What is Business Development? When it comes to business, rarely has a more puzzling question been asked. Some may tell you that business development is associated with sales. Others will say it’s about building relationships, while still others will say it’s about doing what needs to be done to grow the business. In theory, they would all be accurate to some degree.
Business development is a broad concept that requires a thorough approach to expanding your business. At its core, business development is about proactively seeking methods to grow the business and then organizing the team and assets to meet optimal growth.
Business development is a function that collaborates with and between all internal and external divisions of the company, as well as sales, marketing, product development, contractors, etc. The goal of business development is to see the big picture and then engage all the moving parts, people and products, to propel the business forward. With such an important function, it’s easy to see why strategic planning is important for successful business growth.
This is high-level decision making, and to be effective as a business developer, you need to have a deep understanding of your business and your industry. Here are five crucial things every business developer should be aware of.
Vision for the company
Before you can operate as a business developer, you must first understand where you are going. Begin with the end in mind. Knowing your long-term goals will provide you with the knowledge you need to develop a plan to get there.
The current business scenario
Before you can design a strategy to achieve long-term goals, you must first carefully consider where you are today. This is often called a SWOT analysis, which represents strengths, weaknesses, opportunities and threats. Take a real, serious and honest look at the state of your business.
State of the company
What’s happening in your industry? How is it evolving? What effect does the market have on him? What is the state of technology and what new goods and services are being developed? Understanding the industry and what’s going on in it will allow you to make strategic changes.
How your business works
You must have a good understanding of how money is made. What does it take to create a product or offer a service? How much money does it take to make a product, and how much profit do you make? What is cash flow timing and what factors influence it positively or negatively?
Outside point of view
Finally, a solid external point of view, an in-depth knowledge of what is happening outside your company. What trends are you seeing in the industry, competition and customers? What is the state of the economy and what is happening politically? Having a firm grip on the exterior will allow you to make more informed decisions about the interior.