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- Contractors are too busy already and don't want extra work.
As one of my contractors once told me: "A good contractor
won't turn down a good, paying customer." The client may
have to wait for the job to be scheduled but most of my clients
feel that good contractors are worth waiting for.
- The HRN business requires costly advertising. This is a word
of mouth type of business and a lot of job requests are generated
through networking in your community, PR and direct mail. It's
not expensive to promote the HRN business. In fact, many HRN owners
generate their first jobs before they even launch a promotional
campaign.
- You need to live in a heavily populated area to run a successful
HRN business. Actually, this is a very local business. Most contractors
won't travel far for work therefore an HRN needs to operate locally
to start. Once you've established a network in your immediate
area, you can expand into new markets and create new networks
of contractors to handle the business.
- A local HRN business won't be able to compete with established,
national contractor referral businesses. As CBS Marketwatch recently
reported: "There's probably no project that homeowners won't
first research online, but when it comes to inviting contractors
to their remodeling project, they're less willing to depend on
electronic means." In fact, online referral services like
Improvenet and ServiceMagic haven't posed any competition to the
hundreds of HRN's operating nationally.
- You need contracting experience to run an HRN. The HRN owner
is responsible for marketing and promotion and the contractors
represented in the network are responsible for the technical aspects
of the job therefore no contracting experience is required.
- The contracting business is male dominated and most contractors
won't take a woman seriously. Just the opposite-many of my contractors
tell me that they enjoy talking to a woman after working with
men all day. Besides, if you generate business for them--male
or female--you'll ultimately earn their respect.
- The HRN owner is liable in case of a mishap on a job. The contractor
is ultimately responsible for his own work and there are numerous
safeguards in place to protect the HRN owner including a signed
liability clause, operating procedures and insurance provisions.
- Running an HRN business means that my phone will be ringing
in the middle of the night with emergency calls. An HRN deals
with home improvement "projects" not "emergencies".
Of course it's your prerogative if you'd like to set up your business
to provide emergency referrals.
- The HRN owner goes onsite to check out each job before referring
it to a contractor in their network. The HRN owner never goes
to a customer's home to check out a job. In fact, I handle more
than 90% of my business by telephone.
- If I launch an HRN, I have to use the name "Home Remedies".
Actually, the name Home Remedies is trademarked and each HRN operates
under it's own name.
Debra Cohen is owner and founder of Home Remedies of NY, Inc.,
a Homeowner Referral Network (HRN) business and author of The Complete
Guide To Owning And Operating A Successful Homeowner Referral Network.
For more information about how to launch an HRN in your area, visit
the HRN website at www.homereferralbiz.com or contact Debra directly
at (516) 374-8504.

Debra
M. Cohen, President | Home Remedies ™ of NY, Inc.
Phone: (516) 374-8504 | E-Mail: HomRemdies@aol.com
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