Business development involves processes and jobs to develop and introduce development opportunities in both existing and potential organizations. It is also a subset of the three fields of organizational theory, business, commerce, and management.
The Process of Business Development
The process of business development involves analysing market needs, analysing competitors, and identifying opportunities. It requires knowledge of financial markets, accounting, economics, law and regulation, and business administration.
Business Development Managers
Business development managers are responsible for analyzing and evaluating organizations’ current circumstances and prospects in order to identify new opportunities for companies. They are instrumental in helping to create and maintain strategies for future growth.
A good business development manager should effectively coordinate and plan activities that will develop opportunities for current and prospective companies. The ability to communicate clearly and manage people and resources is essential.
Strategic Partnerships and Alliances
Business development involves establishing strategic partnerships and identifying new strategic alliances. This strategic partnership is an essential aspect of developing relationships with key vendors and suppliers. In addition, strategic alliances are crucial in obtaining access to new technological advances and business development programs.
The importance of securing technology depends on your vendors’ ability to deliver products and services on time, within budget, and within specifications. A good business development manager can assess potential vendor relationships, identify key partnerships and develop marketing plans that focus on building long-term value.
Business Development Team
A good business development team will work closely with product management to determine how to improve or replace key parts or service packages. When dealing with developing a product, a good business development team will focus on obtaining the best product available from a qualified provider.
Outsourcing Capabilities
Outsourcing capabilities are an important tool for business development managers seeking new business opportunities. This enables business development managers to focus on strategies that yield the greatest return on investment.
Outsourcing allows the manager to eliminate many middlemen such as marketers, design experts and distributors. A business development manager can focus his attention on the technology and skills necessary to develop new opportunities.
Product Strategy
A key aspect of business development is the creation of a product strategy. The business development team should analyze current product requirements, establish new product development objectives and develop marketing programs.
A successful strategy will leverage the strengths of the company and develops new market segments. A strong marketing plan will also provide a foundation for new market development strategies. Good business development teams will develop and manage comprehensive marketing plans, including nationwide distribution and niche marketing programs.
Risk Analysis
The business development manager should be prepared to address issues regarding product management, including vendor management, manufacturing, quality control, competitive analysis, and financial management.
A key function in product management is risk analysis. Business development professionals will evaluate current and future product risk factors. These include product returns, environmental factors, competitor threats, competitive issues, and whether the new business development team will access or expend internal resources to obtain new products.
Negotiations
A business development professional will conduct negotiations with prospective strategic partnerships and identify the advantages of such partnerships. He/she will then develop a partnership agreement based on those objectives.
Proper Communication
Effective communication skills are essential to developing relationships and building trust. A key component of developing relationships is effective communication with vendors. He/she will establish open lines of communication to ensure that vendor expectations are clearly understood.
The sales team will need to understand and appreciate the importance of each vendor’s requirements before developing relationship strategies. Effective sales team communication skills will allow the sales team to anticipate issues and deal with them promptly.
Good communication skills will also allow business development managers to facilitate good team meetings and help build teams. He/she needs to be able to lead company-wide meetings and resolve conflicts and misunderstandings effectively.
Team Building
In addition, a business development manager needs to facilitate individual team meetings within his/her organization effectively. Team building skills are often required by organizations expanding from a small local presence to a national, regional, or international presence.
Business development managers should use personal growth opportunities to help their sales team develop their communication and interpersonal skills. Business development will not result in growth unless there is a change in employees.
All in All
Business development does not happen overnight. It usually takes months, sometimes years, for a business developer to truly realize his/her financial goals. Business development requires patience, determination, and a strong work ethic.
Individuals who have successfully worked in the development field should have no problem adjusting to a new line of work. Business development is a wonderful profession with many growth opportunities and job stability.