How to approach business development
Many people in the construction industry consider themselves great Executives, Estimators, or Project Managers. However, in large part, they don’t consider themselves great business developers—what we think of as one of their key responsibilities.
The idea is simple: business development is a key responsibility for almost every position because without finding and securing new projects, there’s no work to bill. Without billings, there’s no company. Without a company, you don’t have a job. While not everyone on your team needs to be negotiating deals, it is useful if they understand how to influence future project sales.
One thing that often helps people throughout organizations contribute more effectively to business development is understanding the 4 different types of prospects. Prospects who:
Don’t know they have a problem.
Know they have a problem but don’t want to do anything about it.
Know they have a problem but don’t know what to do about it.
Know they have a problem and want to solve it.
Depending on which type of prospect you are dealing with, your approach to business development wants to change. Let’s talk about each, and how you can increase your chances of influencing future deals as a result.
Definitions
For this exercise, let’s say the prospect is a General Contractor and the “problem” is that their electrical sub base is too narrow, and they’ve been working with companies with low customer service and poor communication for years!
We will talk about this prospect—and the problem they’re dealing with—in 3 ways:
Psychographic Profile: A detailed description of the prospect's interests, attitudes, behaviors, and other characteristics that influence their buying decisions.
What You Will Notice: Words, tone, phrases, body language, or actions you will notice to help inform which type of prospect you are dealing with.
How To Create Influence: What you can do to create change.
It’s important to remember that because each prospect is different, they will have different priorities. Your job as the business developer is to uncover those priorities and create influence appropriately. Finally, your goal is usually to move them from Type #1 to Type #2 to Type #3 to Type #4. Sometimes prospects will skip a type, but often, you must move each down the funnel sequentially.
Prospect Type #1: Don’t Know They Have A Problem
Psychographic Profile: Typically low job satisfaction, and tired of dealing with what they have, but don’t know there is something they could do about it. Not looking for a solution. Just want to get the job done, and get through the day. As a result, they’re usually not ready to “buy” your services quickly. They first need to accept they have a problem.
What You Will Notice: Words like “frustrated” or “exhausted”. Phrases like “it is what it is” or some version of “the industry is going downhill”. Sometimes you may even hear “Everything is all good. We’re dealing with the same usual problems, but it is what it is.” Tone is sometimes negative—because they’re upset—but it can also be a positive or neutral tone because remember: they don’t know they have a problem!
How To Create Influence: Help the prospect realize they have a problem by listening and asking questions.
You: “What do you mean by ‘the same usual problems’?”
Prospect: “Well, our electrical sub is late again. But that’s just what we’re expecting in the industry these days.”
Y: “Oh wow, I’m sorry to hear that. Do you deal with that a lot?”
P: “Oh yeah, on every job.”
Y: “That’s interesting. Would it be helpful if I shared with you how our company has been overcoming schedule delays for our clients?”
Ultimately, if you ask the right questions, you can help them see that they have a problem. If you succeed, great! But now you have to figure out if they want to do anything about it.
Prospect Type #2: Know But Don’t Want To Do Anything
Psychographic Profile: May feel too busy to seek a new service provider. And even though they have a problem currently, in their mind, what’s to say a new service provider would do any better! Taking no action may feel easier than taking action. There’s also a possibility they don’t want to do anything because they were involved in bringing in the current service provider, and they’re feeling guilty about getting them wrong.
What You Will Notice: Dismissal. “We’re fine but thanks for asking.” “There’s really no need for us to change what we’re doing.” “I’ve known these guys for years—at least I know what I got.” Or sometimes even, “I’d feel bad making a change.” Tone may be defensive, or in some instances overly confident. Pay close attention to which it is.
How To Create Influence: Be non-judgmental. Don’t make them feel bad for how they ended up here. Then, help them see the cost of their problem.
Y: “How much time do you think you spend on each project dealing with miscommunication from your electrical sub.”
P: “Sheesh, I don’t know. Maybe 6 hours per week?”
Y: “Gotcha! 6 hours per week over a 6 month project is a lot of hours. What would you be doing with that time if you weren’t dealing with those problems?”
P: “Working less and be home with my family.”
Y: “Could I be bold for a second? If you could be spending more time with your family, do you think it’s worth exploring what better options might be out there?”
Secure buy-in, and do it with care!
Prospect Type #3: Know But Don’t Know What To Do
Psychographic Profile: Fearful because they know there’s a problem, but they don’t know where to turn. They are vulnerable. And probably would like to learn about a solution as soon as possible—whether they realize it or not. You’ve reached an exciting point where the prospect is getting closer and closer to taking action—they may want your company to be their new service provider.
What You Will Notice: Hurried tone. They may be on a search for answers, and literally ask things like, “I know it’s not good, but what do I do about it?”
How To Create Influence: Be supportive. Answer all of their questions about how to solve their problems. Then, position yourself/your business as the solution. Establish credibility.
Y: “I can understand that question. In our experience, the best way to overcome communication challenges is to have weekly PM meetings between our PM and the client’s PM. Usually, these are 30 minutes on Monday mornings, but gosh darn it are they effective. Everyone gets on the same page for the week, and our client’s love them. One $15M project we just finished was delivered on time and budget largely because of these meetings.”
Prospect Type #4: Know And Want To Solve It
Psychographic Profile: Ready to buy, or at least explore their options! Interested in finding someone or something to solve their problem. They are no longer in denial.
What You Will Notice: Excitement and phrases like, “Well, what do you all do?” and “Who are some of the clients you work for?” and “Could we set up a time to talk?”
How To Create Influence: Resist too much excitement.
May seem backwards, but now that the prospect is interested in your services, resist getting too excited. Be casual. Don’t promise the world to them. Instead, set up a meeting.
Y: “Well I really appreciate you asking all that! One thing I am realizing though is that I really don’t know you or your company. So, while we’d be interested in exploring if we would be a good fit to help, I think we’d need to get to know each other a lot better before we decide to do so. Could we set up a meeting with you and your team to discuss whether we’re a fit to work together?”
This positions you as a thoughtful service provider, rather than someone looking to capitalize on someone else’s problems. And the goal is truly to sit down and discover whether you are a fit. It shouldn’t be a foregone conclusion. But that’s a topic for a different newsletter.
I hope this helps any of you out there looking to up your BD skills.
Spark Notes:
Business development is a critical responsibility across all roles in the construction industry, ensuring the flow of new projects to sustain companies and jobs.
Successfully engaging prospects involves recognizing four types: those unaware of their problems, those aware but resistant to change, those aware but unsure how to proceed, and those ready to solve their issues.
Tailoring your approach to each prospect type—from asking insightful questions to showcasing solutions and establishing credibility—can help move them through the decision-making funnel.
The ultimate goal is to build influence thoughtfully and authentically, positioning your company as a trusted partner without appearing overly eager or opportunistic.
