New Business Development

New business development is critical to the livelihood of any public relations firm and involves a variety of methods designed to secure a steady stream of clients. Most clients hire firms on a project basis, although the project may extend anywhere from one to three years. Thus the firm, in order to meet overhead and payroll, must ensure that continued work is available. This stream of work is vital to firm stability as well as to growth of individual staff members, who are challenged by and learn from new opportunities. Although necessary, new business development should be the result of strategic planning for the public relations firm. Firms that wish to maintain a consistent size and to offer a set level or breadth of service may engage in lower-key business development than firms that have charted a planned growth pattern.

All public relations firms’ strategic plans for new business development should include a consistent, daily, two-pronged approach: (1) provide only the highest quality of service to existing clients and (2) network. Often overlooked in the quest for new sources of income is the current client. Although the great majority of clients may contract for a specified length of time, an excellent success record with demonstrated results provides impetus for the client [Page 606]to renew a contract. Similarly, noting opportunities and looking ahead for the client may provide additional work. Critical to this line of business development is educating the client and evaluating the firm's work: The client must understand public relations and its capabilities and must see the results manifested through evaluation.

Providing a high quality of service may not lead to additional contracts from the client immediately, yet referrals are highly valued as clients search for prospective firms. Such referrals also come from networking, which should be defined broadly enough to cover even building bridges from unsuccessful pitches. Future work can also arise from media contacts whom clients may seek out and ask to identify firms by expertise and reputation. Relationships established through a variety of professional associations and personal contacts along with pro bono work also often lead to new business opportunities. Furthermore, networking can build a broad range of affiliates who may be called on as consultants for specialized new business pitches; with a broad range of experts available for hire, firms can more readily demonstrate their abilities to meet a broader variety of client needs.

Another critical element in any firm's strategic plan is promotions. So many firms do not include themselves as their clients when such awareness programs are vital to their own longevity. In addition to public relations-based publications, awards programs and pro bono work offer opportunities to promote the firm's expertise. Peer-recognized work also becomes material to highlight on websites.

Firms may also engage in entrepreneurial activities designed to showcase their expertise and successes. Such activities might include creating a newsletter that targets key executives in defined areas.

More active and aggressive new business development includes typical sales approaches such as cold calls and arranged meetings to discuss possible opportunities. Other active development opportunities come by responding to RFPs (requests for proposals) initiated by clients who are in the market for a public relations firm.

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