Starting a new business is far more than simply hanging a sign out and waiting for customers to pour through the door and I’m sure anyone willing to invest in a new venture is well aware of this fact. In essence, a second stage accelerator bears a strong resemblance to traditional management consulting firms, but adjusted to fulfill the needs of SME’s. A consultant brings fresh perspective, yes, but they also bring to you a proven track record of helping businesses like yours.
While the business plan is critical for the success of the new venture, it is not the first step in the process. Undeniably, business development is a crucial component of a firm’s success – the opportunities forged today will define what the company is doing on tomorrow.
They come in the form of governmental institutions providing funding and support to entrepreneurs, and private institutions in the form of business angels and venture capitalists, business incubators and seed accelerators, second stage business accelerators, boutique consultancy firms, and large management consulting houses.
One important aspect of the BD process is that it is most effective as a closed-loop system, in which the Operations Phase information feeds into the Positioning Phase for an ever-changing system that quickly reacts to changing conditions in the marketplace.
Strategic Management For Business Development
In the almost 30 years that I’ve worked as a CPA, I’ve had the opportunity to see businesses go on to achieve amazing results in the marketplace and for their community and for the owners. A successful business development process is being able to get a clear and concise evaluation of the inherent strengths and weaknesses, goals and issues that face the development of your new venture. A common problem facing many firms, regardless of where they are in the company lifecycle, is that they get stuck in the trenches of daily operations, at the cost of conducting business development activities.
From the birth of ideas to early startups, to small and medium enterprises (SMEs) who seek second stage growth, and all they way to strategy implementation for corporate giants, many institutions exist to support firms in their business development efforts.
A particular interest will be taken into how business development activities differ across company sizes and growth stages, from early-stage startups to fully-grown companies, and the various institutions that can support companies on their paths to growth.
5 Reasons To Hire A Business Development Consultant
The Business Development Strategy is used to underpin your main Business Plan and essentially it sets out a standard approach for developing new opportunities, either from within existing accounts or by proactively targeting brand new potential accounts and then working to close them. Consultants often will require an hourly rate or fixed salary as well as some kind of bonus structure for placing deals together which may be a single payout for each business deal that is signed or a revenue share that is paid out over a period of time based on the amount of business that is ultimately generated from the relationships.
In many cases this role is a liaison between sales, marketing, procurement, and management. It might be hard to decide if and when to use various business development services. For example, life science and other firms with R&D cycles require more time in an incubation program service companies.
Its products and services are gaining acceptance in the marketplace and customers are patronizing them in increasing numbers. Find all kinds of information about small businesses, right from beginning a small business, to getting government grants, analyzing the market, etc.
A business development plan is an essential tool for all prudent entrepreneurs if they wish to remain in business. It’s critical to recognize that a business development team member is going to need to spend time out of the office meeting with companies, going to business events and other functions that may be fruitful in finding and meeting the right business partners, however if you are paying for someone to be at an event then make sure the business cards that are collected get scanned and retained by the company.
Large management consulting firms are able to draw from massive reservoirs of overlapping knowledge and expertise in contrast to the more narrowly focused boutique consulting firms, and can offer a single client support on IT, strategy, operational, human capital, and financial issues.
So many professional service firms we meet bemoan the track record of most of their folk in developing new work and new clients in attractive niches. During this phase, the business require infusion of additional capital to buy capital equipment to increase production (for manufacturing businesses), to establish additional service network (for service providers) or procure more goods for trade (for trading businesses).
While a consultants hourly rate may be higher than you’re comfortable with a deal can be put together much faster by a professional than someone trying for the first time to structure a business partnership. If you’re the typical small business starting, growing or even just surviving in a tough economic market with little or no credit, you also need business development strategies that don’t eat up your cash flow.
Using the help from a second stage business accelerator can be one way to overcome these challenges; to (re)establish the entire “business machinery” required to allow growth to take place.