In a previous article (How One Builder "Made the Most Money I've Ever Made") I wrote how a builder dealt with his resistance to raising prices and properly charging for all the work he performed to create his most financially successful year ever.

The one of the greatest points to that article is those changes came at little-or-no cost to him, neither in time or money. Virtually all the increased revenue from implementing those strategies will translate directly into profits for that builder!

Along the same lines, here are two other simple, low-cost profit building strategies that won't add to the wrong side of your income statement.

Strategy #1 -- Your Choice: Compete with Everybody, or Just a Few...or Nobody

Go to your local association, or the yellow pages, or wherever you can find a list of builders and renovators in your area. That is your competition.

Now...you can either compete with all of them...or some of them...or none of them.

How?

Does MacDonald's compete with Ruth's Chris Steak House? Does Volvo compete with Hyundai?

The answer is yes and no...but more no than yes.

Each of those two examples compete in the same marketplace (food; transportation)...but that's where it ends. Not only have they differentiated on quality, but also on their targeted clientele within that market.

So...what about you? Do you want to compete with all the other builders...or just some of them (or none)?

If you want to reduce your competition (and, heaven knows, it's ballooned in the past years), stop getting lumped into the entire "builder / renovator" category -- focus on a target market(s) and let them know you're the expert for that market's particular needs.

Chances are, you already have a target / niche market...you're just not taking full advantage of it. Who are the people you like working with? What kind of projects do you enjoy the most? Where are your company's specific strengths? Energy-efficiency? Big use of small spaces? Vacation areas? Accessible homes / renovations for people with can't get around easily?

I'll bet you already focus on, or wish you could focus on, a certain niche in your area. If the former, make sure they know you're the expert in that area...don't come across as "just another builder / renovator" and, therefore, end up competing with every builder / renovator out there. Look at you what you give, or tell, your market (websites, brochures, ads, etc.) -- does it clearly state "we are the experts in this are and here's why" (using end benefits, not features, to explain your advantage to your chosen niche)?

If the latter, is the target market / niche large enough to support your business? If so, stop fighting with everyone else for the projects that don't excite you -- focus on your dream target market and start bringing in the extra profits that come from:

a) not having to compete with everyone and their cousin, while fighting on price to get the job; and b) being seen as the clear expert in that area.

Market not big enough? Then pick another...or pick that one, and one or two other smaller markets -- nothing says you can't have more than one target market, right?

Strategy #2 -- Want to Do Better? Get Better.

Studies show the profit you bring in is not from what you do, but how you do it. More specifically...how well you do it.

If you find yourself just making it through the day, putting in way too many hours for way too little pay, you're probably not doing things as efficiently as you could...right?

Who's paying for that efficiency? Either your clients, in higher prices (I doubt it...but that's definitely not a good reason to raise your prices) or you, in terms of lower profits.

So, what to do about it...especially when:

a) change can be (perceived) as difficult; and b) you don't have a lot of time on your hands?

Easy...pick one or two things and focus on improving just those one or two things.

The secret to improving is not taking giant leaps. If you've got the time...great -- but most people don't. So, if you're like most people that don't have the time to tackle everything they could improve, pick the one or two things that'll bring the most return for your efforts and forget about all the other stuff.

Once you've focused on one or two areas of improvement, set aside the time. It can be 15 minutes; it can be an hour; it can be a whole day -- whatever you have time for but, schedule the time. Know when you're going to work on your improvements and, here's the final secret...do it, and only it.

Turn off the phone. Shut down the email. Close the door (and put a Do Not Disturb sign on it -- seriously), and work on the area(s) you've chosen to improve.

Not only will you have put a lot of time into improving your business before you know it, you'll also get more out of it because you focused on just one or two things (instead of the twenty you typically try to tackle).

In the end, you'll be miles ahead of your competition (you don't think they're doing this stuff, do you?), offering more to your market...and still taking home a great profit!

Brett Martinson is a professional coach and consultant to the home building and renovation industry. Builders and renovators can sign up for a FREE subscription to his Successful Home Builders' Newsletter AND receive his free, bonus 5-Part eBook, "5 Profit-Draining Mistakes Builders and Renovators Make...and How to Fix Them" at http://www.SuccessfulHomeBuilders.com.