An enterprise starts when someone with a vision for a product, service, or mission considers a new venture. They then begin to develop business development process one by one. For that, it is essential to know about the various aspect of business development. The current article is all about the business development process in which we have provided you a concise and concentrated best 10 ways for business development process in 2021.
Business Development vs. Business Marketing
Marketing is the structural process of determining which products or items and services a platform will offer to targeted audiences at what price and with a strategic discount. It also addresses how a platform will position and promote your firm and its offerings in the competitive marketplace and defend others in the same field. The resultant activity should be an increasing awareness of your firm among your target audience — and a more robust flow of qualified leads and opportunities.
Historically, it is said that business development has been a subset of the marketing function focused on acquiring new marketing or distribution relationships and strategic channels. While this essential role still exists in many companies, platforms, and the business development title has become interchangeable with marketing and sales functions.
What is the strategic Business Development process?
Not all business development process has an equal impact. A lot of the activities and components of many professionals are very opportunistic and tactical. This is especially true with many seller-doers.
Caught between the pressures of excessive client work and an urgent need for a new business, they cast about for something quick and easy that will produce short-term results.
Strategic business development is a process and procedure with some firms’ strategic business goals and vision. The role of strategic business development is to acquire ideal clients for your highest priority services using brand promises that you can deliver upon.
Deciding which targets to pursue and strategies to employ to develop new business is a high-stakes decision. A sound system, well implemented, can drive high levels of growth and profitability. A faulty strategy can stymie growth and frustrate valuable talent.
Best 10 business development processes in 2021
The business development process starts with the plantation of an idea in mind. It takes root and goes on to become a mighty tree. With time, it starts to bear fruit.
The process never stops, and every day, there is some activity taking place that helps in the business development process. If this process stalls, it means the organization is moving towards downfall. There is no middle ground here. Those who do not improve deteriorate.
So, it’s essential to keep this process going, and for that, we need to know the purpose, extent, and critical areas this process touches upon. Let’s start at the base and build this process up step by step.
Mission and Vision
A company starts to develop in the minds of visionaries before anything material takes place. Business Development Ideas begin to establish a vision of one or more people who decide a mission for themselves. These ideas take root when shared with other people who share the same concept.
Indeed, the vision and mission are two vital elements of any business development process. Without a dream, there is no purpose to the existence of an organization. And without a mission, there is no direction to a company’s journey. It becomes a lost vessel in a vast sea.
With this in mind, executives and entrepreneurs develop a clear vision for a business or an organization they want to start. For profit-making companies, usually, customer needs and expectations are the keys. They know what people want or what areas in people’s lives have problems that they can resolve.
On the other hand, non-profit organizations have a philanthropic vision and mission. So, their Business development activities are different from profit-making corporations. They try to solve problems through help and support.
But, the common element in all types of businesses or organizations is the presence of a clear vision and mission.
Companies develop vision and mission statements and use them as general guidelines to make them a shared value.
Goals and Targets
The next element is setting up goals and targets for an organization. When a new entity comes into being, it needs a direction and a plan to move forward. Its team also needs a coordination strategy to move in accord. Without set goals and targets, a team doesn’t know how to gauge its performance.
For this purpose, a clearly defined goal is established at the beginning for a certain period. As the company moves forward, it develops more and more goals and correlated deadlines for those goals. The plans are of various kinds, such as sales targets, product launches, product innovation, market expansion, and many more.
At the same time, targets are also mapped out to achieve those goals. Targets are specific tasks within a goal, and they quantify the progress. A target helps management gauge the advancement towards a goal. After evaluating small targets, the management then decides to keep the pace constant or increase the effort.
In addition, the targets have specific deadlines that help track and evaluate the performance of a team. If a company is repeatedly missing deadlines, the management decides to change the strategy or make a significant policy change. This brings us to the next element, strategic decision-making.
Strategic Decisions in Business Development Process
Depending on how they play out, strategic decisions prove to be a lifeline or a death knell for a business. There are quite a few examples where a company took a nosedive in profits and sales because a critical decision turned out to be disastrous. For many of those companies, recovery did not happen at all.
For this reason, executives and CEOs receive millions of dollars in compensations and a share in company stocks. This highlights the importance of strategic decision-making in a business development strategy. That’s why higher management considers many things before they make a decision.
Leadership and intuition were considered synonymous in the past, and executives were supposed to make decisions based on their knowledge and experience. A popular term for leaders was charisma which underscored the importance of personal leadership.
Modern companies make extensive use of data and technology to make a decision. Rational decision-making has replaced intuition and personal biases. With the advancement in information technology, data is used in almost every decision. Data analytics, statistics, and artificial intelligence help make better decisions.
So, today data and analytics combined with AI lead the way and help make more informed decisions. This has enhanced the efficiency and effectiveness of business development services.
This brings us to an important decision that almost every company has to make in its Business Development Process. To be, or not be, a partner?
Strategic Initiatives or Partnerships
One is a person, and two is a team. This adage helps us put things into perspective when we see insanely successful partnerships. Similarly, companies take strategic steps to gain more market share, customer base or to expand their organization in size. These strategic initiatives prove valuable for some struggling companies but can go wrong as well.
Strategic initiatives include launching new products or services, finding new markets, parallel or horizontal expansion, etc. These fundamental decisions take place after thorough research, extensive planning, threadbare discussions, and wide-ranging consultations. When making such decisions, you must ensure input from all stakeholders and an inclusive conclusion.
