IN AUSTRALIA TOO MANY ELECTRICAL CONTRACTORS GOING BUST! This is unacceptable; what should you do if you are an electrical business owner or manager?
YOUR FAST-TRACK TO WINNING JOBS BLUEPRINT
As Small to Medium Electrical Business Owners or Managers you need to be more entrepreneurial and innovative such as starting with a Strategic Business Plan with the flexibility to place at any-time your own creative and innovative entrepreneurial money making stamp into your business to avoid collapse such as using this continuous process.
This is your Strategic Business Plan and is a detailed systematic arrangement of the mind map process so everyone can simply follow and you need to change the way you are doing things to ensure the full benefit.
A. Generate Your Own List And Conversions
A1. Create Your Own Lead Generation Process In Your Market Niche
There are several ways you can create your own lead generation process such as:
- Online noticeboard that lists construction tenders
- Having your own Website
- Having Your Own YouTube Channel
- Having Your Own Business Facebook Page
- LinkedIn Profile
- Posted and distribution of Flyers
A2. Develop Your Relationships With Several Communications Methods
Use all the communications methods at your disposal to develop your relationships such as:
- By direct tendering
- By email
- By post
- By Phone
- By Text using your mobile
- By invite to industry corporate and sport games gatherings
A3. Converting Your Prospects Into Customers
“Why should they deal with me against anyone else?”
Your Tender needs to provide VALUE above and beyond your competitor’s submission.
From the Customers perspective value may be best defined as between the benefit received from your tender offer verse the sacrifices to obtain it (e.g. time, cost, quality, Safety, service, reliability etc.) these are the essence of Customer Value.
A4. Use Your Tender Submission As A Marketing Tool
Electrical estimating is seldom thought of as a marketing tool.
A properly prepared estimate has a great deal to do with marketing.
To be successful as a Business You must be known in your market area for the services You perform.
B. Analyse Inside Your Business Not Outside Your Business
B5. Determine What Your True Costs Are
“Knowing your minimum sell rate”
Your ability to make a profit is going to be under attack more than ever from your customers AND competitors.
This will put additional pressure on your business. This is especially true with the current state of the recovering economy.
There will be new competition offering lower prices. This will put additional pressure on your business.
To counter this attack, you need a set of tested and proven strategies you can use to charge more than ever without experiencing price resistance.
B6. Calculate Your Staff And Operating Costs To Determine Your Business Minimum Labour Sell Rate
It’s this ‘unknown’ labour cost breaking so many construction budgets out there today.
There are two main labour costs a business has to take into account when estimating are:
- Direct cost
- Indirect cost
B7. Determining And Adjusting Your Field Staff Efficiency Levels
Each organisation has different efficiency levels depending on the make-up and experience of the human resource on the particular functional outcome at the time of execution.
C. Strategize Your Business Process In Determining Your Market Level In Your Market Niche
C8. Estimate Your Gross Margin For Each Tender To Be Competitive And Maximising Your Profits
The estimated gross margin can be changed by adjusting the mark up on cost for material and the mark up on cost for labour as well as changing your efficiency rate.
C9. Alter Your Gross Margin With Each Consecutive Tender To Determine What Your Niche Market Level Is
By making this adjustment we are trying to find out where the market rate is for the type of project in your targeted niche market area.
C10. Adjust Your Materials Mark-Up And Labour Sell Rate
Continue the process over the lifetime of your business by adjusting your estimated gross margin for each new tender either up or down depending on the changing market conditions.
C11. Submit Your Tender With alternative And Capability Statement
If you can always try to have an Alternative Offer which should be lower in price than your main conforming offer price in your tender. This will bring your offer to their attention and may help get you to the post tender negotiating table.
In your tender submission you must have a Company Profile and Capability Statement.
Customers are the lifeblood of your business – so finding new customers is key when starting or growing your operations. Expanding your customer base can help you increase the reach and awareness of your product or service. It can also increase your sales and profitability, as well as ensure you meet your business goals and objectives.
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YOUR FAST-TRACK TO WINNING JOBS BLUEPRINT,
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