Strong Companies seek deals and grow; may emerge mightier from downturn

The giants of U.S. industry, such as General Electric Co. and Tyco International Ltd. are starting to use their deep pockets to continue to grow, either through acquisitions or by expanding existing operations, when many others are being forced to pull back.

And you can do the same thing in your contracting business. Now is not the time to hunker down and be afraid. Go call on new accounts, get your plans ready for next year early, decide what type of business you want to pursue and how you are going to do it. More details of what to do are listed below.

For the majority of companies, the Sept. 11 air attacks have accelerated the process of driving companies into a lockdown survival mode, leading to a lengthening of the economic downturn that was already taking hold. That could lead to a sudden boost in the control of key markets by some of the best companies, market experts said.

But look how some of the world's most successful companies are using others' "hunker down" mentality to their benefit:

• General Electric, the world's largest publicly traded company, showed that it is far from riding out the downturn in the bomb shelter. It recently paid $1.98 billion in cash and stock for No. 2 U.S. Spanish-language television network Telemundo Communications Group last week.

• The No. 1 producer of aluminum, Alcoa Inc. is in talks with Australian miner WMC Ltd. in a sign that Alcoa is poised to cement its dominant position in the world markets for aluminum and alumina, analysts said.

• Retail giant Wal-Mart Stores Inc. is gaining more market share. Its same-store sales have risen consistently, and the company said recently it would continue with its ambitious plan to open about 230 stores next year, its largest-ever increase in new retail space.

• The fast-growing No. 7 U.S. airline Southwest Airlines, the Dallas-based low-cost carrier, has decided to operate its full schedule of roughly 2,800 daily departures, while other U.S. airlines have cut capacity by about 20 percent since September 11.

So what are you going to do?

Here are 11 ideas of things to work on:

1. Get some extra training for yourself and your crew- increase your knowledge and be ready to do a better job.

2. Do a post job analysis of your last 10-20 jobs. Which ones went bad? Why? Which ones went good? How can you get more jobs like the good ones?

3. Talk to some of your peers in other trades. Who are their best accounts? Go see these people and tell them what you can do for them in person.

4. Update your marketing material. Get it done professionally.

5. Write a couple of pages for your web site that explain concepts people often ask about- then you can email customers detailed answers. They will appreciate being able to look over the information.

6. No web site? How come? They are inexpensive and can help you make a first class impression.

7. Buy and learn how to use a digital camera. Store these images on your computer so you can send a photo to explain a concept to a client or prospect. Or discuss issues that come up on a job with your crew.

8. Set up a meeting with your accountant- can they give your 3-4 insights about your business that they see? How do you compare in various areas compared to other contractors.

9. Give a call to three peers in other parts of the country- how are they handling this or that problem? What are they doing new that is working?

10. Take your team fishing- let them know you really appreciate what they do for you. Ask them for ideas on how to make things better or if they see ways the company is throwing money down the drain. If you are a one-man team, talk to your suppliers and let them know how you appreciate their help.

11. Answer this question: How will it be better when next year is over?

Your answers should be 4-5 items such as:

• We did 15% more volume. Profits were up 30%.

• George really came along as a supervisor this year.

• I turned in my info to the accountant so each quarterly statement came out on time this year.

• We added on 3 key accounts.

• 97% of our jobs noted they were delighted with our work when I called to follow up on our performance.

• We systematized our proposal.

  Now work backwards and figure out what action steps you need to take to make these items happen.

  You are going to make your own good luck happen!