American Express, June 2020
A solid business development strategy can be integral to a company’s growth and success. But if you ask a dozen different people, “What is business development?”, you’ll likely get a dozen different answers. That’s because the role of business development evolves along with the company, and that role varies according to the company’s size, maturity and priorities.
In simple terms, business development consists of the strategies and actions that contribute to the growth and value of a company. Relationship building, market expansion and brand awareness campaigns are all types of business development strategies.
Those who work within business development assess a company’s performance and seek out ways to improve the company’s prospects for growth. Whereas salespeople work directly with individual customers to close deals, business development consists of taking more of a big-picture approach and employing various tactics to position the business for long-term growth.
Why is business development important?
When it comes to organizational growth, business development acts as the thread that ties together all of a company’s functions or departments, helping a business expand and improve its sales, revenues, product offerings, talent, customer service and brand awareness.
There are a number of key areas in which someone tasked with business development can help effect change and promote growth across departments. Here are four reasons why business development is important.
- It builds important relationships. Whether cultivating new talent, networking with prospective partners or courting potential customers, relationship-building is an integral piece of the business development process. A savvy business developer can hone in on the relationships that demand the most attention. Connecting with clients, colleagues and other members of one’s network can be fundamental to identifying new business opportunities, generating leads and making critical hires. And, strengthening existing relationships will help deliver repeat customers, or provide an opportunity to hone and enhance talent from within.It’s a key strategy for boosting revenue and lowering costs.
- It’s a key strategy for boosting revenue and lowering costs. Growth is the end game of business development, and one of the most common metrics for measuring that growth is the bottom line. Key to the business development process is devising strategies to help increase the amount of money that’s coming into an organization, while making sure less money is going out. Focusing on business development can help an organization identify which markets and products have the most profit potential, and which deals to chase first. Business development also entails making decisions that help keep costs down as well as identify areas of growth and the funding needed to facilitate such expansion.
- It can help improve the company’s overall image. Marketing is vital to a business’ growth, and a business developer can help an organization build a better brand. A business developer can work closely with the marketing team to develop campaigns that solidify the company’s target audience and reach new customers and markets. A significant aspect of business development is understanding the inner workings of a company’s products and services, as well as its customers. Business development leaders can use these insights to help inform new marketing campaigns that guide potential customers to products and services that could benefit them.
- It may open up expansion into new markets. Tapping into new areas of opportunity could be a lucrative growth strategy, and business development involves staying on top of market trends and opportunities. By analyzing demographics and customer data, a business developer can find ways to enter these markets and access new segments of customers.
