Strategy #1: Generate more leads
The first key to any successful construction business is having a lead machine.
By “lead machine”, I mean that you should have a system that guarantees you a virtually unlimited amount of leads every week. Here’s how:
Getting Construction Leads in 2022
Back in the day, getting new leads involved going door-to-door, office-to-office; searching for architects, contractors, and anyone who could give you consistent work.
Times have changed though. Nowadays, finding leads is a much easier process thanks to the use of lead generation sites.
These lead platforms connect GC’s with clients, as well as subcontractors with other GC’s, and (from what I’ve experienced with sites like the Blue Book) they often can provide contractors with upwards of 70 jobs per week.
By presenting jobs near you that are being bid, you will never run out of work and you will be able to have options so you can cherry pick the best jobs.
Having lots of options with construction jobs is essential. Options allow you to charge premium rates, avoid hassles with negotiation, and allow you to walk away from bad deals.
Another great benefit we should mention is that, according to the Law of Large Numbers, the more jobs you bid, the higher your closing rate will be.
However, closing rates on construction bids are usually only around 10-20% so having using lead platforms to get you as many leads as possible is essential.
How to multiply your leads
On top of getting in-bound “fresh” leads, contractors also should look for jobs that will grant them more work in the future.
The key to this is to use the power of lists:
There are two lists to look at:
- Master Bid Lists
- Master Client Lists
Master bid lists are the lists that companies use to determine which contractors to invite to bid on their jobs. Every contractor should coordinate with their clients and make sure they are on this list.
Master clients lists on the other hand, are lists that contractors keep themselves.
The list includes every client that you’ve worked with, but it is important to sort the list by first-time clients and clients who will offer future work.
Being organized with a master client list will help you stay on top of keeping in touch with your important clients, which improves your chances of winning bids and presents you with future work opportunities.
Strategy #2: Bid jobs on autopilot
Bid Jobs on autopilot? Doesn’t estimating a bid take forever? It does, but this is why the key to estimating your bids quickly is by not doing it.
Of course, I’m referring to outsourcing your estimating. On-demand estimating services like I Am Builders, at least for newer contractors, are essential to grow your construction business more efficiently.
Think about it, estimating a bid takes hours upon hours, so that is time taken away from closing more jobs.
When you calculate the costs of doing estimates yourself, you will find that for most contractors, estimating bids is the one process keeping them from growing their business.
Of course, you will eventually want to have an in-house estimator to assist with selling jobs, but when it comes to estimating, the cost of hiring someone on a salary is usually not worth it for most contractors.
Outsourcing your estimating doesn’t have to be a burden. If you build your estimating costs into your overhead costs, you can make back what you spent through the jobs you win.
All in all, outsourcing your estimating will free up your time and allow you to concentrate on closing more jobs so there’s really no reason contractors shouldn’t be using this valuable resource.
Strategy #3: Follow up with your clients
So many contractors underestimate the power of keeping in touch with their clients.
It’s all too common to see contractors go through the effort of finding leads, making bids, only to ghost their potential clients once the bid has been sent.
The thing is, building a relationship with your clients is an essential method to get more construction jobs that many contractors miss out on.
The contractors who follow up are the ones who get to adjust their pricing, see where the market is, and will 9 times out of 10 be the ones selected, even if they’re the high bidder.
In contrast, contractors who stay completely silent are usually lost in the commotion and aren’t considered. The previous strategies we mentioned won’t even matter if contractors don’t invest in their follow-up.
A good rule of thumb for following up with jobs is that it should take the same effort as estimating. By reaching out to clients through email, phone, text, and visits, your effort in following up increases your chances of getting the job.
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: