Business Development And The Beta Concept

I have been doing Business Development and Marketing consulting in the Architectural, Engineering, and Construction (AEC) industry since July of 2001. Helping clients understand the types of prospects and their varying levels of engagement is crucial for effective business development.

While the primary goal is to build new business, the path from initial engagement with a prospect to signing a contract requires navigating through different types of prospects and stages.  Too often the reply I get when I ask, “What kind of work do you want to do?” the answer is, “We will do anything!” (Hint: That is not the right answer.)

Prospects in the AEC industry often fall into two categories: (1) sophisticated builders and (2) unsophisticated builders. Recognizing the differences between these two groups can help tailor your business development approach.

Sophisticated Builders: These are clients who frequently engage in construction projects and have a strong understanding of the process. An example of a sophisticated builder is a hotel chain. Although their primary business is hospitality, they regularly undertake construction projects for new hotels or renovations.

They are familiar with the intricacies of design, product specification, contracting, and project management. Sophisticated builders are seasoned in dealing with architects, engineers, and contractors, making them well-versed in the AEC industry's dynamics.

Unsophisticated Builders: On the other end of the spectrum are unsophisticated builders, who rarely engage in construction. A church, for instance, may only construct a new building once every 10 or 15 years. These entities lack the frequent exposure to the construction process and may be unfamiliar with the complexities of selecting a contractor, managing budgets, or understanding the nuances of design and specification. They often require more guidance and education throughout the project lifecycle.

Three Levels of General Contractor Engagement

In addition to recognizing the type of builder, it’s important to understand the levels of engagement that a future building owner might have when considering a general contractor. These levels are analogous to assembling RTA (Ready To Assemble) furniture, where there is a step-by-step process involved, moving from unawareness to a final choice. The process of selecting a general contractor follows a similar path from uncertainty to decision.

Level One: No Clear Path

At this stage, the client has no specific idea of whom they will choose as their general contractor. This is akin to opening the box of RTA furniture and seeing a jumble of parts and pieces with no clear understanding of how to proceed. These prospects are starting from scratch; they may not have any relationships with contractors or even a clear understanding of how to begin the selection process. They are likely open to learning, exploring options, and considering a variety of contractors. For these clients, providing educational resources, initial consultations, and a broad overview of your services can be valuable in guiding them through the initial stages of their decision-making process.

Level Two: Preliminary Considerations

Clients at this level have begun to form an idea of who their general contractor might be. They’ve done some preliminary research, gathered recommendations, or attended industry events where they met potential contractors. This stage is like sorting through the pieces of RTA furniture, laying them out, and starting to see how they might fit together. These prospects are developing a sense of what they want but are not yet fully committed to any one contractor. At this stage, it’s important to build rapport, highlight your unique value propositions, and demonstrate your expertise. Tailored presentations, case studies of similar projects, and early-stage design assistance can be persuasive in moving these clients closer to a decision.

Level Three: Shortlist and Decision-Making

At this final level, the client has a shortlist of vetted contractors and is prepared to request proposals. This stage is like having most of the RTA furniture assembled, with just a few final steps before it’s complete. These prospects are well-informed, have specific requirements, and are evaluating their top choices based on detailed criteria such as cost, timeline, and previous project success. At this point, your focus should be on differentiating your firm from the competition through strategic proposal development, showcasing your team’s capabilities, and aligning closely with the client’s goals and vision. It’s crucial to be responsive, precise, and supportive as they finalize their decision.

The Process: From Stranger to Client

Just like assembling RTA furniture, where following the instructions step by step leads to a completed product, moving a prospect from a complete stranger to a signed contract as their general contractor requires a structured approach.

For sophisticated builders, the process may be more streamlined, while unsophisticated builders might need more detailed guidance. However, regardless of the type of builder, each prospect must be nurtured through the levels of engagement. By recognizing where each prospect stands and adjusting your approach accordingly, you can effectively guide them through the journey and position your company as their trusted partner in construction.

