Strategy #1: The Secret to Unlimited Leads
The first step to any successful construction business is building a Lead Machine.
What do I mean by a lead machine? Building a lead machine means building a system where you are constantly bringing in leads and turning them into contracts.
Imagine feeding a printer: the paper is like your leads and is the input into the machine. The output is the finished product, but to increase how much you are producing you need to increase your input. This is the first step to growing your business.
So how do we increase how many leads we’re generating? Well, many contractors would point out the importance of word-of-mouth, here’s the problem though…
Referrals may have high conversion rates, but they are difficult to control. In other words, you have no control over how often you get referrals or to which clients you are led to.
To make the most out of referrals, you have to get more inbound “fresh” leads
Referrals are useful in that they can multiply your leads: 1 client refers you to 2 more, they refer you to 4, etc. But, in order to make the most out of referrals, you have to get more inbound ”fresh” leads
By combining referrals with new, original leads, you maximize the number of leads your company can generate. By getting fresh leads, you raise the effectiveness referrals can have on your business.
How do I generate leads?
In a past article we went through 27 ways to get more construction jobs, so that’s a great resource to check out. In that article, we went over lots of tips and secret ways to get leads such as getting on preferred contractor lists for universities or using minority benefits for government jobs.
The one way that will get you unlimited leads, however, is without a doubt using a lead generating service like The Blue Book (my personal favorite).
With sites like the Blue Book you have access to dozens of new jobs every week and it will be the best way to feed your Lead Machine. To find a more complete list of the best lead generation sites, you can check out our article on our 5 favorite sites.
Strategy #2: The Unavoidable Rule of Estimating
The rule is simple:
The more jobs you bid, the more jobs you win
There’s no way around this. You have to bid for more jobs if you want to land more.
The average sale cycle is 3-6 months… contractors will have to spend several months waiting
This is because, in construction, the average sale cycle is 3-6 months, which means that contractors will have to spend several months waiting for their bids to convert into actual jobs.
This is why it’s important to build a pipeline of incoming jobs now so you can have jobs to wait on for the future.
And since most contractors neglect their estimating to manage ongoing jobs, that means you have to consistently estimate jobs and keep jobs coming.
To tackle this estimating demand, you can try to do it yourself, but you would be better off hiring an estimator or, better yet, outsourcing your estimating, so you can take your focus off estimating and start winning more jobs.
Strategy #3: Why Contractors are Missing Out on Jobs
Too often, contractors go through all the trouble of finding leads, estimating jobs, but once a proposal has been submitted, they go ghost.
Here’s an important rule of thumb:
The people who win jobs are the ones who do follow-up
One reason following up is so important is because of what it can do to build relationships with your clients.
There’s a concept in psychology called the mere exposure principle that states that the more familiar you are with something, the more likely you will prefer it.
Knowing this, we have to make sure that that we reach out to our clients at 4 different points:
The more you engage in all of these different ways of communicating with your clients, the more they will gain a liking for you and you greatly increase your chances of getting jobs.
In the same way, if you don’t follow up with your clients you will lose jobs.
The Secret to 10X your Construction Business
If you are interested in growing your construction business, I’ve prepared a short training video for you that you can watch for FREE: