The 5 Business Development Steps from Dreaming it to Doing it

There’s a popular 60's musical “How to Succeed in Business Without Really Trying” based on the premise you must do things the company way in order to climb the corporate ladder. Companies have unintentionally done a parody “How to Succeed in Business Development Without Really Trying”, and it’s being panned by the critics!

Business development is the link that’s missing when many companies create a product and then fail to make it a financial success. Attempts to succeed without business development is a failed strategy that can doom even the best of products. The lyrics from “How To Succeed In Business Without Really Trying – Company Man - “Your brain is a company brain the company washed it and now I can't complain”. We sometimes become brainwashed by past products that were designed to meet a “need”, while many solutions today must create a “want” and how to market that want. For example many household products serve a “need”, such as an appliance but fall short on meeting the interactive “want” in an Internet of Things ecosystem.

1. Creative business development is as important as creative product development.

*“When I joined this firm as a brash young man
Well, I said to myself now brash young man
Don't get any ideas, well, I stuck to that
And haven't had one in years”

Companies many times will spend millions developing a product, and only give business development a passing thought. Technology entrepreneurs can be very brash in identifying a want and a solution, and then become timid in their business development. Key is finding a client partner who can become an advocate, and champions your solution. Getting personal and professional reference letters and finding third party evangelists of your skills are invaluable. Sometimes that may involve a percentage of ownership, or just a sweetheart deal with special pricing with customized features and functions. Perception of a solution can be very different between developers and potential clients. Many developers fail to adequately simulate live situations in their tests. Sometimes 30% of code may cover a solution in an ideal, controlled environment and an additional 70% of code is required to cover all the “what if’s” when it goes live. Don’t go it alone! Find a partner who can assure your creative idea is practical and plausible. Mark Cuban, Sharks’ billionaire, makes it clear he’s not interested in investing in companies with no sales, or those promoting exit plans to immediately sell the company.

2. Investment in business development

*“You play it safe
I play it the company way
Wherever the company puts me, there I'll stay”

Many companies attempt to go from development to sales and marketing; bypassing business development. They are only willing to make a token business development investment. They overestimate their product value, and anticipate an immediate pent-up demand for their solution. They anticipate moving directly to sales to cover their marketing and sales overhead. Similar to constructing a building one office at a time with no regard to location or blueprint. Like construction, business development requires a plan to effectively choose a market and grow a market. For example, Walgreen has a building blueprint, but money has to be spent checking demographics, population size, contractors, employees, and best location. They are one of the best in putting their stores in the ideal situation to succeed. Doesn’t happen without first making a substantial investment in business development. Investment in business development should be creative and incentive driven. The mistake most companies make is they have limited or no installations, and there is an expectation that business development expenses of salaries and expenses are absorbed by future sales. There should be base or retainer pay to cover period until the “go to market” acceptance has been met. There may be times where percentage of company ownership is negotiated in lieu of retainers. With all the risk that an advisor takes that may be rare. “Risk comes from not knowing what you're doing”
― Warren Buffett

3. Seek outside advice, and be open to follow it

*”But what's your point of view?
I have no point of view
Supposing the company thinks
I think so too”

Many times pride of ownership interferes with accepting independent advice. Outside advisors can provide unbiased, candid opinions on your target market, and how best to get market share. Having worked in the pay TV market, as a founder of a customer care and billing solution which was installed in most states, and over 50 countries. There were several differences in market development in rural, urban, and international, Telco, satellite, and cable markets. If you miss the nuances you miss the opportunities. Vertical markets are not forgiving if you fail to speak their language and make a good first impression. There are “good old boys” networks that only the experienced advisors can identify, and get you an introduction. It’s important to know what works, and what doesn’t. The most efficient way is finding advisors who have had similar experiences. Nice thing in today’s world is you can use social media to track down the resources, and filter out your common interests on LinkedIn and Twitter. Spending money on outside advice, and then using it may prove to be your most important investment. Mark Zuckerberg recently stated: I Would Only Hire Someone to Work for Me If I Would Work for Them. Same goes for advisors.

4. Developing a marketing strategy to roll out the solution

*”When they want brilliant thinking from employees
That is no concern of mine
Suppose a man of genius make suggestions
Watch that genius get suggested to resign
So you play it the company way”

Next stage is developing a strategy based on the information you have collected, including target market; whether horizontal or vertical; size of market; market share potential; location; support, etc.

Important to gain acceptance from the gatekeepers in the industry, join technical associations, cooperatives, exhibit at conferences, have a great reference installation, and a concise demonstration

Cooperatives or distributors can reduce direct sales expense.

International marketing strategy involves a totally different set of parameters - trying to sell and support directly or through third parties, lack of understanding of the local culture and laws, failure to meet local requirements, underestimating localization, and failure to determine which selling techniques works best – top down or bottom up?

Most can’t justify the cost of an entourage of specialists. Small to medium companies are more equipped to do top down selling, better at establishing long term relationships, and provide greater flexibility and efficiency in meeting the needs

Very important to form agreements with integrators and distributors based on USD and USA laws, and then let your in-country partners deal with their clients based on in-country laws, currency, and cultural requirements. Even companies as large as Wal-Mart have run into legal problems attempting to sell direct (e.g. Mexico).Smaller companies can’t afford that mistake.

A satisfied customer is the best business strategy of all. Michael LeBoeuf

5. Executing the marketing strategy – time for sales

*”Oh, company policy is by me okay
You'll never rise up to the top
But there's one thing clear
Whoever the company fires
I will still be here”

Your best effort in creating a business development strategy puts your company in the best position to succeed. In sports, many times the team that’s best prepared, wins the game.

Execution requires having the proper resources in place to handle anticipated events, as well as access to resources to handle the unanticipated events.

Work with key industry associations and gatekeepers to get certification or endorsements.

Utilize social media to get your story out.

Demonstrate an actual version of your solution, not a simulation.

Work with established hardware and software partners

Have a partner using your solution in a live situation

Take risks, have patience, fun, and persevere.

“Success doesn't necessarily come from breakthrough innovation but from flawless execution (of a plan). A great strategy alone won't win a game or a battle; the win comes from basic blocking and tackling.” Naveen Jain

Company Man from “How to Succeed in Business Without Really Trying”
* https://www.youtube.com/watch?v=DGhTr8lDCV0