In the competitive AEC industry, understanding the nuances of your prospects and aligning your business development efforts to their specific needs and level of engagement can significantly improve your success rate in securing new contracts. Whether working with sophisticated or unsophisticated builders, tailoring your approach to their familiarity with the construction process and carefully navigating through the levels of engagement will set the stage for a successful partnership.

"Finally, tracking the process—capturing key data points, engagement activities with key contacts, and more—will help you build a valuable knowledge base within your CRM. This bank of actionable information will not only streamline your current efforts but also provide strategic insights to navigate your next pursuit with greater precision."

Naturally, I am compelled to mention this ties in CRM as an essential tool for compiling and utilizing the information effectively.  Because, like the old saying goes, without data, you are just another person with an opinion.

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Bobby Darnell is the founder and Managing Principal of Construction Market Consultants, Inc. An Atlanta based consulting group specializing in business development, sales, marketing, CRM as well as executive placement for the AEC (Architectural, Engineering and Construction) industry.

Bobby budgets four hours per week for just ‘talking shop’ with AEC Business Owners and/or AEC Business Developers. He never does follow up emails or calls unless asked

In the Architectural Engineering and Construction (AEC) industry, the buzz around Customer Relationship Management (CRM) systems is undeniable. However, far too often, the misconception persists that simply purchasing seats for each end user equates to effective CRM implementation. This couldn't be further from the truth.

Allow me to paint a picture:

Imagine you have a desire for a cozy log home nestled in the woods.  You decide to purchase a log home kit, envisioning the warmth and charm it will bring to your life. However, merely acquiring the kit does not magically transform your vision into reality.  Similarly, investing in CRM software seats does not automatically streamline your business processes or improve client relationships.

The key lies in understanding that both endeavors— building a log home and implementing CRM—are multifaceted processes that require careful planning, customization, and execution. Just as you wouldn't expect a log home to materialize overnight without meticulous construction, you can't expect CRM to revolutionize your business without deliberate implementation strategies.

Consider the parallels between assembling a log home and implementing CRM:

1.   Customization is Key:   Every log home is unique, tailored to the owner's preferences, location, and lifestyle.  Similarly, CRM implementation should be customized to fit the specific needs and workflows of your AEC firm. Off-the-shelf solutions may not address industry-specific challenges or integrate seamlessly with existing systems.

2.   Effective Assembly:   Building a log home requires skilled craftsmen who understand the intricacies of construction.  Similarly, CRM implementation demands expertise in configuring the software, migrating data, and training users.  Without proper guidance and support, your CRM may remain underutilized or fail to deliver the expected benefits.

3.   Continuous Maintenance:   A log home requires regular upkeep to ensure its longevity and functionality.  Similarly, CRM systems need ongoing maintenance, updates, and user support to remain relevant and effective.  Ignoring maintenance can lead to system breakdowns and lost opportunities.

4.   Integration with Surroundings:   A well-designed log home seamlessly blends into its natural surroundings, enhancing the beauty of the landscape.  Likewise, CRM should integrate seamlessly with your existing business processes and technology ecosystem.  Siloed systems create inefficiencies and hinder collaboration across departments.

5.   Return on Investment (ROI):   Ultimately, both building a log home and implementing CRM represent investments in your future.  However, the true value lies not in the initial purchase but in the long-term benefits derived from effective utilization.  A well-implemented CRM can streamline workflows, improve communication, and drive business growth.

In the AEC industry, where relationships and communication are paramount, CRM serves as a catalyst for success.  It enables firms to manage client interactions, track project progress, and analyze data to make informed decisions.  However, realizing the full potential of CRM requires a strategic approach that goes beyond seat purchases.

In conclusion, building a log home and implementing CRM share common principles: customization, effective assembly, maintenance, integration, and ROI.  By embracing these principles and investing in holistic CRM strategies, AEC firms can position themselves for long-term success in an increasingly competitive landscape.

            “Implementing CRM will do absolutely nothing for your business...however, the continued and effective use of it will.” – Yours Truly

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Bobby Darnell is the founder and Managing Principal of Construction Market Consultants, Inc. An Atlanta based consulting group specializing in business development, sales, marketing, CRM as well as executive placement for the AEC (Architectural, Engineering and Construction) industry.

