How Contractors Can Uncover Sales Opportunities
The market is slowing down. You need sales. Where are those sales opportunities going to come from?
The market is slowing down. You need sales. Where are all those sales opportunities going to come from?Are they behind that door?
Are they under this rock?
You know they’re here somewhere, but where?
Well, maybe, just maybe, they’re right under your nose.
I’d be willing to bet that dozens of sales opportunities are sitting right under your nose without you ever seeing them. Why do I think that? Because so few contractors think like entrepreneurs.
Most contractors think like craftsmen: “If I do good work, the word will spread.”
Entrepreneurs think completely differently. They devote almost all of their time and attention to sales. They are perpetually asking themselves, “Who could benefit from using my amazing digital, remote-controlled bread slicer?”
That’s a vastly different perspective and more profitable approach to running a business and it has a profound impact on your ability to uncover sales opportunities.
Most contractors focus on the work, ignore marketing and sales, and believe they can land work by providing competitive estimates.
I’ve just described the vast majority of commercial trade contractors.
Now, there is a state of mind between the craftsman and the entrepreneur . Let’s call that state of mind “thinking like a small business owner.”
The small business owner identifies himself by the service he provides and the market he sells to. Individuals with that view realize that some form of marketing is required to land work, but they tend to find one that works okay and just stick with it, never looking for additional sales opportunities.
Small business owners are just not as passionate about chasing sales as entrepreneurs are, and because of that, they also miss many sales opportunities.
I’ve just described the vast majority of residential remodelers and commercial general contractors.
Highly successful contractors, which are few and far between, think like entrepreneurs…and because of that they uncover numerous sales opportunities.
Bet you didn’t think the way you view yourself could be damaging your sales opportunities, did you? Fear not, you can learn the methods entrepreneurs use to uncover all of those leads that you’ve been missing.
How Do Entrepreneurs Think?
Entrepreneurs view their business as a problem solving entity and are constantly looking for new markets whose problems they can solve. It is this very mindset that leads to great sales opportunities.
They believe many market needs aren’t being met and they have the goods to meet them. So, they’re off and running looking for new markets to move into or new services to offer their current clientele.
By shifting your mindset into that of an entrepreneur, you will discover that finding sales opportunities is fun, easy and profitable.
What Is a Sales Opportunity?
Before explaining how to uncover sales opportunities, let’s ensure you are clear on what type of sales opportunities you should try to uncover.
A sales opportunity is anytime you have the chance to charge your standard gross margin or higher. Opportunities in the construction industry to sell below your needed margin (mark-up) are so excessive and destructive that you shouldn’t consider them to be sales opportunities.
How Entrepreneurs Uncover Sales Opportunities
- By knowing the types of problems they solve
- By thinking strategically
- By keeping their eyes and ears open
- By thinking win-win
- By spending their time with decision makers
- By building strong relationships with people who know people and who are known by people
- By being willing to do things differently
- By taking chances
Entrepreneurs Know the Types of Problems They Solve
Know which problems you solve for clients.
By knowing what problems you solve well, your mind is conditioned to look for others who experience that problem. Once you start focusing on the problems you solve, you will be amazed how many people have that problem.
This approach will help you qualify your clients. Avoid clients who don’t care about the problem you’re solving and therefore don’t really value your solution. Over time, that’s the only thing that’s going to keep them thrilled with your service; you’re resolving a problem that keeps them from achieving their goals.
Entrepreneurs Think Strategically
If you are going to uncover selling opportunities that impact your bottom line in a profound way, you must think strategically.
In construction there is always opportunity to buy work, and when you buy work, you slip into a self-destructive habit. The only way to avoid that fate is to continually think of new markets to move into. You might be able to expand from residential to commercial or from new construction to remodeling and retrofitting. You might be able to add a service division.
Thinking strategically means looking way down the road and understanding the type of business you have and you’re going to build. Thinking strategically means always looking for new ways to leverage your company’s competitive advantage. When you think strategically, sales opportunities will pop into your mind out of nowhere leaving you thinking, “Why didn’t I think of that before?”
