Outsourcing is known as the common practice of contracting out business functions and processes to third-party providers. From product development to sales and marketing, a growing number of businesses are seeing huge benefits in taking this approach.
Business development is not different from other functions that tend to be outsourced more frequently – legal, HR, accounting, just to name a few.
The benefits of outsourcing new business development are many and substantial
In today’s business environment, innovative approaches to client service and delivery are increasingly becoming a mandate for survival so new business development will always be at the heart of growth and future success, defining strategies from the outset.
However, ‘letting go’ and outsourcing that part of your business can be a tremendous relief, particularly when it’s followed up with an increased generation of new sales leads, new business contacts and ultimately the possibility of closing more deals. It definitely pay off to choose a partner with a long experience in helping businesses connect with other businesses, to reach a greater level of profitability without impacting too much on billable hours.
When thinking about whether or not to outsource new business development, there are also some cons to consider. Loss of control could be a potential business risk, so you should consider carefully the pros and cons of outsourcing before deciding to contract out any activities or business operations, including business development. It is also very important to understand the effect outsourcing can have on company culture.
Why do I need to outsource new business development?
An experienced and highly professional team will generate leads for you while you concentrate your effort on other areas of your business. They will build growth and create a business which is competitive and fit for the future. For this reason, companies that value intelligent tactics as part of an innovative new business development strategy viewed as an investment rather than an expense, will be the ones that thrive.
Pros of outsourcing new business development
If you are still not convinced, here are a few advantages and disadvantages of outsourcing new business development.
1. You don’t have to hire more employees
You can choose to outsource your new business development to an external partner that will work as a contractor. This allows you to avoid the recruiting and training cost of bringing new employees into the company, which will save you money that you can invest in other areas of your business.
2. Access to a specialised talent pool
When hiring an external partner to manage your new business development on your behalf, you get instant access to a specialised sales team that is 100% of delivering results. This will allow your company to focus on its core business, strengths, strategy, competencies, and values whilst still generating income.
3. You have a flexible solution which you can scale up or down
One of the greatest benefits of outsourcing your business development is that cutting on the fixed costs, you will be able to increase or decrease the size of your team and effort to suit changes in your business or in the market.
Cons of outsourcing new business development
Despite the many benefits of outsourcing, you should consider carefully whether going down this path is the right choice for you. Here are some of the potential drawbacks.
1. Lack of control
You will always give up some control over your business functions when you outsource. However, by hiring the right partner and making sure you have an effective communication strategy in place you can mitigate this issue. An experienced partner will have already faced this problem many times with other clients so they are very likely to have effective and successful procedures in place to make sure you as a business owner always have the level of control you desire.
2. Impact on company culture
Outsourcing new business development may have an impact on your company as a whole. If you plan on outsourcing, you need to take steps to ensure that this doesn’t have a negative effect on your company culture. A positive work culture leads to a higher level of productivity, so you don’t want to do anything to put this at risk. In particular, when outsourcing you need to make sure that your employees don’t feel they have been replaced, and that the understand why a particular task of function has been outsourced. A clever way to tie everything together and overcome this issue can be to outsource your new business development AND sales & marketing to the same partner. In this way, your external team will be deeply involved in driving the strategy on your behalf and they will have a privileged position when it comes to making sure that everybody in your business backs up your decisions.
3. Choosing the wrong partner
If you choose the wrong partner you will end up damaging your company culture and, externally, your brand. Therefore, look for one with a great track record to make your company grow, building credibility and thought leadership along the way.