Today, people are “on the move”, searching on their phones while walking, while in conversation – watching TV. They are looking up, where to go for what is something which has become second nature.Now it is up to a business to advertise where people are searching or they will loose out on new business. Can they exist off just word of mouth, or existing business? Perhaps – at least for a little while. There is however a strong doubt.Small businesses which are advertising where people are searching will establish relationship with their new clients, who in turn will go to the business on line pages and leave recommendations and comments, which other searchers will see.Business which is not advertising online will loose out altogether. It is difficult for some business owners to understand the changes in the market and the special urgency to change, and how important these changes are to their business. The new way of marketing, deriving from continually new electronic gadgets, are as powerful and fast as an oncoming freight train.Here are some of the easy to understand rules for small business: Starting with the business domain name, especially for their online advertising and on their service vehicles.When people use their names in a dot com address they must first assume that their name is not known. It also may be important to them, but not to a prospective client who searches..not for Michael Brown, but a painter, or a dentist. If small business wants to be found by NEW clients, they have to learn very quickly, that they need to buy a new keyword domain for a few dollars so they are found by Google’s, Bing’s or Yahoo’s search engines.A prospective client goes online, to find a business, they will search (as in my example) for a dentist (and so they won’t find dentist from all across the country or world, they most likely look for dentists in their home town).The best domain name for advertising might even be:.Dentist John Smith dot com, as a simple example. What their business is or does should come first, because it is what people use as a search term. Their name is secondary and can be somewhere else on the business page. People who do not know the name certainly won’t be able to enter it in the search, neither will people who know the name already – go online and look for them, they have no need..In addition, advertisements such as: “I am the number one dentist in hometown USA” also no longer impresses. Searchers finding a business see previous clients who used the business before, often will leave feedback. These feedback can be devastating to any business, if they are negative. For a business, especially a ‘service’ business, such as a Physician, Dentist, Cosmetic Surgeon etc…to ignore the power of a feedback, may it be positive or negative..is extremely important.Astonishingly enough, I have rarely found serious abuse of feedback by a consumer. As anything, one has to take feedbacks, both the positive and negative lightly, and speak to the business owner, if you have any questions.When someone moves from one State to another, they immediately go online, looking up resources in their new home via Google and the feedbacks of people who have used a particular business. If they find a negative comment, they continue searching for others, not wasting time. So – you see how incredibly important your online visibility is for your business.Another difficulty for businesses seems to be the choosing of domain names. Most take the word “name” to mean – their personal name – not a name that someone not knowing them personally – would connect with their business.It is utmost important to get a domain name which describes the kind of business they have. A domain name which helps searchers find their business.Let’s say you really are the best dentist in hometown USA, wouldn’t you want to be recommended online – Google places or yelp (and many other sites) for all the world to see?Of most importance, right this moment, NOW – is to thoroughly understand the unprecedented pace at which technology is moving forward – cloud computing will help make all searches and everything else online even faster – more instant, businesses who are ignoring the changes or are not taking them dead serious, will undoubtedly be left behind in the dust their business competition who heeded the warning, is leaving behind..Businesses have to make changes and they have to make changes now, if the business is to survive. As a business owner you must understand the principles of online searches, also called SEO. (Search Engine Optimization)AGAIN – Your name is not of great importance to a new client, but what your business does- is of utmost importance. It is “sink or swim” for the survival of your business.You have worked so hard all these years, now is the time to protect your investment in your business.
