Ten common business development mistakes--and how to avoid them.

• Author: Fritsch, Christina

Effective business development has become one of the primary keys to a successful legal career. Despite what many people think--or have been led to think--business development doesn't have to be difficult, expensive or time-consuming. And the return on investment can be substantial.

So what is the payoff for business development? Besides the benefits of building long, profitable relationships and loyal, happy clients, recent surveys by the BTI Consulting Group further quantify the results. Their research asserts that each hour per week devoted to business development can yield up to $23,400 in additional fee revenue per year. If you invest just an hour or two per week, the returns can be substantial. The key to maximizing your return is to invest your time and resources wisely and avoid some common and costly mistakes, including:

(1) Confusing Sales with Business Development

Many lawyers bristle at the thought of "selling" their services. Fortunately, they don't have to. Effective business developers understand that they are really in the client service and success business. Ultimately lawyers should think of a sale as just a pleasant byproduct of helping clients succeed.

(2) Confusing Marketing with Business Development

While the lines may seem blurred between these two vital revenue-generating activities, there is a distinction. Marketing helps create or define a need and provides essential support for effective business development efforts. Business development involves personally connecting with clients in order to understand their needs and facilitate an agreement or solution to address those needs.

(3) Lack of Preparation

Clients want to work with lawyers who understand their business and industry. No good lawyer walks into a courtroom or deal room unprepared. Likewise, there is no excuse for failure to adequately prepare for business development. Failing to properly research and understand the client's business and industry undermines your attorneys' credibility and limits their ability to connect with them.

(4) Failing to Understand and Anticipate Client Needs

By keeping abreast of the latest developments with a client's business, your firm not only positions itself as an expert--the attorneys are also able to predict their latent legal needs. By definition latent needs are unmet, so they represent significant opportunities. By helping clients appreciate these needs, you automatically position yourself as uniquely qualified to...