This Podcast Is Episode Number 525, And It's About Building A Competitive Advantage In The Construction Industry A competitive advantage is something that you offer or have that the competitor does not. There must be compelling reasons for people to do business with you rather than with other construction companies. The need to identify your point of difference is essential. The more similar your business is to many others, the greater your need to develop competitive advantages. The key to benefitting from the competition is knowing how to take on competitors so your company earns a profit effectively. Look into your industry and the successful contractors around you not to lose sight of your vision for your construction company but as an inspiration to guide your systems and processes. Identifying your advantage A competitive advantage is what you are better at doing than anyone else. The wiser you can be about developing and promoting your competitive advantage, the better placed your business will be to succeed. Think about how you can differentiate yourself: Low pricing – you're able to supply the most budget-friendly service. Specialization – you service a specific niche market better than anyone else. Differentiation – you have the same service as others, but you make it different. Specialization and differentiation are the most common small business strategies because more significant businesses can usually get bulk deals and compete on price. Being affordable is the most straightforward tactic to implement (reduce all your fees but know your worth), though this is the last thing to consider, as it is often a losing strategy. The chances that you can be the cheapest and survive are not good because you will usually compete against companies with far more financial muscle than you have. Having the most considerable margins is your ultimate goal. You can position yourself away from the cheap end of the market if you develop other competitive advantages, such as excellent, friendly service, good after-sales service, a more specialized range of products, more knowledgeable staff, and so on. Here are some ways to get ahead of your competition and grow your construction business: 1. Awesome staff Your staff will be one of your best (or worst) competitive advantages. The advantage of having friendly, knowledgeable, proactive staff must never be underestimated. The key is ensuring your staff is motivated, trained, and performing well. Do this by: Establishing clear performance standards. Starting incentive schemes. Sending them on training courses. Encouraging them to develop their product/service knowledge. Holding yearly selling courses. 2. Unique or exclusive products You have an advantage if you can source products or deliver services that the competition cannot. If you're competing against larger or similar businesses, can you establish a reputation for unique products people can't find anywhere else? 3. A great website A website that is more attractive or easier to navigate than competitors can be a distinct advantage. Can you create a better, more effortless online scheduling experience? More competitive payment options? 4. Become a star Your own image can be a competitive advantage. No one else has quite your mix of skills, and you can build a 'character owner' image by having your name on as much material as possible, including: A signed mission statement for online and in-person visitors. Signing your name at the end of all newsletters and correspondence. Offering personal guarantees. Becoming prominent in your community. Becoming an authority in your field and a spokesperson for the industry. 5. Brush up on your technical knowledge If you can't compete on price, offer superior knowledge to other businesses around you. Consequently, it would be best to ensure staff are well trained. You could ask your suppliers to provide training. 6. Get to know your suppliers Being on good terms...