When an unexpected business opportunity comes your way, it can be difficult to decide if you should seize it or let it pass you by. Profit, while important, is not the only thing to take into consideration.
We’ve spoken with experts in the portable restroom industry about their experiences taking and turning down opportunities. They’ve offered some of the best questions you should ask yourself before making a big decision.
A good saying to remember is, ‘Proper planning prevents poor performance.’
If you’re facing a potential business opportunity, the last thing you should do is rush. Take a little time, know what your costs will be. Do not just say, ‘Yes!’
Rushing might mean you risk doing your job to a lower standard, or you miscalculate and don’t make money. Ask yourself first if you have the inventory and manpower to provide quality and reliable service, to your usual standards. There’s no point doing a half-hearted job.
Will the new opportunity allow you to expand into an area that is currently under-served by your business?
For example, a new customer comes along and they want luxury trailers, but you don’t have any. Rather than saying no, check if it’s worth investing in trailers. Will adding some to your inventory help you get more clients in the future? Is there a demand for them in your area? What is your projected return on investment?
Always think long term. If you end up with more equipment or units in your inventory, your appeal may be greater to future customers.
Relationships are also important in the long term. If someone comes to you needing a job done quickly but the payoff is minimal, ask yourself if there’s potential for future work and a long-term relationship. How large is the customer’s business, and what are their long-term needs?
By seizing this opportunity, will you get the chance to meet more builders, community leaders, or decision-makers? If so, take this into consideration and try to project the potential growth from these connections.
If you’re thinking about taking over a new business, what do you know about the other company? What are their strengths and weaknesses, will you make a decent profit, and can you improve their service and reliability?
Some of you may be looking at taking over a competitor’s job. Again, knowledge is key. Try to find out why your competitor has dropped out, if there are any risks attached to the work, and what the customer is like to work with.
It helps to have good people around you whose advice you trust – business partners, advisers, or employees. Talk it over with them. Solid feedback is never a bad idea when making an important decision.
Looking to Take Your Portable Restroom Business to the NEXT LEVEL? Download our FREE Guide: “Your Guide to Operating A Portable Restroom Business.”
Thinking About GETTING INTO the Portable Restroom Industry? Download our FREE Guide: “Your Guide to Starting A Portable Restroom Business.”