Author: KEITH LEWIS

Are you in the restoration industry and looking for a way to grow your business? If so, read on! In this blog post we will be exploring how to build a successful restoration business. From tips about pricing your services, to suggestions for marketing yourself online, we have got everything you need. So without further ado… let’s get started!

1.Establish a business plan

A business plan is a great way for new businesses to get started. It’s important that they have one, so their finances are predictable and the company knows where it stands financially. A good place to start with this step would be by creating an outline or map of what you want your future self – if everything goes according as planned-to look like at year three in four years time based on current budgets/outlooks about revenue streams etc., then these can provide some guidance when making decisions now!

2. Research the market and determine what type of restoration services you want to provide

It can be difficult to know where your business should go from here. You have the option of providing a range of services, including restoration work for the sensitive but what type do you want?

This research is important because it tells us more about who we are as individuals and helps narrow down our options!

3. Create a marketing strategy that will help your new business grow

Marketing is a constantly changing industry. It’s important to stay on top of changes, as your marketing strategy will change accordingly and you risk being left behind if it doesn’t evolve with the times! A good place for finding new information about what’s going in today’s world of digital business would be organizations such as YouTube or Facebook ads from companies like Google Adwords that offer tips specifically tailored towards social media platforms – there are even courses available online that can help get people started right away

4. Set up a website with all the information about your company, including contact details, types of services offered, and prices

Setting up a website is an essential part of running your company. It’s also one that many entrepreneurs neglect for various reasons, but it doesn’t have to be this way! The more information you put out there about what makes YOU unique in terms of how customers can reach out and connect with YOU. The better-off things will ultimately turn up when people start buying from YOUR products or services because they know exactly where these come from.

5. Develop an online presence by using social media sites like Facebook or Twitter to connect with customers and potential clients 

Social media is a great way to build your online presence. By posting engaging content on social networks, you can engage with followers and generate more traffic for the business!

You may also want to create an account in one of these sites: LinkedIn or Pinterest – but it’s important not just do this because they are popular sites that many people use; make sure you actually post something interesting so viewers will be interested enough by what they see from YOUR perspective

6. Build relationships with local contractors who can refer you to work when they are too busy themselves

Build relationships with local contractors and designers to whom you can refer for future projects

The best way of getting ahead in the construction field is by building strong collaborative networks. Connecting at all levels will help your company grow, as well as those who work with you on a daily basis! Make sure that any clients know how important it was for them too participate; then invite even more people into this growing community where everyone makes each other stronger

The transition to entrepreneurship does not have to be scary. With the right plan, you can start your own restoration company with minimal investment and grow it into a flourishing business while meeting new people in the community. To get started, make sure you develop a solid business strategy that includes researching what type of services are needed by customers in your area and setting up an online presence on social media sites like Facebook or Twitter. Once these steps are completed, work on building relationships with local contractors who might refer more work your way when they need help getting projects done at their homes or businesses themselves. If this sounds good but overwhelming, don’t worry! We offer personalized coaching for small-business startups. Click link and book a discovery call today so we can go over everything in more detail!

Water damage is a major problem in the United States. Every day, around 15,500 people experience some type of water emergency at home or work- which means that it’s an issue for many families on top of being expensive to repair! If you have skills related specifically to drying out wet surfaces (and know-how), then consider starting your own business offering these services, which are currently lucrative because there’s so much demand right now-especially considering all those billions spent every year repairing leaks alone already costs $2835

Here are six reasons why water restoration businesses are beneficial nowadays:

1. There is a high demand for water restoration services and very profitable

On average, water restoration companies charge $2,650 for simple mitigation jobs or dry-ups. Of this price, the profit margin is usually 73%. For major restoration work such as a rebuild, they will often request up to 52% more from customers, which can lead them to charge 10k (or higher) per project – but with these high margins comes to some risk involved too!

2. The industry is growing rapidly

The restoration industry is booming! The United States currently has an estimated value of $210 billion in this field, which is expected to grow by 3% yearly. Restoration services are needed due largely at least three factors: increasing intensity of natural disasters like flooding or wildfire issues; aging homes that need repairs because they have been damaged over time (from weathering) as well infrastructure failures such things pipes bursting to cause water leaks which can lead into mold growth inside your house.

3. The market is fragmented, which means that there is room for new players

You know the saying, “when it rains, it pours?” That’s definitely true when it comes to water damage. Water can quickly turn your life upside down from a natural disaster or a plumbing mishap. And if you’re a restoration business owner, you know that this is one industry where fragmentation means opportunity. There are plenty of gaps in the market for new players to move in and make their mark.