What is business development? This is a frequently asked question with as many answers as there are people calling themselves business development professionals. What unifies the discipline of business development is not so much the activities that comprise it, as these are immensely diverse ranging across a myriad of subfields. It is rather the goal or the objective: In one way or another, business development is about implementing business growth opportunities.Business development involves all tasks and processes concerning both the analytical preparation, monitoring and support of growth opportunities. Of course, growth can be achieved in many ways. There are a plethora of activities, conceptualizations, methodologies, tools, frameworks, models, subfields, and buzzwords employed across industries and geographies when implementing growth opportunities for firms. Thus, it is often difficult to make out what is what with respect to business development.This paper will discuss and distinguish key concepts of contemporary business development for a more comprehensive and translucent picture of this important yet ambiguous field. 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. Lastly, the value of business development services is discussed from the perspective of small and medium sized enterprises (SMEs).1. The people of business development”I do biz dev”, you hear people say frequently. But yes, business development is indeed something that one can do, and the actors of business development are called Business Developers. Business developers can be internal employees hired to identify and expand a company´s business, and their strength lies in their deep insight into the organization they work for. On the other hand, there are external professional service providers, such as management consultants, who leverage their experience from helping other companies develop, identify, and execute growth opportunities. Whether internal or external, individuals of this professional breed are usually generalists by nature with the skills and know-how to collaborate and integrate knowledge and feedback from a company´s functional units such as sales, marketing, R&D, operations, and finance, and in turn synthetize that information into actionable roadmaps, also called business plans. The business plan can be thought of as a formal statement of a set of organizational goals, including the motivations and criteria for why they are attainable, and a plan for reaching the goals. The tools and methods utilized by business developers are countless, yet the objective remains to answer one fundamental question: “How do we make money?”While business developers work to address how firms can sell more of their products or services and make more money both today and tomorrow, business development activities are typically skewed towards forthcoming business opportunities and strategy. Many sales representatives claim to be business development professionals, but this does not fully capture what business development is. One of the principal activities a business developer does is identify new opportunities. To do so, the business developer must have insight into a range of business related fields, and have access to key information that can allow new parallels to be drawn. First of all, he/she must hold a fundamental understanding of the company in question, stay abreast of industry trends, and monitor the competition. Secondly, but perhaps more importantly, the business developer must be able to take a holistic perspective, use his/her intuition when analyzing results, and show proof of creativity and ingenuity when synthetizing information in order to conclude which next steps the business should take.Working in business development is an excellent way to develop skills in strategy, negotiations, and managing partner and client relationships. Moreover, the job of a business developer is highly cross functional, as it requires collaboration with various internal and partner-company teams such as sales, engineering, and marketing to ensure that a deal is consummated. Last but not least, if done well, business development can have an incredible impact on the success of a business.2. The institutions of business developmentA 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. When strategy and competitive advantage are no longer on top of the agenda, focus is lost and to the detriment of sustainable growth. The balance between running day-to-day operations and continuously developing the business further to hone the competitive advantage a firm holds is indeed difficult to manage. For that reason, there are a multitude of professional service providers in the field of business development. 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.There are both niche specialists targeting specific business needs and generalists taking a 360° view of the firm and its strategy and objectives. 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 way or another, these institutions interact with companies on their growth journey and provide all kinds of resources to support them, including funding and physical work spaces (offices), professional support, advice and mentoring, tools and frameworks, strategy development and operations efficiency, and access to important networks in the business ecosystem.In the table below a classification of business development institutions are plotted out, based on the various stages in the company life cycle. While there of course exist much overlap between of these fields, it gives an idea of who, how, when and for whom various actors interact with firms on their path to growth.Business IncubatorThe idea of the business incubator is to provide support for the successful development of companies by means of an array of support resources and services, offering a nurturing environment where entrepreneurs can bring their ideas to life. Incubator services often include one or several of the following:Shared office space
Access to bank loans, loan funds and guarantee programs
Help with presentation skills
Business networks and links to strategic partners
Access to angel investors, venture capital and debt financing
Comprehensive business training programs
Advisory boards and mentors
Management team identification
Technology commercialization assistance
Help with regulatory compliance
