Improving sales and your bottom line

thinkstock.comQ. I need some advice about sales and management in a very tiny market. We are based in a semi-rural area where many other people are trying to provide the same services as we do, albeit in a different way.
A. First, you need to know your costs; that is, the actual cost of a person in the field, the cost of a truck with a trailer full of equipment, overhead and the cost of unproductive time.

Become as efficient as possible to compete in a highly price-driven market. With a lot of small start-ups bidding on everything, a company must truly understand its cost of doing business to become competitive on price alone.

One of the first items you need to take a look at is the number of people per crew. Windshield time destroys profit, so look at the distance traveled to perform the job. For jobs that are 40 miles from your shop, complete a basic job costing scenario of unproductive travel time and how much it costs to work at this site. Basically, your bid process should be the same for a job within 4 miles of your shop.

PLANET is a great resource for books and CDs on estimating and job costing. I also strongly recommend working on your marketing through networking with other businesses that are not doing landscape maintenance and working with these businesses on referrals. In today’s climate, all businesses should be networking to increase market penetration.

You may also want to find a business coach, someone in the same line of work but in a different market. Although a consultant would be good, for a small-size company, I would recommend a coach instead. All businesses, no matter their size, need a sounding board. Find a person you get along with and with whom you can discuss business ideas and solutions. Remember that the key to success is to duplicate what a successful business has already done. Don’t reinvent the wheel.