Many companies are struggling to remain afloat in this difficult economic time. Some, however, are actually swimming forward as they increase their revenues. One of these is The Fixit Team Inc., of San Jose, Calif. In 2008, its profits rose by 30 percent from the previous year.

 

Lisa Lambka, vice president of sales for The Fixit Team, was happy to share some her company’s story with NARI.

 

The Fixit Team opened for business five years ago next month. When Lambka and her husband started the company, she had three decades of experience in sales and marketing, and he had a long history in electrical engineering. They began work in the handyman sector and eventually acquired a general contractor’s license.

 

They were doing so well in their new endeavor that, when they were first called in to fix problems like leaky faucets, their customers also inquired whether they would remodel parts of their homes.

 

“They asked because they liked us and wanted us to do more,” Lambka said. The professional remodeling business is relationship-based, so that, if customers like you, they will be willing to have you spend more time in their homes, and they will ask you to do more work.

 

Within 30 days of being in business, the Lambkas hired their first employee to help with the additional work from more extensive jobs. The Fixit Team became a “one-stop shop” for home improvement.

 

“We like to say, ‘one call does it all,’ start-to-finish,” Lambka said. If a homeowner calls with a faucet leak, the company can not only fix it but can also repair any damage to the wall or to the floor.

 

And they complete these jobs without hiring subcontractors. The Lambkas minimize subcontracting deliberately for several reasons—the first is maintaining as much control as possible over the company. This way they need not worry about subs placing liens on a project for work for which they have already received payment.

 

“It’s [also] easier for the customer,” Lambka said.

 

The second reason is that the absence of subcontractors benefits the company because it receives payment for the entire project, rather than simply getting paid for referrals to the subcontractors.

 

The Lambkas limit their hiring of subcontractors to several areas, including roofing, concrete, heavy demolition and HVAC systems.

 

To keep the rest of the work in-house, the Fixit Team focuses on the following areas: electrical, cabinetry, painting, plumbing, drywall, termite repair, and flooring, in all areas but carpeting.

 

They achieve this with 26 employees, six of whom work full-time in-house in marketing, administration, sales and accounting.

 

There is a lot of competition for remodeling projects in San Jose, and a lot of larger operations, in terms of number of employees that focus on the bigger jobs. To effectively compete against these other businesses, the Lambkas stick to the $20,000 jobs these other businesses shun, selecting more lucrative projects.

 

“There’s more competition as you go up with the cost,” Lambka said.

 

Instead of working against the more sizable organizations, the Lambkas have cleverly managed to profit by partnering with them: The Fixit Team passes on jobs they consider too large for themselves, and, in return, they receive referrals for smaller remodeling jobs from the larger home improvement contractors. In particular, the more sizable contractors tend to specialize in work for homeowners’ associations, including those who work for apartment and condominium complexes.

 

Networking is key for these types of jobs. Like Dawn Tuskey, from last week’s Tuffin’ It Out, Lambka belongs to about 25 different organizations, including the Rotary Club and Kiwanis International.

 

“That’s how we do our business,” she says. “It’s not just how much I can get, but who can I meet. You get out what you put in. People think business is going to fall in their laps.”

 

By attending an organizational meeting, you might form a new friendship or make a new contact or obtain business.

 

“There’s always something you can get out of it,” Lambka said. “People give up too quickly. Sales are not quick; it’s a process. You have to look past today. You can’t just try something once; it might not work immediately. A lot of it is luck and timing, being in the right place at the right time, going to that meeting.”

 

You might acquire a large project in three years, from someone you meet tomorrow, she said. Or you might meet someone from a larger remodeling firm that will then pass you the smaller jobs.

 

“There’s plenty of work out there,” Lambka said. The Fixit Team currently has four to 10 jobs going simultaneously, from fixing those leaky faucets to a $1 million remodel.

 

Recently, The Fixit Team decided to try to move its business further into commercial remodeling. Although 95 percent of its business involved homes in 2008, one of Lambka’s goals is to increase the amount of commercial remodeling she does to 50 percent of the total in 2009.

 

To avoid the difficulties of entering into the territory of larger remodeling corporations, she said she was launching a new marketing campaign.

 

“I’ll just market smarter. … You have to be positive, no matter how good or bad it is. I stopped going to real estate meetings because people were so negative,” Lambka said. “If you put on your [game] face and smile, good things will happen; people want to be around positive energy. I spent 30 years in sales and marketing. This is the attitude I’ve always had, and I’ve always been successful.”

By adopting a similar attitude, and getting your name out there by networking, working with other companies, and, perhaps going commercial, you, too, can raise your profit margins, by following the lead of a successful entrepreneur.