Business Development Process 
 

The business development process 

• Who are we?
• Why are we this?
• What is wrong with our business?
• What chances/opportunities have we missed?
• If there were missed chances/opportunities - why did we miss them?
• Did we document it for future reference?
• Are we doing what we are good at?
• If yes - could we do better?
• If no - should we be doing something else?
• What else should we be doing?
• If we know what we should be doing, and have not done it, why will the future be any different from the past?
• Do we have the all key management skills needed to grow the business?
• In other words, are we, and our current team, truly capable of running a larger business?

It is worth pondering this question carefully, especially in the light of the history - don't fudge the answer!

If the honest answer is 'no', then are we prepared to bring in stronger and more skilled management to meet the needs?

If the answer is yes, then can we secure support for a plan for growth from shareholders, the Board and the management team?

Unless everybody involved buys-in and has ownership of the plan for growth, it is unlikely to succeed; and until positive answers can be obtained, any plan for growth may be flawed. Once you have support, then ask...

• Why do we want to grow?
• Is there scope for growth?
• How do we know - what evidence is there?
• Have we ever innovated or tried something new?
• Have we got the human and financial capital to grow the business?
• Do we have adequate business systems in place?
• Are our knowledge management systems functioning correctly?
• Have we reviewed our IP strategy?
• Are we all ready for the trials growth will bring?
• If we are successful, what will we do with the success?
• Have we established an exit plan?

This is not an 'exhaustive' list, and there are no 'right' answers to these questions, but an honest appraisal now will help to protect you from failure and, importantly, make a positive contribution towards a solid foundation for expansion and growth in profitability based on facts, not supposition.


Second steps...
If you want to start the process, carry out this exercise next - it could pay you dividends...

Examine your historic business performance, trends, growth patterns Analyse your successes and failures and document them frankly and, with respect to Mr. Henry Ford - not all history is bunk!  Circumstances in companies have a curious habit of repeating themselves and in order to prepare for growth and achieving success means you need to be aware of past mistakes and protect against them in the future.

• Examine your competitors carefully; get to know them, assess what their reactions will be to your projected growth
• Are you aware of competitors from lower cost economies and have you modelled the effect these could have on your current and future business?
• Assess the global market position - what are the trends?
• Can you justify your conclusions?
• Have you read every known current report on your market sector/s?
• Is the demand for your products and services growing or declining?
• How do you know?
• What is the future for your products? Could they be superseded?
• Are you already innovating, designing and developing new products and services?
• Your competitors almost certainly will be; have you created a system to generate new ideas for future business?
• What is the future supply chain likely to involve?
• Can the growth you create be sustained?
• Will a larger business be more profitable?
• When did you last model two or more sensitivity analyses?
• Would it be better for you and your business to grow organically or by merger or acquisition?
• Can you substantiate your Company's point of view?
• Carry out a detailed strategy review, do the conclusions support your future objectives or are there issues to be addressed?
• If you do not currently have the financial capital to support a plan for growth, will you be able to secure it and satisfy investors or lenders?
• Can you draw on a circle of professional advisers who you trust to give you factual and fair answers?

While this is not an exhaustive list, answering these and similar questions honestly will help to put you in a stronger position when you start to prepare formal plans and forecasts, as part of a plan for growth.


Key steps for business development, growth and profit improvement...

• Define your objectives
• Research the objectives
• Develop a strategy for growth; we recommend you consider the wealth of useful ideas at www.blueoceanstrategy.com 
• Involve key people early in the processes
• Define goals - know what you want to achieve
• Plan your exit route strategy - do it now - don't put it off - it can take from two to five years to execute a successful exit
• Take good advice from professionals with hands-on 'real' business experience
• Listen to experience - your chances of success will be enhanced by listening and learning from the successes and failures of others
• Consolidate your Board level team - you might want to consider adding a non-executive director
• Overhaul your management team - make sure they can handle the projected growth
• Ensure the individual training plans in place for every person are relevant
• Ensure proper and adequate knowledge management systems are in place and functioning as planned
• Ensure IP is protected and advice is taken regularly
• Prepare detailed and independently validated 3-year plans, budgets and cash-flow forecasts - challenge every assumption
• Ensure everybody on the Board and at management team level buys into and has ownership of the plans for the future
• Make certain the lines of communication are open and flowing freely in every area of your business - bring everybody with you
• Wherever practical - involve your staff in discussions, they may know more than you realise
• Devise a progress review procedure with your Board, the management team, staff and the work force and stick to it
• Prepare the organisation and its structure for growth, it's a large task, don't leave anything to chance
• Make sure robust financial controls and monthly financial reporting structures are in place and working, before you start to expand
• Secure all essential financial support - don't start without it - see...5 steps for business funding

Action your plans...

• Do what you said you would do - it's the best way to gain respect
• Lead and communicate effectively at all levels - it's crucially important
• Carry your financial backers private or corporate with you, keep them regularly and accurately informed
• If something goes wrong communicate freely with your Board, your teams and your financial backers, don't hide it, then everybody can learn from it
• If the process for growth works well, go through it again and aim higher next time
• Look after your people and do remember to highlight and reward outstanding effort
• With your Board and management team's agreement, do experiment - try something new!
• Remember the power of the words 'why' and 'why not' - they will serve you well
• If something does not work, for whatever reason, stop while you are in control and understand what went wrong and be sure to learn from mistakes
• Above all - enjoy it and, just occasionally - try to relax!

Contact us today for a discussion on how we might be able to help you develop your business and increase your profits.