For as long as I’ve been an analyst in the property due diligence industry, environmental professionals have been challenged by the need to differentiate themselves in a price-competitive market. Today’s industry is as challenging as I have ever seen it. June Jewell, CPA and a recognized expert on business growth and technology, just published a fantastic piece on how A&E firms can differentiate themselves and much of it is directly relevant to our industry. Knowing the challenges that environmental due diligence firms face being profitable in an intensely cost-sensitive industry, I am sharing June’s piece here. Below she highlights six strategies firms can implement to stand out from the field.
By June R. Jewell, CPA
Are you feeling the pinch of reduced fees and increasing salaries these days? You are not alone. Pressure on profit margins is causing many architecture and engineering firms to revisit their strategy and look for ways to differentiate from their competition.
Competing against 5 to 10 other firms for work with smaller margins is not what any of us envisioned when we started our businesses, and developing a strategy to combat this state of the market is paramount to developing a profitable firm.
The firms demanding the highest fees are the ones being sought out by their clients rather than the typical situation where you must fight to win every job. To reach the top of the fee ladder these days takes a specific focus on creating a brand that sounds, acts, appears and IS different from everyone else. Here are six ways to start the process of reinventing your firm to be able to garner the higher fees that the most successful firms are getting:
- Develop a new strategy – the first step in the process is to figure out who you really want to be and create a strategy to get there. Many firms go on annual retreats and barely tweak their existing strategic plans. But differentiation requires thinking outside your current box and potentially changing course completely. A great source of ideas, inspiration and even approach is your clients and employees. Take the time before your next retreat to interview at least 10 of your best clients and ask them what their biggest challenges are. Your employees are also a great source that is often untapped in most firms. Employees are on the front line with clients every day and may be able to see opportunities that are not otherwise visible to leadership.
- Use different language – in order to truly differentiate you can’t sound the same as you always have or like everyone else. If you go to your web site and then those of your competitors, you will see that most firms are using the same language. If you all sound alike then you are not different! Find creative ways to demonstrate your unique attributes through videos, testimonials, social media and the unique expression of your staff. The buying experience is different today – over 71% of firms are researched by their clients online before they have a conversation, so your online presence is critical to your ability to stand out from the crowd.
- Focus on one specific niche – many firms these days have diversified into so many industries and service offerings that they do not stick out in one particular area. The truth is that not all of these different areas are profitable. I recommend slicing and dicing your financial data to analyze which services and markets are the most profitable. This analysis should also be used when developing your strategic plan. One way to easily accomplish this is to create custom fields in your project accounting system and group project profitability reports by these fields. Numbers don’t lie and are what is needed to objectively analyze what is working and what is not.
- Create premium content – when your clients have problems to solve they often go online to find experts to help them solve them. Is your firm a known expert? The key to getting known onsearch engines is to create content that speaks to the keywords and phrases that your clients are searching on. A good inbound marketing expert can review your firm’s qualifications and analyze keywords to determine what your potential clients may be searching for. Then you need a strategy to develop regular relevant content, such as a blog or LinkedIn posts, that can be found online.
- Get out and speak – another great way to be found by your clients is to speak at events, conferences and meetings that they attend. Face-to-face relationships are still the best way to get new clients in the A&E industry, and being recognized as an expert by speaking is one of the best ways to be sought after.
- Get Your Employees aligned with your mission – your employees represent an army of goodwill out in the marketplace. The more they speak the same language, and understand the mission and purpose of your firm, the more they will be able to represent the firm effectively in business development and sales scenarios. Empower your team to be the ambassadors of your firm’s mission and see the effect this can have on your client’s perceptions of your firm.
The A&E industry is more competitive than ever which makes it critical to differentiate your firm and intentionally elevate your stature above the masses of firms that have accepted themselves as commodities.
ABOUT JUNE JEWELL
June is the author of the Amazon Best Selling book, “Find the Lost Dollars: 6 Steps to Increase Profits in Architecture, Engineering, and Environmental Firms.” Her high-impact programs inspire business leaders to achieve accelerated growth and sustained profitability. June shares proven techniques and best practices for creating smart systems and to drive effective execution for improved business performance.
SAVE THE DATE: November 18th
EDR Insight is grateful to June for agreeing to speak at an EDR Insight webinar on November 18, titled Developing Superstar Project Managers. Many firms promote technical people into roles they are not prepared or ready for. As a result, project profitability suffers and there is frustration at every level of the organization. By enabling project managers, through financial and systems training, automation, and accountability measures, the firm’s profit margins can increase substantially. At this live event, June will share some proven best practices firms can adopt to help their Project Managers succeed.