What Every Contractor Should Know Before Expanding to a New Area

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There are a few things to consider before making the leap to expand your contractor services to a new area. You want to make sure that the area you are considering is the right move for you and your business. Below are a few of the more important aspects to consider.

What Is Your Competition?

Anytime a business expands into a new market, it pays off to check out the competition. You can do this by staying in the area for a while, checking out the local newspapers, contacting the Chamber of Commerce, or thumbing through the phone directories. You may find out through investigative work that the competition may be fierce. Are you prepared to try and outbid numerous contractors, some of which have been operating in that local area for years? This does not make the task impossible, but you will better prepared for the tasks ahead.

Adjust Contractor Pricing

You need to find out what the local pricing is for a variety of contractor projects. Local economies vary wildly. This information will tell you if you can afford to work from this location. If the consumer feels you are over or under-pricing your work, they will shy away from doing business with your company. Adjust your pricing as comfortably close as you can to the existing local market price.

Climate and Logistics

You may be an expert in basement repair and waterproofing, but some areas of the country have very few homes with basements. Climate can play a huge factor in the potential in getting jobs for the type of services you offer. You should also consider the logistics of the area. Expanding contractor services into an area that is mountainous can offer a few challenges that you are unaware of if you are initially located in the flat plains states. Rugged terrain, curvy roads and isolated living can make some jobs logistically difficult to move equipment and bring in supplies.

Adequate Labor Pool

Unless it is a nearby city, most businesses hire their help locally. You may have to check with the Department of Labor in that state to see what the labor pool looks like for the area of your proposed expansion. Smaller areas will have limited capacity to provide extra hands when they are needed on specific jobs.

Contact specialists like Renovation Experts and get free contractor leads to help find local projects when expanding your services to a new area.