What is the Difference Between Business Development and Sales?
The Infinite Game of Business Development vs. The Finite Game of Sales
Business Development is often confused with sales. The idea of a game is a useful way to think about the differences between business development and sales. We can think of both as a game we play.
Like a sports or card game, there are players, rules, and a field of play. There is a clear purpose and outcome to the game.
Soccer, for example has eleven players on a side with clear roles in attack and defence. The purpose of the game is to get the ball in the net of the opposing team. The game ends after a set time and the winner is the team with the most goals.
Simon Sinek uses the concept of a game to describe business as an infinite game. In his book “The Infinite Game” Simon says:
“An infinite mindset embraces the reality that we will not win every game and that’s okay. The purpose of the game is to keep playing, to perpetuate the game.”
Because Business Development is about growing a business, it is an infinite game. There are no clear rules, no fixed number of players, and no clear end to the game. In other words, there are no winners and losers.
Contrast this with sales. In sales there are rules like product packaging, distribution channels, marker pricing. The players ae the well-known customer profiles, and competitors. The winner is the one who gets the sale.
Sales is a game within the Business Development game.
Business Development incorporates business activities like sales, marketing, and product development. Yet, it is far more complex. If we embrace the idea of “The Infinite Game”, our perspective will change completely.
We can start to think about Business Development as a long-term, strategic endeavour. We will focus on constant improvement and adapting to the changing circumstances.
Simon suggests that we see players not as opponents but as fellow participants in the game. This opens the possibility for collaboration as partners.
The goal is to develop long term relationships and alliances. With these relationships we can take advantage of opportunities and combat the challenges along the way.
He encourages us to view competitors as worthy rivals rather than enemies. Worthy rivals push us to always improve and innovate. The focus shifts to improving ourselves rather than outmuscling the enemy.
Business Development and Sales as a Game
Players
Who are the players in sales? The players are usually individual salespeople or teams who compete against one another. The goal is to secure the most sales and generate immediate revenue.
Business development involves a broader range of players. This includes sales teams, marketing departments, strategic partnerships, and even customers. The focus is on collaboration and building relationships to create sustainable growth.
Rules
Like any sports game, sales operate within a set of accepted rules and strategies. Some of them are discovery calls, sales presentations, demonstrations, proposals. and sales orders. Both the sellers and the buyers understand and play by these rules. The rules are often rigid and aim to maximize short-term gains. The best man wins.
Conversely, business development demands flexibility and adaptability. There are no fixed rules. It allows for experimentation and innovation. It is common to change strategies as the market evolves. You make up the rules based on circumstances and the strategies you follow.
Field of Play
Sales typically take place within a specific market segment or target audience. The field of play for some businesses is local. For example, a gardening service can only work in a confined area. The field of play is well-defined, and the competition is fierce.
Business development encompasses a broader scope, extending beyond a single market segment. It involves exploring new markets, identifying emerging trends, and seeking untapped opportunities. The field of play in business development is always expanding.
Duration — Long vs. Short
Sales often have a short duration, with a focus on achieving immediate results. Targets are set for weeks, months, or quarters, creating a sense of urgency to close deals fast.
In contrast, business development is a long walk. It involves nurturing relationships and building trust with stakeholders. One must invest in sustainable growth over an extended period. The focus is on cultivating lasting partnerships rather than short-term wins.
The Goal — Stay in the Game vs. Win
The goal in sales is to win the deal and outperform competitors. It’s a zero-sum game. One party’s success often comes at the expense of others.
In contrast, the goal in business development is to stay in the game and to evolve. We measure success by your ability to adapt to changing market conditions.
So, establish your competitive edge and create value that transcends immediate wins. It’s about playing the long game and striving for ongoing relevance and growth.
Scoring
In sales, we use quantitative metrics for scoring. Common metrics are revenue generated, sales targets achieved, and market share captured. The focus is on hitting specific numbers and surpassing competitors.
With business development, scoring is complex. It includes qualitative factors such as customer satisfaction and brand reputation. It indicates our ability to seize new opportunities. It’s about creating sustainable value and equity. The aim is to make a positive impact on all stakeholders involved.
Conclusion
We have established that there is a difference between sales and business development. Thinking of it as a game helps us to understand the differences. Sales in any business is important for business growth. It is a game within the bigger game of business development.
Sales give us short-term wins. It remains one of the key drivers indicating progress and success in the short term.
Business development focuses on building lasting relationships. It helps us to adapt to change and create sustainable growth. It is us playing the infinite game. Its principles help businesses to thrive in an ever-evolving marketplace.
All that we need is to shift our mindset from winning to staying in the game. With that we unlock new opportunities, and foster innovation. We lay the foundation for enduring success.