4. Water restoration businesses have low overhead costs

When it comes to water restoration businesses, many people think that the only way to make money is to charge high prices. However, this isn’t always the case. Water restoration businesses have low overhead costs, which means that you can charge reasonable prices and still make a profit.

5. The industry is recession-proof

Water damage can strike any home or business at any time. Whether a broken pipe, hurricane damage, or just plain old leaky roof, water can cause serious and expensive damage. So it’s no surprise that the water damage restoration industry is one of the most recession-proof businesses around. In fact, according to IBISWorld, the industry is projected to grow by an average of 3.8% per year through 2020. That’s good news for business owners who are looking for a reliable and recession-proof industry to invest in!

6. Water restoration businesses offer great ROI (return on investment)

When it comes to water restoration businesses, there is no doubt that they offer a great ROI (return on investment). This is because they are in high demand due to the numerous water-related disasters that occur each year. As a restoration business owner, you can be assured that you will always have work to keep you busy. In addition, water restoration businesses also tend to be very profitable, so you can rest assured that you will be making a good income as well. So if you are considering starting your own water restoration business, now is definitely the time to do so! You won’t regret it.

Conclusion

Water restoration businesses are a great investment. Not only are they profitable, but they also offer a high return on investment. Water restoration is the perfect industry for you if you’re looking for a recession-proof business with low overhead costs. You can book a free consultation with us to find out more about starting your own water damage restoration business. We would be happy to answer any of your questions and help you get started on this exciting venture.

In the past, many insurance companies sponsored a managed repair program. State Farm had its Preferred Service Provider program, American Family had its Home Repair Program, and so on.

A contractor could apply directly to the insurance company and, if approved, would be added to their list as a preferred vendors/contractors. Those were excellent programs, and each one led to a substantial uptick in work volume.

Fast forward to the present day, and we find that there are NO/ZERO insurance company managed repair programs in play. Nearly every insurance company you can name has discovered the value of outsourcing their claims management to a Third Party.

For example, If you want to work for USAA, Nationwide, or Metlife, you have to get on the Contractor Connection program to get their work.

But this is actually excellent news for restoration contractors.

Rather than going one by one to each insurance company that sponsors a managed repair program, you can go to a single TPA who manages work for a dozen or more carriers. Each one affords access for contractors to all their carrier clients. Altogether that access could be to 10, 20, or more insurance companies through a single TPA referral source. TREMENDOUS!

I recently helped one contractor get activated on the Contractor Connection program who got added to 26 insurance companies right out of the gate

The nine National TPAs have more work to parcel out to their network contractors than any other source available to restoration contractors.

Isn’t it time for you to gain the benefit of their volume of work?

I tell contractors all the time that getting on these attractive high volume progr6ams is SIMPLE, but NOT EASY.

The simple part is meeting the requirements. None are extraordinary. Each one is an industry-standard, so most companies have no problem meeting them.

The hard p[art is navigating the process. Contractors say the wrong thing, do the wrong thing, and run up against roadblocks, and they don’t know how to work around it. Soon they are declined. After one or two of these, most contractors give up and return to compete against the many contractors in their area for the attention of agents, plumbers, and internet marketing. They forfeit their most significant opportunity to grow because they don’t know how to get to the finish line.

I DO know how to get you to that point. I did it as a contractor who was active on thirty of these programs, and I have helped hundreds of contractors get on these programs. I CAN HELP YOU TOO!

No other consultant in our industry has a better track record than I at helping restoration contractors grow their businesses. CALL ME and allow me to help you!

Developing bad habits in business can be costly. They could even cost you your business.

If you’re struggling to grow your restoration business, it’s time to do some self-reflection. Are you procrastinating? Are you not spending enough time on planning? Are you doing the same thing every day, hoping that the pieces will all just fall into place?

These are three of the worst habits that you can have as a business owner. But the good news is that they’re also easy to identify, so you can start working toward fixing them.

1. Putting off until tomorrow, what you need to do today

If you’re procrastinating, and putting off doing something that is important to your business because it’s difficult, or you don’t like doing it, you’re hurting your business.

This is different than scheduling, which is about prioritizing. When you schedule the work that needs to be done, things may get pushed off until tomorrow if they’re not a priority. But when you procrastinate, you’re putting off that important task even though it should be a priority that needs to get done today.

2. Failing to plan

Failing to plan is planning to fail.