This ensures diverse business development ideas with insights from various corners. As a result, the process becomes more effective.
Similarly, partnerships are vital for a company to thrive in a competitive market. It is impossible to be self-sufficient in today’s world. It is a lousy strategy to not rely on others for supply and resources. Comparative advantage compels companies to become specialists in what they do best and do not indulge in things that are not their strengths.
In this regard, partnerships are vital and can save millions of dollars in cost and increase both party’s profitability.
Cost-saving is another dimension of business development strategy and our next topic.
Cost Savings in the Business Development Process
Cost-saving is a significant aim of the business development process, and no company can flourish without controlling its expenditures. Companies utilize different methods to decrease expenses.
The system’s efficiency, including employees and organizational procedures, is one of the ways costs can be controlled. In this regard, different pieces of training and motivation techniques can be used. Also, the work environment and corporate culture can help increase employee performance. Incentives also play a role.
In manufacturing, it is possible to reduce costs using technology and robotics instead of manual labor. This might be an investment initially, but it increases the efficiency, accuracy, and speed of the process that helps with the expensive control.
In offices, additional software help increase the efficiency of the system by reducing the time required for a task.
Outsourcing is another essential method. Many companies now utilize freelancers and experts on a need basis. This helps bring down the budgetary expenses as full-time employees are reduced. For this purpose, you can use Fiverr to hire an expert for your project.
Negotiations, Networking, and Lobbying
Last but not least is networking and lobbying for a business improvement plan. This is part of the process of business expansion and helps build partnerships and new business ventures. Many businesses are working continuously in this area and creating new opportunities in the process.
Big corporations use lobbying extensively and sometimes to the extent of bullying. They fund many pressure groups and influence government decisions as well. However, this does not mean that rally itself is terrible. It depends on the initiator and the intent as to how lobbying is used.
Similarly, negotiations are a big part of the business development strategy and are means to achieve almost every end. Some negotiations take place internally, within an organization and its department. Others are held with outside partners, vendors, officials, and potential clients.
Networking is probably known as the most universally used business development strategy. It’s built on the theory that any professional services buying decisions are rooted in relationships. The best effective way to develop new relationships is through face-to-face networking.
It certainly is true that many business relationships do develop in such a face-to-face networking way. And if you are networking with your targeted audience, you can create new business. But there are limitations. Today’s buyers are very time-pressured, and networking is time-consuming. It can be costly if you consider travel and time away from the office.
Newer digital networking techniques and advancements can help on the cost and time front.
The close relative of networking, another process is referrals which are often seen as the mechanism that turns networking and client satisfaction into new business. A platform can establish a relationship, and that person refers new business to you. Satisfied clients do the same.
Referrals can make a miracle at times, and many firms get most or all of their business from them. But referrals are passive. They rely on the clients and contacts to identify good prospects for your services and make a referral at the right time.
Sponsorships and Advertising process- a root masterpiece process for business development
Have you thought about developing new business directly by sponsoring events and advertising? It will solve a lot of problems because of its tactics. Studies have shown that traditional advertising is associated with slower and stagnant growth. Only when strategic advertising is combined with other techniques and tricks, such as speaking at an event, do these techniques bear fruit.
The most promising advertising strategy for business development seems to be well-targeted digital advertising. This allows platforms to get their messages and offers in front of the right audience at a lower cost.
Telephone and Mail professional services
Professional services offered by firms have been using phone calls and mail to target potential clients for decades directly. Target the correct firms and roles with a relevant and informative message. One would expect to find new opportunities that can be developed into clients and gather more authentic audiences.
There are probabilities of facing immense critical challenges with these strategies. First, they are relatively expensive compared to others, so they need to be just right to be effective. Second, if one does not catch the prospect at the right time, your offer may have no appeal relevance — and consequently, no impact on business development.
Q.1 What are the strategies for business development?
Here are a few tips for effective business development that can help you hit the ground running.
- Know Your Competition.
- Add Value and Build Trust.
- Use Testimonials Wisely.
- Keep an Eye on Online Reviews.
- Ask for the Business.
- Pay Attention to Your Website.
- Don’t Let Relationships Go Cold.
- Beat Your Competitors to the Punch.
Q.2 What are the four growth strategies?
The four essential growth strategies are as follows:
- The market penetration-This strategy aims to increase sales of existing products or services in existing markets, thus increasing your market share.
- Market development.
- Product development.
Q.3 What is the business development process?
Business development (BD) is the structural process used to identify, nurture, and acquire new clients, audiences, and business opportunities to drive growth and profitability. A business development process is a document that describes the method you will use to accomplish that goal.
Q.4 What is the role of business development?
In the simplest terms, business development can be summarized as the ideas, initiatives, and activities that help make a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions.
Q.5 How can a business grow faster?
Eight ways to grow your business
- Get to know your customers.
- Offer excellent customer service.
- Nurture the existing customers and look for new opportunities.
- Use social media.
- Attend networking events.
- Host events.
- Give back to your community.
- Measure what works and refine your approach as you go.
Final Thoughts on Business Development Process
To sum it up, you must understand the purpose of the business development process and what it aims to achieve. In this process, different elements are essential. These elements are mission, vision, strategic decisions, partnerships, cost-saving methods, networking, advertising, and many more.
We discussed each of them in detail as the process is incomplete without these elements. No business development process can be successful if it does not touch upon these primary areas. We hope that we have explained What is Business Development Process in enough detail for you.
In the following lecture, we’ll talk about the structure of a successful business and why it is vital to the business development process.