Article Relationship Capital

When BD is the founder's job, and why that eventually has to change

In the early stages of most businesses, the founder is the commercial function. That works until it does not, and the moment it stops working is usually a crisis rather than a transition.

TL;DR

Why founders do it themselves

In the early stages of a professional services business, founder-led BD is not a choice. It is a necessity and often an advantage. The founder has the relationships. The founder has the credibility. The founder can close a conversation that a junior hire could not. And the business is too small to justify the overhead of a dedicated commercial function.

This works well. Up to a point.

The point at which it stops working is different for every business, but the symptoms are consistent. The founder is spending a significant proportion of their time on BD but the pipeline is not growing proportionally. Delivery is suffering because the same person who brings work in is also responsible for doing it. Opportunities are being missed because there are not enough hours to follow every thread. And the business has become, in commercial terms, one person deep.

The risks of staying founder-led too long

The first risk is concentration. A pipeline that runs through one person's relationships is fragile in proportion to its dependence on that person. Illness, distraction, a shift in priorities: all of these hit the business harder than they should if the commercial function has no depth.

The second risk is ceiling. Most founders have a finite network of people who know and trust them enough to give or send work. That network grows slowly. The commercial ceiling of the business is effectively the ceiling of the founder's personal reach.

The third risk is opportunity cost. Every hour spent on BD is an hour not spent on delivery, strategy, or the work that compounds the value of the business over time.

What the transition looks like

The common assumption is that transitioning away from founder-led BD means hiring a commercial director. That is one option, and the right one at a certain stage. But for most businesses in the gap between "founder does it all" and "we can justify a senior permanent hire," it is premature, expensive and frequently unsuccessful.

There are two more immediate interventions. The first is building the systems that allow the founder's existing relationships to generate introductions without constant personal management. The second is bringing in experienced commercial support on a fractional basis, to build pipeline and develop partnerships without the overhead of a permanent hire.

The question worth asking

If your business lost you for three months, what would happen to the pipeline?

If the honest answer is that it would stop, the transition is already overdue.

Common questions

At what size does founder-led BD stop being appropriate?

There is no fixed threshold. The signal is when the founder's time has become the bottleneck on commercial growth rather than the quality of the service or the size of the addressable market.

What is the difference between a fractional commercial director and a BD consultant?

A fractional commercial director takes responsibility for the commercial function strategically and operationally. A BD consultant is typically project-based and focused on a specific campaign. The fractional role carries ongoing accountability; the consultancy role is bounded.

How long does it take to build a pipeline that does not depend on the founder?

Building structural independence into a commercial function takes six to twelve months. The pipeline itself can begin improving within weeks as existing relationships are activated more deliberately.

Further reading

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