Business Development Is Not Rocket Surgery

Several moons ago, I worked with a national contractor and we enjoyed a lot of success in the retail construction market. One of my favorite memories of that engagement was his ‘merger’ of two well-known phrases:

1. It’s not rocket science.
2. It’s not brain surgery.

Often, during a presentation to a prospect, in summarizing the scope of a project, he would offer that, “It’s not rocket surgery.” – or – “It’s not brain science.” (Comedian Brian Regan would be proud!)

I have said for years that our clients: architects, engineers, general contractors and subcontractors are quite artisan by nature. They love to design, build and install but often have less passion about business development, marketing, sales or prospecting.

I have to remind them that Building New Business is not rocket surgery or brain science either. It's about mastering the fundamentals and executing them with precision and consistency.

At the heart of successful business development lies a handful of timeless principles: networking, prospecting, data management, and CRM. These pillars form the foundation upon which thriving businesses are built. Yet, despite their simplicity, many professionals in the industry often find themselves overwhelmed by the process.

Let's break it down to a few fundamentals.

Networking: The Power of Connections

Networking is the lifeblood of business development. It's about forging genuine connections with individuals who can open doors, provide insights, or become valued partners. It is not about collecting business cards. Today, networking extends beyond face-to-face interactions to include social media platforms and online communities. But whether you're shaking hands at a conference or engaging on LinkedIn, the essence remains the same: building relationships based on trust and mutual benefit.

Prospecting: Cultivating Opportunities

Prospecting is the art of identifying and pursuing qualified potential clients or projects. It requires a keen understanding of your target market, a strategic approach to outreach, and the perseverance to follow up consistently. While technology has introduced new tools and tactics for prospecting, from email campaigns to predictive analytics, the fundamentals remain unchanged: knowing your audience, articulating your value proposition, and delivering personalized experiences.

Data Management: Turning Information into Insights

From a 30,000 foot level, here is where many fumble. We are definitely living in a data-driven world therefore effective data management is essential for business development success. It's about capturing, organizing, and analyzing information to gain valuable insights into market trends, client preferences, and performance metrics. A proven data management system empowers decision-making, enhances targeting capabilities, and enables personalized communication—all essential elements of a winning strategy.

CRM: Building Lasting Relationships

Customer Relationship Management (CRM) is more than just software—it's a philosophy.  It's about nurturing relationships with clients and prospects throughout their journey, from initial contact to long-term partnership.

A well-implemented CRM system helps track interactions, streamline communication, and tailor engagement based on individual preferences. But the real magic happens when CRM is integrated seamlessly into every aspect of your business, creating a cohesive and customer-centric experience.

Efficient and Effective Processes: The Key to Success

The difference between mediocrity and mastery in business development lies in the efficiency and effectiveness of your processes. It's not enough to simply check the boxes; you must continually refine and optimize your approach to stay ahead of the curve. This means regularly evaluating your prospecting methods, fine-tuning your networking strategies, and leveraging technology to streamline operations.

Too often I have seen CRM, due to a lack of commitment, become just the latest ‘shiny object’.

Monitoring and Adaptation: The Path to Growth

In the dynamic world of commercial construction, architecture, and engineering, adaptability is essential. Markets shift, trends evolve, and competitors emerge—but those who are nimble and responsive can thrive amidst uncertainty.   I’ve said it many times before, “If you can measure it, you can improve it.”

By monitoring key performance indicators, soliciting feedback from clients and team members, and staying attuned to industry developments, you can identify opportunities for improvement and pivot as needed to stay on course.

In conclusion, while the principles of business development may be simple, mastering them requires dedication, discipline, and a willingness to evolve. By focusing on efficient and effective processes, continually monitoring and adapting to changing circumstances, and never losing sight of the fundamentals, you can navigate the complexities of the industry with confidence and achieve sustainable growth.

After all, business development may not be rocket surgery/brain science, but when executed with precision, it can propel your organization to new heights when it comes to building new business.

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Bobby Darnell is the founder and Managing Principal of Construction Market Consultants, Inc. an Atlanta based management consulting group specializing in business development, sales, marketing and CRM...as well as executive placement for the Architectural, Engineering and Construction industry.

