Feast or Famine: How Construction Subcontractors Struggle With Annual Sales Cycles.

feast or famineAt one time or another most small to medium size construction companies will struggle with a feast or famine sales cycle. For many, if not most, this is a reoccurring annual problem that inhibits business growth and the ability to maximize profits.

Does this sound familiar?

You’re short on revenue and your book of business is decreasing. Perhaps you’re in a region where weather plays a role in the availability of business at certain times of the year. So what you do? For many, this is the time when you market your company. You contact your existing customers and perhaps visit with a few new potential customers. Sometime later, you’re encouraged again because you’ve stimulated business and requests for proposals (RFPs) are increasing. As your busy season approaches you’re invigorated because sales have surged. Now it’s prime time. You have a strong book of business and are focused on your core competency, making sure projects go well. Selling doesn’t seem a necessity and there’s no time for it now anyway. This is going to be a good year, or is it?

As projects come to a close, revenue, the fruit of your hard work, is coming in strong and cash flow is good. Even so, as time moves along you become increasingly aware that your backlog of business is in steady decline. What happened? Where did we go wrong? The feast or famine cycle is again revealed. In this all too familiar scenario, the truth is that hard earned profits will be cannibalized while rebooting the construction sales cycle.

So what causes this cycle?

Failure to plan ahead:

Small to medium size construction subcontractors have a lot to worry about on a daily basis and management, out of necessity, generally wears many different hats. Keeping projects on track (your core competency) requires focus and the majority of your attention. When you’re in the midst of the construction season, it’s easy to lose sight that your backlog of work needs constant attention.

You recognize the weak-link as an absence of a pro-active, aggressive and consistent sales initiative. You vow never to let this happen again. All you need to do is set aside time throughout the year for selling. Easy, right?


Failure to Sell Effectively:

Sales is a skill that is often outside the sweet spot for many construction professionals. Perhaps you’re too busy with your core competency duties? Maybe the high cost of an internal sales team is holding you back? Possibly, managing a sales team causes you to hesitate? That would require more time that you don’t have and cost that you’re not prepared to invest now. Conceivably, you admit to yourself that you best serve your enterprise by focusing on operations and you simply don’t feel at your most productive in the selling process anyway? Whatever the case maybe, overcoming the Feast or Famine cycle can be difficult but not impossible.

The Solution: Outsource Your Sales

Achieving true sustainable growth that meets your business goals requires an aggressive, dynamic and consistent sales program.

Those of us in the construction industry fully understand the value of outsourcing (i.e. subcontracting). We do that to bring professionals onto our team that are best equipped to handle a task or provide a service. This model is commonplace in many aspects of business and our personal life.

Small to midsize contractors can benefit greatly from the expertise and experience of an outsourced sale team without the upfront risk associated with employing a traditional in-house sales team.

At Construction Representative Group (CRG) our business development and sales outsourcing solutions are specific to the construction industry. Augment your existing sales efforts for greater specific market share or engage CRG to build and manage your entire sales initiative. With either option, Construction Representative Group delivers increased sales revenue and market share to meet your goals. If you’re looking to exit the feast or famine construction sales cycle, contact us today.

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