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The Art of Delegating New Business Development: A Success Story from Collective 54

In the competitive world of boutique consulting, the quest for generating new business can often feel like an uphill battle.

For small firms, especially those navigating the complex waters of data analytics consulting, the challenge is not only in attracting clients but also in crafting a sustainable model for business development.

This tale unfolds with the founder of an 8-year-old consulting firm, a beacon of ambition and innovation, who found himself at a crossroads after the primary responsibility of generating new business became a bottleneck in his quest for growth.

The Journey Begins

Our protagonist, the founder of a flourishing data analytics consulting firm with 11 employees, had been the linchpin of new business generation for years.

Recognizing the need to scale and diversify his efforts, he embarked on a mission to hire a business development professional.

However, this journey was far from smooth. After cycling through three hires, each failing to meet the mark, he was plagued by the realization that his approach to compensating for new business generation needed a rethink.

Collective Wisdom to the Rescue

It was at this juncture that our founder turned to Collective 54, a community of like-minded consulting firm owners.

His peers in the collective quickly diagnosed the core issues at hand: a misalignment of compensation strategy, a lack of clear expectations and resources for the business development role, and a fundamental misunderstanding of how to effectively incentivize new client acquisition.

The feedback was eye-opening. The founder’s attempts at compensation models varied from full commission to a mix of salary and commission, with and without a draw, reflecting a scattergun approach that lacked strategic underpinning.

Furthermore, his oversight in not equipping the business development role with the necessary tools for success — such as a solid marketing plan, a clear description of the ideal client, a compelling value proposition, and adequate sales support — was a recipe for underperformance.

A Turnaround Strategy

Guided by the collective’s wisdom, the founder realized the importance of a well-thought-out compensation plan that aligns with both the firm’s goals and the employee’s motivation.

The solution came in the form of a simple yet effective plan, focusing on gross margin generated from new clients. This plan offered a 10% commission during the first year of billings, which would drop to 5% in the second year, with no cap in place.

It was designed to reward success while ensuring that the compensation was fair, competitive, and directly tied to the value brought to the firm.

Moreover, the new plan included a base salary, constituting two-thirds of the on-target earnings goal, addressing the need for stability in the role.

A crucial clause was that if the employee left, they would forfeit all future commissions, incentivizing long-term commitment.

Beyond Compensation: Setting the Stage for Success

Recognizing that compensation alone does not guarantee success, the founder revisited the entire ecosystem surrounding the business development role.

This included providing a robust marketing plan, clarifying the ideal client profile, strengthening the firm’s value proposition, implementing a lead generation process, adopting a sales methodology to improve win rates, and ensuring clarity in the job description to prevent role corruption.

These changes, coupled with the new compensation plan, transformed the business development function into a well-oiled machine.

The Fruits of Labor

The results were transformative.

With the new plan and support structures in place, the founder stepped back from selling, entrusting the business development responsibilities to his new hire.

This shift not only elevated the firm’s growth trajectory but also allowed our protagonist to focus on actualizing the firm’s vision, a task that had been sidelined by the demands of new business generation.

A Call to Action

This story is a testament to the power of community, learning, and adaptability.

For small boutique consulting firms grappling with the challenge of new business development, the journey of our founder offers valuable lessons.

It underscores the importance of understanding the nuances of compensation models, the critical role of support and clarity in the business development process, and the transformative impact of leveraging collective wisdom.

As our founder’s experience with Collective 54 illustrates, sometimes the path to breakthroughs lies in the shared journeys of those who walk beside us. For those looking to rewrite their own stories of growth and success, joining a community like Collective 54 could be the first step toward unlocking new horizons.

In sharing this narrative, we hope to inspire consulting firms to rethink their approach to new business development. The journey of our protagonist is a reminder that with the right strategy, support, and community insights, it’s possible to turn challenges into opportunities for growth and innovation.