As the industry grows, more business people are looking at the solar industry, trying to decide if it’s a good place to invest their money. Randy Zechman, CEO of Clean Solar in San Diego (number 161 on the Solar Power World Top 250 Contractors list), owns three businesses and is what he calls a “serial entrepreneur.” We asked him what advice he’d give people who are considering joining it. Here are his responses to our questions:
SPW: Do you think the solar industry is a good place for an entrepreneur to invest his money?
RZ: Different facets of the solar industry are better than others. There is a lot of competition in most sectors. If someone is going to start a business or invest in a business, they must understand their niche. They must stay focused on what they will do different to attract customers. The industry as a whole is growing, but it needs businesses that can bring something unique to the table.
SPW: What do you see as the biggest mistake most small solar installers make when they start their businesses?
RZ: They are not focused on the customer. Every decision that is made needs to be with the customer in mind. The most beautiful solar installation needs to be accompanied by a customer expectation and execution. Without it, it means little.
SPW: What is the most important piece of business advice you’d give someone just starting out?
RZ: Think through the whole process. What are all competitors doing? Can the business make money? Are you in it for the long haul? There are so many businesses that come and go. Without a sound business plan and thinking through the whole process, the end is nearer than you think.
SPW: What changes have you seen in the way installers run their businesses during your career?
RZ: When Clean Solar first started, there were a lot of good installers that didn’t really understand what the customer wanted. They didn’t market well. Websites were ugly and didn’t explain anything. Installations were sound. Today, there are so many companies with a few different models. Lots of sales companies. Lots of sub-contractors. A few companies have deep pockets and deep connections. Those have really driven the growth of the industry. There are a handful of installers in every major city that could see some real growth and can really focus on the necessary details to keep customers referring more business to them. I think it’s been pretty predictable over the past 5 years or so. It’s getting tougher to pick winners and losers.
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