Many of us wouldn’t see a connection between Business Development and the laws of nature but believe me it’s there.

I was fortunate, at age 16, to begin work as a fishing guide on Lake of the Woods, the massive lake that sits on the Ontario, Minnesota border. After high school and college and a stretch with DOD I returned to the lake as the owner of an island resort.
During my long association with the lake my most meaningful responsibility was that of guide and it was during my time on the water that I learned of the unique challenges faced by the commercial fishermen on the lake.

Let’s begin with a simple scientific definition of Carrying Capacity as it is critical to our understanding of the need for Business Development.
Carrying Capacity is:
The number of individuals who can be supported in a given area within natural resource limits.
In short, using the fish example, when the number of fish in a given area can be supported by that area’s food supply, they have reached the Carrying Capacity for that area.

Let’s say you are a commercial fisherman and your income hinges on your ability to locate and catch fish.
No fish, no money.
The first thing you must do is to determine which fish are the ones you want to catch, say Walleyes that average 3 pounds each. You’ve targeted these fish because they provide the highest monetary return on your investment of time, equipment, fuel and labor. Smaller walleye and fish of different species that are mixed with your targeted fish don’t have as much value so you invest in nets with a mesh size that will maximize your catch of your most valuable fish.

You commit to setting enough nets in areas you have learned from experience, test netting or other methods to hold a good population of your targeted fish and do well enough to cover your bills, pay your taxes and realize a profit. But the duration of your your success and potential growth hinges on many factors:

1. A sufficient supply of targeted fish
2. Equipment that works as it should
3. Your ability to reach your chosen fishing site
4. Competition.

Any one of them out of balance with the other might mean you will no longer be profitable but an insufficient supply of your targeted fish hastened by competition fishing is the most catastrophic result.

If this happens, the fisherman still has the knowledge and equipment to fish but is faced with a new reality a new choices:
A. Stay where he’s always fished and target the less valuable fish resulting in lower profits and perhaps going out of business
B. Expand his operations and find the more valuable fish someplace else
C. A combination of the two choices

The fisherman’s dilemma is analogous to the situation most construction services companies find themselves in today.
The number of available customers has declined dramatically and there are plenty of qualified competitors seeking the same projects you are.
In short:
There is no longer a glut of work.
No longer enough projects for everyone to remain profitable and grow their business.
No more low hanging fruit to pick.
Businesses are failing.
Like the situation the commercial fisherman finds when the number of profitable fish have declined to the point where his expenses surpass profits, something must change or… go out of business.

“A competitive world offers two choices. You can lose or if you want to win, you can change.”

So what do we do?
Again the situation is analogous to that faced by the fisherman.
He must find more fish and you must find more business.

I learned that the most successful fishermen always spent time and money looking for new areas that held healthy populations of their most profitable fish in addition to working the areas that were productive.
Construction companies that have done well in this recession have always invested in a well planned and well funded Business Development program. For those who have enjoyed the ease and profits made from the past glut of available projects with marginal or no BD program, your choices are simple:
Develop a robust and continuing BD program and find more work, or fail.

“If you build it, they will come” is no longer a viable option.
Assuming that potential clients will seek you out can be disastrous.
You must reach out to potential clients, develop trust and win their projects with
competitive pricing and the unique value you and your company brings to them.

“Out of sight and out of mind is a sure way to go out of business.”

I council my clients to keep a positive attitude…and we get to work developing, or in most cases improving their BD initiatives.
Most companies have the basic elements necessary to develop an effective Business Development plan and those who already have some Business Development effort underway probably should reassess, improve and redirect.
You don’t have to be a large business to be good at Business Development, it’s quality not quantity that wins the day.

A pragmatic, effective Business Development program incorporates these equally important components:
Marketing
Client Relationship Management
Sales
Performance
Customer Service
Those companies willing to invest their time, effort and dollars seeking new customers and keeping loyal customers will prosper and be a better, stronger business in the future.