If you ask for a solid definition for business development, you will often get varying and contradictory responses. Some will opine that “Business development is sales”, others might say “it is all about partnerships”, few business folks would center business development on “boosting revenue and growth.” Thus, most of the time these discussions lack a concise explanation and are not based on an overall framework.
Foundation Stones
The two major foundation stones for building the right business development strategy include:
- Attracting new customers
- Maintaining existing customers
Implementing the right business development strategy needs a well laid-out process involving strategy, sales, and marketing alignment to achieve effective outcomes.
Benefits of the Right Business Development Strategy
- Enhancing customer communication
- Increasing brand value
- Strengthening business and raising revenue
- Enabling recurring business leading to successful partnerships and improved employee engagement
Key Definition
“Business development is the creation of long-term value for an organization through customers and markets focusing on establishing innovative partnerships and by educating your workforce.”
Four Critical Components
- Create long-term value — Create opportunities that persist over the long term, like keeping the channel open so that value can flow in indefinitely.
- Define customers and markets — Identifying the right set of customers and markets is defined by demographics, lifestyle, and buying habits. Analyzing your target market to reach prospective customers is one important gateway to unlocking long-term value proposition.
- Establish innovative partnerships — Successful businesses rarely provide all services themselves. Relationships with partners, customers, employees, and the press are all critical elements to the success of any business.
- Educate your workforce — Your product or service offering needs to communicate a clear competitive advantage. This calls for educating your employees effectively.
For a successful Business Development Strategy, all three components — sales, strategy, and marketing — must align to enable effective outcomes and to foster creative thinking.
