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Why Most Business Development Efforts Fail

Networking and business development horror stories. You’ve probably heard them. You may have one yourself. These are the stories about how someone tried a new technique, sent out a press release, or made an effort to grow their business, and “it didn’t work.”

I’ve heard plenty of these stories. And as with most urban legends, there’s usually more to the story than meets the eye. If you’re reading this book, you’re a coach, consultant, speaker, author, or owner of a small business, and you want more from your business development efforts than you’re currently getting. You may not be investing in ways to increase productivity and expand your network at all because your business is new, or because you’re afraid to fail. Or it may be that your business development efforts are chugging along with mediocre returns or muddled measurement.

Take heart. Growing your business isn’t mysterious, and once you understand how the pieces fit together, you’ll be in a better position to manage growth for your own company or to oversee someone to handle it for you. Let’s start by looking at the seven most common reasons that business development plans fail.

1. No planning. This is true in both large and small businesses. Many business development efforts fail because there is no link between the business development actions and the bottom-line business plan goals that drive revenue. This happens because decision makers get caught up with a vivid, creative idea that isn’t accountable to the bottom line, or because they forget the human side of the equation. Business development without a plan is a disaster waiting to happen.

2. Inappropriate actions. If there is no plan, then business development actions may conflict with each other. It’s unlikely that scattershot actions will support a business plan goal. Disappointing results come about because of a “ready, fire, aim” approach in which actions aren’t anchored to business objectives and target audiences. Attempts to copy what a successful competitor is doing without understanding why (or whether) the action is working for them is also a dangerous approach.

3. Lack of clarity about the target market. Mass marketing is dead (and highly unproductive). Trying to establish too broad a personal network without a clear target is wasteful and unsuccessful. You can’t hit a target if you haven’t identified it. There is a sweet spot of potential customers who could become your ideal clients. You’ll need to get to know them to win them.

4. Lack of clear goals. If you don’t have an upfront understanding of what success will look like, you won’t know when you achieve it. Not only do your business development actions need to be linked to specific business goals, but each action should be measurable. Build in measurability up front so expectations are clear.

5. Unreasonable expectations. Just increasing productivity isn’t likely to create a big spike in sales. Just joining a new networking organization probably won’t save your company. Many people become disillusioned with business development because they don’t understand the benchmarks for successful programs. For example, most direct-mail professionals are thrilled to get a 1-percent response rate. One percent! Yet many small businesses send out a postcard mailing and quit in disgust, expecting a response of 20 percent, 30 percent, or more. Many people give up on networking efforts after a few weeks, not realizing that it can take months, even years, to build trust and establish strong relationships that lead to sales. It’s important to have realistic expectations so you recognize success when you see it.

6. Lack of clarity on how business development works. For many people, business development is a lot like a DVD player. They don’t know (and don’t care) how it works. Your odds of creating successful business development are slim without some knowledge of how the pieces function and of the process required to pull the pieces together. With the Internet, new tools are emerging almost daily. You’ll need to know how to blend New Media and Web 2.0 tools with traditional business development to succeed in today’s marketplace. Understanding what makes business development tick is essential whether you’re doing it yourself or delegating it to someone else.

7. Lack of patience. “We ran an ad once and nothing happened.” (Or substitute, “We went to that event once,” or “We joined that group and nothing happened.”) We’ve all heard that. But did you know that business development research shows that it takes between seven to 30 “touches” to make a sale? Customers won’t buy until they have an urgent need. Until then, all you can do is create name recognition and a good reputation. That’s the value of the Rule of 30. Business development has a lot in common with farming. You wouldn’t plant seeds one day and go out the next and dig them up in disgust because full grown plants hadn’t sprouted overnight. Seeds take time to sprout. Business development seeds also take time to grow.

Putting the 30-Day Guide to Use

Business development success begins with RESULTS. The RESULTS approach stands for:

Recommit to business development.

Expect success.

Seek partners.

Understand your audience.

Look for win-win scenarios.

Take strategic action.

Stay visible.

In the next 30 days, you can see your productivity, networking, and business growth go from zero to zoom by applying the RESULTS formula.

Recommit to set aside at least 30 minutes each day (yes, weekends, too) to devote to developing your business development strategy for the next 30 days. (Thirty minutes is a minimum. Once you get started, you’ll want to spend an hour, so block out the time now.)

Expect success by throwing yourself wholeheartedly into this 30-day commitment. If the little voice in the back of your head keeps saying, This is ridiculous. This isn’t going to work, you are programming yourself for failure. Program yourself for success by writing down 30 things you would like to achieve from your online productivity and business development strategy. Some ideas include:

~ Reach new ideal prospects who may not know about your product/service and give them an incentive to learn more.

~ Gain visibility in local, regional, national, and professional media.

~ Position your company as the expert and leader in its field.

Considering these three examples, come up with your own list of 30 Success Expectations and keep them handy to check back on.

Seek partners. Success in the online world is just as dependent on partnership and collaboration as in the “real” world. These partners might be trusted vendors on whom you rely for your online business development tools, cloud computing applications, or mobile apps. They might also be companies in non-competing fields that serve the same customer base with whom you can create products and joint ventures.

Understand your audience in more profitable detail than ever before with the Action Items in Chapter 3. Make a list of 30 things you wished you knew about your best customers—and create 30 questions you can use for quizzes, surveys, and online discussions.

Look for win-win scenarios. As you’re choosing programs to build your online business development platform and picking your productivity and networking tools, make sure to choose programs that are user-friendly, easy-to-use, and offer a good deal to both you and to your end users.

Take strategic action by putting what you learn in this book to work for you. As you read, be sure to do the Action Items at the end of each chapter. Complete all 30 chapter Action Items in the next 30 days and watch your online business development and productivity soar!

Stay visible by being consistently present in the live and virtual forums in which you network and seek new contacts. Create a list of 30 upcoming events, association meetings, or community programs where you could enhance your business visibility and seek to expand your contacts.

Most people put off doing business development because they think it’s too difficult or too time-consuming. By using the principles in this book, you’ll do more in 30 minutes a day for 30 days than most business owners do all year. That’s the Get Results secret weapon—strategic, consistent effort in pursuit of clear, measurable results.