7 common BD challenges facing contractors and how to solve them
There are several common BD challenges experienced by most businesses. Unless these are addressed, business growth can stall, and even if achieved, growth can fall away if necessary internal structures are not in place to support and maintain growth.
#1 No clear BD strategy
All too frequently, the trajectory for business growth is locked up somewhere in the owner’s head. That might be okay if a business is a one man band. After employees come onboard, however, the vision and strategy need to be shared, understood, and executed. A single page plan would do the job for the majority of small businesses, but most don’t even have this. In the words of Confucius, “Man shoot at nothing sure to hit it.” With a clear well communicated strategy, the owner and team together move the business in the same direction. Without a plan, there is no knowing where the business will end up.
>>> Solution: Document the business strategy and let it guide your every BD effort. And if you have a team, share it. Make individuals accountable by giving them measurable KPI and goals. If needed, search out support that will challenge your thinking and keep you on track.
#2 Not making time to work on the business instead of in it
One of the most difficult things as an owner is to rise above the day to day challenges to view a business strategically. There is nothing like an immediate need for cashflow, new project, pressing client issue, or even personal crisis to keep the focus off a medium to long term view. Most owners know where the opportunities are for their business, but often aren’t sure where to start or pull it all together. This means decision are often reactive, not strategic. By formulating a strategy, then working it, the everyday can still happen, but in the context of bigger picture goals.
>>> Solution: As an owner, your focus will always be spread over multiple areas. The more areas, the more diluted the focus. Some activities move the needle more than others. BD is a needle mover, so one way to maximise efforts is to carve out time for it. If not you, then bring in a specialist.
#3 Inconsistent BD efforts
Business development is not a tap you turn on and off. Rather, it requires constant effort and attention. Why? Because constant attention = constant flow. This isn’t how BD happens in most businesses. It takes a back seat when the work is on, and when contracts or projects come to a close, owners raise their head and wonder where the next lot of work is coming from. Not good BD and not good for business.
>>> Solution: A dedicated resource whose sole focus is BD can help maintain a consistent flow of identifying, pursuing, and converting leads. BD is a numbers game, and with more consistent BD efforts, owners can expect a reliable steady flow of opportunities that build out a healthy pipeline.
#4 Lack of BD know how or willingness
People often think that BD is coffee catch ups and expensive lunches. While there may be an element of this required depending on the business, it takes more than a coffee or dinner to forge an enduring relationship with a client and secure consistent workflow. It’s also true, BD takes planning, however, as important are the practical and tactical activities that occur daily. While digital communication has its place, when it comes to BD, conversations are better. Whether it’s over the phone, in person, or via a video call, direct human connection works wonders. If it’s so effective, then why don’t more people call for a chat? The answer is simple. Cold calls are daunting. Rejection is hard. And extracting information from people who don’t want to share? Well, it can be very difficult. In many ways, business development is a thankless task, but it must be done and few know how to do it well. Effective BD means knowing who and when to email, phone, meet, and most importantly, how to nurture client relationships that convert leads into revenue. A few harsh words. It’s time to get over it. BD is part of your business and you’ll just have to deal with it.
>>> Solution: Be honest and acknowledge if you, as the owner, are the weakest BD link. Ask whether you really are the best person to be identifying opportunities. Is it time for a specialist to step into the fray? If you are best placed for this role, consider sales, marketing, and communication training to take your skills to the next level.
#5 Lack of BD know how
BD is often relegated to the same bucket as sales and marketing. Collectively, these three revenue driving activities are somehow considered distasteful to those undertaking the project work. For some reason there seems to be a disconnect between the activities that draw in the opportunities and the activities involved in delivery, yet BD in all its forms is a key contributor to the bottom line and business growth. In many cases, the look down the nose attitude towards BD reflects an insecurity about having to talk to people. If BD is only ever seen as small talk, coffee catch ups and drinks with mates, a business can be short circuiting its growth potential. With a mindset like this, BD has little chance of getting the oxygen, resourcing, and support needed to ensure its success..
>>> Solution: It takes an investment of time and resources to develop the necessary skills to undertake BD effectively. Importantly, it also takes a shift in mindset in the individual. There must be a genuine desire to develop the skills and a recognition, if relevant, to pass on doing BD if it’s not your thing. There’s a line that says everyone is in sales, and to a large degree, that’s true. But the reality that someone tasked with BD isn’t meeting your business’ requirements will probably mean letting them go and finding someone who can carry this forward.
#6 No BD infrastructure
The best business development does not occur in a vacuum. Nor is it tracked in your head. There is a myriad of client relationship management tools available, which enable a business owner to develop a pipeline of opportunities, ranking them for priority, value, and likelihood of conversion. There are also numerous other BD enhancement tools that support your efforts. If you are relying on your team to track their performance without the tools in place, it is not possible to trust the information you receive.
But BD is more than a good CRM. It includes positioning your business as a thought leader or authority in your specific area of expertise, connect
>>> Solution: Consider the tools your business needs to implement BD effectively. From a CRM through to telemarketing, events, industry association membership, to research, nothing is off limits, providing it supports your BD strategy and contributes meaningfully to your BD efforts.
#7 Founder / MD led BD
Most founders or MDs are pivotal at the early stages of a business getting off the ground. In time, however, with the many other responsibilities of owning and operating a business, this function might be best handed on to a specialist, a move that requires the owner to let go. It also requires the systems and infrastructure to support BD delivery by someone else.
>>> Solution: The best way to make the transition from founder / MD led BD to a specialist is to do the thinking work required to ensure the systems and infrastructure needed are in place. Getting to this point requires deeper thinking work and in many instances, a recast of what’s already in place. An audit of the business’ overarching approach to BD can provide the clarity and direction needed to guide a specialist BDM and give enough confidence to the founder / MD that this vital function will be performed in a way that brings the business strategy to life.
The BD Edge is a Brisbane based business development consultancy working with construction and heavy industry contractors and consultants to plan, develop, and implement a BD strategy that supports their growth.