Arden Engineering started simply enough, performing only HVAC and piping installations out of our Pawtucket home. It made sense to then offer plumbing, which we began packaging with our existing services.
But as with any business, standing still is a sure way to extinction. So soon after adding plumbing services to go along with HVAC and piping, Arden acquired a fire protection contractor in Rhode Island.
With the subsequent addition of an electrical contractor, in both variety and size of company we found ourselves able to satisfy more customers with broader needs
However, while we found success in Rhode Island, there are limits to growth here. Geographic diversity is important not only to create scale but to hedge against varying economic conditions in each market. We acquired a company in Connecticut in 2006 and a company in Boston in 2014.
The success of the Arden Building Cos. today is a direct result of this purposeful expansion of service offerings and market diversification. Here are three questions that must be answered to successfully undertake this strategy:
n Understand what your customers need, not just for the first contract but down the road.
n Understand how your offerings match – or don't – what your customers need, then fill the gaps.
n Once you have established your value to existing customers with a robust product or service offering, determine how you can expand your geographic reach.
If you keep these points in mind, you have taken the first important steps to a prosperous future. n