A failure to plan for the day causes you to constantly be reacting to things that come up. Rather than having a clear direction, you get pulled into whatever problems the day brings. Your company becomes aimless, with a lot of activity, but no real focus.

Planning puts you back in control of your day and in control of your business. It identifies where you want your company to go, and helps you navigate towards that end result.

3. Believing that tomorrow will be better than today

Get rid of this blind optimism and get proactive. Things don’t change on their own. If you continue to work the same way that you did yesterday, or run your business like you’ve always done, then tomorrow will be exactly the same as today.

If you want tomorrow to be different, to be better, then you have to make that change happen.

It’s Time for a Change

If any of these 3 bad habits resonates with you, you need to do a personal reset before it’s too late. Identify one change that you need to make in each of these areas that will positively impact your restoration business.

Don’t put this off until tomorrow. You need a plan today, that will make tomorrow better than yesterday, and our team at the Restoration Entrepreneur is here to help you take that next step forward.

When is that?

• When we refill the candy jar – NO!
• When we interrupt their day – Nope!
• When we bushwack them as they walk into their office – Not hardly!
• When we bring them that $5 coupon for Starbucks coffee? Close, but, no again!

C’mon, then! When??

You have to admit … if you were an insurance agent, you’d run every time you saw a restorer coming your way. They know your spiel. They know what you want. They know you are 1 of 5 restorers who will drop by their office today. They see you as a nuisance, stealing their time and offering little of value in return.

That’s how they see you … every time … except one … when their client is ankle-deep in water, and you call to say you are on the job, and you’ve got them covered.

The prime time that agents are in danger of losing a client (and their premiums) is not when the client is watching one of those cute Geico or Progressive ads … but when the contractor, agent, adjuster, or carrier underperforms during a loss.

So … when you call … the agent is all ears.

Why is it then … that this is the one time, we never seem to get around to calling??

Get the agent’s name, and CALL, every time! You will get huge rewards if you do.

That’s the question facing one contractor.

They are a small company doing mostly roofing and a little mitigation, but no rebuild, and no TPAs.

When they added TPAs and rebuild, in the words of the owner, he said in 12 months we generated “$650,000 in additional revenue the first year from TPAs alone … and we brought in an additional $250,000 in net profit!”

We all love to hear stories of successful contractors because it gives us hope that we might be able to achieve the same results. While we speak most often about revenue numbers, the big deal here is $250,000 OF NET PROFIT!

Its more important how much money we make, not how much we bring in.

What would you do with $250,000?

• Hire another staff
• Buy more equipment
• Pay off ALL your business bills
• Pay off ALL your personal bills
• Buy a new car
• Pay off your house
• Take that Mexico vacation
• Take a sizeable distribution for retirement
• Buy a houseboat (I did one year)

This is a grave question. It confronted this owner who decided to take steps to grow his business, and it could happen to you too if you decided to grow yours.

There was nothing special about this small company … other than the results when the owner decided to invest in his business’s growth.

Good cash flow management ensures there is always enough cash on hand to meet expenses.

For most restoration owners, this is rarely the case. We always seem to be cash strapped. We are either preparing for payroll or just completing it. There is rarely a surplus of money on hand, making this one of the highest pressure experiences in our business life.

Let’s look at the three key factors that have the greatest impact on cash flow. Get a handle on these, and cash flow won’t keep you up at night any longer.

1. STOP floating construction costs. Get paid before the job begins!

Adjusters are just fine with you floating construction costs, and so is your customer. DON’T DO IT! The two draw system put in place by the insurance companies provides one draw at the start of the job and the other at the end. The ACV payment is sent to the customer following Estimate Approval. GET THAT MONEY, which is earmarked for you BEFORE you start the job.

As you can imagine – NOT floating construction costs are a huge plus for your cash flow. Use OPM to pay for your construction costs. In our industry, OPM is the insurance proceeds, not your own.

1. MAKE higher profits on the work you do. Higher profits produce more revenue for overhead costs.

You achieve this by taking control of your material and labor costs.

Control material costs – Take ALL credit cards away from EVERYONE and CLOSE ALL Charge Accounts. Force every material purchaser to call the office for transaction processing. Only the Office and the Owner should have a means for payment. This will STOP all unauthorized purchasing and leads to more accurate job costing.

Control Labor Costs – Never pay more than 65% of what you are paid for labor and never pay twice to complete a job.

Don’t take bids from subs and never pay subs by the hour. Use Xactimate to determine what you are paid for a set of tasks and never pay a sub more than 65% of that total.

