Years ago there was a great TV commercial where a bunch of old men are sitting around a dusty table. One stands up, pounds his fist, and announces, “This is the way we have been doing it for years, and we are not about to change,” just as the head of a seated compatriot hits the table — the man seemingly having dropped dead.
The skit reminds me that we live in a world of constant change. A business not poised to adapt to change could fail.
One method for acclimating to market shifts is diversification. Investigate opportunities within (and beyond) the construction field. If you are a remodeler, look at new construction. If you only provide residential remodeling, expand your offerings to commercial construction or design/build.
We started in 1991 as a small residential architectural practice. Within a few years, we saw an opportunity to provide a one-stop shop for our clients and added a construction company; a few years later, we included construction services for architects and design services for homeowners and contractors; then we added design/build services for commercial projects.
We’ve continued to explore other areas, recently taking on upscale condominium remodels. Every market is affected differently by the economy, thus spreading our risks when there is a downturn in one area.
But before leaping into a new market, make sure you have the infrastructure to accommodate that business so you can continue to deliver a high level of service. If you cannot, you risk destroying your reputation. A safe approach is to find someone with experience and connections in the market you’re trying to reach and to hire them or partner with them. Whatever you do, be creative, flexible, and willing to adapt.
Andy Poticha is a principal at Design Construction Concepts, in Chicago, a full-service company spanning architecture and construction.