Many agencies think that
the way to obtain more new business is to hire a dedicated new business
prospector. My observation is that many
of those agencies have not really thought through the implications of that hire. It may be a successful strategy, but consider
these factors before you hire.
If you are a new business
person, you should turn these considerations into questions before you take a
job.
All this is just food for
thought.
1. Develop
realistic expectations before you start interviewing
It takes a long time to develop the
relationship which will bring in an account, often years. Hiring a new business executive can be
expensive, not only in terms of salary, but they also need sales materials,
travel expenses as well as an entertainment budget. Can the agency really afford this investment? And is it committed enough to sustain the
program for two to three years at a minimum?
2. Have
you really thought out your sales proposition
Surprisingly, most companies have not
thought out what makes them different and why they should be hired. It isn’t necessarily about past success of
the principals. Nor is it solely about the work. Many new business consultants tell me that
too many agencies sound alike and lack unique positioning.
3. Do
you have the materials you need
Not only does the company need a unique
positioning (which can take months to develop), they need success stories,
written case histories and a great presentation. It may take months to develop these selling
tools before a newly hired executive can become 100% effective. I have seen
many company’s management lose patience during the time it take to develop
these materials.
4. Does
the agency have a realistic current prospect list
Before someone is hired there should be an
A list of immediate (and realistic) prospects, a B list of long term prospects
and a C list of “likes” and “wanna haves”.
The agency needs to know where it is going before hiring someone to take
them there. Hiring a new business person
with a large contact list may not be the right answer; their contacts may not be A or B list people.
A biz dev person needs a place to start which matches the agency's needs and abilities.
5. Have
you thought out who you really need
There are all kinds of business development
executives. There are cold callers. There are people who are best able to do
RFP’s and RFI’s. There are people who are adept at organizing and creating
presentations. There are strategists. There
are people who are great at developing relationships. I have seen many people hired who have no particular skills but "look the part"; they can
be sent to meetings (e.g. The Consumer Electronics Show, the ANA, etc.) and can
deal with the consultants. There are CMO types who can position/reposition the
agency. Rarely is there one executive
who can do it all, however, the answer to this question will help determine
whether a new biz person could come from within or outside the agency business
6. Where
does the new business person fit within the organization
Is he or she a part of management or are
they merely a hired gun? Answering this
question will provide guidance in hiring.
7. Can
the business accommodate an influx of new business at this time
This is an important and often overlooked
question. If the business has just lost
or gained a large account, does it have the ability to bring in a new piece
of business? This also has to do with morale as well as
staffing and scale. No new business executive can do it alone. They need support and staffing.
8. How
do you want to compensate a new business person
Many companies pay low and commission
high.
Many companies wrongly think that
this incentivizes executives.
However,
low pay generally attracts more junior people.
I
have written about paying commissions several times before. Title is also a
part of compensation.
The better the
title, the better they will be able to perform; this relates to point six,
above.
9. How
do you handle a prospect who wants the new business person to run their account
If the prospect account is big enough, it
may be beneficial to hire a freelance to help bring it in. Otherwise, an agency runs the risk of the
prospect wanting the new business person to run his/her account.
These are the kinds of questions I ask when taking an assignment for my recruitment firm.