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By Karen E. Klein The Right Foundation for a Fresh Start When the goal is expansion and the territory is new, nothing pays bigger dividends than investing in a little homework Q: I am the owner, operator, designer, and builder of a 7-year-old construction outfit that is in the process of moving into a new market 50 miles from our present location. It is a very big, busy, and competitive construction market, which is just what I want in order to build more homes per year in a larger city. How should I approach marketing, advertising, and establishing my presence in this new city? How do I set my company apart from the competition? I want to show that we are well versed in building custom homes with exquisite, high-end detail, and that we are old and experienced enough. -- M.W., S.C. A: Making a move into a new market is a big step, one that will require careful research and strategic planning if you are to be successful in this new and more competitive environment. Simply moving into and taking out ads advertising the fact that you are the new kid on the block won't be enough, experts say. If you hope to position your firm in the niche you desire, now is the time to do some serious homework. LOCAL TASTES. Start by taking stock of your own company and identifying what makes it unique. You mention "exquisite detail," for instance -- well, that's a possible selling point. Analyze what worked for you in the smaller market you are leaving, and how those factors and qualities helped you achieve success. Unless there are reasons to believe that your early strategy won't transfer to this new market, you should take a cue from your own beginnings, says Craig R. James, founder and owner of Sales Solutions. Next, collect and assemble hard data pertaining to your soon-to-be home turf. How does the market you are entering differ from your former locale, and what do those differences suggest that you should do differently? For example, do homeowners value the size of a home more than the materials that go into it? Do they favor originality in design or are they happy with the cookie-cutter approach. If you find that size matters most in this marketplace, then you can focus your efforts accordingly. You seem concerned about the size and competitive environment you will be facing. Will that be an obstacle to your success, or an opportunity? Look into which builders have been successful, and try to find out why. Advises James: "Identifying where and how you are strong and weak relative to the established builders in town is the first step in determining what your message will be, and how you will position the company." WHO YOU KNOW. Once you have a firm handle on the market, your competitors, and how your outfit meshes with the broader picture, then you will be ready to craft and execute a marketing and promotional plan. As a small player, the key to building your presence in a new market will be to create strategic alliances that are likely to refer business to you, says Jonathan Goldhill, of The Growth Coach. "Since advertising is an expensive approach to creating visibility for your firm, I would avoid this except in the most controlled manner," says Goldhill. "I would aim all my marketing efforts at a simple letter and follow-up phone campaign to create meetings with the decision-makers at developers of high-end custom homes." Next, figure out who wields the most influence when it comes to residential development and find ways to engage them. You will need to establish yourself as a reliable and quality builder with these people, as well as with homeowners directly, James says. "Photos of some of your best homes, referrals, and testimonial letters from happy customers will be most effective in establishing credibility, probably more so than burying an ad in a newspaper." PLAY BALL! And don't forget to make the best use of technology when selling your services. "I would make sure my capabilities are well-conveyed through the use of marketing literature and/or a Web site, as is conventional with a firm of your size in your industry. Possibly, a professionally produced CD that can...highlight your strengths and expertise will help," Goldhill suggests. "This is a low-cost method and can be a very efficient way for you to communicate your capabilities to these referral sources." Finally, there are other, tried-and-true ways to make a name for yourself, such as joining the local Chamber of Commerce, sponsoring a Little League team, and doing volunteer work. Each option can help you gain visibility and generate the good will that will go a long way toward achieving your goals. Have a question about your business? Ask our small-business experts. Send us an e-mail at smartanswers@businessweek.com, or write to Smart Answers, BW Online, 45th Floor, 1221 Avenue of the Americas, New York, NY 10020. Please include your real name and phone number in case we need more information; only your initials and city will be printed. Because of the volume of mail, we won't be able to respond to all questions personally.  Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.
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