Entrepreneurs Keep Their Eyes and Ears Open
This is the one common trait all successful companies have-they are always looking and listening for new opportunities. They are always looking to replace their bottom-feeder clients with better quality clients.
Once you tune your eyes and ears in for sales opportunities, you will be amazed how many you unearth. Your challenge will flip from finding enough opportunities to deciding which ones to work on.
While visiting with someone, you should be constantly thinking, “Is there a sales opportunity there just waiting for me to jump on? Could I turn that insight into a sale?”
Entrepreneurs Commit to Win-Win
Entrepreneurs look to create long term relationships with their customers. They know how much easier repeat business is to sell. They understand the importance of word-of-mouth. They know that if they take care of their clients, their clients will take care of them.
Entrepreneurs don’t think win-win because they’re noble. They think this way because it lines their pockets with money.
Don’t ever think your next opportunity or sale is just a one shot deal. Always think about the long-term value of a satisfied customer.
Entrepreneurs Spend Their Time with Decision Makers
You’d probably be surprised how much of your time is wasted selling to someone who doesn’t have final decision authority. This is a common trick played by prospects. They act like they have the authority without revealing who the real decision maker is.
Entrepreneurs learn to sniff out the pretenders quickly. Decision makers have a way of carrying themselves and communicating. Learn to recognize the patterns and invest your time with them. The gatekeepers are just that-people whose primary intent is to keep you away from the decision maker.
Entrepreneurs Build Strong Relationships with People Who Know People and Are Known by People
The most awesome sales opportunities spring from well maintained relationships. Building and nurturing a large network of contacts is by far the most reliable way to uncover plentiful sales opportunities.
Networks are incredibly efficient. They take considerably less resources to nurture than any other marketing system.
The timeless, proven beyond a shadow of a doubt networking technique is word-of-mouth referrals. By aggressively prompting referrals you will expand the market’s awareness of your superior services. You will uncover sales opportunities long before your competition learns of them. A simple truth is people turn to friends and authorities for their recommendations. That’s why referrals are so effective, they capitalize on connections between friends.
Focus your networking efforts on people who are well connected, carry great influence and are well known. The last one is possibly the most important. It’s known as piggy-backing and is highly effective when you can get in with well-known people-people who are known by many people.
Entrepreneurs Are Willing to Do Things Differently
You know the old saying “If it ain’t broke, don’t fix it?” That’s the mindset of the small business owner. Entrepreneurs couldn’t disagree more.
They are almost paranoid their competition is going to catch on and catch up. They are willing to try new things in the eternal hope of strengthening their competitive advantage. In so doing, they uncover sales opportunities that the modestly successful small business owner would never think of.
Entrepreneurs Take Chances
Face it, when chasing new sales opportunities you are going to fail every now and then. You are going to stick your neck out to test a new market and you are going to get your proverbial head cut off. Learn from it. Figure out what you could have done to make the opportunity profitable.
I heard a speaker recently mention that of the twenty richest entrepreneurs in America’s history, nineteen had gone bankrupt at some point in time (Bill Gates was the exception). I don’t know whether the speaker had his facts straight, but to anyone who has studied American success stories, his statistics aren’t too surprising.
The key lesson to learn from an unsuccessful foray into a new market is NOT that you failed and should avoid that market in the future. The key lesson is that you should expect adversity when you reach out and expand your market.
The Take Away
Why did I keep talking about entrepreneurs? Because they are the best at uncovering sales opportunities.
They find new market niches. They expand their services. They learn how to better leverage their current clients. They learn how to tap new relationships. They think strategically. They understand customer needs and figure out new and better ways of meeting them.
It’s in their wiring and it’s the mindset you need to adopt if you struggle to find good paying work.
Once you get tuned in, you will be surprised to learn how many sales opportunities have been waiting to catch your eye. You will think they have come out of nowhere, but the truth is they were always there-you just couldn’t see them.
Construction Business Owner, May 2008
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