I will never forget the sinking feeling in my stomach the first time I saw a slab of granite on an A-Frame at the door of my local big box store.
Acetone, Blue Tape, and silicone had been my objective that morning, but I wandered the isles in a daze, wondering if it was the beginning of the end for my little stone fabrication company.
A few months prior, I had lost my largest client (and 75% of my work) to a giant solid surface company that had jumped into the granite business. The Home Depot development hit me like the right cross in a 2 punch combination that threatened to knock me down for the count.
The unexpected left hook to my temple was the news that Home Depot was using the same company that my old client had hired.
I couldn't see how I could possibly compete.
In the ensuing years, it turned out that my "competitor" had as much to learn about granite as I did about business.
And what I learned is this: Succeeding in business has very little to do with the "competition."
Every hour spent cursing what the competition is doing to the industry or worrying about what it will do next keeps us from seeing opportunities and making decisions that cement client relations and improve profitability.
Are competitors a factor? Of course they are! But they need not be the deciding factor in our success.
When we first understand and second focus on the core strategies that all world class companies employ, success is more likely, no matter the competitive landscape. Here are four that I find most important:
The Four Core Competencies of Success
1. Specialize
In a competitive market place there is a temptation to pursue every lead and all available work. And even though all that work is all granite counter tops, all of those clients from the remodel contractor, commercial superintendent, and Mrs. Jones have vary different expectations about how the work should be performed. As such it is difficult to cater competently to each of their unique needs.
So instead of attempting to be all things to all people, work to deeply understand each category's unique needs, then assess your own company's unique strengths. If you find that you are uniquely qualified to serve a particular type of client, you have a distinct advantage, a competitive advantage that you can develop.
2. Forecast and Manage Your Costs
Companies that choose to specialize can better evaluate their preferred market size and build a business model that is reflective of that market. Additionally, seasonal expectations can (and must) be broken down quarterly, then monthly so sales activities are goal-driven instead of reactive.
Once a reasonable sales forecast is established, a cost structure must be created whereby labor is managed as a percentage of sales or revenue. The biggest losses occur when sales slide and labor costs continue without adjustment. Looking forward and implementing cost cutting measures before it's too late is the only way to ensure success in a competitive market.
3. Become Process Dependent
For anyone who's read more than three of my articles (probably fewer than three of you), you know how strongly I feel about leveraging documented procedures and processes to ensure critical tasks are performed right and at the right time. In other words, processes help your company keep the promise made to the customer.
When you choose to specialize, you are generally making a unique promise to your target market, and often charging more for it in the process. Look out if you fail to keep it! By assigning critical tasks to specific positions in your company, defining the result in strict standards and tolerances, and providing detailed instruction as to how to achieve said results, you are leveraging a common practice found in all successful companies.
The more you leverage processes in your business, the more likely you are to perform critical tasks correctly the first time, the more likely your customers will rave about you, and the more likely it is that your competition will struggle to keep up.
4. Secure Wise Advisors
All great athletes have coaches pushing them, correcting them, encouraging them. History's great wartime leaders had war cabinets to rely on. All great CEO's have boards overseeing their strategy and execution.
Small business owners working to succeed in a fiercely competitive marketplace also need sound and timely advice. A mentor or business coach can be your biggest secret weapon in the grand scheme of building a client base and a world class company to serve them, so start looking today for someone who can take you under their wing and look out for you. But don't just ask their advice, take it and leverage it to your companies advantage.
In the ten years since granite counters became a commodity and common product sold at the local big box store, many things have changed in our industry. But what hasn't changed is the reality that successful companies seek to creatively serve their customers while making a tidy profit.
So let the athletes on TV compete, while you focus on building a successful company!
Aaron J. Crowley is the founder and president of FabricatorsFriend.com, the exclusive promoter of Stone Sleeve fabricator sleeves and Bullet Proof aprons. He is also the author of Less Chaos More Cash. You can reach him by email at Aaron@CrowleysGranite.com
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