I recall one particular Trade Show where I was seated at a table with several very large players in the restoration game. At that time we were just beginning to dabble in restoration crossing over from our carpet cleaning business.

I vividly recall my feeling of inadequacy as I sat amongst some of the largest restorers in the country. Why were they so successful I thought to myself? What makes them so different from myself, or the thousands of other struggling restoration firms, (there is a sense of comfort in numbers) I silently thought to myself.

 I left that trade show more confused than before I had arrived. Though somewhat depressed with the realization that my restoration company was no where close to where I had hoped it would be, I left with some knowledge that began the transformational process that I carry with me today.

The big lesson was that while Hope is nice, it will never, ever build my business. It was only when I was successful at developing and refining a crystal clear vision in my minds eye that I finally was able to accept the fact that Yes, I could in fact do it. There really is something magical about creating a vision of success in your own minds eye.

Think about this; how can you ever possible expect to be successful, if you can not at the very least see yourself as the embodiment of success?

Once the Vision is crystal clear the real work of imparting your vision to your staff, customers and your community begins. I’ll hopefully share some ideas that worked for us in a future post.

One of the most common questions I get regarding consulting services is “If I purchase yours or even someone else’s Programs, will it help me grow my business? The answer is always…yes you can, if you think and believe with every fiber of your being that you can. Most importantly though is being able to see oneself as being there already.

But here is where I sense a disconnect. So many of us, myself included long ago, silently wait for permission to be successful. Sometimes we secretly seek the permission of colleagues, sometimes it’s the permission of family members that we seek permission from and often times we turn to Industry Leaders or Consultants for permission.

Next week is going to be the turning point for many restorers who attend Connections with an open mind and a willingness to make the transformation form average to great.

This show promises to offer a lot to the cleaning & restoration industry, with presentations by some of the industry’s finest success stories. Remember though, there are no deeply guarded secrets to becoming a successful restorer.

It begins and ends with giving yourself permission to succeed!

Here’s to your success,

See you all next week,

Ivan

Thankfully, this year has been a record year for my service company in terms of revenues, operational capabilities, quality relationships forged and best of all it has without a doubt been the most fun year I’ve ever experienced in business.

I’ve done quite a lot of reflecting recently on just how much this wonderful industry has changed. Today’s restoration industry doesn’t look anything like it did when I first got my feet wet. I think tomorrow’s industry is going to look even brighter.

Today my business looks completely different than it did even five years ago. While reflecting I couldn’t help but to ask myself a few questions;

1. Why did I get into this industry? Why did I not choose a different industry?
2. What was I doing so wrong, for so many years?
3. When was the turning point?
4. Who has been instrumental in my own success?

Why - Why did I get involved in the cleaning & restoration industry? The answer is simple. Dumb luck and poor planning. No research went into our decision to start a house cleaning service. It just so happened that during our search through the yellow pages this is the heading that we ended up choosing. Had I been a little smarter, I would have listened to Lisa when she suggested that we choose becoming a Law Firm. Even so, for me it ended up being a situation where I said I’m already in too deep with too many years invested to turn back. That’s the kind of thing that silly pride can cause an individual with my mindset to do.

What - What was I doing so wrong, for so many years? This was a very difficult question to answer to myself. The truth is that I was pretty much doing everything wrong. I lacked direction. I never had any written goals or objectives. It was pretty much a game of wait and hope for the best. I always considered myself fortunate just to make it another day. Another important dynamic lacking in my business was balance. Often times we business owners have the tendency to focus all or most of our efforts on only one or two of the areas of our business. An example for me is that I have always viewed my business as being separate parts. Operations, Administrative, Sales/Marketing. Like many business owners I was fairly good at one, maybe two parts. Administrative & Human Resources was my specialty. I could spot an employee with one unshaven whisker from 50 yards and quickly set him or her straight on the cleanly shaven policy.

Looking back I realize that I would have been much better served by focusing a little more on all of the parts as opposed to one or two of the parts. Why didn’t I do this? How hard would it have been to share some of the responsibilities with other, more qualified individuals? The answer, years later and countless thousands of dollars shorter is simple. That is exactly what I should have done! Again, it’s very difficult to make rational decisions when one is operating out of a sense of pride.

Finally, I realized that my company was a product of all the other competitors that I had tried to copy through the early years. It made no difference at the time if these competitors were making money or not. In my mind they possessed something that I perceived as good and thus I wanted to be like them. It finally dawned on me that I had chosen the wrong operators to emulate. My Dear sweet Mammy had told me when I was a teenager that I had an uncanny ability to find the worse in life to hang with. She warned that my continual association with the “Crew” (my friends) as she not so affectionately referred to them would lead me down the path to ruin. In retrospect she was right on the money.