Bobby can be reached at bobbydarnell [at] cmconl.com

If you have read my blog ‘ Building New Business ’ you may be familiar with my use of metaphors, golf analogies and ‘word pictures’. If not, get ready.

When Jack Nicklaus was ‘the man’ on the PGA tour, it has been said each year Phil Rodgers, Jack’s coach during the late ‘60s/early ‘70s, and helped him refine his swing and develop a more aggressive style of play, would start off each season by reviewing how to hold the club.

Yes, arguably the greatest golfer of all time began each season reviewing how to hold/grip the golf club.

Why is that important in the AEC industry? Allow me a quick explanation of what I do.

Q: “Bobby, what exactly is it you do?
A: “I am a business development, sales and marketing consultant for the AEC Industry.”

Q: “Help me understand that.”
A: “OK, I am kind of like a golf teacher coming in to help a team. They have been playing golf for years, enjoy the game…but are looking to improve. I come in, and instead of looking at their grip, stance, backswing, downswing, follow through, watch everyone hit a few balls…I review their processes for:

 -- Marketing
 -- Pipeline Control
 -- Collateral Materials                     
 --Statement of Qualifications
 -- Prospecting
 -- AIA-305
 -- Account Management
 -- Target Audience Review
 -- Presentations
 -- Social Media
 -- Lead Development
 -- CRM & Data Management
 -- Branding
 -- Networking
 -- Automation
…and more

Then, we keep what is working, tweak what is not…and add what is missing.”

The idea of reviewing the fundamentals led us to create our ‘AEC Business Development and Marketing Audit’ – which is simply a self-performing exercise to provide insight on how well you are doing with specific processes.  

The audit is simply about 110 questions challenging what you are doing regarding prospecting, account management, inbound/outbound marketing, pipeline management, networking, posturing, market definition and more.

The audit has been 20+ years in the making, born from our experiences working with over 335 unique AEC companies such as architectural and engineering firms, general contractors and subcontractors, building product manufacturers and suppliers. At the very least, you should be able to find a few areas of opportunity to improve your game.

To kick off our LinkedIn Newsletter , I will send a copy of the audit to anyone requesting it in the next five days. Now, if your company is within the above-mentioned verticals, I am confident you will gain some value. Also, I will only send you two emails . First, without the attachment, to let your email servers know I am friendly, then I will send another email with the audit.

NOTE: You will not hear from me again unless it is at your request . (You have a question, etc.)

I have signed up for ‘free’ things before and got ‘carpet-bombed’ with follow up - ‘Do you want fries with that’ upsell attempts. Nothing wrong with trying to close a deal, but that is not how I work.

Even if you don’t request the audit, I encourage you to go through your Business Development and Marketing processes internally. Meet with your operations team or another complimentary business and have a ‘shop talk’ session.  

The first step to improvement is a close look at how things are currently with input from someone other than yourself. Be challenged!

“I appreciate correction, for I replace ignorance with knowledge.” - Socrates

The reason Jack Nicklaus had golf teachers at the height of his career is because they could see something he couldn’t. That is part of why he was who he was.   He did not sit on ‘auto-pilot’ without challenging himself to be better. 

When it comes to Building New Business, I encourage everyone to do the same.

Thanks for reading!

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An old joke came to mind recently as I prepared for the start of a new client engagement.   It is one of those ‘fill in the blank’ jokes where you pick on your rival school and it goes like this:

Q:   Do you know why you can’t find ice anymore at the ( Rival School ) campus?
A:   The person who had the recipe died!

Hilarious, right?

The reason this joke came to mind is that as I think about maybe slowing down one day, I realize I have been fortunate with a career that has allowed me to gather a lot of ‘recipes’.   Since 2001, we have worked with close to 350 different companies in the AEC marketplace on helping them Build New Business in one form or another.

This has allowed us to see ‘behind the curtain’ from Fortune 500 companies down to the ‘solopreneur’ who left the large design firm, with their last name on the building, and starting over in their garage.

