I recently received a great testimonial from a client (you can read it on my LinkedIn profile).

It ended with "Wish he was my full time business development director!".

Now, whilst this is a very flattering comment (thanks, John)... I think it's completely wrong. It's wrong in the sense that for most of our clients, a full-time Business Development Director is actually the last thing that they need.

Before I explain why, let me just clarify who our clients are (this may resonate with some of you).

Our clients are typically smaller consultancies and agencies with flat structures and a high level of delivery by the principals. Sure, they'll have office support staff and also delivery augmented by associates and/or juniors, but the key attribute that they all share is that a large amount of the work is delivered by the owners or Directors of the business.

So, if that sounds like you, why shouldn't you hire a full-time Business Development Director?

Here are 3 good reasons:

1) You can't outsource the pitch. The first trap to avoid is thinking that you can get someone else to pitch for your work, such as hiring a Business Development Director. If you're providing a service which involves your personal expertise and creative input then your clients are essentially buying you. Sure, they accept that you have a team behind you for delivery but that's no substitute for knowing who runs the business.

This fact is true for all propositions which fall into the "smart brains" or "grey hairs" categories. Unless you're in a commodity market then you can't escape the reality that you should never outsource the pitch.

2) You can't afford a good one. What I mean here is that, in many cases, your business probably isn't big enough (yet) to attract the right level of talent you need. I just flipped open a marketing magazine and there are agencies advertising for a full-time Business Development Director with a £60k package. If you're a consultancy in the IT or HR space then you'll need someone who can open doors and pitch at the highest levels... an win the business. That's going to cost at least the same package if not approaching six figures.

And let's not forget, that's just the salary. Fully loaded costs will double these figures.

Now, if you've got big plans and deep pockets then don't be put off by this. However, you need to be absolutely sure that they will bring in the business otherwise this type of hire is notoriously the most expensive mistake you can make.

I find that most clients with a "Business Development Director" have essentially agreed that the role is handled by one of the founders/partners.

Which brings us to the third reason....

3) You don't need a whole one. What you need are bits of a Business Development Director. If you think about it, what does a Business Development Director do? Well, they work out the strategy, help develop marketing plans, network with prospects, make calls and open doors, keep in touch and manage the pipeline and (hopefully) land the big accounts.

In our experience, clients are excellent face-to-face and, as I stated in point 1) they are the best people to put in-front of prospects. It's logical really, since we work with clients who are actually in business, so they must be doing something right.

The parts of the whole biz dev process that they struggle with are a) getting in front of prospects and b) keeping in touch. This latter part is particularly true of clients who are closely involved with delivery.

Be honest, it's not your strong point either, right?

And, truth be told, most Business Development Directors also struggle with the former part of actually getting in front of prospects, because once they're up and running they're usually focused on managing relationships rather than hunting new business.

So the solution is simple, don't try to hire a whole Business Development Director, full or part-time. Outsource the elements that you most need support with - the prospecting and pipeline management.

For many clients, the real value we deliver comes from having someone who is nurturing those prospects until there is a real opportunity.

Labels: business development, new business agency, new business development

Here's a question: if you read about a RFP in the trade press, is it a hot lead or simply old news?

I know there are many agencies who spend most of their time reading the trade press and sifting for intelligence on RFP's, tenders, etc. In many cases it's simply because they're afraid to pick up the phone and do some real work :-)

Once they see that XYZ plc is going to be tendering, guess what, they're straight on the phone.

Now, whilst the trade press can be useful for some intelligence, in my experience chasing RFP announcements is simply a waste of time.

Why? Because if you didn't know it was happening before it hit the press then you're just too late.

A senior executive of an FTSE 100 company put it to me like this: "once the word gets out, there's blood in the water and suddenly your boat's being circled by hundreds of sharks."

He was referring to management consultants, but it's applicable to any professional services.

I was recently asked to call a company after an article was published saying they were looking for new agencies. My client presented this as a hot lead. OK, I thought, let's give it a go.

So, I called the contact and he tells me, very politely actually, that he'd already been called by hundreds of agencies off the back of that article and, in fact, the article was incorrect - they had no requirements. So many agencies called them that they published a news release on their website saying that the article was inaccurate and called for the publication to retract it.

The thing that amazed me was that so many agencies had followed up this lead.

To me, one of the ways we add value is by prospecting for business before it becomes public. If we can put you in-front of an opportunity before it gets to a RFP or tender, then you are able to influence the brief.

Frankly, if you come in late to the party then you're really just there to make up the numbers.

Labels: b2b telemarketing, lead generation agency, new business agency, telemarketing agency

The other night I attended a client event in London. Most of the attendees were in the digital & new media space and, between the alcohol and canapes, conversation inevitably centered around the recession and deteriorating economic conditions.

I find these informal events are great at gauging sentiments in the market as people tend to open up much more than usual.