When – When was the turning point? Hmmm, this was another difficult question to answer. I’m sure that it never happened overnight. I sort of think of it like what the alcoholic or drug addict must go through. You might have many people along the way trying to help you through the highs and the lows, but it’s only when you hit what they refer to as “Rock Bottom” that you say enough is enough, and commit to change.

Rock bottom for me came upon departing SFS at Jon Don in 1998.

For those persons just starting in the restoration business, marketing may seem unnecessary; however, it Can not be stressed more stringently, that your ultimate success is unlikely if you do not recognize the importance of marketing to the insurance agent.

Marketing your restoration services to the insurance Agent may at first seen daunting. But, by following a few simple rules and working with the persistent outlook of a gold miner you will begin to see the “gold” you seek in your business.

The restoration industry is integrally tied to the insurance industry. For this reason you must sow seeds to develop a working relationship with insurance agents. Accepting the importance of insurance professionals in the success equation of restoration services is the first step to a successful career.

(IP + RS = IRS)
Insurance Professional + Restoration Services = Insured Risk Solution

The formula is your key to success. Working hard to develop contacts in the insurance industry is like the miners of old, panning until they found that nugget to light up their eyes and imagination. You will need patience and persistency, but after a period of time you will find your first insurance professional and this nugget will provide you with some confidence and direction for continuing your success.
A discussion of insurance agent marketing requires a brief mention in this piece and maybe something more detailed at a later date about Preferred Vendor Lists. This current hot button topic illustrates why small players in the restoration service industry feel helpless. The fact that some large carriers guide the insured’s, and not always in their best interest, towards listed restoration vendors is
recognized; however, there is a movement to legislatively discontinue this practice and provide a more level field for all legitimate restoration firms to operate. In the mean time, it is important that you identify insurance agents, and offer them a solution to their problems at any opportunity you are given.

As long as the preferred vendor list exists, you must be clever enough to overcome this obstacle. This is why it is important that you effectively market your services to insurance agents and start your efforts with “high profile” agents.

The “high profile” agent is one who is equally influential in his community and within his company. It is this agent who has authority to assign a job to your company and to see that you are paid for your services. Insurance companies that have Vendor programs typically mandate that their agents follow loss protocol by referring their policy holder to the call center which then forwards the claim to their preferred vendor. There is however, an unwritten policy within the insurance company. Never ever, under any circumstance chastise or reprimand the high profile insurance agent for not following loss protocol. These are the men and women who typically have large books of business and the insurance company can not afford to ruffle their feathers. The “high profile” agent must be approached in a professional way and you must sincerely present him with a “win-win” package. Ask yourself “what can I do for this agent that will be best for him and his clients?” But you may ask “how do I find the ‘high profile’ agent to help you succeed?” Research!

Research the Market:

As business professionals we have all been exposed to insurance professions in some manner. We have our personal agents who have policies for our autos and
homes and we have our business liability coverage with another. This is where we begin our research to market to insurance professionals.

Example: You enter Mutual XYZ Insurance to make a payment on your homeowners policy (I know you normally do it by mail or on the net, but you are making an excuse to see your “favorite” agent) and while your agent looks up your account you make polite conversation about your business and your success. When the time is right, ask your agent: “who handles your claims?” In the course of your discussion you may determine he is a person to know having draft authority. Don’t stop here.

Build a profile sheet for each agent you or your staff contacts. Use the profile sheets to send your insurance professional a birthday wish or some interesting information you discovered in the course of your business contacts. Be a useful resource for your insurance professional friend by offering your expertise with no strings attached.

Profile sheets or other methods used to gather information are useful if used correctly. It is insufficient to just place the information on the sheets and consider this the end. The information you gather must be assimilated and categorized. Recognize there are differences in agents and agencies and categorize your findings to reflect difference
discovered.

Example: You enter two different agencies on Wednesday. Agency A is the office of agent “X” who is dressed professionally, speaks professionally and whose office reflects his professionalism by being clean and neat. Later you enter Agency B and the agent “Y” is slovenly and the office in disarray. Note the information, but don’t go by first impressions. It may very well be that the “slob” is the person with draft authority.

Research is an ongoing process requiring your profiles be routinely updated with additional information gathered. Assess your information constantly; remember the profile sheet is a living document; that lazy agent who always played pong on his computer and whose office smelled like a category 3 sewage loss may have had an epiphany and now is Mr. GQ and has an immaculate office as a result of his promotion and new found draft authority. But don’t stop!

Continue to Research:

One of the neglected methods of research in our high tech society is the phone directory. In this ageless tool you will find an exhaustive list of potential contacts. Identify agencies you would like to approach. List those agents you know personally or believe that your insurance professional contact knows personally. Prepare referral letters and have your insurance professional contacts put a personal note on the letter for you. Get that first meeting to sow the seeds of future project referrals.