Intellectual property managementThe idea is to allow entrepreneurs and start-up teams to focus on their core value proposition and leverage key resources that a growing start-up needs. Incubators often employ a selective screening process assessing the feasibility and workability of the business plan of incubatee prospects before letting hem join the program. While many incubator programs are industry agnostic, 39% of incubators in the United States work only with the high-tech sector. A company spends varying amounts of time in an incubation program depending the type of business and the entrepreneur’s level of business expertise. For example, life science and other firms with R&D cycles require more time in an incubation program service companies. On average, incubator clients spend 33 months in a program.1 Oftentimes, graduation requirements are set by development benchmarks rather than time, such as revenues or number of employees. The successful graduation from a business incubation program typically increases the likelihood that a startup company will stay in business for the long term.Seed Accelerators / Startup Accelerator ProgramsThe Seed Accelerator derives much of its characteristics from the business incubator; their services often include pre-seed investments (usually in exchange for equity) and the focus is on business model innovation. In contrast to an incubator, the seed accelerator views the startup period as short, and startups are often supported in cohort batches or ‘classes’ during a seed acceleration program. But accelerators are not considered “protected” nurturing environments, like the business incubator. They bring together entrepreneurs, mentors, and advisors and leave it to the entrepreneurs to figure out how to best take advantage of the opportunity that emerges. Being selected by a seed accelerator often brings notoriety to a firm, and it is a way to quickly create momentum in a startup, as long as the participants have the experience and drive necessary. Often, participants in seed accelerator programs are experienced startup professionals who are accustomed to the process.The assets provided by the seed accelerator come in the form of mentoring, funding and a strong network effect, but there are few or no internal resources, such as back office support functions, internal marketing or legal advisory experts or legal. It is a sink or swim environment.Second Stage Business AcceleratorSecond stage business accelerator services are very different from those of both incubators and seed accelerators. A second stage business accelerator can be thought of a management consulting firm targeting established SMEs looking to boost performance and ensure a continuous and sustainable growth path. Whether young or old, many companies sooner or later plateau in terms of revenue, and the growth bottlenecks vary greatly between organizations. One classic hold-up is the entrepreneur / founder who insists on having a finger in the pie across all decision and actions taken by the company – a sign that the company since long has outgrown the governance structure still in place.A second stage business acceleration program typically lasts between 3-6 months and it is aimed to assess and improve the entire “business machinery” that a growing organization needs to have in place to succeed. Strategic focus, institutional strengthening, human resource training and financial strategy, are some of the dimensions that a second stage business accelerator may offer. The business accelerator’s emphasis is on accelerated and sustainable growth, and to eliminate organizational, operational, and strategic bottlenecks that prevent the client firm from growing. In essence, a second stage accelerator bears a strong resemblance to traditional management consulting firms, but adjusted to fulfill the needs of SME’s.Boutique Consulting FirmsBoutique consulting firms offer organizations highly specialized advice that addresses specific problems or aspects of a business. The overall objective is to improve efficiency and increase profits, and the term “boutique” has more to do with the firm’s focus than with its actual size. One firm may consist of a single advisor, while another may have 200+ consultants employed. More specifically, “boutique” most often refers to the niches in which it offers its services. Examples of niches in which boutique consulting firms operate include human resources and staffing, IT, healthcare, business process outsourcing, and accounting. These firms tend to work with private sector companies but also with governmental institutions and nonprofits.Overall, boutique consulting firms focus on a limited scope of industries, and resolve business issues quicker than large management consulting firms that require more time for a specific project. The solutions that boutique consultants offer also have more immediate impact.Large Management Consulting FirmsLarge management consulting firms offer a more diverse set of services compared to boutique consulting firms and are often international in scope. They target publicly held or large private companies, international conglomerates, international nonprofits, and governmental bodies. 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. Moreover, they create industry “best practices” by working across a wide range of industries and firms (though it is debatable to what extent such practices are transferable from one organization to another). Yet, management consulting has long been a booming market with numerous players, both large and small, offering their advice to firms.3. The value of business development services for SMEsIt might be hard to decide if and when to use various business development services. What is the actual value that these services provide? Is it worth the investment in time and money? Given the growth stage in which your company finds itself it can indeed be worthwhile considering employing business development services in one way or another.Early StageIf your company is an early startup, the decision for joining an incubator or seed accelerator comes down to your personal confidence in your business model, the strength of your team, your capacity to execute, and not the least your fundraising skills. If you have a credible story, a business that is nicely progressing on its own and access to both finance and the right talent, you are probably just as well off on your own. In fact, entering any of these programs might just become a distraction. These environments can act to divert your attention by lots of related meetings and events with mentors and investors, getting in the way of focusing on your projects. Moreover they can be confusing, having ten mentors provide their own piece of advice; filtering advice can be a daunting task. But if you need help refining your business model or if you are a first-time CEO seeking guidance from proven peers and entrepreneurs, these types of services can be perfect. The likelihood of raising capital is vastly improved through the tight screening process many of these programs employ and the access to a strong investor network that these programs provide access to.Second StageSimilarly, if you run a small or medium sized company the determining factor for seeking external help lies more in the assessment of particular needs and issues facing the business and the overall growth