How To Create An Effective Business Development Strategy

The Business Development Strategy is used to underpin your main Business Plan and essentially it sets out a standard approach for developing new opportunities, either from within existing accounts or by proactively targeting brand new potential accounts and then working to close them.

This document highlights the key issues you should consider prior to compiling your own plan and will hopefully guide you logically through a proven framework.

Business

The key word is 'Strategy', because you are creating a workable and achievable set of objectives in order to exceed your annual target.

How To Create An Effective Business Development Strategy

Your Starting Point:

The key words are Who? What? Where? When? Which? Why? How?

For example:

Who - are you going to target?

What - do you want to sell them?

Where - are they located?

When - will you approach them?

Which - are the appropriate target personnel?

Why - would they want to meet with you?

How - will you reach them?

If you have conducted regular account reviews with your key accounts during the previous twelve months, you should be aware of any new opportunities that will surface during the next twelve months. You will also, when assessing what percentage of your annual target usually comes from existing accounts, need to review data over the last two or three years. (It is likely that you can apply Pareto i.e. 80% of your business will probably come from existing accounts and in fact 80% of your total revenue will come from just 20% of your customers/clients)

You will be left with a balance - i.e. "20% of my business next year will come from new opportunities" - therefore you can then begin to allocate your selling time accordingly.

Ideal Customer Profiling:

Pro-active business development demands that we create an ideal target at the front end - i.e. an "Ideal Customer Profile." The essential characteristics you will need to consider are:

- Industrial Sector

- Geographical Location (Demographics)

- Size of organizations (Turnover, number of employees etc)

- Financial Trends

- Psychographics - i.e. Philosophical compatibility

Many strategic sales professionals merely profile their best existing clients and try to replicate them - there's nothing wrong with doing this but we should always remember that we are seeking an IDEAL and we can always improve on what we already have.

'New' Opportunities From Within 'Old' Accounts:

Because it costs approximately ten times as much, to first locate and then sell to a new customer as it does an existing one (although these costs are rarely reflected in the cost of sales), it is essential that we fully develop our existing accounts working upwards, downwards and sideways, thus making the most of the (hopefully) excellent reputation we have developed already.

Most corporate accounts have several divisions, departments, sites, even country offices and you must satisfy yourself that you have exhausted every possible avenue. Don't be afraid to ask the question "Who else should I be talking to in your organization"?

This is an extract from my FREE eBook - "How to Construct an Effective Business Development Strategy" which is available for download - please see details below.

Copyright © 2012 Jonathan Farrington. All rights reserved

How To Create An Effective Business Development Strategy

To download my new revised FREE eBook "How to Construct an Achievable Business Development Strategy" please visit my personal site The JF Consultancy, - www.jonathanfarrington.com

The Importance of Corporate Strategy

Let's talk about strategy. A lot of companies that we work with spend too much time focusing on tactics and execution and not enough time really determining what their overall strategy is as a business and the impact on spending enough time at the strategic level can really have an stunting impact on a company's overall ability to accelerate its sales, gain market leadership, and really power up its revenue growth. A lot of CEO's get bored when it comes to spending time on strategy and they view strategic work as being theoretical or hypothetical exercise that doesn't add a lot of value to a company. But when you look a little bit more deeply, companies that execute really well usually start by having a strong foundation in their strategic objectives and their strategic plans.

Many companies that do well in strategic planning actually formalize this process and conduct it on a periodic basis and make sure that their strategy is updated and aligned with changes in the market, changes that are going on with their competitors, changes that are going on with their customers in terms of specific needs, preferences, and overall requirements. So, a company that does good work on strategy has a much better change at being successful than a company that neglects this important area. Strategy is all about setting the foundation for understanding how to be successful in a market and how to win.

\"business Management\"

Companies that have a good go to market strategy or strategic marketing plan are in a much better position to execute, according to a company's overall vision and to leadership's overall vision, than companies that don't. It's the job of leadership to provide this vision and set the framework for building a go to market strategy that can allow the company to be successful in its target markets and achieve its revenue and profit objectives over time. Strategy is also important in terms of being able to align the different elements of a business together and make sure that all of the people in your organization clearly understand where the company is going and what's required in order to get there as well as what role they will play in executing the company's overall successful strategy.

When leaders don't spend sufficient time defining their go to market strategy, often times the company suffers and resources are wasted. Members of the team don't understand what exactly it is they are trying to accomplish. Resources are wasted as sales people hunt for opportunities that don't fit with the company's core strategic objectives. And in general, a company that doesn't have alignment on strategy, is under-optimized and wasting time and effort on needless things that don't contribute to the company's overall bottom line success and leadership in the market.

It's the responsibility of a company's leadership to set the overall strategic direction for the company and make sure that they are keepers of strategy as the company moves forward and evolves. Second of all, to set that and to develop it as a vision for the company that can be projected and communicated outwards to its market place as well as internally with its employees. Good leaders plan. Good leaders have a strong focus on what the company's strategic direction is and work to align all of the companies constituents, including internal employees, as well as clients, business partners, channel partners, etc. with the company's overall strategy.