So many of those experiences, lessons, pearls of wisdom collected through the years all gets folded into the next engagement.  I tell each client: What we will work on is not just how I did things ‘back in the day’ but is the result of an ongoing, refining, evolution of each process.

That said, I am taking this opportunity to share two new offerings:

(1) Building New Business – The LinkedIn Newsletter and
(2) Building New Business – Not A Newsletter

The first will be exactly what is suggests, sharing thoughts, ideas and techniques at a level that most readers should be able to pull something useful into their business development and marketing processes.

The second will be a more concise tip…something we find is often overlooked but can make a meaningful difference.

If you have seen me do our ‘Building New Business 2.0’ program live, you know I always start off with a card trick. The point of the trick is to show how easy change can be if we just look at a situation differently.

I do the trick, challenge to audience to come up with ways explaining how I did what seems to be highly improbable. To date, no one has guessed the solution.  

Once I share the solution, the response is always the same. “Wow…that was so easy.”

So, stay tuned if you want to learn more of the recipe of how we help others Build New Business because if I do slow down, and may be so bold...I am confident we have some worthy content to share.

Ice is a good thing to have.

Engineering Better Business Development

First and foremost, I am not an engineer.

However, I am a process person and a big believer in the wise saying, “ Processes run businesses, people run processes.” Engineers are process people as well, which is part of why I have enjoyed working with them, especially when it comes to building new business.

Having been in the AEC industry my entire career, the process waters in which I swim are all about business development, marketing, data management and working with engineering and architectural firms, general contractors, subcontractors and building product companies. Though all the above have different roles, the process for effective business development is the same.

If one is looking to engineer a better business development process, I suggest starting with an audit of current practices. When engaging a new client, we start with a review of over 110 specific items worthy of review and further consideration. Allow me to share a few items to consider:

Online Presence

How does your firm’s visibility compare to your competition?

Do you have an active LinkedIn Company Page?

How engaged are you in social media?

Customer Relationship Management (CRM)

This should be your top priority if you are ‘enjoying’ any downtime. Give your CRM a thorough review to make sure you are leveraging this valuable tool to your benefit.

Review your report menu, ask your project managers, marketing team, operations, etc. if there is a report or list they need but are not currently receiving. Make sure your system delivers the report automatically at the appropriate time/interval.

Can you effectively tell where you stand with each prospect as far as being able to submit a proposal?

Can you see, on one screen, a quantifiable result of the past 30-day efforts of your proactive approach to marketing your business? Emails, calls, appointments, marketing packages and qualification statements sent, etc.

What is your rate of improvement on the closing a deal timeline for the past three years?

Side Note : For those who may be saying, ‘But Bobby, we’ve been in business for XX years without a CRM.” I don’t doubt that. But are you still using a slide-rule for calculations? Still drawing on paper?

( Hint: Excel/Outlook is not a CRM.)

Networking

What percentage of new business comes from your formal networking group?

Can you easily identify your top three networking categories for leads?

Do you have a formal finder’s fee program?

Qualifications

When was the last external review of your current company presentation?

When was the last external review of your current statement of qualifications?

Somewhere on the timeline between entering a new contact’s information to signing a contract is often doing the proverbial ‘dog and pony show’. (Sales or qualification presentation.) I suggest you present yours live, with a trusted ally, share your ‘presentation deck’ and ask for their feedback. The same can be done with your collateral material, elevator pitch, tagline, etc.

Go through your client list and if you haven’t already, determine what makes a company an active or inactive client. Once you have set that benchmark, create a brief template to touch base and reintroduce yourself.

Think about the following, from a non-engineer. I believe few things rival a set of plans and specs for providing very specific information and defining processes to reach a desired goal. In construction, plans and specifications tell how steel will be erected, how many windows, doors and ceiling tiles will be installed and which manufacturers can provide those components.

The same data set will indicate how much concrete will be needed, the type of roof system all the way down to something as specific as the direction air will flow from a diffuser. Now, apply this way of thinking to the desired goal of a new, targeted client.

There are so many items to unpack from a thorough business development and marketing audit.  Each result should be viewed as an opportunity to design a better process.

