What Is Business Development?

A little background about me: I have been working in the area of acquiring clients and developing new business opportunities, specifically international expansion, for the last eight years. This article is a summary of what I have learned over the years and the differences I have recognized.

The most accurate definition of business development is a set of tasks and processes meant to develop and implement growth opportunities within (and between) organizations sustainably and profitably. In practical terms, however, most businesses use the term differently, depending on what they need to do for their specific goals.

For example, business development within a B2C product company usually involves many cold calls to potential customers. In a major multinational, on the other hand, business development can involve performing market analysis for market entry or a new product line.

However, despite the differences, business development has a common objective: to identify and implement new growth opportunities.

The key here is "growth opportunities." In most situations, "new opportunities" mean more than just "new customers." It also includes:

- Entering new markets

- Establishing new partnerships

- Product development

Is there a difference between marketing and business development?

The difference is this: Marketing is primarily aimed at attracting new and potential customers, while business development involves connecting with organizations to create new opportunities.

Business development is all about relationships. The main objective is to build strategic partnerships and relationships with other organizations in a target market. This can include developing a relationship with a principal founder to bring them closer to an alliance. It may also include leveraging existing relationships to generate recommendations and develop new markets across different geographic regions.

What skills do you need for a business development role?

1. Communication Skills

Calling potential customers, maintaining long-term relationships with strategic partners, listening to potential customer concerns, and sharing valuable information with stakeholders require strong communication and listening skills. Success in business development is difficult without the ability to communicate confidently and clearly.

2. Networking and Lead Generation Skills

The ability to use platforms such as LinkedIn to network with potential partners, search for desired clients, locate contact details, and establish a discussion.

Business Development Vs Sales Representative

Companies often view business development as a sales representative with a more fancy title. That's as far as the truth goes. When businesses view business development as part of the sales team, it tends to lead to misunderstanding and frustration, especially when it comes to revenue.

For example, promoters might think a new business development person will close deals in a very short amount of time. But there are several reasons why this is an unrealistic expectation.

Business development mainly goes after new opportunities, and those require longer times to close.

Business development is not sales. So, you can't expect your BD to close deals within any specific time frame. This is just one area where unrealistic expectations can arise.

Business development usually starts conversations with cold leads. Therefore, they spend a lot of time:

- Attending events

- Connecting on social media

- Launching new initiatives

- Coordinating business development activities with marketing and sales

Sales representatives usually engage with warm leads, people who are already considering their specific solution. Therefore, they spend their time:

- Conducting calls, demos, or meetings

- Consulting and problem-solving with prospects

- Convincing potential customers to choose them

Organizational growth depends on business development as it ties together all of a company's functions and departments, helping the business expand and improve its sales, revenues, product offerings, customer service, and brand awareness.

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