Create A Business Development Plan That Works

By Susie Faries, SciMed Partners, Inc.

Recently, a colleague and former coworker contacted me with a request: Could I help him by sharing my ideas on creating a business development plan? This was an experienced high-level executive, recently promoted from a clinical position to VP of business development. The issue was that the CEO of the company believed business development was just another word for “sales.” To make matters worse, the company had no existing plan to develop business over the longer term, or preserve its current customer base.

While the ultimate goal is to move an opportunity or potential collaboration to the next level, business development often is misunderstood as part of a direct, immediate sales function. My colleague’s dilemma is not uncommon — executives throughout business misunderstand the meaning of developing business. It’s not a “quick flip;” it’s not for the quick sale to salvage a company or product, or achieve a quarterly goal. Business development is about the “long game.” It’s about developing opportunities and collaborations over the longer term, while solidifying and expanding current customer relationships.

The second issue I frequently see is that we move or place folks into business development roles who have no background in business – quite unbelievable. (of course, this isn’t necessarily restricted to business development). Sometimes, it’s an innocent way to reward a high-performing colleague, and sometimes it’s a result of necessity — there’s no one else to assume the responsibility.

When I was a VP at one of the nation’s largest emergency services providers, I saw paramedics and EMTs moved into business development without any background or training in either business development or sales. These unprepared folks came straight from an ambulance into a business setting for which they were unprepared. Further complicating the situation was the fact that these medical professionals, normally taught to “distance themselves” from trauma during an emergency, were now were being asked to “get close to the customer” and figure out how to develop business and solidify sales — without a plan or way to do so. Impossible.

When possible, it’s always helpful and more productive to move a colleague into a position for which they have relevant experience. However, when that’s not possible, we should give them the tools or training on how to create a plan that works.

The temptation is to begin with already existing business  or with the objective of closing already pending deals. The objective of business development is just that: develop business. The caveat is to create an intentional cogent plan that lays out future potential business and collaborations. Here are a few easy elements to help get started:

1. Analyze The Market

It’s easy to jump in and think we know everything there is to know about the market we’re already selling into, or the ideal path to developing business. The problem is that this method only deals with what’s in front of us, and often ignores trends or business factors that will affect the company, its revenue, and current relationships. I always encourage clients to “step outside” of their current market knowledge and consider external factors (as well as internal) that will impact our markets.

The most effective way is to use an Excel spreadsheet and a lot of outside research – list various impacting factors across the top (barriers to entry, IP situation, product development, market size, competitive situation, R&D, etc.). You can use as many factors as you believe that are necessary to give you an objective — repeat: objective — look at your market situation. In some cases, I’ve mapped multiple markets, segments, and opportunities in this way; it is amazing what new insights you’ll draw from this exercise. Yes, it’s labor intensive, but it’s productive.

2. Perform A Business Competitive Analysis  

Again, it’s easy to think you know everything there is to know about your competitors and the competitive landscape. Among my clients who have performed an analysis, most of them perform it in a Word document, and it essentially represents a brain dump of what’s known. These documents often are rambling, unfocused, and not very insightful.

The most effective way is to compare competitors across equal parameters — again, Excel is a nice tool. Compare sales volume, products, sales structure, recent collaborations, news (positive or negative), selling strategies, market areas, market strategies, your competitor’s customers (if known), innovations, even IP. Complete the exercise competitor-by-competitor, and you’ll see a much clearer picture of what the competition is up to, as well as where opportunities might lie. Do your research: There are competitors out there you had no idea existed. If you have an IP attorney, you always can look at developments in the IP competitive landscape that may present revealing insights into your current or emerging competitors’ R&D efforts.

Remember: Your known competitors may not be your competitors in the future but actually emerging technologies of which you are unaware.

3. Perform A Product Competitive Analysis

This works in almost the same exact manner as a business competitive analysis but compares your competitors’ products  from a technical and engineering perspective across multiple factors against your own. Do this from an objective standpoint; don’t rely on your gut or what you already know. Again: use equal parameters!

4. Perform A Potential Customer And Collaborator Analysis

This analysis falls out of the prior pieces. By now, you have a better idea of the market and its challenges, a clearer picture of your competitors, a better understanding of product points, and now an understanding of who might be a potential customer or collaborator. Again—use equal parameters and the profile you’ve developed of the potential customer.

5. Perform A Current Customer Analysis

Yep, this is a valuable exercise. Analyze your current customer base. You can gain insights through analyzing your customer relationship management data and performing a similar analysis to those methods above. This is really designed to be a forced and intentional look at your customer base that may reveal hidden opportunities.

6. Produce A Customer Lifetime Value Analysis (CLV)

As a final step, produce and calculate customer lifetime value; this analysis can convince even the most unbelieving of execs. You basically calculate the value of a single customer over the longer term — projecting sales volume, repeat business, etc. (there are formulas you can find on the web). You’ll be able to see why business development and customer cultivation is part of the “long game” of revenue creation.

Parting thoughts: the effort you put into your business development, or even sales efforts, pays off, but must be intentional and focused on the future. The preparation, research, and insights will be worth the time you invest. When you do the laborious analysis, you are investing for the longer term.

About The Author

Susie Faries is CEO of SciMed Partners, Inc., a Silicon Valley-based consulting firm in healthcare, medical devices, healthcare tech, mobile/digital health, and diagnostics. She was a co-founder and CEO of InnovaMedix, Inc., a wireless medical device start-up in emergency medicine, trauma, and sports/fitness.  Faries has experience on both the provider-side (hospitals, health systems, emergency services, ambulatory surgery) as well as the supplier side in devices and healthcare tech. She is the former Vice President of Marketing for American Response. Faries holds an MBA in Market Strategy from Regis University, Denver, and a BA from Roanoke College, Salem, VA. She recently completed a certificate from Wharton in Business Analytics. Contact her at: sfaries@scimedpartners.com