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Module 1: Introduction to Business Development

Business Development:

In the simplest terms, business development is a process aimed at growing a company and
making it more successful. That can include seeking new business opportunities, building and
sustaining connections with existing clients, entering strategic partnerships, and devising other
plans to boost profits and market share.

Business development is the strategic process of identifying and nurturing opportunities for
growth within a business. It encompasses a wide range of activities aimed at creating long-term
value for the organization by fostering relationships, exploring new markets, and expanding
product or service offerings.

Business development, sometimes abbreviated as BD, strives to increase an organization's

capabilities and reach in pursuit of its financial and other goals. In that way, it can impact—
and also call upon the specialized skills of—a variety of departments throughout the
organization.

As the financial services giant American Express puts it, "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."

Example:

A. Sales and Marketing

Sales personnel frequently focus on a particular market or a particular (set of) client(s), often
for a targeted revenue number. A business development team might assess the Brazilian market,
for example, and conclude that sales of $1.5 billion can be achieved there in three years. With
that as their goal, the sales department targets the customer base in the new market with their
sales strategies.

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Business development often takes a longer-range perspective in setting goals than many sales
departments have in the past. As the Society for Marketing Professional Services puts it, "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."

A business development leader and their team can help set appropriate budgets based on the
opportunities involved. Higher sales and marketing budgets allow for aggressive strategies like
cold calling, personal visits, roadshows, and free sample distribution. Lower budgets tend to
rely on more passive strategies, such as online, print, and social media ads, as well as billboard
advertising.

B. Legal and Finance

To enter a new market, a business development team must decide whether it will be worth
going solo by clearing all the required legal formalities or whether it might be more sensible to
form a strategic alliance or partnership with firms already operating in that market. Assisted by
legal and finance teams, the business development group weighs the pros and cons of the
available options and selects the one that best serves the business.

Finance may also become involved in cost-cutting initiatives. Business development is not just
about increasing market reach and sales, but improving the bottom line. An internal assessment
revealing high spending on travel, for instance, may lead to travel policy changes, such as
hosting video conference calls instead of on-site meetings or opting for less expensive
transportation modes. The outsourcing of non-core work, such as billing, technology
operations, or customer service, may also be part of the development plan.

C. Product Management and Manufacturing

Regulatory standards and market requirements can vary across regions and countries. A
medicine of a certain composition may be allowed in India but not in the United Kingdom, for
example. Does the new market require a customized—or altogether new—version of the
product?

These requirements drive the work of product management and manufacturing departments, as
determined by the business strategy. Cost considerations, legal approvals, and regulatory
adherence are all assessed as a part of the development plan.

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D. Vendor Management

Will the new business need external vendors? For example, will the shipping of a product
require a dedicated courier service? Will the company partner with an established retail chain
for retail sales? What are the costs associated with these engagements? The business
development team works through these questions with the appropriate internal departments.

Ten Potential Areas for Business Development

As noted earlier, business development can require employees throughout an organization to

work in tandem to facilitate information, strategically plan future actions, and make smart
decisions. Here is a summary list of potential areas that business development may get involved
in, depending on the organization.

1. Market research and analysis: This information helps identify new market
opportunities and develop effective strategies.
2. Sales and lead generation: This involves prospecting, qualifying leads, and
coordinating with the sales team to convert leads into customers.
3. Strategic partnerships and alliances: This includes forming strategic alliances, joint
ventures, or collaborations that create mutually beneficial opportunities.
4. Product development and innovation: This involves conducting market research,
gathering customer feedback, and collaborating with internal teams to drive innovation.
5. Customer relationship management: This involves customer retention initiatives,
loyalty programs, and gathering customer feedback to enhance customer satisfaction
and drive repeat business.
6. Strategic planning and business modelling: This includes identifying growth
opportunities, setting targets, and implementing strategies to achieve sustainable
growth.
7. Mergers and acquisitions: This involves evaluating potential synergies, conducting
due diligence, and negotiating and executing deals.
8. Brand management and marketing: This includes creating effective marketing
campaigns, managing online and offline channels, and leveraging digital marketing
techniques.

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9. Financial analysis and funding: This includes exploring funding options, securing
investments, or identifying grant opportunities.
10. Innovation and emerging technologies: This involves assessing the potential impact
of disruptive technologies and integrating them into the organization's growth
strategies.

Understanding business development:

Understanding business development requires a holistic view of how businesses evolve and
thrive over time. At its core, it's about strategically identifying, creating, and capturing
opportunities for growth, while also fostering long-term value creation.

Market Insight: Business development starts with a deep understanding of the market
landscape. This involves analysing industry trends, customer needs, and competitive dynamics
to identify gaps and opportunities.

Relationship Building: Cultivating strong relationships is fundamental to business

development. This includes nurturing connections with customers, partners, suppliers, and
other stakeholders to create mutually beneficial collaborations and opportunities.

Strategic Planning: Effective business development relies on strategic planning. This entails
setting clear objectives, defining target markets, and outlining the steps needed to achieve
growth goals.

Innovation and Adaptation: Business development requires a willingness to innovate and

adapt to changing market conditions. This might involve developing new products or services,
entering new markets, or leveraging emerging technologies.

Risk Management: Understanding and mitigating risks is crucial in business development.

This involves assessing potential risks associated with new ventures or partnerships and
implementing strategies to minimize their impact.

Financial Acumen: Business development professionals need a solid understanding of

financial principles and metrics. This includes evaluating the financial viability of growth
opportunities and ensuring investments align with overall business objectives.

