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Archive for May, 2010

Through the years, I have been a member or an associate member of many trade organizations and have to admit, I have thoroughly enjoyed my time in each and everyone. Color me a ‘geek’ but I love networking, learning new aspects of our industry and attending tradeshows. My involvement in these organizations has afforded me many opportunities to indulge in all three.

A few years back, I received a call from one of my mentors, an incredibly successful real estate developer and owner of a large REIT. (Real Estate Investment Trust) Charles asked me if I would not mind meeting a friend of his just to talk and hash out ideas. Charles explained to me how he met James at Harvard’s MBA program and they, both being successful serial entrepreneurs, have stayed in touch through the years.

I met James for breakfast to discuss a company he is involved with and how they could build new business within the A/E/C marketplace. During our conversation, James introduced me to an Enterprise Forum that he chaired and invited me to attend one of their local meetings. I jumped at the chance and it proved to be, without a doubt, one of the most influential gatherings I have ever attended.

The night I arrived, I felt very much like a student attending fraternity rush on my own. The room was filled with some amazing people but the moment I walked in, one of the greeters introduced himself and asked me what I did. When I replied with, “I am Bobby Darnell and I have a small consultancy group that does business development, sales and marketing consulting for the A/E/C marketing place.” he grabbed me by the arm and said, “You need to meet Mike.” and proceeded to lead me across the vast room and introduced me to Mike.

After chatting with Mike for a few minutes, I learned that he just recently sold his construction company and was looking for something new to get involved with. (I later learned that he sold his construction company for $160 million dollars) We chatted, exchanged numbers, had a few meetings and that was really about all that happened.

The real impact of my time with this organization came when I attended one of their functions that pretty much resembles the NBC show ‘Shark Tank’ with the exception that the panel was offering a critique of the presenter’s business plan as opposed to capital. It was a most fascinating event.

I watched people present their business plan ranging from a one-man shop offering the latest and greatest metal drive (golf club) to a former television executive laying out his company’s plan to take on CNN. The insight the panel offered was amazing and worthy of a blog posting all its own.

However, the main nugget I walked away with was when one of the panelists, after hearing the pitch from the entrepreneur walked over to the whiteboard and wrote. ‘C.F.I.M.I.T.Y.M.’ and asked if anyone presenting knew what that stood for. No one did and I admit, being a ‘fan’ of acronyms, I did not either.

To sum it all up…’C.F.I.M.I.T.Y.M.’ simply means: ‘Cash Flow Is More Important Than Your Mother.’
Now, apart from any personal moral disagreements with that phrase, one would have a difficult time challenging the wisdom behind it from a business perspective.

We picked up a new client this week and are in the process of working with this owner as he begins to develop a transition plan to new ownership. On our laundry list of items to discuss and understand is the company’s cash flow since this company maintains and sells inventory in the A/E/C marketplace.

Selling, marketing, advertising, responding to RPF’s, building new business, etc. is all fun, necessary and vital to any business. But in chasing these important pursuits, we must not ignore the fundamentals of any business and that is staying on top of cash flow, revenues and expenses.

There is nothing I enjoy more than walking into a room, knowing I will soon be giving a presentation for either my company or on behalf of a company we represent with the goal of walking out with a commitment for new business.

Sales!

Revenue!

Closing Deals!

I love them all!

However, every business owner needs to always remember that the most important rule in business is that it’s not how much you make…it’s how much you keep.

Also, never forget…business is a verb!

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

Bobby can be reached at bobbydarnell [at] cmconl.com

http://www.cmconl.com

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Being a product of the south, I have heard and used more than my share of colloquialisms. I especially enjoy being able to sneak one in during a major presentation or group of ‘heavy hitters’ to see what, if any, reaction I get.

This past week, I was in the corporate office of a Fortune 200 company and was able to use one of my favorites, ‘Shuckin’ it down to the cob!’. For those unfamiliar with the phrase, ‘shuckin’ it down to the cob’ refers to shucking an ear of corn with so much enthusiasm that you are left with nothing but the cob. Translation: it means no frills, no extras, as bare bones of a proposition as one can find.

In this particular setting, we were negotiating a rather large contract for over 200 locations and the setting felt much like the stereotypical ‘buying a new car’ scenario with the price haggling bouncing back and forth like a Forrest Gump ping pong match.

It was close to ‘walking out’ time when I was able to remind the prospect that, regarding our price, we have ‘Shucked it down to the cob’. I was able to gain a double sense of satisfaction by (A) getting the business and (B) being able to use one of my favorite colloquialisms in such a setting.

This post is not so much about winning negotiations with corny, no pun intended, sayings but rather taking a look at one’s business, tossing out the fluff and focusing on that which is most important.

Here are a few ‘Shuckisms’ since my last post.

I had a meeting with a new client this week, and as we were reviewing the business development strategy we were putting together, the owner of the company expressed his excitement about all the new techniques we had gone over.

Shuckism: I had to remind him that results are the only thing that counts.

I was watching one of my new favorite shows, ‘Shark Tank’ and there was a candidate there seeking money for her store that catered to teaching children how to shop. If you are unfamiliar with the show, it is kind of like an ‘American Idol’ for entrepreneurs, seeking funding as opposed to a recording contract. After making a pitch for their business and stating an amount they are seeking oin exchange for ‘X’ percentage equity in their business, the ‘Sharks (Successful Venture Capitalists) either opt out or strike a deal.

It was obvious the lady had passion for her business but there really was not much of a model for success. All of the sharks opted out and while most were trying to be kind, one shark was brutally honest. He said, ‘Shut it down, I am the only one here who is your friend.”

Shuckism: There is a big difference between being in business and ‘playing business’.

A few years ago, we redid our kitchen. You know, the whole nine yards: granite counter tops, new appliances, cabinets, lights, hardwoods, etc. My wife did the budgeting as this was her project. I did give her a template to follow and she did indeed do a great job of researching all the costs.

When we reviewed the budget, I noticed she left blank the line marked ‘Contingency’. When I inquired, she assured me she thought of every cost and provided me her research to back up her claim. She was correct, her numbers for the labor costs and appliances and fixtures were spot on. I honestly could not think of any contingency so we left that blank.

Low and behold, when one is having a kitchen redone, the opportunity to cook in said kitchen is greatly reduced and the cost of eating out for three weeks could fall into your ‘contingency’ cost line.

Shuckism: If you are not sure, ask someone who has done it before. Measure twice/cut once applies to more than lumber.

There are so many great resources on the web…tons of great blogs, websites, discussion groups, e-newsletters, etc. If you are having challenges building new business…just ask.

I have had the pleasure of getting to know Michael Stone author of the construction blog ‘Markup and Profit’ (www.markupandprofit.com). He is very much like me in that he truly enjoys helping people build new business. The same with Mark Buckshon, author of the new book, ‘Construction Marketing Ideas’ (www.constructionmarketingideas.com). I would not be blogging if it were not for Mark. I know for a fact, both welcome inquiries and offer a lot of great information on their sites.

There are a lot of great resources out there that can help you build new business, you just have to take advantage of them. It may be the simplest small pearl of wisdom someone else shares with you that helps you land the next contract. Very much like trying to solve magic tricks, people often way over think the solution.

Shuckism: The answer is always ‘no’ until you ask.

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Bobby Darnell is the founder and Principal of Construction Market Consultants, Inc. An Atlanta based management consulting group specializing in business development, sales, marketing and profitability as well as executive placement for the Architectural, Engineering and Construction industry.

www.cmconl.com

Bobby can be reached at bobbydarnell [at] cmconl.com

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