Keep in mind that many markets pay more than $100 per hour to hang drywall and $90 an hour for carpentry. Locking in a 35% profit margin for you still gives a GREAT labor share with your sub. Hold the line!!

Project managers are responsible for ensuring work is done entirely and satisfactorily before releasing a sub and paying them for their labor. If this doesn’t occur and you have a full day’s punch list of work, what do you do? The sub is no longer available, so the only choice is to hire a second sub to fix the work of the first sub. NEVER EVER DO THAT since it erodes your profit. Get it right the first time!

1. GET paid more quickly when the job is completed. GET your customer involved in the payment process.

GET a Certificate of Completion – The signed COC informs the adjuster that the Customer verifies that the scope of repair is complete and the quality of work is satisfactory. Without this, the adjuster may take weeks to call the customer for these assurances. Payment will never be released until the adjuster has confirmed both completion and satisfaction.

NEVER EVER allow your Lien limits to run out without filing a Lien. Once you have gone beyond the calendar limitations to file a Lien, you have forfeited your most effective leverage for payment. Notifying your customer that you intend to Lien if payment is not received in 15 days will do more to engage the Customer in getting you paid than anything else you can do. Don’t forfeit it!

The possibility of a Lien keeps the customer motivated to get you paid in a timely manner!

Do these three things, and cash flow will improve dramatically:

1. GET paid before the job starts.
2. MAKE the highest profit possible on every job.
3. GET paid quickly at the end of the job.

These three are EXTREMELY IMPORTANT. Do them and no more sleepless nights!!

FCC AV is the Xactmate code for Floor Covering Carpet Average Grade.

It’s important because it’s the grade of carpet installed in 80% of US households.

In Chicago, Xactimate pays $21.98 per SY and in San Diego $22.52 for FCC AV.

What if you could buy this carpet for $10.99 a SY? That would produce huge savings for you!

In Boston, you are paid $2,502 for 1,000 square feet of carpet. What if you could buy that carpet for $1,221.11 and make a 51% profit? That’d be great!

Since flooring is the single largest item on most repair bills and water damage frequently results in flooring replacement, this savings would make you a lot of money over time.

You won’t get that savings sending your customers to Home Depot or Lowes, where they spend every nickel and more of their allowance.

You can make this profit by taking the showroom to your customer with selection boards from Home Carpet Industries, the Shaw Industries wholesale distributor to the Restoration Industry.

Call Scott Cunningham at 800.542.3226 to set up an account. Purchase the Restoration IV and Innovations Series, and mention ENTREPRENEUR for a discount on the Series purchase.

Then get ready to make big money on flooring on every job, every time!

Fear? Know-how? Confidence?

Of the 25,000 restoration companies in the US, 80% are mitigation-only businesses. Would it surprise you to learn that many of those want to become full-service?

But they don’t do it because of nagging self-doubt.

Contractors are afraid. They feel they lack the necessary experience to succeed. They can’t muster the personal courage to try.

They’ve heard the warnings and lousy experiences of others and believe their half-truths as reasons for not taking the plunge themselves.

Some of the half-truths that keep contractors out of this highly profitable service are:

• I don’t have any construction experience.

The truth is:: If you are a competent manager, you can build the management process to succeed and subcontract all labor to professional tradespeople.

• I don’t have a General Contractors license.

The truth is:: Most states don’t require one. In only half, do you need a contractor’s license at all, and many of those are merely Home Improvement licenses. There are several viable licensing options available too.

• The margins are too thin.

The truth is:: In the insurance market, you can make a 50% profit on any job if you know-how. There is NO other construction niche that produces profit margins this high. Any remodeler would go nuts to make this amount of profit on even a single job.

• I don’t know what to do and where to start.

The truth is:: I know exactly what to do, how to do it, and in what order to do it to ensure your success. You can trust me to keep you safe. I’ve done this scores and scores and scores of times with others successfully.

• I could never handle the cash flow of floating rebuild projects.

The truth is:: You don’t have to. You can get paid before the job ever starts. This is normal in our industry, yet sadly, many contractors haven’t figured out how to get that payment.

• I don’t know where to find subs.

The truth is: I know how to recruit, vet, and supervise a substantial subcontractor pool.

We could go on and on and on like this. The truth is … the objections just don’t stand up to the reality of the opportunity. Every large restoration company is full-service. Those making the most money are full-service. Those companies that sell for the most are full-service. Owners personally making the most money are full-service.