The Importance of Corporate Strategy

Cube Management helps companies accelerate their sales, by providing the Sales & Marketing talent they need to grow their business. Cube is a leading recruiting and consulting partner to mid-market and emerging growth companies in the technology, manufacturing, healthcare and business service sectors. We work across the spectrum of Sales, Marketing and Business Development, providing holistic solutions that drive revenue and profit success. Cube Management combines Strategy, Process and People, to produce great results. Download the Cube Management Recruiting Guide and the Cube Management Inside Sales Guide.

How To Create An Effective Business Development Strategy

The Business Development Strategy is used to underpin your main Business Plan and essentially it sets out a standard approach for developing new opportunities, either from within existing accounts or by proactively targeting brand new potential accounts and then working to close them.

This document highlights the key issues you should consider prior to compiling your own plan and will hopefully guide you logically through a proven framework.

Business

The key word is 'Strategy', because you are creating a workable and achievable set of objectives in order to exceed your annual target.

Your Starting Point:

The key words are Who? What? Where? When? Which? Why? How?

For example:

Who - are you going to target?

What - do you want to sell them?

Where - are they located?

When - will you approach them?

Which - are the appropriate target personnel?

Why - would they want to meet with you?

How - will you reach them?

If you have conducted regular account reviews with your key accounts during the previous twelve months, you should be aware of any new opportunities that will surface during the next twelve months. You will also, when assessing what percentage of your annual target usually comes from existing accounts, need to review data over the last two or three years. (It is likely that you can apply Pareto i.e. 80% of your business will probably come from existing accounts and in fact 80% of your total revenue will come from just 20% of your customers/clients)

You will be left with a balance - i.e. "20% of my business next year will come from new opportunities" - therefore you can then begin to allocate your selling time accordingly.

Ideal Customer Profiling:

Pro-active business development demands that we create an ideal target at the front end - i.e. an Ideal Customer Profile. The essential characteristics you will need to consider are:

- Industrial Sector

- Geographical Location (Demographics)

- Size of organisations (Turnover, number of employees etc)

- Financial Trends

- Psychographics - i.e. Philosophical compatibility

Many strategic sales professionals merely profile their best existing clients and try to replicate them - there's nothing wrong with doing this but we should always remember that we are seeking an IDEAL and we can always improve on what we already have.

'New' Opportunities From Within 'Old' Accounts:

Because it costs approximately ten times as much, to first locate and then sell to a new customer as it does an existing one (although these costs are rarely reflected in the cost of sales), it is essential that we fully develop our existing accounts working upwards, downwards and sideways, thus making the most of the (hopefully) excellent reputation we have developed already.

Most corporate accounts have several divisions, departments, sites, even country offices and you must satisfy yourself that you have exhausted every possible avenue. Don't be afraid to ask the question "Who else should I be talking to in your organisation"?

Developing New Opportunities:

There are a number of ways in which we can target new opportunities e.g.

o Direct Mail

o Telephone Canvassing

o Researching Archived Files For Customers Who Used To Buy From Your Company

o Exhibitions

o Seminars

o User Groups

o E-Mail Campaigns

o Referrals

o Qualified Leads

o Advertising

Not all of these will be appropriate to your particular industry, but you should not be afraid to experiment - i.e. challenge the paradigm - and do not accept that just because a particular idea has not worked in the past that it will not do so in the future. (Remember when you were learning to walk - it didn't work first time then!)

The important thing is to make an early decision in terms of what you are going to try and then build this (those) ideas into your master plan.

A Typical Business Development Plan:

You should plan out the whole year and review / revise quarterly.

o List your existing accounts and plan what activities / actions need to be completed in order to fully exhaust all opportunities. You may for instance, plan to cover more bases within the decision making unit or contact associated companies or offices. The Strategic Account Profile can be used as a prompt.

o Begin to target new accounts using business directories etc. and set targets per week / month / quarter i.e. I normally allow for eight hours per week as a minimum (Don't forget to continually refer back to your Ideal Profile)

o Then build in what assistance you need from your marketing function - i.e. qualified leads, seminars, exhibition attendance etc.

o Finally share your plan with your manager and then commit to it.

You should also measure it against S.M.A.R.T.E.R. i.e. is it.

S.pecific

M.easurable

A.chievable

R.elevant

T.imed

E.xciting

R.ecorded

Linking With Your Commercial Plan:

I have suggested that your Business Development Strategy, would link with your Master Business Plan but logically you should also integrate it into your Commercial Kit(this is a document that outlines your monthly,quarterly and annual targets) - specifically the areas that deal with new business generation, account management and development, four tier account lists etc.

These three documents when combined should drive and guide you through the next twelve months and beyond.

Summary:

As I have said often enough "People do not fail because they planned to fail but rather because they failed to plan"

The man who knows where he wants to go is more likely to get there, he just has to decide how to get there. All plans are essentially maps and guides; the strategic element is the 'How'.

Do be prepared to change course, flexibility is key, and don't be afraid to experiment, look outside the square.

Copyright © 2008 Jonathan Farrington. All rights reserved

How To Create An Effective Business Development Strategy

Jonathan Farrington is the CEO of Top Sales Associates and Chairman of The Sales Corporation - based in London and Paris. Jonathan's personal site The JF Consultancy, - www.jonathanfarrington.com - offers a superb range of unique and innovative sales solutions and you can also catch his daily blog at The JF Blogit - www.thejfblogit.co.uk