It's an age-old problem, you have a business, and you get work on board, but you don't have anything lined up for when that work ends. At this point, you have two choices: either take the time to source more work yourself or invest in Business Development.
The issue with taking the time to source the work yourself is that it ultimately takes you away from the work you currently have, which is fine if you have the time and knowledge to do that. Not everybody does.
As a construction company in the UK, you know the importance of staying ahead in a competitive market. One way to do that is through effective business development strategies. However, it can be challenging to determine how much to allocate and what costs to expect when it comes to budgeting for business development. In this article, we'll provide a comprehensive guide to help you understand the costs associated with business development in the construction industry in the UK.
Business development in construction refers to the efforts and initiatives to grow and expand the business. This includes identifying new business opportunities, building relationships with key contractors, and developing strategies to increase market share.
In today's financial climate, it's more important than ever to investigate the cost of effective Business Development before jumping in.
Hiring a full-time BDM (Business Development Manager) can be costly as full-time employment has many associated costs. Here are a few to bear in mind if you consider going down that route.
Hiring a Business Development Manager or Consultant
One of the most significant expenses associated with business development is hiring a professional to manage and lead the efforts. A business development manager or consultant will need not only a full-time wage but also benefits, pension, travel allowance, tech and equipment costs, transportation and allowances, to name a few.
Market research is a critical aspect of business development in construction, as it provides the data and insights needed to make informed decisions about new opportunities and initiatives. The cost of market research can vary widely, depending on the scope and scale of the project, and can range from a few thousand pounds to tens of thousands of pounds.
Advertising and Marketing
Advertising and marketing are crucial components of business development in construction, as they help to build brand awareness and generate interest in the company's services and products. The cost of advertising and marketing can also vary widely and may include expenses such as website design and development, trade show participation, and promotional materials.
Travel is often a necessary component of business development in construction, as it allows companies to build relationships with key stakeholders, attend industry events, and pursue new business opportunities. Travel expenses can add up quickly, including transportation, lodging, and meals.
This sounds like a lot, and realistically it is. If you are a smaller company employing a full-time BDM may not be feasible, but thankfully there is a far more economical way to do it.
OUTSOURCE YOUR BUSINESS DEVELOPMENT!
Outsourcing can assist you in your business's growth without the hassle and cost of hiring a full-time employee.
Outsourced business development professionals bring a wealth of experience and expertise to the table, providing valuable insights and recommendations for growth and expansion.
Outsourcing can be a cost-effective way to access business development expertise, as you only pay for the services you need and avoid the cost of hiring a full-time employee.
Access to a Wide Network of Contacts
Outsourced business development professionals often have extensive networks within the construction industry, providing access to new business opportunities and key contractors.
Outsourcing allows companies to scale their business development efforts up or down as needed, providing greater flexibility in response to changing market conditions.
Focus on Core Competencies
By outsourcing business development, construction companies can focus their resources on core competencies, such as project delivery and customer service, while allowing experts to handle the business development efforts.
Outsourced business development professionals bring a fresh perspective to the company, providing new ideas and approaches to growth and expansion.