Business Development for Architecture Firms

Architecture firms of all sizes need a plan to develop new business so that they can sustain growth and stay competitive in the market. Consistent business development efforts help maintain a steady pipeline of projects, ensuring a continuous flow of revenue.

In this article, we explain what business development is and share nine effective business development strategies for architecture firms.

Business development (BD) for architecture and engineering firms involves a range of activities aimed at growing the firm's business, enhancing its market position and securing new projects. Key aspects of business development include:

• Market Research and Analysis: Understanding the sectors, geographical areas and client types that offer the most potential while keeping up with industry trends and technological advancements.
• Client Relationship Management: Building and maintaining strong relationships with clients through regular communications and excellent service.
• Branding and Marketing: Creating a strong brand identity that communicates the firm's value proposition and using various tactics such as social media to increase visibility and attract new clients.
• Proposal and Bid Management: Responding to requests for proposals (RFPs) and participating in bidding processes to secure projects.
• Partnerships and Collaboration: Building relationships with other professionals such as contractors, engineers and developers to create collaborative opportunities.

For architecture firms, business development is crucial to sustain growth and stay competitive in the market. Here are some effective strategies firms should employ:

1. Utilise Technology Such as CRM Solutions

One key aspect of successful business development for architecture firms is the ability to effectively track leads and maintain relationships with prospective clients. This can be achieved using customer/client relationship management (CRM) software. CRM for architecture firms enables you to manage all pursuits in one place for greater visibility into the overall pipeline. In addition, it gives firms the ability to easily update current pursuits from anywhere to keep all team members informed of the latest developments. Firms can review past pursuits and client history to make better, more informed decisions and use interactive dashboards to identify pipeline gaps and develop action plans for better business results.

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Deltek Vantagepoint CRM helps your teams identify potential projects early and pinpoint projects worth pursuing.

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2. Identify the Metrics That Matter

Identify the metrics that matter for your business. There are two buckets for metrics: activity-based and results-based.

Looking at the activities bucket first; this can be anything from client meetings and calls to dinners or lunches at conferences and anything in between. While these activities are important, they may not always equal successful business development if used alone.

Then, there are the results-driven metrics, such as the realistic value of your pipeline and the relationships you are trying to build. Look at what currently exists in the pipeline and what you hope to achieve, then identify the gaps. Some firms may also look at the value of those opportunities broken down by project manager, business development leader, or market and then track the win rates or the number of RFPs received overall or in those particular breakdowns.

The key is that firms need to have a balance of both. It can't be all one or the other, but tracking both in a meaningful way will help your firm to be more successful.

3. Capture Client and Pursuit Strategy

To build a successful strategy, you must have the right clients and opportunities in the pipeline and on your radar. This is foundational to your business development accountability.

First, identify your client relationship owners. Determine who is ultimately responsible for knowing the status of a client, who their contacts are, what their pipeline looks like and what your company's strategic goals are with each client. You also need to have a specific owner for each project pursuit and the owner should be listed front and center in your CRM system so everyone is clear about who is responsible for moving the opportunity forward. Identifying BD owners for clients and pursuits allows you to run more targeted reports and set up notifications based on each BD owner, plus, it gives employees a point person if they have questions.

All meetings, events, phone calls and touchpoints should be documented in your CRM system so that you can develop a client action plan or a strategic pursuit plan for those clients. Action items with deadlines should be included and it is key that all of it is tracked in your CRM system for increased visibility and accountability.

4. Manage Pipeline and Opportunity Progress

A project pursuit must be entered into your CRM system if you are considering that opportunity. Don't wait until the RFP is released or until you perform the go/no go process. If a BD leader or a project manager hears about a potential opportunity in the future that seems like it might be a good fit, put it in your CRM. This is important because you need to understand and track all the work and the intel across your business that are critical to creating and submitting your proposal. Make sure your leadership is on board with the process as well. If you have regular BD meetings, use your CRM as the core of your meeting to discuss concerns, identify next steps and have more informed discussions about your business.

5. Prioritise Where to Invest Time

You need to determine where to invest time in business development. If a staff member is only responsible for one activity, of course, they will have time to focus on that task, but this is rarely the case. Tasks often take a backseat to other priorities. This is essentially the case for many project managers who are balancing project delivery and client management. It's important to make it easier for them to know where to invest their time and a CRM system can help.

