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Growing an SME built environment consultancy can feel like a game of luck dictated by the whim of the market.
The market plays a big part in how a business performs, and a bit of luck helps too, but there are things you can do to reduce your exposure so growth is less fragile and more intentional.
I recently tested this idea in front of a room of SME leaders in consultancy and engineering and it struck a nerve. Almost everyone in the room recognised some version of the patterns below, which we see in our day-to-day dealings with built environment firms.
It usually looks something like this.
Key person risk: Work and reputation build through referrals and existing relationships. A handful of people, normally project managers or senior technical staff, hold most of those relationships and carry most of the responsibility for winning work. That creates a bottleneck day to day and exposure if any of those people leave, retire or stop performing.
Inconsistent prospecting: When delivery gets busy, business development and marketing are usually the first things to slip. This exacerbates the traditional "peaks and troughs" of business and can make the pursuit of new opportunities feel awkward, reactive and directionless.
False sense of security: None of this feels like a problem while the business is busy. It only really rears its head when a lull comes, and by that point getting started again feels like more of an uphill battle than it needs to be. The black book gets dusted off and the "long time, no speak" emails are sent, which only adds to the awkwardness and angst already being felt.
This approach can take a business a fair way. It's how most SME consultancies get started and often how they get to a decent size, especially when they're good at what they do (which helps, of course).
The trouble is that what got you from startup to small is unlikely to be what gets you from small to medium, or beyond.
The longer you try to grow without the right infrastructure in place, the harder growth becomes to influence and control.
The real cost isn't always obvious while the order book looks healthy, but it shows up in a few specific ways.
Less choice: You take the work that's available, rather than choosing the clients, sectors and projects that best fit the growth ambitions of the business. This is particularly noticeable when things are quiet.
Later influence: You're practically invisible outside your existing network, so you often only enter conversations once a brief or tender already exists. That leaves less room to shape scope, value or selection criteria.
Low brand equity: Clients choose the individuals they know within the business rather than the business itself. This normally means a significant portion of revenue sits in key people's black books, which presents a real risk if good people leave and take good relationships with them.
Limited commercial gravity: The business's ability to attract new clients and move into new sectors or geographies is limited, because there's no commercial mechanism for pursuing new opportunities, so prospecting relies on individual heroics.
A full order book can hide all of this, but it's still there.
The answer is more deliberate than simply doing more marketing.
Get clear on what growth actually means for the business: Revenue, margin, team size, expertise, geography, some combination or something else entirely. Vague growth ambitions lead to vague activity, so make sure everyone in the business knows what the goal is, set targets and give team members accountability for achieving them.
Decide which opportunities to pursue and which to leave alone: Not every piece of work is worth winning and knowing that in advance changes how the business and the people within it spend their time.
Build positioning and visibility around a defined audience: That means understanding the things they actually care about (hint: think in terms of outcomes, not services), how you can help and the proof you've done it before. This needs to be in place well before a live opportunity comes along.
Put a system in place that keeps this moving: Business development and marketing need a rhythm that doesn't compete with delivery with clear owners and time set aside so activity is consistent.
None of this is complicated. Most of it just doesn't happen because delivery shouts louder than anything else that doesn’t have a structure, deadline or target attached.
If any of this sounds like your business, you're not alone. It's a pattern we see across the built environment sector again and again.
If you'd like to dive deeper, our Designed Growth Playbook shows you how to diagnose how well your business is set up for growth and what it takes to move from reactive to deliberate. You can download it for free here: [link]
Or if you're not sure where to start, feel free to reach out. I'm always happy to share what we're seeing and point you in the right direction.