Additionally, for those more comfortable with the computer tools, you may access similar information by use of on-line directories by way of Yahoo or Google or other web engines. The important thing to remember is that you are using research tools to gather initial agency information in order that you may establish that important rapport with your insurance professional.

While you’re researching, spend a week or two learning the language spoken by the insurance agents. Words like peril, co-insurance, reserves, multi line, etc. Being able to speak the language used within the insurance industry will drastically increase your odds of success. A great place to start learning the basic language is with your own insurance policy.

Marketing to the insurance agent requires persistency. You must do the research, make the calls, send the letters and meet face to face; perhaps, many times, before you gain the trust and eventually that first assignment. Then, when you have the first job, remember that you must do the research, make the calls, send the letters and meet face to face with the next of your insurance professional contacts. The process is never ending. Make your marketing efforts routine. It has been our experience that the optimum time to meet agents is between Tuesday to Thursday and on a rotation schedule between eight to ten weeks. Do this with each of the agents you have researched or with whom you have an existing relationship and you will have a good start for your profile sheet data base.

Remember that you want to make a good impression with your insurance professional and this requires that you step out of the self-serving mentality and think about the agents needs. Ask yourself how you can help him to help his clients and you will serve yourself as well.

This truism was most aptly demonstrated by Tom Cruise in the movie “Jerry McGuire” when Cruise, as a self serving sports agent, unsuccessfully tried to market the aging, injury prone football player acted by Cuba Gooding, Jr. As the movie continue Cruise learns more about the Gooding, Jr. family and personal dynamics.

It is only when the Cruise character steps back and asks himself “what can I do for him?” that he becomes the success as a sports agent he was destined to be.

Do the marketing and market to the right people and you will find your company profiting. Make certain that your insurance professional understands that you
are a co-equal in the successful completion of a risk project. Follow the simple acronym for marketing your business, KISS (Keep It Simple and Smart) and you will achieve a high level of success.

The advantages of entering the insurance repair industry are numerous, including; Excellent cash flow, recession resistant, and little need to advertise. Insurance restoration is generally immune to the normal economic cycles. Mortgage companies and banks require insurance coverage to be in place and insurance companies pay the bill. What a sweet deal!

Now that we’ve established the need for the service, and the source of payment, let’s discuss a few of the basic steps involved in entering and succeeding in the restoration business.

Like any business start-up, prior to commencement comes the planning stage. This is the time when tough questions must be asked and honestly answered. Your ability to determine the answers to these questions will greatly increase the odds of your success.

Am I willing to invest significant time and funding into a business which requires 24 hour per day 7 day per week availability? How will this decision affect my family? Can I utilize my existing employees and resources, and what additional equipment & training will be needed to get the restoration business off the ground? What type and size facility will be required? Do I join one of the many restoration marketing groups or franchises or do I go at it alone? How long will it take to begin seeing returns on my investments?

Perhaps the most important question often overlooked by start-ups is do I really enjoy helping others in need? Not only are empathy and a true burning desire to assist people in their time of need prerequisites, they are the mark of all successful restoration contractors. Understanding the physcological dynamics involved in working with people who are emotionally charged and often times distraught, will be the cornerstone of your restoration business.

It is very easy for beginners in the restoration industry to get caught in the yes we do it all trap. The only drawback is that without a sound infrastructure, and more importantly the proper experience, and financial resources, saying yes to every request is a sure way to drive a company into a hole that is nearly impossible to climb out of. Staying focused on your niche service is of paramount importance, especially in the early stages.

Now that you have answered some of the important questions it’s time to write your restoration business plan. Like carpet cleaning or any type of business for that matter, you must have a sound business plan. Yes, you can do it without a written plan, but the odds of your survival increase exponentially with a written plan. Never has the Fail to Plan, Plan to fail, axiom been more accurate then with the restoration industry.

Writing the Plan.

First question - what do you want your repair firm to look like in three, five and ten years from the time you start? An excellent source of information in assisting you in getting an ideal of what the typical restoration company looks like is the ICS Magazine annual restoration survey.

Second question - How do you want to position your company? Do you want to focus on one area of specialization and position yourself as an expert? In example do you want to be considered the most knowledgeable drying firm in your area? Maybe you want to be known as the company with the fastest response time. Or do you want to offer several disciplines and be known as a generalized type contractor. Do you want to stay focused locally, or perhaps develop a regional firm. Perhaps the lure of wealth from storm chasing peeks your interest?

These are important questions because your marketing program and you companies Unique Selling Position USP will be built around your answer to these questions.

