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After over 20 years of hosting a TV show This Old HouseKevin O’Connor has developed a skill that takes most individuals a lifetime to master: saying “no.” As a small business owner, it’s tempting to say yes to every opportunity, but after working with salespeople for two many years, O’Connor warns against this habit, each in your skilled and personal life.
“‘No’ has great power,” he says. “Everyone wants something from you and it’s as much as you what your priorities are. And “no” is the strategy to send this message – it isn’t vital enough for you or me. “Yes means it’s very important.”
The same goes for small business owners excited about their latest ventures. It’s tempting to say yes to every opportunity to make sure that there will probably be work on the books and financial receipts. However, O’Connor says a busy schedule is not all the time productive.
“Understanding the concept of opportunity cost is important because every position you take means you are filled for that period and cannot take another one,” he explains. “Now you’re in a situation where taking lower-quality work blocks an entire portion of your calendar from taking higher-quality work.”
He admits that making such an assessment is difficult. Knowing whether you made the right decision might be scary. However, O’Connor says that when you have solid marketing strategy that may withstand these periods of drought, you will probably be more successful than if you agreed to every part.
“[Small businesses should] “be lean enough that they don’t have to lay off employees when things slow down, but big enough to be able to adapt and generate revenue in different ways,” he says.
O’Connor says that when small businesses agree to collaborate, a business plan with specifically three key elements – collaboration, specialization and productivity – will make the difference.
Home service companies routinely use subcontractors or outside specialist companies. While it may be tempting to view external services as a supporting role where your own company is the hero, the reality is that everyone must work together to deliver the project. O’Connor says it’s not about winning because it’s not a competition. It’s about succeed together.
“Collaboration is essential,” he says. “To avoid this, try to win or beat other people you rely on [is a mistake]. There are a lot of people who are being pushed out of our industry and that’s a big part of the reason – because they don’t know how to integrate these services. They are trying to win, not succeed.
O’Connor also emphasizes the importance of specialization, particularly allowing those with the appropriate expertise to pursue the jobs for which they have been trained. It’s easy as a business owner to take on the burden of multiple roles, but this mentality is not productive or good sanity.
“A lot of times, the people who run these small specialty retail businesses think they’re going to be the finance guy as well – that they’re going to be the invoicing, the materials, the pricing, the receiving, the advertising stuff – but that doesn’t make sense,” O’Connor says. “They would never send a plumber to finish the kitchen. Why do you think you will be the one handling the finances?”
The final element of a marketing strategy is productivity, which O’Connor says is the “secret recipe” to scaling.
“It’s the definition of doing more with less,” he says. “I have all the time seen that the successful firms that have grown from small to larger, from two people to 70 people, are the ones that wholeheartedly focus on specialization and productivity. And they continuously strive for them. Everything they do: Does it make me more productive? Does it make my employees more productive? Does this make it easier and more efficient for them?“
Embracing collaboration, specialization and productivity is a game changer for enterprises. But what exactly does branding mean in this industry? O’Connor says that’s it authenticity. He recalled general contractor Zack Dettmore, who built a brand simply by being himself.
“It makes his story so authentic. He treats his people and his customers so well that people start coming to him,” O’Connor says. “Over 90% of his new hires find him through social media. They come to him and say: “I would like to work for you.” The same goes for customer acquisition.”
When it involves this area of work, O’Connor advises business owners to not chase but to draw, to not win alone but to succeed together, and to realize the courage to say “no.”
With over twenty years of experience, O’Connor has found that the most successful firms are those who adhere to the following key principles:
- Don’t ignore critical comments. Use this as an opportunity to grow and move forward.
- Attract young talents. Understand what young professionals care about, and be comfortable knowing it’s different than when you were their age. They will have a unique and worthwhile perspective that may keep the company up up to now with current trends.
- Minimize opportunity costs by saying no. Just because you fill your calendar with work does not imply that is the case maximizing revenues. Step back and create a marketing strategy to pursue opportunities that may have the best positive impact on your small business.
- Optimize productivity. Delegate work to specialists, collaborate with other firms on complex projects, and practice how one can discover opportunities that serve your small business goals.
- Be an authentic storyteller. Connect with your target market in a meaningful way build trust. To higher understand what is authentic to you, evaluate your values and what you would like your organization to represent.
Listen to the episode below to listen to directly from Kevin O’Connor and subscribe Behind the review for more information from latest business owners and reviewers every Thursday. Available on Spotify, Apple Podcasts AND Pandora.
Editorial contributions by Erin Palmero and Kristi Lindahl