In simple words, business development is developing a business that means increasing its relationship with the customers and other organizations. It involved the ideas, initiatives, and activities required to increment the business. It required increasing revenue and profit, building strategic relationships collaborating with the businesses, and making decisions in favor of the company’s financial gain.
Business development strategy covers a company’s wide area while influencing them in terms of marketing and generating revenues. Different departments that come under the business development are sales, project management, marketing, product management, and vendor management.
Other factors that are involved are Networking, negotiations, partnerships, as well as cost-saving efforts. This all-different part of a company is connected and falls under the business development goals.
You may take the example of expanding a business from one state to another. If you are running your business in on demography, you will wish to develop further, and in that case, you will need planning and execution. For that, you need a business development department in your company.
Keys to takeaway
- Business development has various ideas, activities, and initiatives to make the business better and smooth. These all initiation used to make the company achieve its long-term and short-term goals.
- Some of the most important topics covered by the business developments are sales, growth, business expansion, creation of the strategic partnership, and profitability.
- It covers almost every department of the company, such as manufacturing, marketing, accounting, sales, product development, and even vendor management.
- They also participate in the new market opportunities, possibilities of expansion, and competitor strategy and keep an eye on the company revenue.
Sales personnel focus on the particular clients and particular demography. They have a targeted revenue number to achieve in a designed period. Whereas, strategic development creates the strategies and planning to achieve that target. They target the market and potential customers in the new market with all their sales strategies.
It involves promotion and advertisement that aims to sell the products and services to the customers successfully. The role of marketing is to complement the sales target. Indeed, business development will allocate an estimated budget for the marketing. Suppose the budget for the marketing is higher. In that case, the campaigns will be aggressive and involve active marketing strategies such as cold calling, personal visits, roadshows, and free sample distribution. But when the budget is low, the marketing team tries passive strategies such as online marketing, print ads, social media ads, etc.
Strategic initiatives or partnerships in business development
It is the work of business development to think about the strategic planning of the next move. When you enter a new region, you must plan whether you are going for a partnership or solo. This depends upon the market and company budgets. Consequently, the business development team work with the legal and financial advisors before moving to a partnership or solo endeavor. They look at both pros and cons before finalizing the decision.
Business planning and project management
When the business is expanding, deciding whether a new manufacturing plant or new faculty should be initiated in the region where the company is newly targeting is crucial. Of course, this needs planning well up and comparing the decisions’ pros and cons. This decision is finalized after the cost and time analysis. After that project management team enter the scene and takes over from there.
Product management falls under business development, where they have to look at whether it is successful for the new market or not. It requires understanding statistics and marketing flow before deciding to renovate the product or completely change it.
Will the new business need external vendors? Will shipping of products require a dedicated courier service? Should the firm partner with the established retain chains for the product promotions? The business development team work through all these questions and take action according to the answers they get.
The work of business development executives doesn’t only end at increasing the sales and expanding the market for the company. Still, they are also expected to save costs for the company operations. They look over the factors that are not as much as productive and don’t return a good amount of money, and they cut these factors off. They immediately close the system that is not generating enough revenue, and there is no hope for the same.
One of the best examples is cost-cutting on travels. If they find out that something can be worked upon a video call, they put that factor in the cost-cutting part and halt the journey.
What are the factors that business developers should know?
- Strengths, weaknesses, threats, and opportunities of the business.
- What is the current state of the field in which the industry is working upon?
- Their competitor’s progress and steps
- Sources of sales and revenue of the company
- Market opportunities that are new and unexplored
- Products that need expansion
- Long- and short-term plans
- Areas that need improvements
What are the factors that influence the business development activity?
As business development is a vast area of work. There are no standard criteria for the works. It can explore new opportunities in the external market or introduce efficiency in the internal operations. Both aspects can fall under the business development activity. Everyone who is involved in business development should come up with innovative ideas. These ideas may be unrealistic, but this is part of the process.
Why is business development significant?
It is essential for the growth of businesses and industries, and it helps create more revenues and generate jobs, thus keeping the economy moving.
What are the essential skills of a business development executive?
They should possess leadership skills, drive, vision, and work ethics. They should be willing to work with various people to achieve a common goal. You can choose business development courses to harness the skill.
How do become successful in business development?
If you have a vision and can put a good team together for the business’s success, then you can be good in business development. But a good business developer needs to write a good business plan which becomes crucial for the success of a business.
What should a business development plans include?
A business development plans include the objectives of the business and what steps should be taken to achieve those objectives; it has goals, costs, and processes step by step.
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