Business development, to put it simply, is the process of expanding and improving a firm. This can involve looking for new commercial ventures, maintaining relationships with current clients, forming strategic alliances, and coming up with additional ideas to increase revenue and market share. For detailed information, you can go for business setup consultants.
How an Organization’s Business Development Process Operates
Business development, or BD for short, is the process of expanding an organization’s skills and reach to meet its financial and other objectives. That manner might affect other divisions within the organization and also call for their specific skills.
According to American Express, a financial services company, “When it comes to organizational growth, business development acts as the thread that ties together all of a company’s functions or departments, helping a business expand and improve its sales, revenues, product offerings, talent, customer service, and brand awareness.”
Marketing and Sales
Salespeople usually concentrate on a certain market or a specific (group of) clients, to reach a predetermined revenue target. For example, a business development team evaluating the Brazilian market might determine that, in three years, revenues of $1.5 billion can be attained there. The sales department uses their sales methods to target the consumer base in the new market with that as their end aim.
When defining goals, business development frequently has a more long-term outlook than many sales departments have in the past. “A traditional view of sales is akin to hunting, but business development is more like farming: it’s a longer-term investment of time and energy and not always a quick payoff,” states the Society for Marketing Professional Services.
Law and Money
When entering a new market, a business development team has to determine if it makes sense to build a strategic alliance or partnership with companies that are already in the market, or if it will be more cost-effective to go solo and complete all the necessary legal procedures. With the help of the finance and legal departments, the business development team evaluates the benefits and drawbacks of each choice and decides which will benefit the company the most.
Business Planning and Project Management
Will all items be produced in the home country and then imported into the targeted market, or does a foreign business development need the construction of a new facility in the new market? Will the latter involve building another facility in the nation of origin? The business development team makes these selections in the end based on their evaluations of time and cost. After that, the team responsible for project management and implementation can get started on achieving the intended outcome.
Manufacturing and Product Management
Countries and regions may have different market demands and regulatory standards. For example, a drug with a particular composition might be permitted in India but not in the UK. Does the product need to be modified for the new market, or should it be completely new?
The business strategy dictates how the production and product management departments should approach their job to meet these criteria. Regulation conformance, legal clearances, and cost implications are all evaluated as part of the development strategy.
Management of Vendors
Will the new company require outside suppliers? For instance, will a specialized courier service be needed for the delivery of a product? Will the business collaborate on retail sales with a well-known network of stores? What are the expenses related to these appointments? The business development team consults with the relevant corporate departments to address these inquiries.
Conclusion
The team must establish SMART (specific, measurable, attainable, relevant, and time-bound) objectives and goals to properly construct and execute a business growth plan. These goals can be in line with the organization’s overarching business objectives.
Businesses frequently use a SWOT analysis to assess the organization’s strengths, weaknesses, opportunities, and threats to determine its current status. As a result, defining their distinctive value offer and identifying target markets and consumer segments may be made simpler.