ambition of decision makers / the owner. As is often the case, companies reach a certain size and then plateau for months or years, not sure how boost growth and reach the next level. Other companies achieve growth, but then face challenges to manage it as they run into the hurdles of balancing daily operations with business development. Be it a young company recently graduated from an incubator, or an established firm who seek to renew itself, the transformation of an organization into a solid business organization that can make way for sustained growth, involves many challenges:1. Ensure relevance in the market place2. Implement a sound governance structure3. Identify, operate and deliver according to a core competitive advantage,4. Build the right institutional capabilities and business processes5. Continuous innovationThese are some of the most common challenges facing small and medium sized companies who seek to the reach to the next level. At this stage in the company life cycle business risk is beginning to decrease and the opportunity for true value creation presents its self, yet the path to that second level can be a long and tricky walk. 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.Later StageFirms of all sizes will sometimes find that they lack a particular skill or area of expertise, and seek the advice of a specialist. In such instances boutique consultancy firms come in handy to for example support a particular project or give advice on matters related to a specific topic such as law, finance or HR. Larger corporations often make use of larger management consultancy firms to identify existing organizational problems and development of plans for improvement. Management consultants often bring proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations for more effective or efficient ways of performing work tasks. While most large organizations have their own business development staff in-house, external advice is thought to bring a more objective perspective to the table. Moreover, no company can house all expertise internally, thus the advice from external business professionals may at times come in handy.Concluding RemarksJust as when buying any service, when contracting for professional business development services it is important to have clear deliverables. A common mistake made by many business developers is to guarantee X% increase in sales or revenue. But we all know that growing a business involves a lot of risk, for which one cannot control. The deliverables should instead be based on activity: actions, engagement, meetings, introductions, opportunities, networks, events etc. Make sure to always discuss details of the engagement process and the scope of the services to be delivered. It is equally important that the paying party commits to the engagement and set out deliverables it needs to comply with. One should bear in mind that outsourced business developers put their relationships on the line to help grow your business and their future is dependent on the success of every client interaction. For that reason it is important for you as a contractor to do your part: come prepared, deliver on your end and be service-minded towards any business developer. Moreover, make sure to match your expectations with the price you pay. If not, the results of the service you are buying will most likely be disappointing.As we can see, business development comes in many forms and is practiced by a broad set of actors. From the birth of firms through incubators and seed accelerators, to boosting growth for small and medium firms by means of second stage business accelerators, to advising corporate giants through management consulting firms, business development constitute an important element any phase of the company life cycle. 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.[1, 2] 2006 State of the Business Incubation Industry – National Business Incubation Association (NBIA)
The construction industry has always been fiercely competitive; however since the economic down turn hit it has become even more so. The economic slump has left all UK construction companies fighting over an ever decreasing amount of public sector work. In such tough economic times it’s important you know how best to win the public sector contracts that could make the difference between your company surviving and failing.Why target the public sector?Regularly winning public sector contracts will give a construction company a steady income and offers greater stability, especially as most contracts are often over a period of several years. The money for the contracts is reliable as you are not relying on other private companies (who may fail) but the government who are keen to offer prompt payment in order to get better deals for their contracts.Finding the workThere are several excellent government sources for public sector tenders; however for your business to get the most applicable business it is considered a must to sign up for a tender tracking system. These companies are first to hear about new public sector tenders and are able to deem work suitable to a construction company’s capabilities to the contract offered. Being a member of such an organisation will save a company hours of trawling through unsuitable tenders and will help a company to be more effective in its bids.Prepare for Pre qualification An important part of most construction contracts is the Pre qualification questionnaire; this is where a business will be required to enter applicable financial information, previous building experience and referrals. Companies should have all this information prepared and should always enquire if they have any queries regarding a specific area of the prequalification process.How to winEvery tender a company enters in for it will be facing tough competition from other companies; therefore to win the contract you must be the best. Follow these simple tips to ensure success against the competition -· Over deliver – If the tender asks for 5 referrals offer 10, providing details of your credentials is what makes the difference between you and the competition. This also goes for your finances the more years of successful operation you can show the more likely you are to win the lucrative contracts.· Target the scoring criteria – Each contract will have areas which certain companies will be able to target due to their expertise. Concentrate on focusing on areas that your company specialises in and emphasise your unique abilities that best suit the contract you’re bidding on.· Highlight your individuality – Many public sector contracts are keen to show improvements in policy related areas such as green issues, sustainability and equal opportunities. If your company can show how they are adhering to, or even industry leading, in any of these fields the more likely you are to beat the competition.