How Is Business Development an Important Factor for the Advancement of Business Initiatives?

The simplest and most direct way of describing what business development is all about is that, it is the initiatives and idea taken, discussed and put forth in order to make a certain business bigger and better.

This includes a lot of factors such as the steps taken in the expansion of business, planning strategies and implementing them, seeing where the profit lies and focusing it to grow further and making effective business decisions.

There is a lot of scope and concept and understanding that goes behind Business Development. It doesn’t happen in a day and with just one step taken.

Here are a certain fields where business development can be connected and made to bring in a change

1. Sales need the expansion if they need the advancement

The key function of someone in Sales is to prod upon a targeted client or a particular market which seems to be booming with prospects. Now the sales department makes certain strategies and focus on certain goals to assess these particular markets and see how the sales of that market can be achieved in a specified amount of time that can bring advantage to their field of work. The sales department keeps their main focus on the customer based in the targeted markets with their discussed strategies.

2. Marketing is for the ones with quick brains

Marketing is basically a smart and innovative way of advertising a certain product or a brand that would promote the sale of the same. When we come into the picture of Business development in these scenes, the ones with this initiative need to finalize on a certain budget. Higher the budgets, more effective and extravagant are the marketing strategy like making personal visits or phone calls. Lower budgets call for minimal sort of strategies such a limited newspaper advertisements. So here the Business development helps in allocating the budget based on the kind and level of profit the marketing team is looking for.

3. Cost effective moves for beneficial grounds

A lot of people might conclude that this kind of development is only about promoting sales and advertising marketing reach. But no, it involves a lot of cost saving measures as well. The strategic decisions that are taken need to include cost cutting measures to have a balanced step taken and not overdoing on the expenditure. Through all the new ideas and steps taken for the business development it ultimately aims in developing the business prospective.

Thus here we get a clear idea about how business development is linked with other career linked paths and how it is enabling their growth and advancement.

A Glimpse Over a Business Development Manager’s Job

Every businessman starts his business with an aim to grow in terms of annual sales. However, starting up a business seems easier, but making it a big one is not everyone’s cup of tea. It needs great efforts and hard work to get your business on the heights of success. According to a research, it has been observed that only one-tenth of 1 percent of companies will ever reach $250 million in annual revenue.

In order to develop a business, you need to make a growth strategy that must cover market perception, market growth, product development, alternative channels, new products, etc. Here, comes the need for a business development manager. He is the most important part of an organization, who needs to work with the marketing people, internal team and other seniors to develop the strategies for enhancing the sales opportunities, thus, increasing the profits. Let’s have a glance over the job of a business development manager:

Role of a business development manager

Well, the role of the concerned person can be categorized as follows:

• Outlook for new clients: It is perhaps the primary role of a business development manager to search for new clients. This can be done through various ways including cold calling, networking, advertising and more.

• Planning influential approaches: The next important thing is planning a proper influential approach that can encourage the prospective clients to do business with the company.

• Developing a bond: Developing a good relationship with new customers is really necessary if you want to develop your business. This can be done by setting targets and proving the required support to the customers for improving the bond.

• Grow and retain existing accounts: Developing a good relationship with new customers is not just enough. What more require is growing and maintaining the existing accounts. In order to retain the current customers the manager should be ready with new solutions and services that he/she can present to the customers as and when required.

Above are some of the primary roles of a business development manager. Apart from this, he/she is responsible for making a strategic planning for developing a new business coming in to the company. For this, the person must possess a sound knowledge of the current market condition, services that company can provide and most importantly who are the company’s rivals.

Qualifications and skills required for the business development manager

• Educational qualification: As the job of a business development manager is quite challenging, he needs to have certain skills that can assist him in facing all the hurdles. As per the reports of online job placements on and, the educational qualification required for Business Development Manager Jobs is first of all a bachelor’s degree in business administration or any other related field. Having a good experience in sales or marketing will be added advantage. Though, some companies may prefer the candidates who hold a master’s degree in this field.

• Key skills: As far as skills are concerned, the person should be highly motivated, problem solver and must have prospecting skills, territory management, market knowledge, presentation skills, closing skills, professionalism, etc.

Significant result areas of business development manager

To achieve the desired results, it is very essential to be crystal clear about everything so that the concerned person will be able to focus on the results. Generally, the key result area should be:

• Clear, precise and measurable: A clear, precise and measurable key area will help in defining the exact results that have been achieved and how well they are achieved.

• Under the control of business development manager: The key result area should be under the control of the concerned person. When he/she does it in a right way, it will contribute towards a major value to a business and to the career of the responsible person.

• A vital activity of the business: A key result area is unquestionably the important output that will turn out to be an input to the next result area.

All the above information will surely help you to get an idea about the job of a business development manager.

How Much Sales Is Involved With Business Development?

If you ask a group of people what they think business development is, you would most likely get a few different answers. There is even a chance that your own view of business development and sales may be used interchangeably.

Business development involves more of a strategic approach such as strategy, marketing, customer management, and partnerships; these activities encompass about 75%-80% of the approach, and sales about 20%-25%.

When I get asked the question, does business development have something to do with sales? Yes, it does. Is it related to business growth? Most definitely it does. Does it have anything to do with business strategy? There is a good chance it does.

Business development is a culmination of these different activities but most importantly, it’s all about shifting to the point of view of the client. This will provide you with that new perspective and will have you balance your efforts across these key activities that you and your client will both need and address. Whenever you conduct your business development efforts make sure to take the perspective from the client’s point of view and try to develop a deeper understanding of what their problem is. Realize that the client only cares about one thing and that’s their own group or company’s survival and the problem that they are facing. The client is only interested in you if they identify a need/problem or pain point that you can solve and provide a solution for it. It’s the kind of value that you can provide them that will enable them to consider your firm for the project.

If your firm’s approach is strictly from a sales perspective, generally, the economy of scale is to grow as large as you can. The strategy is to sell your product or service with a clear price and value directly to an identifiable individual client.

From a Business development perspective, the economy of scale is much smaller because the approach to your service is more strategic with the intent to create a partnership. It entails cultivating a relationship with the client and provide a service that could be more cyclical by working through existing partner infrastructures.

In my 14+ years of professional experience in management consulting, business development has been stretched to encompass a wider variety of activities with the intent to stay smaller in size. In its most traditional definition it is all about developing partnerships, which often includes some sales. Whereas, strictly sales are more transaction oriented where scalability is the differentiator.