An experienced tradesperson who steps onto a property to address one problem will probably spot three more issues the owner should address, so there’s always entrepreneurial value in learning multiple skills.
Consider the landscaper who can offer lighting services to enhance the outdoor spaces they create, the plumber who can install and maintain whole-house water filtration systems, the HVAC technician who can provide energy audits or the window installer who adds security system installation to their repertoire.
These days, there’s massive growth potential for companies that expand their offerings—even across trades, such as the HVAC business that takes on some plumbing services. That’s because the Baby Boomers, the largest generation in American history, are retiring and taking decades of knowledge with them, while younger workers aren’t filling the gap fast enough. The labor shortage is becoming glaringly apparent as more customers without trade skills struggle to find quick and reliable answers when they need hands-on help now—not when the plumber can’t come for 10 days or the HVAC sits broken for two weeks.
Companies with multiple skillsets have opportunities to fill some of the emerging gaps and answer such calls when others can’t. Expanded services can lead to increased revenue and a broader customer base that develops trust in you to answer multiple needs, not just one. However, balancing company growth with maintaining its identity and reputation is difficult and requires strategic planning and execution.
Below are five challenges and solutions a company aiming to grow with a multi-tasking strategy must consider:
THE MOTIVATIONAL CHALLENGE: DO YOU HAVE TEAM BUY-IN?
A core nucleus of skilled, dedicated professionals is at the heart of every successful growing company. These are your go-to people, the backbone of your operations. It’s crucial to involve this core group early when considering service expansion. Their buy-in can make or break your diversification efforts. If you have a thoughtful team, they will rightly throw many potential problems at you. Be open and objective. If you hear arguments that the plan won’t work, listen to them and investigate. Your answers must be sound or else the skeptics will never buy in because their misgivings may ultimately be right.
To secure motivational buy-in, you must effectively communicate the long-term benefits while also developing a meaningful incentive structure. This could include tiered pay scales based on skill acquisition or performance bonuses for successful cross-service projects. By offering tangible rewards tied to expansion efforts, you demonstrate that you value your team’s extra effort and commitment and are interested in rowing all boats, not just your own.
THE WORKFORCE CHALLENGE: BE PROACTIVE, NOT REACTIVE
An expansion generally requires increased staffing. But make sure to grow strategically. One forward-thinking mindset is to always be scouting and recruiting—not simply waiting for an immediate need to dictate your next move. If your hiring strategy is placing an ad when you need someone, then you’re in a reactive, not proactive, hiring stance—it’s incredibly hard to find the best talent from that position.
Remember that as a business owner, you’re also a talent scout. Always be on the lookout for potential new members for your team, and find ways to engage with people who fit the mold of what you’re looking for. The more connections you maintain in this way, the more options you have. And if you’ve found a truly special person to add to your team, you might consider establishing a position for them before you feel a desperate need. That’s a proactive approach to team building.
Also, get your team involved in the community and search for opportunities to reach young talent who will soon hit the job market. Tell them about your business, its purpose and value, and how it solves problems and makes a difference in the community. Help young people visualize a positive future as part of your team.
Consider automating or outsourcing some of your administrative tasks to free up resources for workforce expansion. Areas ripe for automation or outsourcing include bookkeeping, scheduling, customer relationship management, inventory management and payroll processing. When you cut costs on the administrative side, you can pay more for your hands-on skilled labor.
THE OPERATIONAL CHALLENGE: ARE YOU ALLOCATING RESOURCES PROPERLY?
Expanding into new service areas requires significant investment in new tools, equipment and vehicles. This can strain financial resources and complicate logistics.
That’s why you should conduct a thorough cost-benefit analysis for each new service you plan to offer. Before making large purchases, consider leasing equipment or forming partnerships with equipment rental companies. This approach allows you to test the waters over the short term without a massive upfront investment. A trial period is not a bad idea for implementing service expansion.
Also, make the most of your existing resources by looking for tools and equipment already on hand that can serve multiple purposes. Just be sure to establish an efficient inventory-management system to track those tools and materials across their different service areas.
THE CUSTOMER SERVICE CHALLENGE: COMMUNICATION IS KEY
As you expand your services, customers may be skeptical about your ability to maintain quality across all offerings. They might question whether you can deliver the same expertise in new areas as you do in your core services.
Transparency and communication are vital. Be upfront with customers about your expansion plans and the steps you’re taking to ensure quality across all services. Highlight the benefits of using a single provider for multiple needs, such as streamlined scheduling and potential cost savings.
Make sure you hear from your customers on a regular basis through customer satisfaction surveys and a responsive feedback system. Consider offering guarantees or warranties on your work to instill confidence. You might also establish a customer success person or team for your business to oversee the entire customer journey across all service areas.
THE LONGEVITY CHALLENGE: A COMMITMENT TO CONNECT AND EVOLVE
It’s important to recognize that expanding services is not a one-time decision, but an ongoing process of adaptation and refinement. Market conditions, technological advancements and customer preferences will continue to evolve.
The most successful companies remain flexible, continuously assess their service offerings and are willing to pivot when necessary. This might mean scaling back certain services that aren’t performing well or identifying new opportunities that align with the company’s strengths and market demands.
As you continue to scout talent for your company, simultaneously look for strategic partnerships or collaborations with complementary businesses. These alliances can have a huge upside, such as a roofing company partnering with a solar-panel installer to offer integrated roofing and solar solutions. A company often operates at its best best when it recognizes that building value for others can significantly boost its own.
While the challenges of expanding service offerings in the trades industry are significant, the potential rewards make it a strategy worth considering for many companies. As the skills gap widens and customer demands for hands-on help rise, companies that can offer comprehensive, high-quality services across more than one trade will be well-positioned to thrive.
Next time you step on a site, look around. Take a moment to assess the issues that aren’t directly tied to your services. Would you like to consider more possibilities for your company? Maybe yes, maybe no. But it never hurts to think. The opportunities are out there.
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