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Updated: July 8th, 2008 05:26 PM EDT

When should you add a service?

Tailgate Talk

When you should and shouldn't add a service.

Brad Humphrey
By Brad Humphrey
Contributing Writer

Certainly one or more of these four criteria should be in place before you expand. It is important to also note that if you are seriously looking at adding a new service, develop a business plan addressing such topics as: market needs, competitors, cost of needed equipment, suppliers and their locations, and type of customers, to name just a few areas.

Adding a new service will require that you have the proper attitude and mind set - it will renew your commitment to be patient and consistent. Plus, prepare to have the capital needed to keep the new service moving ahead while you and your workers are learning the new business.

Adding a new service should be a positive and profitable experience. If you've never added a new service you are in for a real challenge to your old policies and approaches. Be open to new lessons and best practices that you can learn and even pass on to your existing services. You might just end up adding a service that becomes the new profit leader for your company in the future.

Brad Humphrey is president of Pinnacle Development Group and provides business consulting to pavement maintenance contractors. For more information visit www.pinnacledg.com.

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