How to Use a Business Developer

Source: Practical Accountant

In most accounting firms, about a third of the partners are business developers. But the business developer doesn’t need to be a partner or staff member. The most common business developer role is to identify prospects, uncover their needs, and match them with the right service providers. The business developer must understand the firm’s services and strengths, identify target markets and firms, and create relationships.

The role differs among firms. Some use business developers as telemarketers, some as networkers or appointment setters, some close the sale, and some stay involved after the close to keep the relationship strong (e.g., helping change the service team if a client is unhappy).

Other aspects of the business developer role may include:

• Managing the business development process:
  • Nurture the best leads.
  • Conduct research on the leads.
  • Conduct planning meetings prior to making calls.
  • Create agendas for meetings.
  • Conduct fact-finding meetings with prospects.
  • Debrief after the call.
  • Create proposals.
  • Make presentations.
• Developing referral sources—goals should be set on how many referral sources are developed.
• Training and coaching:
  • Conduct sales training sessions.
  • Hold sessions with individual partners to help them create business development plans.
• Generating leads:
  • Cold calling.
  • Follow-up with seminar attendees.
  • Follow-up on direct mail responses.
  • Keep in touch with lost prospects.
  • Contact former clients.
  • Contact referral sources.

Seminars

Business developers can:

• Collaborate on topic selection.
• Personally invite selected contacts.
• Make assignments for contacting attendees at the seminar.
• Follow-up after the seminar.

Trade Association Meetings

The firm places an ad in the association newsletter and writes a white paper for the newsletter. If the business developer is active in the association, members may contact him because of reinforcement from the ad and white paper.

Measuring the Business Developer’s Effectiveness

One source says revenues generated by business developers should be three times their cost.

Generating two clients a week at $3,000 results in revenue of $300,000 per year. This business developer would probably earn about $100,000.

Creating the Role

The partner group should come to a consensus on the expectations from the business developer. The job description should be consistent with these expectations. Partner support is critical.

The firm must define the target market and the type of clients sought. Define the ideal client, and delineate the services you want to provide. Otherwise, the business developer will gravitate towards the easiest targets.

From Practical Accountant, June 2007, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809. For the complete article, click here, select June 2007, then select the article Business Developers in Demand.