn’t a sustainable model but it can work in a crunch.
Know what you’re selling.
When clients talk about what they want to buy, it’s less about the material product and more about the experience or the feeling they want. When someone says they want an outdoor patio, it’s not just about the patio. They want somewhere to relax with their families or somewhere to entertain guests.
“People don’t buy products and services, they buy a result, they buy a benefit, they buy an enrichment, they buy protection,” Gandora said. “But when they call a contractor, they try to sell dependability and service but that’s not what customers want to buy.”
So move away from bidding the job and bid the situation your customer is trying to deal with.
Think of your customers as clients.
Those who buy your services are more than just your paycheck. They’re clients in the same way that a financial advisor or a lawyer has a client. “They trust you, they know you, they’re under your care and your advice,” Gandora said. “That’s how we need to think as a group. We have clients.”
You want them to hire you and refer you to others, he said.
Use the Platinum Rule.
Gandora doesn’t believe in the Golden Rule. Rather than doing business by the “Do unto others as you would have them do unto you,” use the philosophy, “Do unto other as they want to be done unto them.”
Rather than give clients what you would want as a customer, get to know them and treat them the way they want to be treated.
Advertise for the long haul.
When you plan your advertising budget, think about how much your target client will bring in over a period of time. That will give you a much better idea of how much money to spend, Gandora said. Simply allocate a percentage of what you think they’re worth.
Get referrals.
Gandora’s company doesn’t do any advertising at all. Instead, it depends solely on referrals. “Make referrals a part of doing your business. Make it a condition of doing business with that client.”
He recommends saying that you’re not going to do work with a client unless you do such a great job that they’ll refer you to their friends. You can also give a discount or an add-on like a fire pit or a planter on the condition that they give you bona fide referrals.
He said the lifetime value of that customer and what they bring in is worth much more than a firepit that costs $300 to install. And the best way to do it is to write a formal referral plan. “it’s probably the single most important thing I’ve ever done in my business,” he said.