The Business Development field is fascinating. After all, it is said to be all about finding the best way to grow an organization with the most current strategies. The more creative and unique you become, the more you can be sure about growing your own business on a more exponential scale. It is advantageous to look for the latest trends, try them out, and figure out the winning strategy.
But, there is an issue with it that nobody knows what business development is and what is included under the business development section. The current article is all about elaborating our main stuff what is business development. We have tried our best to deliver the best concise paper that can avail you of the best guide in 2021.
What is business development?
This term, Business Development, can be confusing for many people. The reasons for this confusion are diverse and need some in-depth analysis. If you also have this question, what is business development, then read on, we’ll help you with the answer in this article.
Indeed, there is no simple solution for business growth and development, and there is no universally accepted method to do it. One strategy that may work for one organization may not work for another even when both are similar corporations. This makes it harder to define the term and explain it in simple terms.
For the sake of this course, we’ll rely on a simple definition provided by Investopedia,
“The ideas, initiatives, and activities aimed towards making a business better”
The business development process aims to achieve revenue increase and organizational expansion to increase sales. It could be through the development, improvement, and production of new products or marketing of existing ones.
In this process, it’s not a single department responsible for business development ideas and strategies. This process touches every department and is impossible without proper coordination. Also, there needs to be an appropriate plan and an accumulative strategy to proceed orderly.
But first, let’s learn about the key areas that a beginner must know to understand the business development process.
Everything you need to know about Business Development
If you’re starting to learn BD, there are some key areas that you must know about before proceeding any further. So, let’s discuss them briefly, and we’ll explore them in detail in subsequent articles.
Core Business Development and expansion Knowledge
Business development knowledge is a general term for the fundamental concepts involved in the business development process. This includes market analysis, competitor analysis, branding strategies, product research and development ideas, and identifying new opportunities for business expansion.
These processes will be discussed in detail in other writings. Still, you must now develop a broad understanding of creating business development strategies, what is required to create a business strategy, and the elements involved to put those plans and strategies in motion.
The present state of business: Take a look inside
The first thing we need to do in any business development strategy is to assess the present state. We must know where we stand at the moment before deciding where we want to be in the future. Without comprehensive knowledge about the present, it is absurd to look towards the end.
For this purpose, data must be gathered about expenses, sales, profits, marketing campaigns, and whether those campaigns were effective, customer satisfaction level, and investor approvals.
This data must be compiled systematically and must be available for any analysis later. You won’t find any successful company that does not keep its past data for future comments.
Companies use the data compilation to conduct a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. We’ll discuss this tool in detail in later articles. But for now, let’s discuss each aspect briefly.
Every business has its strength and weaknesses. Some are innovators, others traders. Some pride themselves on being trendy, while others take solace in being classic and evergreen. This impacts the culture of the organization and creates strengths in each aspect.
It is essential to identify those strengths and weaknesses to help understand the key areas where business can be expanded. Conversely, it enables you to solve problems that exist in weak areas.
A straightforward way to gauge this is customer feedback. Undoubtedly, one area of your business must be outperforming others. That’s the strength of your business.
Similarly, opportunities and threats are excellent ways to find out the direction in which you can take your business forward. Opportunities are the possible avenues to explore in terms of investments, marketing, or sales, while threats are competitors, challenges to expansion, etc.
You can always find professionals to help you with this process on Fiverr. You can easily choose among the best experts available 24/7.
Industry trends and market analysis
Along with the Internal reflections mentioned above, a business must look out for external factors as well. One key area in this regard is market analysis. It comprises assessing the potential for your future product or service. It also requires a complete competitor analysis.
Both are faces of the same card. If you know the product potential and not the competitors selling it already, you won’t be able to tap the market comprehensively. It would be best if you had a whole idea of how a product will perform in the market by itself and how the competitors will affect its sales.
Also, a market does not remain in a predictive manner throw-out the year. It changes with seasons, trends, social and political milieus, and customer needs. In this process, you have to make sure to stay on top of all that.
Potential strategic partnerships
One is a person, but two is a team. Partnerships can be game-changers for many companies as they help fill out the gaps of each other. There are countless examples where a good partnership changed the life of businesses forever.
Sometimes seemingly disparate businesses establish insanely successful partnerships with insights and vision. One example would be the partnership between Louis Vuitton & BMW. Both companies profited a lot from this partnership.
Strategic business decisions
One more important thing to learn about is strategic business decisions. Many times, businesses made wrong turns and never recovered. A famous example is Nokia mobiles. They failed to anticipate the smartphone boom and were left behind in progress. The results were dramatic as their business took a nosedive, and manufacturers like Huawei and Samsung overtook their market share.
Such is the importance of decisions in business development. CEOs are paid millions of dollars to make the right strategic decisions.
Primary sources of sales
Another critical factor in business development is identifying primary sources of sales. Any new business must know its customer base and establish itself as a go-to brand for those customers. For example, Apple manufactures phones for a range of customers that can afford them. It does not have the most mobile phones sold every year, but its revenues are much higher than other brands.
So, a company must know which area it wants to target and channel its products to keep those customers loyal to its brand.
Long term prospects
Yet another aspect of the business development strategy is keeping a balance between short-term and long-term prospects. For increasing sales, companies employ short-term measures like marketing and ad campaigns. This helps drive the sales up and generates brand awareness.
However, this does not make the business thrive for a long time if some other issues are not addressed. One key issue would be the quality of the product. If there is no quality in the product or service for a customer, they will never come back no matter the amount of marketing you do.
