How does a New Business Development role work?

[capsule01]

Wondering if anyone could fill me about how a position in New Business Development works. I feel this is a role that needs to be filled here at Capsule01, but am not 100% sure what I should be looking for or how the role works within small media agencies.

Any advice will be much appreciated! you never know I might even send you a exclusive Capsule01 T-Shirt for your help

 

[self-sale]

Hi,

New business development should be seen as a senior sales role and if you wish to recruit and retain the right person, be prepared to have to pay for it.

You need to set yourself very clear sales objectives and then allocate targets accordingly. e.g £1 million increase in revenue during next financial year- £500 000 coming from account management/ growth in existing accounts, £500 000 coming from new business aquisition (business development). Work backwards from this point working out how much margin you need to make and how much salary/ bonus you need to pay.

If you want the best BDM's you will need to pay them a good basic salary along with a healthy commission plan and benefits. It won't be cheap but if you want someone to drive and secure sales, the good ones are expensive.

I've never worked in small media agencies so I don't know how they work. If it's a defined sector/ enviroment investigate and find out who the big hitters are who have a good reputation and look to poach them. Somebody with previous industry experience will be a bonus as you can piggy back onto existing relationship and they will be able to hit the floor running, securing new business for you straight away.

I hope this helps.

Wondering if anyone could fill me about how a position in New Business Development works. I feel this is a role that needs to be filled here at Capsule01, but am not 100% sure what I should be looking for or how the role works within small media agencies.

Any advice will be much appreciated! you never know I might even send you a exclusive Capsule01 T-Shirt for your help

 

[AandP]

Is this New Business Development as in a salesperson? Don't be shy about calling a spade a spade. Great salespeople don't go much for titles but do, as self-sale says, get motivated by money.

Right now, there are not a huge amount of good salespeople around. And the good ones are expensive. Everyone wants to do more se-xy and less "confrontational" jobs so you don't have that many people coming through the system.

If you have only two or three employees, your first dedicated salesperson is a huge risk. And always will be. Invest in a good recruitment company (obviously I can suggest a couple if you want) and even then you don't guarantee getting the right person.

Much better is to initially invest in more "systems" to win new business that someone more junior or technical can complete. This means you as the business owner retain more control and the human resource investment component will be much smaller. Hence, less risk. And easier to replace the body!

 

[Chris Kaday]

It works by having a clear WRITTEN business development strategy first and then hiring someone to deliver on it using a clear JD.
Chris Kaday

 

[GeorgeM]

I like one line answers and that's a great one Chris.

Regards

 

[Chris Kaday]

Thanks George

Well its true people mostly make hires by waiving their arms around with no real idea of where this person should fit into the business. They are invarialbly crap at interviewing too - one of the most important skills in growing a business. If you doubt this guys just think back to the interviews you have had.

Chris Kaday

 

[Aspire]

I was a business developer before setting up for myself, and i agree with the above.

You need to be clear about the direction you want them to go and resources you have or they will require to achieve it. After all you wouldnt buy a Ferrari and not put petrol in it (err actually people probably do but you get the idea).

Dont be afraid to discuss with them how they intend to go about doing it, whilst they may well never give away their master plan they will give you a feel for how competant / enthusiastic they are.

I would also look at a ramp up period on the target. Yes you want them to hit the floor running but sales people can be an emotional bunch and we love success.

 

[capsule01]

Much better is to initially invest in more "systems" to win new business that someone more junior or technical can complete. This means you as the business owner retain more control and the human resource investment component will be much smaller. Hence, less risk. And easier to replace the body!

This is a good point there are of course other ways of driving new business through our doors which don't need a specific sales role. However, by making the time to do this pulls myself or other resources away from an already overloaded schedule.

Something that I have been solid on from day 1 is always try to use the right person for the right job. Which is something I am keen to continue with.

 

[capsule01]

It works by having a clear WRITTEN business development strategy first and then hiring someone to deliver on it using a clear JD.
Chris Kaday

Thats very sound advice, thanks Chris.

It reminds me of mistakes I made when initially setting up the company, ones which I now clearly see other people making. Like writing a business plan.

I remember my first meeting with my accountant, he asked me to tell him what our company did. Both directors sat there and mumbled completely different things.

Luckily we have now clarified this rather small detail.