The general feeling I got was that, as expected, budgets are getting tightened and projects deferred. And, whilst I've blogged previously that this represents an opportunity for smaller businesses to disrupt some of their larger, less agile competitors, it also presents real challenges for new business growth.

I've read many blog posts and articles recently with top tips on how to survive the recession (my favourite so far is John Doerr's "How to manage your start-up in the downturn") so I thought it would be useful to provide a few tips on new business in a recession:

1) New business is not an option - if you're a start-up then this is pretty obvious, but it's also true for all companies at all stages. You cannot simply rely on existing business; I guarantee that's going to shrink. Of course, you should maximise existing accounts and ensure you both exploit account growth potential and defend against competition, but that alone will not be enough.

2) Get tough - whether it's an in-house new business team or a new business agency, are they really delivering for you? Sure, it's getting tough out there but that's not an excuse for under performance. You may need to re-calibrate targets in line with market conditions, but make sure those targets get hit! If you're using an agency, make sure some of their fee is pegged to hitting agreed targets; now is not the time to carry passengers.

3) Get real - there's no denying that economic conditions have changed rapidly. Deals that looked sure-fire for Q4 are now sliding into Q1 next year. Get real! Many of those deals in your pipeline are going to disappear. Sit down with your new business team and ask the hard questions.

4) Do more - now is not the time to do less new business activity. Of course, you need to make sure you're getting a real return on your investment, and that could mean re-shaping the marketing mix and dropping less effective activities, but cutting back is suicide. It's not rocket science; if it's getting harder out there then you will need to do more just to get the same result.

So, that's my message: Get tough, get real and do more. And remember, new business is not an option.

Labels: new business agency, new business development

I came across an excellent article in Information Age this weekend, which looks at 10 Outstanding applications of Web 2.0 in business.

With all the hype around Web 2.0 and it's focus on high-profile consumer applications such as Facebook, it's great to see examples of where collaborative technologies such as blogs, wikis and social networking are being used in businesses including Coca-Cola, Ernst & Young, GE and Proctor & Gamble.

I'm always interested in this space because, not only are many of our clients involved in Web 2.0, through providing technology solutions, consultancy or design services, but you could say that our business is built on collaborate Web 2.0 technologies.

Applications such as Skype, LinkedIn, Google Docs, SugarCRM & Salesforce.com are tools we use daily, both for collaborating with clients and internally within Maine Associates.

Finally, we're finding more clients have internal wikis which enable us to quickly develop our understanding of their proposition and encourage more collaboration with client teams.

Labels: new business agency, social media

I often discuss the issue of blow-back with clients who are concerned about potential brand damage when considering using telemarketing to generate leads for new business.

As the saying goes, "you can't make an omelette...."

Of course, anything you do which involves making an unsolicited approach for new business, whether that's by phone or email, carries a degree of risk. I've seen sales people sit all day doing anything rather than pick up the phone and cold call because they're afraid of rejection; in the trade they call it call avoidance.

But, for a company considering working with a telemarketing agency, it's a legitimate concern to have. After all, anyone making a call on behalf of your company is representing your brand in front of potential clients.

In my experience there are two things that you should be aware of:

Firstly, scripts should be avoided at all costs.

Whoever's calling on your behalf needs to clearly understand your proposition. That's not to say they need to be experts, they just need to know your key messages, how you're positioned and why the prospect should consider meeting you (if the output is a meeting, for example). This is why we invest time in client briefings at the start of every new business campaign.

If your prospect receives a call from someone who is obviously reading a script it tells them immediately that it's a cold call from someone who probably doesn't even know who they are and what they do.

An intelligent, well-researched approach says something entirely different...

Secondly, pushy sales people will kill any chance you have.

In this business, a little guile, wit and persistence is always needed to deliver results (after all, if it was that easy....). But thinking you can strong-arm someone into a meeting never works.

At best they'll agree to the meeting and then cancel it. At worst they'll remember your company name. And if you upset them they will always remember it.

So, always make sure you work with people who have an interest in delivering quality sales appointments, not just another name in the diary or meeting notched up on the board.

That may mean fewer meetings. But, in our book, fewer, quality meetings often lead to more profitable new business.

Labels: appointment setting services, new business agency, sales lead generation, telemarketing agency

It's always good when you pick up an interesting new phrase. My latest came from a prospect when we were planning their new business campaign: "Conquest Business"

As soon as I heard it I thought, "ooooh, I like that!"

Anyone who's been involved in new business sales will instantly get it too. New business is just that - a conquest.

Unlike selling existing products and services to existing customers, new business is the hardest business to win.

I liked it so much I've updated my new business matrix:

This matrix shows the different types of new business. Selling in the right-hand quadrants is always tougher (and more expensive) than selling to existing customers. Most of our work is focused on the lower right-hand quadrant, which is classic new business (shown above as "conquest").

