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When you ask someone what he does for a living and he answers – ”I do business development”, what does that actually mean? Even when people who are actively trying to serve a function at a company that tries to improve business development get asked what do...Read More
When you ask someone what he does for a living and he answers – ”I do business development”, what does that actually mean?
Even when people who are actively trying to serve a function at a company that tries to improve business development get asked what do they do, the answers might sound like ”business development is sales” or ”business development is marketing” but it’s not the correct answer.
What it actually is, is ”Business development is the creation of a long term value for an organization from customers, markets and relationships.” In other words, business development has a role to make strategic opportunities for your company and set it on the right path.
Business development is not sales, but it certainly doesn’t mean that knowledge of sales won’t help business developer to make better plans. It is not uncommon for business developers to have marketing and sales, strategy, finance and operations backgrounds. In this article we will go over a few tips for successful business development and startup, so stick around and learn something you might not already know.
Among other things, the most important one is to hire the right person. Depending on the current stage of your company you may need different people for this job. Even someone who has deep industry knowledge and strong connections ready to do the deals may be disastrous for your company’s lifecycle if it’s too early for those kinds of plans.
The earliest stage of the company is scouting, and at this point business development should represent identification of various routes to market, points of leverage and providing the internal team early market feedback.
The next phase is testing and at this point business development should close a few deals to test assumptions and provide measurable input before scaling the business. All this testing should determine where to scale based on the company’s strength and vision. After gathering all the needed data from testing and determing a path for achieving your goals, next thing is scaling. At this stage your business should be able to start recreating deals and putting a support structure in place.
A lot of times when starting a business people find themselves conflicted whether they should focus on quality or quantity and the answer isn’t always the easiest. Caring deeply about your product and making it the best way you can will increase its cost and the market isn’t prone too much to pay for a promise of increased commitment even if they find your product useful, which makes for a higher likelihood of failure. On the other hand a quantitative value dramatically increases the success chance.
When making the deals, be sure to make them carefully. Remember that there is a difference between doing deals and doing the right deals. Many companies made the wrong deals that weigh them down in the future which they ended up regretting deeply, so make sure to check all your options and make sure that the one you chose is actually the best one.Read More