A lot of startups just see BD as a magical process that will drive impact for the company. I think it's important that people get all the nuances that go into developing partnerships that can deliver asymmetric value against the resources that both parties invest in the project.

Your own internal metrics are probably going to give you the best data to work from, but it's still important to bake in a certain amount of margin for error when you're estimating impact or sizing a project. It's worth asking, "If this did even half as well as we modeled it to, would we still be happy?"

When you're thinking about gives, start by trying to look from your partner's perspective and ask yourself, "What is the thing I could give them that would move their metric the most?" Starting with a solid hypothesis about what you can bring to the table for them will let you be more precise, but still gives you the flexibility to refine your approach as you go.

Even if your company's already got relationships in place with a potential partner, you still need to do your research to see if you're dealing with a situation where they're regularly entering into partnerships, or if this is something they don't ever really do. That's going to make a huge difference difference in terms of how painful the process is likely to be.

If you're at a resource-constrained startup, it's even more important to understand what's likely to motivate a potential partner. Timing is really critical here: When does their fiscal year end? Even that simple question can shift how speculative you can be with an offer in a big way.

It's pretty common for people to look at two potential partners and just default to going with the bigger name, even if it's not the better choice. Here, for example, we've got one pretty well known brand, USAA, and one that's a little more obscure, 

. When we actually analyze the situation, the latter would make more sense for a bunch of reasons. For one, the gives are a lot clearer and more likely to be accurate, since one of them is money; this means it's going to be easier to get to an actual strategic partnership. And even though 

 is reaching a much smaller audience, that size can actually be a blessing, since working with smaller partners can generally help you avoid getting bogged down in partnerships that drag on forever: as we can see, the timeline here is only 2 weeks, compared with at least 3 months for USAA.

As you’re engaging with your partner, don’t hesitate to refine your model. You know, ultimately, if it's not going to be strategically valuable for either side, you need to figure that out as soon as possible. It’s important not to get too anchored on your original estimate, where you end up with a kind of magical thinking: this one partnership’s going to solve all the world’s problems. It’s not. It’s just a shot on goal, and there’s a probability attached to that shot.

When Facebook was in its heyday, we were getting offers left and right. This led to having a ton of fun conversations, but the truth is that most of those discussions were never going to lead anywhere.

A partnership can drag on forever, so finding different forcing functions—whether it's timed to a product launch, a shift in staffing, etc.—is important when it comes to actually getting decisions made at the top of the org.

Bubba Murarka

Biz dev is more than just chasing shiny names. This playbook breaks down the process into clear steps for opportunity analysis and partnership planning.

 before going any further. Now, since you are going to spend time on BD no matter what I say please consider using the framework below. :)

As a startup that is constrained by team size, all partnership opportunities need to be analyzed for potential impact, scope of gives we are willing to offer, and likelihood for a successful negotiation. When making a case for investing team time to explore a partnership be laser clear on these factors and set a timeline to get a partnership done as a forcing function (for you and in the negotiation).

Opportunity Analysis (High Level Spreadsheet)

While this can be a document it is often easier as a spreadsheet that can be sorted. Create one of these for each major objective area. Recommended columns:

Partner name or type (e.g. cell phone carrier)

Partnership summary (strive to keep it to a tweet ;-)

Internal metric measurement (Virality, Revenue, Penetration, etc)

 (quantified internal metric, back of the envelope)

 (include time from individual team members)

Timeline (Weeks to measuring actual impact)

Once an opportunity is greenlit to pursue, 

 review before investing material time engaging with a partner or pulling the team into meetings. 

Remember, if planning uncovers a reason to deprioritize a partnership that is a successful outcome!

Context - anything teammates may need to know about why pursuing partnership based on opportunity analysis

Overview - Summary of partnership idea, deal dynamics, and if repeatable

Impact and Measurement - Make the case about how this will impact business / goals & be measured

Give / Gets - Get into the nitty gritty and specific about “costs”

Timeline - Key decisions and dates to keep investing or to kill pursuit of partnership

 Prioritize partnership opportunities that will have a big impact on our company objectives and are aligned with our cultural values.

Build (internal) consensus early and communicate often.

 A key dynamic we are faced with in our roles is the need to influence without authority. We should build internal consensus early with key internal stakeholders, use our alliances (i.e. personal relationships) and reciprocity as tools to bring others to the table in order to accomplish work.

 Preparing for a negotiation BEFORE going into the battlefield is probably the most important step a negotiator can take. As quantifiably and specifically as possible, know what you want and why. Plan for expected responses and counter-offers.

 Speed is paramount, but many large partners can’t move as fast as us. Create a deadline (i.e. a “bake-off”, product launch date or announcement) that will pressure the partner to move quickly and when necessary emphasize the consequences of missing it.

 When the other side says something can’t be done, challenge them with questions like “what would it take for you to do X?”. Brainstorm multiple solutions and show that you’re willing to be flexible to get to a better answer.

 Lining up or at least identifying at least one viable partner option is often a critical component of a successful negotiation. In academic circles, this is often referred to the “best alternative to a negotiated agreement” or “BATNA” and defined as the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. Establishing a strong BATNA will provide you with the leverage to negotiate hard and empower you to walk away from a bad deal. In addition to being aware of your own BATNA, understanding the other side’s BATNA will help you optimize the value exchange.

 You get much better results if you really understand the other party. The good news is that value is typically created by your different objectives, perspectives and assets, but you have to work hard at questioning and active listening to maximize the opportunity. Restate the other’s position to make sure you are hearing them correctly. Share information with partners early about your preferences and priorities across negotiation issues. This makes the other party more apt to reveal theirs and engage in a meaningful discussion.

Business Development Playbook from Bubba Murarka

Preface

Strategic Partnership Planning

Opportunity Analysis (High Level Spreadsheet)

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