You can be full-service too if you want to!

I have helped many startup companies and established restoration companies successfully add rebuild services. If they could do it, certainly you can too!

Don’t let self-doubt rob your business of the single greatest moneymaker in our industry!

Take a look at the extraordinary results reported by others https://www.growmyrestorationbusiness.com/successes

What I have done for them, I can do for you!

CALL ME TODAY for a FREE 30-minute consultation to learn how coaching can help you grow your business. Call 800-655-1598 or email me at Jack@growmyrestorationbusiness.com to schedule a phone call.

What’s wrong with your sales staff? Most likely – plenty! Like most forms of direct sales, owners are deeply dissatisfied with the meager results of their efforts. So what’s the problem?

• Direct sales staff don’t quantify results. In other words, what “exactly” is produced by their effort is never determined.

Many contractors are good at asking for and recording the referral question – “how did you hear about us?”, but few can tell you “what actions” did it take the company to produce this referral? As a result, no one knows what works and what doesn’t; what actions they should take more or less frequently; on which results producing activity they should concentrate their efforts going forward.

• Direct sales staff treat all prospects the same. In other words, whether an agent refers you work or not, they are going to get the same amount of your attention.

That doesn’t make sense! Common sense suggests that if Agent A refers work to you and Agent C does not, you place your emphasis and time on ensuring Agent A continues that good behavior while giving less attention to the lousy behavior of Agent C. Get it? We need to dig into our CRM and segment our market. How many agents are in your service coverage area? How many do you market (probably all of them)? How many have referred you work in the last 6 months (hot!); how many like you but don’t refer work to you (warm); how many have never referred work and don’t seem to care (cold, cold, cold!)? Agent A gets McAlister sandwiches for their staff, Agent B gets invited to Agent A lunches, and Agent C gets invited to the annual continuing education course. Get it? Know who does what on the “referral continuum” and market accordingly. What is the best predictor of future behavior – past behavior. Give your best to those who give you the most and if Agent A hasn’t referred you work in the past 6 months – FIND OUT WHY.

• Direct sales staff use worn-out, out-dated, old-fashioned, ineffective strategies. In other words, they use strategies that no longer produce the desired results.

Why does your sales staff keep on doing the same thing and expect different results – because they don’t know what else to do? Improving outcomes begins with a brutal assessment of current results and if you are not getting them – you must change what you are doing. What does this mean in plain English – stop filling candy jars, leave your pens and paper at home, stop showing up unannounced, and stop asking for work. If you are not offering something of value to the agent, don’t expect to get what you want from them in return. You need to figure out what you have to offer and what they find valuable in your offerings. HINT – I know what that is!

• Direct sales staff are poorly supervised. In other words, most owners don’t know what to do with them, so they don’t do anything.

The direct sales staff are self-directed, and you can imagine how that works out. If you are going to hire direct sales staff owners must be ready to get involved weighing in on their strategy, creating conversation introductions and transitions (the spiel), developing performance requirements, and holding them accountable for those actions. Don’t just say, “Go make me $500,000.” That’s a losing proposition. Instead, determine the right sales behaviors that may produce referrals of $500,000 and do them in the right way with the right rhythm for the best results.

• Direct sales staff miss the #1 opportunity to connect with agents. When is that – during a water loss. Yes, during a water loss is the ONLY time they are really interested in talking to you.

Rarely do contractors get the name of the homeowner’s agent and then, in turn, inform them of their customer loss and that you are on the job. There are many ways to involve the agent in the loss without trampling on the adjuster’s toes.

Homeowners are offended when after 20 years of premiums their agent shows little to no interest in the trauma of their loss. Homeowners want to see and hear from their agent. You can help that happen. You can meet the agent on site. You can provide positive feedback from the customer when the work is done. You can reach them in their office to debrief following the claim and share your values and willingness to help again in the future. You can do all kinds of things during and immediately following the claim that you can’t do any other time. You can even host a luncheon for the entire office staff to strengthen the relationship and invite ALL the other agents in the building to join in.

Hmmm, that sounds like a marketing best practice to me that just might be more positive and impacting than just about any other marketing action you could take. Much more could be said about this. If you are not satisfied with what you are getting from your direct sales teams, these are the most likely reasons why. Each one of them can be changed and turned into an advantage, but you need to act now!

Reference: 6-Month Coaching Plan – The Revenue Generator (The Ultimate Revenue Booster for Your Business Sales Growth) https://growmyrestorationbusiness.com/successes/