If your portable restroom business is a success, it might be time to think about expanding. The right strategy will generate growth, help you increase revenues, and keep creating opportunities for your business venture. If you’re wondering how to expand your business and, ultimately, how to expand your business to other cities, there are a few different strategies to explore.
Foundations: Build a More Effective Portable Restroom Business
Before you can implement any of the growth strategies discussed below, it’s important to take a hard look at the way you do things. Are there areas you could improve? Once you focus on a growth strategy, you will get busier. You need to have processes in place to make sure every aspect of your business runs smoothly.
Making your business more efficient can also create growth by supporting a better customer experience and reducing costs. Here are a few strategies you can explore to build a more effective business and prepare for the next growth stage:
- If you’re not using software for tasks like scheduling appointments, accounting, or payroll, you need to invest in digital tools. These products help you save time by automating tasks.
- Consider outsourcing some processes like marketing or billing. You will benefit from the expertise of employees who specialize in these areas while saving time and money.
- Review your staffing needs. Hiring more people can unlock growth since you’ll have more manpower available for important tasks.
- What are some negative points that keep coming back in customer feedback? Tackling these issues should be a priority.
- Are there other steps you can take to improve the customer experience? Offering an online tool to book rentals or schedule septic service appointments can help you save time and result in a more convenient customer experience.
Increase Your Rental Volume with More Equipment
One of the first things you can do to expand your business is to invest in more equipment. If you’re having a hard time meeting the existing demand for portable bathroom rentals, purchasing more units will increase your ability to meet this demand.
It’s important to ensure that the demand for a higher rental volume exists. Purchasing new units isn’t sufficient to grow your business if the demand doesn’t exist. For septic pumping businesses, you can increase your service volume by investing in a second septic truck. Operating a business with two or more trucks can result in faster service times and increase customer satisfaction.
Upgrade Your Portable Restroom Equipment
You can stand out from the competition by upgrading the equipment you offer. Portable bathrooms can often be an eyesore and event planners will be more likely to choose your business if you offer newer equipment. There are also practical reasons for upgrading your equipment. With innovations like vacuum technology, portable restrooms can be more convenient and hygienic.
Find New Portable Restroom Customers
Growing your customer base will result in more rentals. It’s a strategy you should prioritize if the usage rate of your equipment could be higher. With 3.96 billion users worldwide, social media is one of the best channels for finding new customers, whether you create a page for your business or invest in sponsored ads. You can also target local users via PPC ads that target keywords related to portable bathroom rentals, septic pumping, and other relevant services you offer. The internet is a great channel for finding new customers, but you shouldn’t neglect other strategies:
- Traditional marketing strategies like billboards, radio ads, and local TV ads can do wonders for small businesses with a specific service area.
- Join your local Chamber of Commerce. You’ll get opportunities to network with business owners and find out about upcoming events.
How to Expand Your Sanitation Business With Recurring Customers
Cost is an important consideration when you expand your business. On average, acquiring a new customer costs more than retaining an existing customer. Focusing on customers who are likely to need your services again in the future is a winning strategy. Once you have a strong customer base, you can keep generating revenues with fewer efforts.
The key to getting recurring customers? Offer exceptional service the first time, and provide incentives to use your services again. You can, for instance, offer preferred pricing to recurring customers. A strong digital strategy can also go a long way in staying connected with sanitation customers. Here are a few examples of opportunities you can pursue to build a recurring customer base:
- If you offer septic pumping services, business franchises can be a lucrative opportunity. Consider offering service contracts for multiple locations.
- Speaking of service contracts, they can be a great source of recurring revenue for residential customers. These contracts provide customers with peace of mind, and you can bill monthly or annually for this service.
- Focus on customers who are likely to need septic pumping more often than the average household. These customers can include multifamily rentals, office buildings, college campuses, and more.
- Are there any recurring events like festivals, concerts, or even a farmer’s market in your area? Providing the organizers with affordable and reliable portable bathroom rentals means they might call you again for the next installment.
- Network with local businesses and nonprofits that organize events regularly.
- Construction companies also make great repeat customers since they will need portable bathrooms every time they start working on a new job site.
How to Expand Your Business With New Sanitation Service
Another possible strategy to expand your business is to offer new services. Branching out and introducing new services has two benefits: new services will appeal to a new target audience and widen your customer base. Customers who need services like portable restroom rentals or septic pumping will spend more if you offer relevant add-on services.
Different Service Tiers
You can appeal to a larger target audience by offering different service tiers. For instance, you can offer budget rentals for small events or construction restroom trailers and have another tier with luxury trailers for high-end events.
Horizontal Growth
Horizontal growth is a strategy that consists of focusing on adjacent markets. Since you already have a customer base with an interest in planning events, you can expand your portable restroom business by offering other services these people might need.
Restrooms aren’t the only thing you can rent. You can grow your business by offering portable hand washing stations, restroom trailers, and more. The demand for handwashing stations has been increasing as more businesses take steps to create clean environments in the wake of COVID-19.
You can also offer a cleanup service after events. There are opportunities to explore by renting other items like chairs, tents, or tables. The party rental equipment industry is a $5.5 billion market and you could draw on your experience with the rental business model to explore this niche.
How to Expand Your Portable Restroom Business With Vertical Strategies
While horizontal growth is about offering related services, vertical growth consists of exploring opportunities at other stages of the supply chain.
If you own a septic tank pumping business, you could bring in a partner and offer septic tank installation, repair, or removal services. Customers already trust you as a septic tank expert, and you can draw on your existing customer base to grow.
If you’re wondering how to expand your portable restroom business with a vertical strategy, there are opportunities to explore other areas of event planning. Experts predict this industry will grow at a rate of 4% in 2022.
How to Expand Your Business to Other Cities
You can also grow your business by exploring opportunities in other geographic areas. Branching out and offering your services in a new zip code isn’t without its risks, but it can unlock growth by giving you access to a new customer base.
Research is paramount to knowing how to expand your business to other cities:
- Find out who the top competitors are in the new area. Learn more about their pricing and what sets them apart.
- What is the estimated market size in the new area?
- How will expanding your service area affect costs? Gas prices are an important consideration if you have to drive further.
- What do you need in order to offer quality services in a larger area? Will you need more staff and more vehicles?
- Don’t hesitate to research and compare different zip codes. Focus on the areas with the highest potential, and don’t hesitate to expand slowly by adding a few miles to your service area at a time.
There are two main strategies to explore if you want to know how to expand your business to other cities and geographical markets:
- You can expand your service area and charge more to drive further.
- You can open a second location. The upfront cost is higher, but you’ll be able to offer shorter delivery times for your portable bathroom rentals or dispatch septic trucks faster.
Start Expanding Your Business Today
Entering a new growth phase is exciting, but it’s important to identify the right strategies based on your local market and your goals for the future. Knowing how to expand your business effectively is the key to success.
Satellite Industries is one of the leading suppliers of portable restroom products. With 15 different types of portable bathrooms and products like mobile trailers, trucks, and deodorizers, we have the equipment you need to grow your business, and the skills to teach you how to expand your business to other cities when you’re ready. Fill out our contact form today to learn more!