If you want to grow your construction business, you need more than just hope — you need a plan.
Specifically, you need to know exactly how much to invest into marketing to hit your revenue goal.
Here’s a simple step-by-step method to figure it out — and an example to make it crystal clear.

Step 1: Set Your Revenue Goal
First, decide the revenue you want to hit this year.
👉 Write your goal down.
Example: Let’s say your goal is $1,250,000.

Step 2: Know Your Average Project Size
Next, figure out the average value of a project you sell.
👉 Write down your average project size.
Example: Your average project brings in $25,000.

Step 3: Calculate How Many Projects You Need
Now divide your revenue goal by your average project size:
Projects Needed =Revenue Goal / Average Project Size

Example: 1,250,000/ 25,000 = 50 projects needed

✅ You need 50 projects to hit your revenue goal.

Step 4: Know Your Close Rate
Next, what percentage of leads do you usually close?
👉 Write down your close rate (if you don’t know, estimate it — most contractors are between 10–25%).
Example: Let’s say you close 15% of your leads.
Now calculate how many leads you’ll need:
Leads Needed = Projects Needed / Close Rate

Example:
50 / 0.15 = 333.33
✅ You’ll need about 334 leads.

Step 5: Find Your Average Cost Per Lead (CPL)
Now figure out how much you typically pay to generate a lead.
👉 Write down your average CPL (you can get this from your marketing reports or ad platforms).
Example: Your cost per lead is $150.

Step 6: Calculate Your Total Marketing Budget
Multiply your total leads needed by your cost per lead:
Total Ad Spend = Leads Needed × Cost Per Lead

Example:

334 ×150 = 50,100
✅ You’ll need a marketing budget of about $50,100 to hit your $1,250,000 revenue goal.

Quick Example Summary
Metric
Example Number
Revenue Goal
$1,250,000
Average Project Size
$25,000
Projects Needed
50
Close Rate
15%
Leads Needed
334
Cost Per Lead
$150
Total Ad Budget Needed
$50,100

Final Thoughts
Most contractors “throw money at ads” without a plan — and wonder why they don’t grow.
If you want to scale profitably, you need to work backwards:
✅ Set your revenue goal.
✅ Know your numbers.
✅ Budget for the leads you’ll need to close.
When you take control of these numbers, you take control of your growth.