Carving a Market Niche
Bob Farley had worked as a mechanic for years, but when his physical disability prevented him from doing the heavy work associated with his old job, he decided to start a business as a home and commercial painting contractor. After he acquired his disability, Bob wanted to continue to do some physical work. He was painting part-time with a friend and decided that he could make much better money if he did it on his own. All he needed was equipment. He had heard of the money available to put people into their own business through the Careers through Partnerships Project, a U.S. Department of Labor project administered by the Montana Job Training Partnership (MJTP) and the University of Montana Rural Institute. He accessed these services and funds through his local Vocational Rehabilitation counselor and James Walker at Ravalli Services in Hamilton, Montana. He and James developed a list of equipment that Bob felt he needed to begin operations and solicited bids from vendors. Bob had not done a business plan, but felt that if he could just start operations he would be successful.
Once the bids were compiled, they sent the prices and descriptions of the equipment, along with the application for services, to Lisa Newman at MJTP for authorization.
After reviewing the material that Bob and James sent to MJTP, Rural Institute consultants suggested some modifications to Bob’s business strategy and added a possible marketing strategy to assure early business success. Rural Institute organizational consultants suggested Bob recruit a partner who could do much of the more strenuous preparation work on the buildings. Another suggestion was to engage possible customers as soon as possible, noting that James’s agency could use an exterior paint job. Two weeks later Bob had recruited a person who was willing to become a partner in the business and had received three painting contracts, among them one from James’s agency.
Bob began work on his contracts during the summer of 2001, but found that he needed an ongoing marketing strategy to sustain his business. After contemplating a few alternatives, Bob and James settled upon marketing through the local Yellow Pages and requested additional money for the ad from the Montana Job Training Partnership. Bob also had flyers printed and distributed in local communities and contacted other contractors in the area who might use his services. He completed four painting contracts during his first season; this was a great start for a new contracting business in his area.
Last fall, Bob’s business went into an expected slump—his business is new to the area and the work is seasonal. He has submitted one bid to a motel to paint the interior of eight rooms, and is waiting to hear if he will receive the contract. He has begun to considering diversifying his business by using some of his equipment to spray pesticides on trees for home owners. He is not prepared to widen his business operating area to include a city to the north, which might supply him with more work opportunities, choosing instead to focus on his immediate area. The reason for his decision centers on his family, his need to remain close to home during the day, and his belief that there is more than enough business for him in his established market. When Bob’s business went into the fall slump, Rural Institute staff discussed a Social Security Plan for Achieving Self Support (PASS) to provide funding for some of his business expenses and some other marketing options. They also recommended daily outreach and contact with at least one or two prospective customers, either in person or over the telephone; this will keep his company in the public eye.
Bob’s story is not unusual for a person starting a new business. Much of any new business owner’s time and resources are spent in getting the work to support the new enterprise; the rest of the time is spent providing the goods and services to the customers. Bob has the ambition to make his business succeed and is actively carving a niche for his business in the local market.
How to contact this small
business owner:
Bob Farley
Eagle Head Painting
P. O. Box 523
Victor, MT 59875
(406) 642-6703