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Business Development by the Numbers
Written by: John BrennanArticle Overview: Perhaps it seems like you have plenty of "good" leads to follow up. But maybe you are not feeling any heat from any of them. What other suspects and propects do you have in your pipeline? How many active proposals do you have out there?
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Business Development by the Numbers
In many industries, some rough ratios to work with are:
to get one contract, you need to be invited to submit three proposals,
to be asked to submit three proposals you should be talking to three to six qualified prospects. A qualified prospect has 1.) a budget, has 2.) a specific and current need, and 3.) makes the decision or at least the recommendation. Qualified is not a subjective term, as in they "ought to be" qualified, "they fit the profile" or "I wish" they were qualified.
To generate six qualified prospects -- that´s the tough part. There are an awful lot of suspects out there, i.e. people who have some of the qualifying criteria or people whom you think might/should have it. I´d put those "good" leads in the latter category. Suspects may be very interested in what you do, or they might have the title of Director of Whatever, or they may be both, but if they have no budget for a specific need, don´t waste time with them.
You probably have to screen at least 100 suspects to find five or six qualified prospects. Sorting out suspects and prospects is what direct mail, trade shows, advertising and telesales do best. You should be spending most of your time with qualified prospects, not playing telephone tag with unqualified suspects.
My own experience here may be instructive. I built a successful training firm that generated significant annual billings by hitting the phones myself. Starting with referrals, first, of course, but moving quickly on whenever it became clear that a suspect was not qualified. I made 168 cold calls before uncovering Burroughs Business Forms Division, a qualified prospect who became my first significant client. So it can be done if you have enough fire in your belly.
If you can scrounge up some money, invest it in lead generation (well-targeted direct mail is still best). If not, hit those phones! And the very best of luck -- that´s in the equation somewhere, too.
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Article Tags: business development, pipeline, proposals, prospecting
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Related Forum Posts
Re: what position to request?
- Hi Michael,
Great suggestion from David, or you could try something around a design consultancy,
How about Website Design Consultant, Design and Development Manager, Website Support and Development Manager or maybe Internet Business Development Consultant.
Ultimately whatever you are comfortable with and good luck for the future,
Mal.
BDC
- [quote="IWDCanada":jib6tqt9]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:jib6tqt9]
On that note, does anybody have any experiences with the Business Development Bank of Canada that they would like to share? I have been considering approaching them for a business loan.
Re: BDC
- [quote="Jones":255lkmrn][quote="IWDCanada":255lkmrn]I think if you try to do business in the Maritimes the Business Development Bank of Canada might be able to provide grants.[/quote:255lkmrn]
On that note, does anybody have any experiences with the Business Development Bank of Canada that they would like to share? I have been considering approaching them for a business loan.[/quote:255lkmrn]
I'll be working with the BDC later this month on a few projects. From what i've been told they are really great when it comes to small business. Their loans have a little higher interest but their payment terms are a lot easier to swallow. I can give you a contact if you need.
Re: what position to request?
- Business Development Manager - is more or less ok... thank you.
but I want something fancier... an executive position..
Re: what position to request?
- Hi Michael,
How about Online Business Development Manager?
Good luck with your start-up.
David
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