Business Development is the functional area of a company responsible for identifying and flushing out new areas of business i.e.
A) New products
B) New strategies
C) New markets
D) New distribution channels
Partnerships are generally involved, which include.
Business development usually means building relationships in potential of new business ventures. For example, if Spotify wanted to implement a video mechanism, the Business Development experts at Spotify source relationships to make that work.
When should business development bubble to the top?
Venture capitalists state that the best time to implement a Business Development function in an organization is when revenue reaches 2 million USD to 40 million USD. Other sources state that the best time is when the number of employees increases to a certain number.
It is also good to look at the opposing view. When is business development not needed?
Business Development is generally not needed when a business is in its younger stages. It might make sense to focus on building infrastructure and process functions. In early-stage companies, the CEO is usually focused on Business Development.
Hiring BD managers usually occurs when processes have been perfected, sales have skyrocketed, and the company has extra revenue to invest in organizational growth.
How to optimize Business Development Skills
Learning to ask the right questions for example.
· What business goals are.
· What is hard for them.
· What would make them a hero in their company.
Explore for additional sources of value.
· Know the partners interests.
· Ask more about their opportunities.
· Identify win-win possibilities.
Managing a Business Development Team
· Plan activities that will lead to quarterly results.
· Ask an executive where one should be looking for opportunities.
· Internally interview executives to see what hypotheses they have.
· Frequently have teams to strategize the best actions to take.
Note: When orchestrating a contract, be sure to involve legal parties.
Comments