What is... Business Development?

Some of my international contacts would like to know more about my post about Business Development I published some days ago in German.

--------------------------------------------------------------------------------------------------------------

I am often asked what a business developer really does. Often, business development is also used simply as a job title without understanding the actual meaning. Often, a business developer is just expected to increase sales, making him a sales person, Box Mover.

Often, smaller companies in particular do not have the resources, not the patience, not the processes, structures and understanding for successful business development, which must lead to sustainable and constant growth.

Business Development is development of a particular line of business. The aim is to evaluate new business and existing business areas. Putting them on the test bench.

Business development is not a short-term campaign, but a planned and targeted method. No punctual and time-limited action but a dynamic and long-term integration of all processes and functional units of a company. Interdisciplinary cooperation with marketing, product development, product management, sales, service and customer support is just as much part of this as the initiation of future business with strategic partners, including suppliers and customers. The range must be evaluated, customer needs identified, market analysis and competitor observation are indispensable. Thus, it also becomes clear that a Business Development Manager must have special skills. Industry knowledge and a corresponding network are also part of this.

The process of business development should always begin with the analysis of the status quo. A snapshot of where the company is in order to develop measures, processes and strategies on how to achieve a defined goal. This is one of the primary tasks of the Business Developer. In addition, there are many other tasks that deal with relationship management. Creativity is required and not infrequently also paved paths must be left. Business development can not be realized with standard processes, as we know them from sales.

In my career, I have always viewed business development as a preliminary stage to sales. A wave of ideas and projects were drifting in front of me in order to generate suitable, bite-sized portions, which the sales department can then process effectively. Using the sales time to do the job required by a salesperson.

Collaboration with marketing is indispensable. Precisely for this new business field to develop a targeted approach. Just to be more visible to this target group. These are the requirements that can only work in teamwork. Also, product management and product development must be integrated. Outlook for new developments, what can you already sell to the customer as a solution today? Not only products, but more and more the solution as a customer request comes to the fore. The commercial part of such a function should not be underestimated, since it is also about the medium and long-term planning of the (sales-, profit- and image-) development of the business field. Often, the so-called "third-box thinking" helped me developing strategies. What does the client of my customer want and expect?

It is clear that time is needed for such a strategic and analytical approach, and that investment in such a method is needed.

Business Development is an investment in the future of the company.