Within your CRM, you can create visual dashboards specific to the needs of one person or a small group of people to help them determine where to focus their efforts and track progress. Weeding through a report with every active opportunity in the company can lead to analysis paralysis. Creating a specific list of activities assigned to one person will help them focus on what matters to them and clearly show what they're responsible for. It will also help make it easier for them to keep their information updated and enter the right information in the correct place.

6. Track KPIs and Progress

Once you have visibility into your client activities and opportunity pipeline and you determine where to invest your time, you must monitor progress. One way to determine if the process is successful is to look at key performance indicators (KPIs).

When looking at KPIs, firms need to track progress. Tracking those metrics aims to identify the challenges and identify where to course correct as needed. If you want to track new clients in the coming year, you must set that goal. If you want to increase your win rate, you need to track it and determine what's a realistic goal for your business and which areas you need to focus on. One way to do that is to compare your firm's metrics to industry benchmarks such as those in the Deltek Clarity Professional Services Industry Study. This will help you understand how your benchmarks measure up to others in the industry and see if you set a goal that is too soft or too aggressive.

If you're trying to determine what to track, focus on the metrics that will drive change and align with your overall business goals. Spend time thinking about what metrics are meaningful to your teams and drive change and progress toward your business development goals.

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7. Make an Investment in Training Staff

Investing in training for your business development team, whether they are dedicated BD professionals or seller-doers, is crucial for success in the architecture industry. Providing ongoing education and professional development opportunities can help your team stay up-to-date on industry trends, sales techniques and client relationship management strategies.

Consider offering training programs on negotiation skills, effective communication, project management and best practices for business development. Encourage your team to attend conferences, workshops and networking events to expand their knowledge and skills. Investing in training shows your team that you value their professional growth and development, which can lead to increased motivation and success in driving new business opportunities.

8. Network for Success

Networking is a vital component of an architecture firm's business development plan. Building relationships with industry professionals, potential clients and strategic partners can lead to new opportunities, referrals and collaborations that can help grow your firm's business.

Here are two ways to expand your networking.

1. Attend Industry Events: One way to network effectively is to attend industry events such as conferences, trade shows and networking mixers. These events provide valuable opportunities to meet key decision-makers in the industry, learn about new trends and technologies and showcase your firm's capabilities. Be sure to bring plenty of business cards, engage in meaningful conversations and follow up with contacts after the event to continue building relationships.
2. Join Professional Organisations: Consider joining industry associations and architecture-related organisations, such as the Royal Institute of British Architects (RIBA) or the Australian Institute of Architects. These groups offer networking opportunities, educational resources and access to industry insights that can help you stay connected and informed.

9. Add Social Media to Your Marketing Mix

In today's digital age, social media has become essential for business development. Architecture firms can leverage platforms like LinkedIn, Instagram and X to showcase their work, engage with potential clients and stay connected with industry trends.

As part of your marketing effort, create a strong social media presence by regularly posting updates about your firm's projects, awards and achievements. Share high-quality images of your completed projects, behind-the-scenes glimpses of your team at work and client testimonials to showcase the quality of your work and build credibility with potential clients.

Engage with your audience by responding to comments and messages, participating in relevant industry conversations and sharing valuable content such as articles, videos and infographics related to architecture and design. By providing valuable insights and resources, you can position your firm as a thought leader in the industry and attract a following of engaged followers.

In addition to organic posts, consider investing in social media advertising to reach a larger audience and drive traffic to your website. Use targeted ads to reach potential clients based on demographics, interests and behaviors and track the performance of your campaigns to optimise your results.

Effective business development requires a combination of strategic thinking, relationship-building skills, the right tools and a deep understanding of the architecture industry.

By integrating the strategies discussed above along with an industry-specific CRM solution such as Deltek Vantagepoint CRM, architecture firms can enhance their business development efforts, build a strong brand and secure a steady pipeline of projects and clients.

Manage Your Pipeline with Total Visibility

Deltek Vantagepoint CRM helps your teams identify potential projects early and pinpoint projects worth pursuing.

Request a CRM Demo