The Business Development Mix: Do You Have the Right Stuff?
“The research – which included almost 1400 surveys and several dozen phone interviews – reinforced some assumptions and provided clarity on others related to architectural practice, engineering practice and construction industry business marketing and business development. If there is one over-arching theme to be gleaned from the research, it is that A/E/C firms are spending more money on business development (BD) than they have in the past – and they intend to increase spending in the future. This conclusion is not based upon any concrete expense forecasts (e.g., percent of net revenue spent on BD), but rather the significant growth of both seller-doer and dedicated business developer positions at architecture, engineering, construction, and related firms… …So what gives? Why are firms willing to increase their labor expenses for business development? There are numerous factors driving this trend, but the reality is that we are in a highly-competitive marketplace. Client loyalties have changed: whereas a decade ago there was so much construction happening that a lot of firms could “sit back and wait for the phone to ring” (it’s never really that easy, is it?), that isn’t the case anymore. We’re in a new era of purchasing, with the dreaded “three-bid mentality” destroying long-term relationships and potentially negatively impacting the owners/clients – when the A/E/C firm that knows their culture, facilities, and/or structures isn’t the low bid and newbies come in, this could be a good thing. Or a very bad one!” http://www.enr.com/blogs/22-marketropolis/post/41689-the-business-development-mix-do-you-have-the-right-stuff