Choosing the right new business help

Photo courtesy of Go | Bill Selak | Flickr

 

Agencies that struggle to grow face many of the same problems; no time, limited resources, inadequate tools, inconsistent effort, unpredictable pipeline, lack of focus, too many misses. It is frustrating because your current clients love you and appreciate the hard work and extra effort you put into their success. If only you could find more great clients like these. If only you could diversify and spread your income across more great relationships. You can with a little help along the way.

 

In the spirit of transparency, I am a full-service new business consultant, but I have also worked at agencies who have employed a variety of new business resources that give me an inside view of each and the conditions under which any of these options may or may not work. I have also talked to many agency owners and new business professionals who have shared their experiences, good and bad. Also, I fielded my own proprietary research last year to help add substance to my opinions and challenge my experience. As you consider your options, take it for what it is worth.

 

If you struggle with business development, there are resources to help. Which kind to choose is often a subject of debate among agency leaders. Let me attempt to simplify it.

1. If you are confident that what you offer is differentiating and what kind of marketer your agency will appeal to and you have a prospecting process defined and the right tools to make it effective, your best long term solution is a dedicated business development person or team, or current staff to take on the role.

 

2. If you are confident in what you offer and what kind of marketer your brand will appeal to and have staff who can close business, but you don’t have the time or skill to research and find more quality prospects, you can benefit from outside lead generation services either by the lead, by the meeting or by the pitch, and close those leads yourself.

 

3. If you aren’t sure that what you offer is different or who might find it appealing, or where to find quality opportunities, you should consider outsourcing some or all of the process. Once you get back on track, go back to #1 or #2.

 

The key is to be brutally honest about the state of your agency. Any option must consider the health of your firm, your staff capabilities and your willingness to commit to success. And above all, your unwavering dedication to see it through.

 

1. A dedicated in-house BD team

Statistics show that about 39% of agencies have a dedicated BD person or team, and another 44% rely on the owner or president for BD. You can read my survey results; How do other advertising agencies do it. The percentages shift from small to large agencies. In my experience, the most successful agencies, large and small have a dedicated BD team but not all agencies can. And, recruiting quality BD people is a huge challenge. Remember, the average tenure of an agency BD person is about 18 months. There are reasons why this is so, some are the person, and some are the agency’s fault. I know a couple of recruiters who specialize in BD people if you are interested.

 

If you can’t clearly articulate your difference, no matter how talented the BD person, you will never hit your stride. That is the number one reason why turnover is so high. Agency leaders often think it is the BD person’s fault and are quick to make changes. Good BD people get frustrated that their agency won’t sharpen and focus their offering, and decide to move on. And staff get aggravated at pitching so many and winning so few that they avoid the process altogether. If you aren’t settled on how what you offer is different and can demonstrate real value to your market, you will be better served by a consultant who can help you find your USP and define the prospects who will most likely value what you do.

 

If you can answer Yes to all 6 of these statements, you are probably ready to handle your business development in-house. Otherwise, give me a call.

• I have a good sense of my agency positioning, differentiation, and expertise
• I am confident I know how to articulate the value I offer to marketers
• My staff and leadership are eager to support new opportunities
• I am satisfied with how my agency handles the entire prospect journey
• I know who to go after and where to find them

 

2. Outsourced lead generation

Statistics show that about 20% of agencies outsource some or all lead generation activities. There are many kinds of Lead generation firms. Some simply work the phones for you. Others set you up with guaranteed meetings. And then there are those who claim to have a list of “ready to buy” relationships just waiting for your call. Many agencies have shared with me unsatisfactory experiences with lead generation firms. Like any business, some of these firms are better than others. To complicate matters, the problem might not be the quality of the firm but a lack of clear direction by the agency. As I mentioned earlier, if you can’t clearly articulate your difference, you will never hit your stride.

 

The more detailed you can be about your ideal prospect and why you are a good fit, the better the leads should be. The more specific you can be about who you want and who you don’t, the better the results will be. And, the more discriminating you are, the less time you will waste. Most of all, don’t be impatient. It will take time and a bit of trial and error for your lead generation firm to hone in on the best results. Too many agencies give up too soon. If you can’t be specific and realistic about who you want and why you will be better served by a consultant who can help you define what you offer and who will most likely value what you do. In any case, don’t expect consistent results immediately.

 

A word of caution. There are a few good firms that specialize in advertising agency lead generation. There are many other firms who are industry agnostic and claim their process works for everyone. They sound like they have a great approach, come with lots of references, and claim amazing results, however, ad agency business is very different than enterprise software, HR consulting or financial services. I’ve heard many stories from agency owners who fell for the sales pitch only to find they wasted their time and money. Make sure you choose a firm that has lots of industry experience and grill their references.

 

If you can answer Yes to these statements, you may benefit from outsourced lead generation.  

• I have a good sense of my agency positioning, differentiation, and expertise
• I am confident I know how to articulate the value I offer to marketers
• My staff and leadership are eager to support new opportunities
• I am a good closer
• I know who to go after but struggle to find leads
• I don’t have time to research and vet potential prospects

 

3. Outsourced business development

Some business development options might be a bit confusing. There are a few firms that work on agency branding, agency structure, and service offerings but don’t get involved in prospecting. They might be the right choice if you believe your people can handle prospecting and closing well but don’t know who to go after. There are some who offer pitch consulting, contract negotiating and market opportunity analysis. A good choice if you believe that all you need is better closing skills. If you are interested in learning more about these services I can recommend a few firms I know.

 

There aren’t more than a handful of reputable full-service business development firms who offer ad agency new business development from beginning to end. According to my survey, only about 17% of agencies consider this option. It is expensive so your agency must have the cash flow, availability of people and time, and the commitment to getting the full value from this kind of investment. If you are looking for quick wins, this might not be your best solution. If your circumstances are such that you need quick wins to stay in the game, none of these options will work. You should immediately pick up the phone and start calling old clients, old colleagues, old friends, in-laws or any other relationships that have the budget and authority to hire now.

 

If you feel your agency might benefit from a full-service consultant, you should be certain that consultant will spend time shaping and honing your agency positioning and focus your prospect universe before going after opportunities otherwise you will be disappointed once again. If you and your team can’t clearly articulate your difference and your value, allow ample time and patience to go through the steps. Some resources promise to do it all but are nothing more than lead generation shops so do your homework before considering.  

 

If you can answer Yes to these statements, you are probably a good candidate for outsourced business development.

• I question my positioning and difference
• I don’t know why I lose to other agencies that I pitch against
• I’m not sure what verticals to go after
• My staff and leadership are hesitant to support new opportunities
• I don’t know what tools and technology I should use
• I don’t know how to get a prospect’s attention
• My win rate is less than it can be

 

There is no one size fits all solution. Even though most agencies share common challenges, each is unique regarding its needs and resources. In my experience, the ideal scenario is to start or restart your business development initiative with a consultant first to set you on the best pat for success. He or she can develop an approach and process that is customized to your agency, refine it in practice and then train and hand off a proven program to an in-house person or team. Once it is up and running with a pipeline to manage, your BD person can take over without interrupting the flow of new opportunities or future prospects in your pipeline.

 

Obviously, this is only the tip of the new business iceberg. If you want additional insights about which option is right for your agency, email me or spend some time on my website www.jheenan.com to get more thoughts on agency growth. If you liked this post and want more new business advice delivered to your inbox sign up for my monthly newsletter. #LetsGrow!