In construction, your revenue depends entirely on projects, making it a classic “catch and kill” industry. Unlike sectors with ongoing subscriptions or recurring revenue, if you don’t win projects, you don’t have a business. It’s as straightforward as that.
Many builders mistakenly believe they’re selling the finished build and craftsmanship, often illustrated through impressive photography. In reality, your true product is:
Reframing your sales approach around these elements shifts your mindset about what defines a quality client and enhances how your clients perceive you. While budgets matter, clients value certainty equally, knowing their project will reliably reach completion at a particular time.
Accurate costing is crucial to securing profitable projects. Misjudging costs means losing money and squandering valuable resources. We provide a separate webinar specifically on pricing labour, the highest risk factor in project costing. Beyond labour, accurately estimating project costs involves deeply integrating subcontractors and consultants, such as engineers, into the costing process.
Many builders view providers like engineers and specialist sub-trades as compliance necessities. In truth, these links in the supply chain possess invaluable insights into project risks, regulations, and structural considerations. Engaging these parties proactively ensures comprehensive, accurate work methodologies and accurate designs to produce accurate costings.
Reaching a $50M turnover demands not just quality leads but a significant volume of them. With an industry-standard conversion rate of roughly 10-to-1, you’ll need around $100M in active sales opportunities at any given time. This reality underscores the necessity of establishing a robust, multi-channel sales function managed by a dedicated sales team – with you, the owner, at the helm, not in the trenches.
As a business owner, transitioning from a $2M to a $10M+ and eventually to a $50m business involves significant learning curve challenges, especially in sales. Success requires shifting from a project-by-project mindset – focused solely on individual wins and profitability – to adopting a holistic, portfolio-driven approach.
Your portfolio should be segmented across distinct sales channels:
Each channel demands a unique sales plan, from initial engagement strategies to negotiation tactics and nurturing practices.
To scale effectively, you must transition from being the only sales guy in the business to building a dedicated sales team that you actively drive.
Exceptional sales professionals combine commercial acumen with creative thinking, possess high emotional intelligence, superior communication skills, and are adept at building trust.
In construction specifically, sales personnel must grasp design concepts, articulating clearly how a building will function to inspire confidence in prospects. Less interesting to sales people, but of equal importance, is a disciplined approach to maintaining accurate CRM.
A robust CRM system is non-negotiable – it’s your lifeline. Essential features include:
Regular sales meetings, leveraging CRM data, provide crucial forums for coaching and accountability. Reviewing each salesperson’s pipeline weekly ensures continuous progress, offers guidance on advancing leads, and helps identify when to let go of unviable opportunities and dead deals.
NOTE: If you don’t yet have a sales team – start going through this process yourself – or have a mentor run a session with you on a regular basis to keep you accountable.
Reporting integrates CRM data and accountability outcomes, providing a clear snapshot of your sales pipeline health. Our proprietary tool, the Sales Bow Wave, visually illustrates secured projects, imminent opportunities, and future prospects. It highlights operational costs and sales margins, demonstrating how long your business can survive on current projects alone. This visual clarity significantly motivates consistent sales activity – nothing like being able to see the bus coming at you to motivate sales activity!
In construction’s catch-and-kill environment, building a high-performing, self-sufficient sales function is vital. As your business scales, your role evolves—from salesperson to sales manager, ultimately becoming CEO with strategic oversight on talent and reporting.
To learn more about building your sales machine, contact us today.
Also, consider attending our Xact CFO Sales Masterclass, an online workshop exploring critical aspects of constructing your sales capability.