A word of advice to start–up restoration entrepreneurs. Resist with all your mite the temptation to build your service company in the image of your average competitors. If you take a close look at the nation’s most successful restoration companies you will note that most have become successful by operating outside the proverbial “Box”. There is a strong correlation between long term success and a companies willingness to take risk and implement methods that were not necessarily accepted industry wide at the time of their inception. Top down drying and thermal imaging are two perfect examples.

There are numerous service niches or profit centers available to the restoration contractor.

• Extraction only
• Complete drying services
• Deodorization services
• Thermal Imaging Services
• Pre-loss Inventory Services
• Drywall repair and painting
• Smoke and fire cleanup
• Pack outs and storage services
• Reconstruction services
• Insurance Consulting
• Carpet cleaning
• Loss scoping & Estimating services
• Duct cleaning
• Document reclamation
• Electronics cleaning
• Continuing Educational programs

Studying each potential profit center to determine who or what group of people could benefit from this offering will lead to the discovery of many possible target market groups.

• Plumbers
• Insurance Agents
• Property Management Companies
• Insurance adjusters
• Claims Managers
• Risk Managers
• Certified Industrial Hygienist
• Fire & police departments
• Consumers
• Roofers
• General & Sub Contractors
• Local governments & state agencies
• Schools

Competitor Analysis

A critical piece of the business plan building process must include an accurate assessment of the competitive field. Researching your competitors involves much more than a quick drive by of their facility. A great place to start is with the companies website if available. Adjuster and agents who work with your competitors are usually receptive to sharing useful information regarding your competitors, so long as they feel it is being used for the right reasons.

What to look for;

• Look for trends and indications that the company is moving a certain direction.
• Determine the company’s philosophy’s, their mission.
• What are they really good at?
• What do they do differently from the next company?
• Where are they getting their business from?
• What do they do poorly?
• Are their employees long term or are they cursed with a high employee turnover?
• What associations are they affiliated with
• Are they actively involved in the community

Know Thy Market

You must know the value of the market in which you plan to do business. Once you know the total size of the pie, estimating your potential share of the pie becomes much easier. There are many companies such as AM Best that specialize in assimilating facts and figures regarding the insurance industry and their loss ratios. Knowing the insurance industry’s loss ratios will allow you the opportunity to estimate your potential market share based on your planned marketing budget and the number of competitors competing for the same pie.

Here is an example of what your market share analysis might look like.

Market Potential For ACME Restoration
(Residential Properties Only)

ACME Restoration will provide restoration services in a two county area with over 461,000 residents and 184,000 housing units. (This information is readily available from census data for each county or state you plan to service) Insurance statistics show that approximately 9% of insured homeowners have an insured loss of the type that we offer annually.

Households in our proposed service area (60 mile radius from office.) 184,000
Un-insured households (estimated 15%) 184,000 x 15% = 26,600
Total Potential market 184,000 – 26,66 = 157,400
Homeowner claims annually (9% of insured homes) 14,166
Non-structural losses (liability, theft, other = 30%) 4,249
Total potential market (households) 9,917
Average loss estimated $3000 $29,751,000
Target market share (10% of losses) $2,975,000

Market Share objectives year 1 is 3.1% = $1,131,221.00
Market Share objectives year 2 is 4% = $1,459,640.00
Market Share objectives year 5 is 10% = $2,975,000.00

It is important to project realistic market share figures as part of your plan. If you are seeking outside financing for your business this will be one of the first areas of your plan to be scrutinized by your banker. It would be un-realistic to project a 10% market share for the first year for a company that has little experience in the industry.

Development Plans

Each year of your plan should clearly list your development plans and major benchmarks.

An example might look like the following;

Year one;

Major Benchmarks;

• Being Assigned 20 jobs per month
  Developing monthly press releases
  Being signed into at least two major insurance carriers Preferred Vendor Programs
  Hiring a full time marketing rep
  Hosting 4 Agent/Adjuster Seminars

Obviously there are many other equally important issues that the restoration contractor will face when doing business. For those that decide to enter the wonderful world of insurance repair you have chosen a rewarding occupation!

There are those who think and act, and there are those who lay and wait. Today’s volatile industry makes no exceptions for the weak, weary or overly cautious.

Our own experience has proven that a company that is innovative, continually tries new ideas, and embraces the latest technologies is a company that excels. Mistakes are inevitable, lessons learned from the mistakes are priceless.

It’s through many years of learning and making countless mistakes in our own restoration company that our programs were developed. Had there been a program similar to ours years ago we would have jumped at the opportunity to purchase it

We hope you enjoy our site. It is our sincere hope that you take something away with you that you lacked before your visit. Good luck, and here’s to your success!

Please feel free to contact us with any questions you may have regarding our programs.

Carpet Cleaning Marketing, Plumber Marketing