Most CRM tools are designed for businesses that sell products to help these companies forecast demand and serve their customers well. It’s simple enough to determine the value of a potential sale — you just figure out how much of the product the customer wants to buy, then multiply price by quantity. Total up all the potential sales and you have your revenue forecast. Total up the inventory you potentially might sell and you have a forecast of the products that will be in demand, and how much of each item you need to order or manufacture.
This concept just doesn’t work for project businesses, because the key item often needed for a potential project is labor. As you’re planning for this project, you need to know what resources you’ll need and what those resources cost so you can prepare a cost estimate that is both competitive in the market and profitable for your business. If you’re bidding on a job for $15,000 and it’ll take five people two weeks to complete, is it profitable for your business to pursue this? Do you have wiggle room if you get into competitive bidding?
Project CRM also allows you to do another important thing, forecast your resource needs. By tracking resources needed based on opportunities, you can answer two key questions:
1) Do you have enough work to keep all your people employed and busy?
2) Do you have all of the right resources for all of the work to which you could potentially commit?
The new book Project ERP for Dummies has released and we are holding a webcast to preview some of the topics covered in the book. Get insight into why Project based firms look to Project specific CRM to help win more business, be more competitive and forecast resources better. Register for this webcast and receive a FREE Digital Copy of Project ERP for Dummies.
If projects are in your company’s DNA, you can benefit from this book and preview webcast.