The 10 Steps to More Successful Business Development

As a business owner or manager, there are many factors that contribute to the success...or failure... of your business development processes. (I prefer to call it "sales", but many folks are more comfortable with other terms, such as business expansion, client development, or rainmaking.) Here is a straightforward way of analyzing your processes to determine if some added attention in this area will lead to a stronger bottom line:

1. Does your company's CULTURE foster a broad focus on new client development? Is it typical for the top management and others who create the culture to consistently block time for business growth?
2. Is the company's MISSION clearly defined? Does it foster an emphasis on sales from all of the employees?
3. Has a VISION for the company been articulated? Do you know where you want the firm to be in three to five years? Does everyone else in the firm know it too?
4. With your current employees, do you have the "horses to pull this wagon up the hill?" Are your key sales and business development people bringing in the steady flow of new business necessary to attain the vision? Do you need more people, different people, or to help the existing people to grow?
5. What BEHAVIORAL CHANGE will be necessary to accomplish your vision? What do your people have to do, and how will they be managed, to assure that the vision will be met?
6. How will you PROFILE your existing staff to understand their strengths and weaknesses in the area of business development?
7. As you bring new people into the firm, how will you SCREEN them for an aptitude and strong motivation for the client development side of the business?
8. What TRAINING will you put in place to assure that the level of knowledge and skill necessary to grow the business to the heights you envision are attained?
9. How will you REINFORCE this training to be certain that their new capabilities are maintained and further enhanced during your climb?
10. Do you and your management team understand and implement "The Magic Sales Formula?" Here it is:

(Number of qualified appointments) x (% closed) x (Avg. revenue per account) = Sales Results

Seems like a simple formula. The magic comes not from looking at the absolute numbers in the equation, but in the ANTICIPATED CHANGE in each of the numbers.

Let's start by assuming that each of the three factors has a rating of one. Ask yourself what is a reasonable change you can expect in each area with the proper focus and training. Fill in your own estimates, but let's try a model often quoted.

Most companies are able to increase the number of qualified prospect appointments by 20% with a change in behavior and attitude. Closing ratios often rise dramatically, like 50% or more, with the appropriate new techniques in place, but let's be conservative and say 25%. Similarly, a 20% increase in average revenue per account, brought on by better qualification, focused prospecting, and up-selling, can often be attained. Where do all these numbers lead?

1.2 x 1.25 x 1.2 = 1.8

Reasonable and attainable "small" changes in each of these three areas leads to a near DOUBLING of the business.

Take your company through the process of answering each of these questions. As you do so, remember this: You are in control of the destiny of your company. You have the power to dream, the power to change, the power to grow.

© 2004 Sandler Systems, Inc.
For more information on Sandler Sales Institute, click here: davidmills.sandler.com

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