Business Development: What Is It?
Business advancement is tied in with animating development, mostly by discovering new organizations, client classifications, and lines of business. It’s like being an explorer looking for opportunities even before the map was drawn.
Let’s list the main stages of the business development cycle with new partners:
- Search for new strategic relationships;
- exploring mutually beneficial opportunities;
- development and signing of the initial agreement;
- implementation of cooperation;
- identification of the broader potential from this cooperation.
Let’s say you have a restaurant and a new office building opens up nearby. You can talk about business development with the building management. You can provide the building employees with attractive discounts at lunchtime, arrange for food delivery to the office, or perhaps the company is looking for a partner in organizing buffets for important meetings in this office building.
The goal of business development
The goal of business development is to find mutually beneficial relationships between organizations. Your personality is important whether you’re a boss or an employee. Find out with an online personality generator tool which personality suits you better and work on yourself to improve it.
After the field of activity is developed and the conditions are determined, the projects that were launched to develop the business are transferred to various departments of the company for further development. For example, the design department is working on improving the product, the marketing department is developing new conditions to attract more customers in terms of cooperation, etc.
Business development aims to identify growth opportunities through partnerships, develop new relationships, and develop long-term opportunities. In small organizations, the owner or founder performs tasks of the company, but as the organization grows, it is often useful for them to have dedicated teams that can look beyond the horizon of future relationships with customers, partners, and suppliers.
Anything that is new, different, or uncertain. But which will ultimately lead to a sustainable business is at the core of business development. Let’s say you are developing a weight loss app and your company sells that app to consumers. Your business development team may be exploring partnerships with healthcare organizations that may offer the app to patients. Or food companies that could print your app’s QR code on their packaging. The idea is to find a way that the app will help other businesses, and those, in turn, will help your business.
Why do organizations need business development?
Because almost all departments of the company focus on working in the current conditions. They sell products with known prospects, sell them to established market segments, or improve their products for existing customers. Strategic teams plan for the future but in the abstract.
Let’s say a shoe company wants to start a bag business. Initially, the business development team will take the lead in researching handbag competitors, building relationships with manufacturers and distributors, and then determining how the business might work. They develop a plan, which may include licensing, pricing, marketing, and sourcing.
Once a company is ready to incorporate handbag manufacturing into its business, business development retreats and the back-office of the company takes over. The goal of business development is to find new ways to empower an organization. Business development professionals look at every part of a company’s value chain to identify new opportunities and give the organization more flexibility. By building partnerships and exploring directions to deepen this collaboration you can achieve this.
Many people believe that sales or marketing development can replace business development. This most often happens when sales are of an advisory nature, that is, the seller has to spend a lot of time to determine the client’s needs and find the optimal solution. Whereas the association of business development is with uncertain and new growth opportunities.
Consider the difference between sales and business development. Even if there is some consultation, the magnitude of the seller’s role remains constant. The products and services that he has to offer are fixed and the remuneration plan is predetermined. For example, a clothing salesperson will start any meeting by asking you what you are looking for and what your goals are. What’s your budget? You wish to replenish your wardrobe and so on. But the seller is limited to clothing and only sells to consumers, and their bonus and commission plan is defined.
An integral part of consulting sales
But if you plan to open a pop-up store near schools or special clothes for a hotel chain. Or add nail salons within the walls of a department store, then all this is beyond the scope of the seller.
Since marketers tend to strategically plan and focus on the future, it is worth considering the difference between this direction and business development. Marketing is about understanding the markets, communicating that information to the rest of the organization, and then, given corporate strategy, communicating it to potential clients. Everything in marketing must be scalable and consistent. Business development goes beyond mass personalization; in fact, it is about interpersonal relationships.
Future development strategy as a common part of marketing
The third large group that often has confusion with business development is strategic planning. This is a team of organizations that thinks about the future of the organization and develops a financial plan for a new product and entry into new markets. But while strategic planning focuses on financial issues, business development must be fraught with uncertainty about how the business can be implemented and who, other than the organization, should be involved.
Business development faces many unexpected challenges and opportunities, often associated with the unique situation of any company. Business development is the missing link between creating an idea and turning it into work.
Currently, there is an increase in advisory sales and sales of solutions that are somewhat similar to business development. Many large consulting firms have business development people who may be looking into adding a new line of business.