Business Development: Explained

Depending on who you ask, there are a lot of definitions for business development. Some people will tell you business development is sales, others will tell you it’s partnerships, and some will even describe it as working hard. The issue with these definitions is there’s no clear cut explanation on what business development is. The definition is too broad to the point where different business owners and executives in companies don’t have a well-thought-out business development strategy. According to Forbes contributor Scott Pollack, the true definition of business development is “ Business development is the creation of long-term value for an organization from customers, markets, and relationships.” Listed below, you will find the breakdown of the definition of business development.

Whichever name you choose to name your target market, these individuals are responsible for creating revenue for your business while paying for all expenses of the daily operation of the business. Without clients, you would have no business. There are different methods for seeking out clients, but this must be done on a consistent basis to generate new revenue and maintain the current revenue for your business.

There are two types of industries or “markets” that you sell to: individuals in a specific region and individuals with a specific demographic with their wants, needs, and purchasing needs. When selling to a market in a specific region, your outreach is limited as your focus solely on that area (ie selling in New York) compared to selling in more regions. Selling to a specific “demographic” that reside in different regions of the world expands your outreach and expands your brand awareness. If you are a small business that can only do business locally or specific to a region, focus on selling and expanding your presence in that market. Expand to the closest market next that resembles your home market to organically grow your business. If you are a larger business, focus on targeting clients who are willing to purchase your product followed by targeting clients strategically through market research.

Relationships:

Probably the most underrated aspects of business development, relationships are fundamental to create strategic partnerships and grow your client pool. Relationships can be fostered through various methods, including networking, cold calling, and marketing events. One important factor to remember when fostering relationships is to build trust, respect, and a mutual understanding of what each party brings to the table. Relationships are not only external but internal as well.

Prolonged Value:

When starting a business, most individuals are looking for methods to exponentially grow their business or generating the most amount of revenue for the least possible amount of cost. This certainly doesn’t create value for your business, your clients, or sustainability now and in the future. Value refers to seizing and creating opportunities that affect the business now and in the future, to ensure the business is sustainable and profitable. Whether it be creating compelling products or promoting the product through marketing, value is what separates the business from all others.

Originally published at https://jamarjohnson.co.