Similarly, there needs to be a follow-up strategy to keep the customer loyal to the brand. Some companies offer discounts or premium membership programs, while others provide extra services. Depending on the kind of business, you must have a strategy for long-term prospects.
Market expansion opportunities
Market expansion is vital to business growth. Without that, you can’t increase revenue generation. Market expansion can be of many types, including marketing campaigns, product innovations, finding new geographical or digital markets to sell processes or services, etc.
In this regard, unlimited opportunities vs. risk analysis will be required, and the business development team needs to employ a full range of skills. The things we learned above are the ones that managers and executives use to make a decision.
Mind your business’ investors
Before you forget about the investors and are responsible for making their money, let’s remind you that you’re not alone. Some people will be watching your back, but some people are watching your steps.
In this regard, make sure that you keep your investors engaged and informed about the opportunities and risks involved. Before embarking on a new endeavor, make sure you take all the stakeholders into confidence and tell them what you’re about to do. This creates an environment of shared responsibility.
Don’t ignore the Digital World.
Make a website for your business to represent it on the web, even if your business is not primarily online. As a recommendation, we used SiteGround. to build our website, and it was super easy to set up
Similarly, if you are the owner of an e-commerce store, you can use ExpandCart. It is a highly professional platform with all the relevant plugins available.
Business development plan- a free guide for 2021
After figuring out how to shape the business development strategy and gaining some knowledge about business development, you’re ready to create your business development plan.
This is a document that will summarize all the information you will need daily.
If you’re just getting started for business management, creating such a plan can be pretty overwhelming and provide you with some basic ideas due to the high amount of information you have.
The type of information can vary slightly from a strategy to another. However, this basic information is standard in all of them.
Start with detailed market research.
It would be best to start gathering intelligence on the highest level. For this, you need to start with market research, the foundation of any strategy you decide to undertake.
The first thing that needs to assess is the size of the market you’re trying to attack.
One needs to analyze the Total Addressable Market (TAM) and find out the potential within your market.
After finding out how big your market platform is, one wants to know how much of this market is already being served under TSM – Total Served Market by the major competitors.
Include an industry analysis
Going deeper into the plan for the business development, the next thing to be included in the plan list is one needs to start digging into the industry, especially if one just started working in a new company or on a project. This step is often overlooked; however, being aware of what’s going on in your industry can help you be ahead of the competition. It will help one relate more to your target audience, seeing you as an expert in the field.
When analyzing the primary industry, there are three main things you need to include in your plan. Lastly, one needs to identify popular keywords and jargon that you can integrate into the daily vocabulary, especially when communicating with the audience.
Know your competitors
Having competitors’ intelligence can help you beat your competition and win their portion of the market. When checking your competitors, you need to have a general overview in terms of products and services they offer
One should be careful about not committing any mistake of stopping here. Knowing how much the competitors charge for what they offer is not really what will make the difference. The intelligence should also include the prominent opinions of their customers, the value propositions and unique selling points, the way of communicating, the channels they use for distribution, their key personalities, and a lot more.
Target your prime and authentic customers
Now, if you’re aware of what’s happening around you, you need to craft ideal customer profiles with their basic details. Now, when it comes to such type of research, many companies and platforms prefer to execute and follow their gut feeling. Could you not do it?
You will have tremendous growth for the project by knowing who you need to enlist in the targeted audience. This seems to be essential for one who wishes to have faster growth in business development.
If you already have a user base in this field, start from it and look for patterns to help you have a detailed picture of your customer profiles. For this plan to work, you first need to analyze the customer’s list and make your target audience list. After you complete that, you need to explore categories and the name of the customers. You can easily approach them and make them your supreme audience by getting additional information about their basic requirements, likes, and dislikes. The information you need to collect includes the type of company, a few examples to explain better what companies you have been referring to, company size, and geography.
Gather basic information about your target audience
Knowing what companies or partners to target is just the first step; you then have to analyze who will be the right person to approach.
Once again, start analyzing your user base if you have one; otherwise, start researching.
A survey will do the job, but it won’t be enough. You will also need to check social profiles and other places where your target persona hangs out.
When researching your persona, you need to ask yourself questions that help you have a deep understanding of the way people like to be approached, how they speak, what they’re interested in, what their challenges and differences are, and how you can ultimately help solve them.
A typical mistake many companies make is only to map out the decision-maker.
Q.1 How do you define business development?
Business development can be summarized and defined as the ideas, initiatives, and activities that help make a business better. This includes essential things like increasing revenues, increasing profitability by building strategic partnerships, expanding business, and making strategic business decisions.
Q.2 What is the new business development process?
New business development is known as the most complex and risky way to generate new revenue. The main aim is to generate profits with a new product or service and a new business model in a hitherto unknown market. For example, it can generate recent sales through an innovative business model.
Q.3 What are the fundamentals of business development?
There are three main components that business experts generally agree with form the base of business development: markets, customers, and relationships. Focusing on one of these areas is essential to growing a business ground beyond its current state.
To wrap it all up,
We want to say that business development is an exciting and rewarding field. You can make a lot of difference with critical strategic decisions, planning, market analysis, and branding strategies. The challenge is to keep all the stakeholders on board and create an enabling environment.
In business development strategies, there are many players involved, and each department plays its role. In the next chapter, we’ll discuss how every department is part of the business development process and what role everyone plays in building a business and taking it towards an upward trajectory.