In closing it is important to understand:

Marketing is a process.
Networking is a process.
Prospecting is a process.
Lead Generation is a process.
Lead Management is a process.
Building New Business is a process.
Business Development is a process.
Customer/Account and Prospect Management is a process.

W. Edwards Deming, who was an engineer, once said, "If you can't describe what you are doing as a process, you don't know what you're doing."
I have to believe he may have been talking about business development in the AEC world.

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Bobby Darnell is the founder and Managing Principal of Construction Market Consultants, Inc. An Atlanta based consulting group specializing in business development, sales, marketing, CRM as well as executive placement for the AEC (Architectural, Engineering and Construction) industry.

The two times one should differentiate from the competition is now and always.

How having a plan to Build New Business is a good thing. If there is one thing I can’t stand is ‘click-bait’ headlines and I see them all the time as I navigate the interwebs. That is why I did not entitle this post, “How Brad Pitt Can Help You Build New Business”.

Since I took my first philosophy course as a freshman in college, I have been a fan. In the many years since, I still enjoy studying philosophy and can say that doing so has done much more for me than being able to answer a few more questions on Jeopardy than I would have otherwise.

Bear with me here as I promise to quickly get beyond the ‘school lesson’. If you read my post on ‘Magic and Sushi’ then you may remember that my passion for magic (Illusions) has helped me in business as it taught me to look at situations differently as far as coming up with solutions that may not be so obvious at first; the same is true with philosophy.

That said, let me take you to what I have learned watching some of the home repair/fix-it shows on cable. I am not a handyman, but I do enjoy watching the work of those who are. In watching these shows, and I admit I speak from an understanding that I know little about interior design, I could not help but notice how much of what is suggested as a solution seems to be quite subjective.

A few examples:

1. We want to add this color to the baseboards because it will anchor the theme throughout.
2. If we place this bowl on the table, it will serve as a focal point helping to distract the buyer from the fact that the ceiling is not that high
3. If you are going for Zen, then nothing says Zen like river rock and textures.

Now, these claims may in fact be absolutes. I could query 1,000 designers and they may all be in total agreement and if so, fine. The point I am making is that as you are trying to grow your business, be careful of what may be subjective advice passing for an absolute.

A few examples:

1. Cold calling is for the stone age, no one cold calls any more
2. If your business card does not make someone do a back flip, get rid of it and get one that does.
3. If you are not subscribing to a lead service, you are dead in the water.

In my, admittedly, subjective opinion, there are elements of truth in each, but one should not accept or discard each as an ‘either/or’ (Either true or false). I would ‘translate’ each as follows:

1. There may be better options for you than cold calling.
2. A great looking business card is better than a dull or amateurish looking one.
3. Subscribing to a lead service could give you an advantage.

If you are still reading, allow me to jump back to the ‘classroom’ briefly and what is known as the ‘fallacy of appeal’. This is common form of fallacy in that, rather than present an objective argument that stands on its own merit, presents some form of appeal, prompting the listener to accept a point without further questioning.

As you build new business remember there are lots of free advice out there, mine included. I encourage you not to fully discount or embrace what you read but rather see how it can apply to your business and take what truth from each that will help.

Sometimes, the value may be nothing more than hearing or reading something that almost immediately you reject as ‘crazy’ but, after some thought, may prompt you to, as Apple says, ‘think different’.

In answering emails and my involvement in discussions in industry related forums; it is easy to see/read so much advice that is pure opinion. In tough economic times, are there any absolutes that deserves a company’s focus? I believe there are, the good ole P&L Statement comes to mind.

However, the path one takes to go about making productive changes will be paved with subjectivity which is why I am such a big proponent of doing all you can to not just ‘shoot from the hip’ but document your changes, tweaks, adjustments. (See: ‘Practice Does Not Make Perfect, Perfect Practice Makes Perfect’ - Bumper Sticker (Business) Theology –Thursday, November 6, 2008)

Bottom line, keep what works, toss what does not but make sure you understand the difference on absolutes as opposed to whether you find it personally appealing.

As always, if you have any questions, please feel free to drop me a line via email…I love talking shop.