By Jared Everett and Steve Cordon
The environment of business is constantly changing, and businesses within this environment must also constantly evolve to sustain themselves. In this dynamic, businesses are either growing or dying.
A small percentage of owner/operators might feel their business is neither growing nor dying as there business has changed little over a long time and still maintaining a constant level of sales. The error in this thought is mistaking no change with a very slow death.
Traditionally, asphalt maintenance professionals have sought to grow their business, like any business, through the securing of new business sources. Companies might have their sales force make calls to property managers, public works divisions, universities, hospitals, public schools, general contractors, and other owner/managers of large driving or parking facilities. These "cold calls" often provide little benefit unless a firm has a pending project they are soliciting bids for. Contrary to popular belief, the best method for securing additional contracts is not seeking new contacts but is to focus on your existing customers and develop that relationship.
In the 1800s there was a famous economist named Pareto, who developed what is now known as Pareto's Law, or the 80/20 rule. This rule states that 80% of something will be derived from a 20% source. For example, 80% of your employee problems will come from 20% of your employees, 80% of your customer problems will come from 20% of your customers, and finally 80% of your total business comes from about 20% of your customers. Now ask yourself a question: If 20% of your customers account for 80% of your business, wouldn't you be better off and more successful securing additional business from these key customers, instead of trying to recruit additional firms to make up the minority of your business?
The directive then is to change your business process to focus on developing your relationship and business with your key customers and reduce your efforts on trying to find new customers. How can you develop your relationship with your key customers? Marrying a son or daughter to the owner of the other business probably hasn't been an option since the Declaration of Independence and Bill or Rights, but there are other methods.