Thanks to all who have answered my questions on other threads recently. I’ve found a lot of the advice to be rather exceptional lately. Hopefully someone can help me with this one.<!—-><!—-> <!—->
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What is the standard research practice for someone developing a new construction company to determine their most promising market? In other words, what’s involved in standard market research?<!—-><!—->
–T
Replies
The most basic level includes things that you're likely already doing: observing and talking to people.
Drive around your area and look for work being done. Take note of the type of work if visible - addition, what kind and how big? Window replacement, siding, roofing and note the choice of materials. Look for yard signs and names on work vehicles. Take note of whose signs you see most often and what types of projects they're doing. Stop and talk to anyone you see at these jobs. Ask about the project and the company. Feel it out as you're talking and get as many details as you feel comfortable asking about. Knock on doors of houses where work is occuring and ask the homeowners about their project and the contractor. This may sound intrusive, but it happens all the time. Many referrals are given through this method.
Go to trade shows. Talk to the remodeling contractors with booths set up there. Ask questions. Talk to the suppliers and vendors there. Ask what products are selling and not selling. Ask about their customers.
Go to the lumber yard or various specialty suppliers. Talk to the city desk personnel. Ask them what products they're moving and ask about their customers. Make a note of the companies mentioned and then watch for their work. Stop by those job sites. When you buy lumber, talk to the guys in the yard. When a delivery truck comes to your jobsites, talk to the drivers.
Talk to the other tradesman on your jobsites. Who else are the plumber, electrician and fitter working for? Get details about those projects.
Chat up any friends or acquaintances you have working in the trades. Find out as much as you can about their business or employer and the other businesses they work with.
Right now we have the Parade of Homes Spring Preview going on where there are hundreds of new houses open to the public all over town. Even though I'm not in new construction I'll be going to a few of them to see what's being built, how it's being done and to chat a bit with whomever is there representing the builders. These kinds of events are great for making contacts and seeing what kind of work other contractors are doing.
By using the contacts you already have and getting out to make some new ones, you have access to a lot of information that will help you to understand and evaluate the market.
I think that much depends on what you can do and/or want to do. From your name, I take it that you're a carpenter so I would expect that that's what you have to offer. What would you do if your market research told you that bricklaying was in high demand in your area? - lol
Most startup companies begin with someone (or a small group) offering services within their areas of expertise. The ones that make it do so by ploughing their profits back into the company and expanding their offerings in incremental and logical steps.
Very good topic/question!
When I moved to Austin, I had to start wandering around deciding which market I want to be in. There are lots of choices: residential new, residential remod, commercial new, commercial remod, development (res or comm), etc. The market here is wide open.
Your market might be different. You have to figure out what is selling and figure out if you can sell at a profit. You have to decide how to deliver in whatever market you choose. If you limit your sales to your own personal skills, your market will be narrow.
Bob's next test date: 12/10/07