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Tales from the New Business Trenches
 NB Story #1
Agency A last August answered an RFP for a $7 million account right up their alley. They rallied their resources and survived a couple of cut-downs until they were one of 3 finalists late last fall. They worked day and night on marketing strategies, creative, media plans, market research, and then the several presentations required to get them to the final round. Of course they had to put a halt on all other new business activity during this time - getting this plum was just too important and when they won it (of course they would!), their problems would be over. It was the brass ring account they'd been after for years.
Outcome: You probably know how this story ends. The final selection was put off until after the holidays then one day the phone rang. "It was a really tough decision, it was so close...but we're awarding the business to the other agency." Too bad.
Really too bad because Agency A did no other new business work from August until February, nearly half a year. They put just one big egg in their basket..and it didn't hatch.
Moral: Don't stop the new business machine because you're pitching a big account. Successful agencies have autopilot new business processes working day and night, rain or shine, cliché, cliché.
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NB Story #2
Agency B wins the MegaBiz account, its largest ever, located in a city 850 miles away. Happy days are here again! Except it's a little like the snake that swallowed a pig - it takes a long time to digest and about immobilizes the snake. "But that's OK, we're going to make tons of money on MegaBiz." They hire some high-ticket staffers, open a satellite office, reorganize the agency - ain't this fun? Sure, chasing after other accounts is important too, but no time for that now. Oh-oh, after about 8 months of assimilating the new client and blowing most of the corporate cash reserves in unreimbursable startup costs, it starts to looks like MegaBiz won't be spending quite what they said they would. Overcome by hubris, the agency completely stopped all new business activity for three quarters of a year because..."we just couldn't handle winning another big account right now."
Outcome: During the first year MegaBiz income dribbles down to 15% of what it was projected to be. Soon nearly a dozen people were let go, the satellite office was shuttered, cash reserves were reduced by more than half, morale tanked, and during the whole time not a lick of significant new business work was done.
Moral: Same as for first story. There's simply never an excuse not to be aggressively marketing for new accounts; there are too many unknowns out there.
Or put another way, new business is not a life or death matter - it's more important than that.
And yet...you wouldn't believe the lack of attention new business gets at many agencies, not to mention all the really bad decisions once the fox is spotted. (i.e. "We're one of just 12 finalists!").
The opportunities are there. Many accounts are desperate for effective agencies to provide new thinking as the economy slowly gains steam. But you've got to be organized and disciplined.
Try this: Suppose your agency's sole purpose were to get business - that's all you did, get new accounts; servicing them is not your worry. In other words, you're Marketing and Sales not Manufacturing. What would you do differently than you're doing now?
The answer to that question might suggest some new approaches. It's no time to be timid.
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