There’s a simple formula you can use to increase your construction revenue and grow your residential and commercial contracting business in 2013.

construction contractor abcs“I would love to grow my contracting and remodeling business in 2013.  Unfortunately, the advice I hear tends to be overly complicated.  I don’t have time to figure it out for my construction business.  Do you have any suggestions to help increase my revenue this year?”

Increasing Construction Revenue Doesn’t Have To Be Complex

I have good news for you.  There is a simple, yet profound formula that contractors (really, any business) can follow that will help you systematically grow your construction revenue this year.

This formula is easy to understand… but you do have to work it.  So, don’t hear me say “growing your revenue is easy.”  We all know there is no such thing.

When you distill all the complexity of growing your construction revenue into the basic building blocks, there are four main ways to increase your revenue:

1. Get MORE customers

2. Get your customers to SPEND MORE per contract

3. Get your customers to spend money with you MORE THAN ONCE

4. Get your customers to PASS THE WORD to others, leading to new contracts

That’s it.  This simple outline helps cut through the complexity of business growth principles.  It gives you hooks to hang your revenue generating ideas upon.

construction revenue clipboardA Step By Step Way To Use The Formula

The key is to evaluate each item above and figure out how you can improve each area in your contracting business.

For example, revenue increasing method #1 should get you thinking abuot how and where you are getting your new construction business from.

First, list all the ways you generate leads and new contracts for your construction business… then ask:

  • Which construction lead sources are proving to be your best sources… especially in terms of … cost per lead… quality of the lead… actual work derived from it… or time it takes to get something?  How can you increase the leads from those sources?
  • Which sources have you used in the last 12 months that are not as valuable as they once were?  Are they now costing you too much time or money?  Figure out ways to discontinue or scale back on these.
  • What new lead sources should you consider this year?

You can download our free report, 15 Proven Ways To Grow Your Business, which explores this topic in greater detail.

Thinking Through Revenue Generating Method #2

Once you have worked through revenue generating item #1, go on to revenue generating area #2 (Ways to increase the amount of revenue generated per customer).

Ask yourself:

  • Can I raise my prices… at least on some select products and services?

    You may be VERY surprised at what your customers are willing to pay.  Studies have consistently shown that if you position your products/services in a certain way, at certain price points, you can get a higher price (assuming you can demonstrate value).  You can read more about how to get your customers to spend more per purchase by clicking on the link.

  • Can I target a higher dollar or higher margin client?

    Not all customers and jobs are equal.  It is too easy to spend a lot of time and energy on a project that you knew all along would not yield much profit.  For every hour you spend making no money you could use that time to target and land better jobs.

    You must be willing to say “no” to some of the time consuming, low (or no-profit) jobs out there.  Instead, you must intentionally choose to target and grow the higher dollar segment of your business… over time.  It will pay off handsomely.

Thinking Through Each Of The 4 Main Ways To Grow Your Revenue

As you systematically move through the 4 main ways to grow your construction revenue, jot down your ideas.  Then, select 1-2 ideas in each area to begin implementing.  It is better to implement one good idea than to come up with 100 good ideas… but never implement them.

Need More Ideas and Examples?

1.  Download our free, idea packed special report, 15 Proven Ways To Grow Your Business which provides numerous examples for each of the 4 ways you can increase your construction revenue.  Download it today!

2.  Get some more free ideas.  If you have a construction, renovation, or remodeling business that has 3 to 50 employees (counting yourself), and you are looking to increase the number of your revenue generating ideas, contact 2nd Mile Marketing.  We offer a free 30-minute brainstorm session.  We can help you tap into ideas that many of our successful clients are using.  Contact us today!