Occasionally we get involved in real "Pioneering" new business, particularly with start-ups. This is where you're selling new (and usually unproven) services to new customers or clients. This is pretty much as hard as it gets.

It never ceases to surprise me when I'm talking to an entrepreneur who has a service that no-one has ever paid money for and they think it's going to be a walk in the park to win new business. Which is the right attitude for the entrepreneur, I guess, but they're always taken aback when we're less enthusiastic; we know that it's never that easy.

"First mover advantage" always sounds good when you're pitching for investment. But when you're selling to an un-educated market that has no idea about your service (and often about the problem it solves) and you've got no real examples or references to point to... it's a different matter.

How can you spot a pioneer?

They're the ones with the arrows in their back.

Labels: entrepreneurs, new business agency, new business development, start-ups

I've been watching today's Formula 1 Grand Prix at the Fuji Speedway (at a civilised time thanks to Sky+) and it was great to see Alonso make it two in a row.

Somehow, I always enjoy it when the underdog wins.

Maybe it's because we're a small agency, or maybe it's because we typically work with clients who are up against larger, more well known, and better resourced competitors, but I get a lot of satisfaction when the smaller guy wins.

Now, whilst Renault would dispute they're a small player, you have to admit they've been running well behind the usual suspects for most of the season.

As I wrote in my last post about new business development in uncertain times, smaller companies can often out-manoeuvre larger ones when the game changes unexpectedly.

And it's that ability to act quickly, re-act to external trigger events and pitch prospects with an unscripted approach that means we can uncover new business opportunities for our clients that, otherwise, they would not have.

For us, getting our clients in pole position is what we're all about.

Labels: new business agency, new business development, telemarketing agency

As Frazer in Dad's Army would say... "We're all doomed!".

Or so it would seem if you've listened to the news today, after record falls on the stock market, job layoffs, banks dropping like flies, etc

It's true we are living through unprecedented times, but I've been through enough burst bubbles, downturns and recessions to know that it's never all doom and gloom.

Sure, budgets get squeezed, but in many cases that represents an opportunity for new business. When you've got to do more with less you start to shop around, right?

Whether it's down-shifting your breakfast cereal or changing suppliers, times like these are a great new business opportunity for smaller, more agile players in the market.

Outsourcing vendors should see the current climate of impending job layoffs as another opportunity. Moving some processes to external outsourcing vendors is an excellent tactic where fixed costs need to be slashed without impacting business performance. In fact, the benefits of outsourcing should be recognised now more than ever.

From a technology stand-point, the main sell has always been saving time and money (always dressed up with an ROI case). Technologies that fail to address board-level agendas and require significant capital costs to implement will struggle.

However, with software-as-service offerings this should be less of an issue.

And what about management consultancies? Again, consultancies typically fill a void where experience is needed to deliver results. Internal changes, such as redundancies and organisational restructures bring about opportunities for all disciplines.

Likewise, shrinking sales revenues in response to changing markets require a difference approach, often one that needs external input.

I'm not saying it's going to be rosy; you'll probably need to trim here & there and jump through a few more hoops to get sign-off, but, c'mon, think of all those new business opportunities...

Labels: new business agency, new business development

Always a source of interesting perspectives for small businesses, I found a good article in today's Sunday Times "Small firms can thrive amid corporate giants".

The article interviews a number of small business owners, mainly agencies, professional and support services, who have been successful in winning new business with major corporates, and surviving the process!

For me, a couple of key take-aways from the article are the need to avoid getting locked-in too low within major accounts (which can both keep you positioned as a low-level supplier and expose you to risk when your contact leaves), plus the importance of choosing the right clients in the first instance:

"Working successfully with big players also means being prepared to turn down work that doesn't meet the plans and aspirations of your own business"

I couldn't agree more with this last statement. Investing time to identify the right clients for where you want to take your business is critical. I find that whilst our clients get a lot of their current work by referral or other word-of-mouth sources, this may not be the right strategic fit to grow their business.

Where we add value is by targeting specific companies, usually major corporates, that meet our clients' growth aspirations. This sets up a new business pipeline that both builds on and augments your usual work portfolio, setting a trajectory for future growth.

Labels: lead generation agency, lead generation company, new business agency, sales lead generation

Welcome to my new blog.

I've been blogging on blogspot for a few months now with my Virtual Sales Team Blog. The focus was to look at online resources to help develop business.

Ahead of the expansion of my website here at Maine Associates, I've decided to merge the same remit with a new blog.

I'll be monitoring the blogsphere to bring you my perspective on what's happening, as well as providing a few anecdotes from the world of telemarketing, lead generation, sales outsourcing & new business development.

I look forward to your comments on my Blog.

Labels: lead generation company, new business agency, telemarketing agency, telemarketing company, telemarketing services, telesales