Key Questions Corbet Design Build Asks in New Markets

Starting a business from scratch is very difficult and involves a lot of work, energy, and dedication mixed with a small dose of luck. In order to maximize the odds of success, however, sole proprietors often have to look at the outside factors. One of those factors that can completely make or break a new company is the market. Meaning, business success is directly related to how well someone selects which market they want to operate in. For illustrating this point, consider the hypothetical scenario of a new construction company that is expanding into Pasadena.

What is popular in the market?

Usually, the first question that new businesses should ask relates to trending ventures. Meaning, they should find out what is popular in the market that they are moving to. Doing so minimizes the chances of starting a business that may not be even recognized. So, for the Pasadena example, this means doing research on the local opportunities. The median age in this city is 31 and average income is a little under $50,000. Those figures may be used to conclude that there is a good chance that new homeowners will be looking to build houses. For a construction business, one may see this as a promising factor that assures some demand will exist.

How powerful is the competition?

Prior to expanding to a new market, every business should thoroughly analyze their competition. For instance, if a construction management company wants to move to Pasadena, they must know what to expect. If this city happens to have multiple offices of other construction management companies like those of Corbet Design Build, per se, moving there may be a bad idea. These established businesses often have the market cornered through existing relationships and infrastructure. Thus, business owners have to be aware of their competitors prior to relocating or expanding anywhere.

Who is the targeted audience?

For a construction company in Pasadena, establishing a targeted audience may not be too difficult. For those unfamiliar, these are the individuals that the company will target in order to sell services. Given that the example revolves around construction, it is fair to say that the targeted audience will be everyone who wants something built. The problem, however, is the fact that this does not narrow it down well. After all, everyone from people who want a new home to large realtors may want something built.

So, a construction firm should establish an ideal customer profile. For them, that may be a middle-aged person who is the income earner in the family. Then, they can target everyone who fits this description in Pasadena in order to sell their services. For businesses like Corbet Design Build, which specializes in construction management for commercial real-estate, ideal customers may be other small business or local establishments. Regardless, the entire process remains the same.

How engaged is the demand?

Next, the company must establish some guidelines on how they will reach out to their demand. Since the average age in Pasadena is 31, it is fair to say that an everyday resident is fairly engaged. Meaning, they will be at least somewhat familiar with modes of advertising like social media or television programs. The reason why this matters goes back to marketing. If a construction company understands that their targeted audience is not very engaged with modern media, they may resort to paper-based marketing campaigns. Such low-level decisions could change the success rates and increase revenues.

Do client relationships need to be long-term?

In every business, establishing long-term client relationships is advised. This is particularly impactful in industries like construction in which one-time purchases can be a substantial financial commitment. Corbet Design Build, for example, operates in a niche that relies heavily on the repeat patronage of local businesses. When a company of their scale partners with business owners on a single building project, establishing a great working relationship is a high priority.

This same relationship building process extends beyond the business-client relationship and also impacts the business-supplier relationship. Companies utilizing hundreds of thousands of dollars worth of materials may benefit heavily from a long-term relationship with their suppliers, who often provide bulk discounts or more competitive bids due to existing relationships. As a whole, it’s important for any business to place an emphasis on building and maintaining valuable connections.