Recently,
Rich Hubner, who owns
Diamond Construction in Plum, Pennsylvania
along with his brother Doug, sat down for an interview with Bowman’s Money
College. When researching this successful home improvement and
construction company you may initially think it is run by forensic
scientists. Why? An incredible focus on detail. To hear it from Rich Hubner, business success and customer loyalty in the home remodeling
industry are built on service that is comprised of quality and value. It
is the Hubner’s dogged attention to the details, that ensure value and a
quality job, that make Diamond Construction sparkle today. However, as
with so many small business success stories, things weren’t always so
good.
Before the diamond gleamed.
As Diamond Construction opened for business in 1991 you would have thought
a lump of coal was a more appropriate logo than a diamond. With little
money and no assets the original four partners
scraped up $200.00 each to
get the business going. Each partner owned only basic hand tools, but more
importantly they had ability, a strong work ethic, and a desire to build a
better business.
Getting started was hard. The Hubners had previously been working for a
construction company, but like true entrepreneurs knew they could do
things better. Money was tight and Diamond Construction had just dipped
their toe into a competitive sea of handymen and contractors. In order to
cope they kept their personal living expenses to a minimum, and focused on
attracting more customers.
Getting the word out.
Rich says that Diamond Construction’s clientele was built on word of mouth
referrals. With only limited resources to work with, expensive print and
traditional advertising were out of the question. Happy customers, who
shared their experiences with others, is what drove home improvement
business to Diamond. This is a key success factor that continues to be
evident at Diamond today. A quick internet search reveals many
5 star
referrals for Diamond Construction.
Word of mouth referrals still make up 80% of Diamond’s business. However,
Diamond Construction does have a new advertising tool.
Their website,
launched two years ago, has dramatically changed how Diamond Construction
gets their message out. Not only does it cost much less than traditional
advertising, but it allows much more flexibility. With plenty of before
and after pictures, the website makes it very easy for potential customers
to see with their own eyes the quality of work the craftsmen at Diamond
produce.
Building the Diamond Construction identity.
It was interesting to learn that the Diamond logo was not always a gem
stone! There were originally four owners, and Rich wanted a four point
shape in the logo – one point representing each owner. The logo was a
baseball diamond, but Rich wanted to use a pyramid when one of the
original four owners left. One problem. Everyone was talking about the
pyramid schemes reported in the news back then and Rich certainly didn’t
want any negative connotations hanging on his logo! So the baseball
diamond became the diamond gem stone we see today.
A logo helps make a small business more recognizable, but in Diamond
Construction’s case it is the quality of their work that has built their
identity. One point that makes Diamond stand out is their ability to
charge affordable prices without cutting corners.
In February 2010 there were historically brutal storms that damaged
hundreds of homes in Plum, Penn Hills, and the surrounding area. The State Farm
insurance adjusters visited many of those homes and viewed just as many
contractor quotes. One of those adjusters stated to me that the quote from
Diamond Construction was a “very good deal”. Hearing that from an
insurance representative who reviewed hundreds of quotes tells you
Diamond’s pricing stands out.
So you want to be an entrepreneur?
Rich says there are freedoms that come with owning your own small
business. For example, Rich has the opportunity to help design home
improvements for customers; something he is passionate about. He loves
“creating characteristic” for his customers’ homes. With over 20 years of
experience running a small business, Rich had many insights to offer those
wanting to start their own small business.
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Small Business
Lessons Learned From Diamond Construction In Plum |
-Communication:
Service isn’t just a nice word to put in your advertising.
Distinguish yourself from the competition by communicating with your
customers openly, honestly, and frequently.
-Be Different: Be different than your competitors. Diamond is
different in that they don’t dictate solutions; they give advice.
-Team: Hire and work with competent and reliable people.
Remember, they are representing your company.
-Patience: You have to have patience. Things will not always
go your way. If you can not handle that you will not make it.
-Work: Be prepared to put in extra hours. Being a small
business owner requires more than full time hours.
-Unique Problem Solving: Some problems can be deceiving. Have
a plan for when there is much more business than usual.
-Prepare For Challenges: Challenges will be a consistent part
of running a business. Recent challenges for Diamond Construction’s
have been a poor economy coupled with more government regulations
-Quality: Don’t cut corners. Your long term success depends
on quality work that encourages customers to tell others about you.
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You can read more about
Diamond
Construction at their website.
Do you have a “skill
turned small business” success story? I would love to hear from you. Email your
story to
mike@bowmansmoneycollege.com and you may be featured in this weekly
column!
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Owning
your own micro or small business is the best way to reduce your
taxes and generate additional income for yourself even if you are
still working for someone else. Do you have a skill or idea that
could be a business? Getting started and knowing how to keep the
business running are hurdles many people need help with. The
profiles provided in this section of BowmansMoneyCollege.com give
advice and lessons from small business owners, some of them still
employees of someone else, on the things they believe will make your
small business venture more successful. Read more small business
profiles
here.
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