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Running Your Business Article

   

Running Your Business

Updated: August 21st, 2008 03:21 PM EDT

In Quest of Sales

Linda Hanson, CMC
LLH Enterprises, Inc.
Lind Hanson

Obtaining sales in the construction industry, at least for big dollars, is a slow and complex challenge. Large businesses know that their customers don't rashly decide to build a hospital and plunge ahead with a $750 million order. As a result, large construction companies go through an extensive bid process which includes RFP deadlines, presentation meetings, assigned site visits and more.

The sales process can seem to move slowly, leaving companies to wonder if they are making progress. Contrast that picture with smaller companies who are often being treated like they are a commodity because they are viewed as being the same as their competitors. Thus, even though most companies provide good service, good quality and good prices, if buyers view them as a commodity, then price drives the buying decision. When the customers view all providers in the same way they may start using a bid process to find the low price. So unlike large companies who are asked to bid to determine skills and price, a small company many be asked to bid because of price alone. To prevent this from happening contractors will benefit from developing a sales plan to differentiate themselves from the competition.

Sales and marketing plans are designed to ensure your company is called first for work and that customers keep coming back to your firm. The sales plan helps you cover your monthly overhead and prevents you from wondering what the next project will be after current work winds down.

A sales plan, which is usually part of the marketing or strategic plan, concentrates on strategies, objectives and tactics to find profitable opportunities or needs in the marketplace that will create more revenue for you by making your company stand out.

Your marketing plan is everything you do to promote your business from start to finish including handwritten notes or cards, magazine articles, code updates, job photos, advertising, new product information and job report cards. Marketing is also about making customers aware of what you do, how well you serve them, and why you are the best choice by creating the right perception of your company.

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