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Communication and Negotiation: Effective communication and negotiation skills are

essential for successful business development. This includes articulating value propositions,
building consensus among stakeholders, and navigating complex deal structures.

Continuous Learning: Business development is an ongoing process that requires continuous

learning and adaptation. Staying informed about market trends, industry developments, and
emerging technologies is essential for staying ahead of the curve.

By embracing these principles and practices, businesses can cultivate a proactive approach to
growth and development, positioning themselves for long-term success in a dynamic and
competitive marketplace.

The evolutionary pattern of business development:

The evolutionary pattern of business development reflects the dynamic nature of

organizations as they grow, adapt, and respond to changing market conditions. This evolution
typically unfolds through several stages, each characterized by distinct challenges,
opportunities, and strategic priorities.

Global
Business
International
Business
National
Regional Business
Business
Local
Business

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Startup Phase: In the initial stage, businesses focus on developing their core product or service
and establishing a foothold in the market. The primary objective is survival, and resources are
typically scarce. Business development efforts in this phase often revolve around validating the
business model, securing initial customers, and refining the value proposition.

Growth Phase: As the business gains traction and begins to scale, the focus shifts to
accelerating growth and expanding market reach. Business development efforts in this phase
may involve increasing sales and marketing efforts, exploring new market segments or
geographic regions, and scaling operations to meet growing demand.

Diversification Phase: Once a certain level of stability and success is achieved, businesses
may seek to diversify their revenue streams and expand into related or complementary markets.
Business development efforts in this phase may include strategic partnerships, mergers and
acquisitions, or the development of new products or services to capture additional market share.

International Expansion: As businesses mature, they may explore opportunities for

international expansion to tap into new markets and drive further growth. Business
development efforts in this phase often involve market research and analysis to identify viable
expansion opportunities, as well as navigating regulatory and cultural differences in foreign
markets.

Innovation and Adaptation: In an increasingly competitive and rapidly changing business

landscape, ongoing innovation and adaptation are essential for long-term success. Business
development efforts in this phase may focus on harnessing emerging technologies, exploring
new business models, or diversifying revenue streams to stay ahead of the curve.

Sustainability and Optimization: Finally, as businesses continue to evolve, the focus may
shift towards sustainability and optimization. This involves streamlining operations,
optimizing business processes, and maximizing efficiency to ensure long-term viability and
profitability.

Throughout each stage of the evolutionary pattern, business development plays a critical role
in driving growth, fostering innovation, and ensuring the organization remains agile and
competitive in a constantly evolving marketplace.

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The Pitfalls of Business Development:

While business development holds the promise of growth and innovation, navigating this
terrain is not without its pitfalls. Here are some common challenges and pitfalls encountered in
the realm of business development:

Lack of Strategy: One of the most significant pitfalls is embarking on business development
initiatives without a clear strategy. Without a strategic framework, efforts can become scattered,
leading to wasted resources and missed opportunities.

Poor Market Understanding: Inadequate market research and analysis can lead to misguided
business development efforts. Failing to understand customer needs, market trends, and
competitive dynamics can result in products or services that miss the mark or fail to gain
traction.

Overreliance on Relationships: While relationships are essential in business development,

overreliance on a few key stakeholders or partners can be risky. Dependence on a single
customer, supplier, or partner can leave the business vulnerable to disruptions or shifts in the
market.

Lack of Adaptability: In today's fast-paced business environment, failure to adapt to changing

market conditions can spell disaster. Business development initiatives must be agile and
responsive to evolving customer preferences, technological advancements, and competitive
threats.

Short-term Thinking: Business development requires a long-term perspective, yet many

organizations fall into the trap of focusing solely on short-term gains. This can lead to decisions
that sacrifice long-term sustainability for immediate results.

Ineffective Communication: Effective communication is critical in business development, yet

breakdowns in communication can derail even the most promising initiatives. Poor
communication between teams, departments, or external partners can lead to
misunderstandings, delays, and missed opportunities.

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Risk Aversion: Business development inherently involves risk, yet many organizations shy
away from taking calculated risks. Failing to embrace risk can stifle innovation and limit
growth potential, ultimately hindering the organization's competitiveness.

Failure to Execute: Finally, the inability to execute on business development plans is a

common pitfall. Even the best-laid strategies are worthless without effective implementation.
This requires clear goals, strong leadership, and a commitment to follow-through.

Navigating these pitfalls requires a combination of strategic thinking, market insight,

adaptability, and effective execution. By addressing these challenges head-on and fostering a
culture of continuous learning and improvement, organizations can unlock the full potential of
business development to drive sustainable growth and success.

The diversity of current business development practices:

The landscape of business development practices is diverse and continuously evolving to adapt
to changing market dynamics and technological advancements. Here's a glimpse into the
diverse range of current business development practices:

Strategic Partnerships and Alliances: Collaborating with other organizations through

strategic partnerships, alliances, joint ventures, or licensing agreements can enable businesses
to access new markets, leverage complementary resources, and accelerate growth.

Digital Marketing and Sales: With the rise of digital channels, businesses are increasingly
leveraging digital marketing and sales strategies to reach and engage with customers. This
includes tactics such as search engine optimization (SEO), content marketing, social media
marketing, and email marketing to generate leads and drive conversions.

Data-driven Decision Making: Business development practices are becoming increasingly

data-driven, with organizations leveraging data analytics and business intelligence tools to gain
insights into customer behaviour, market trends, and competitive dynamics. This enables
businesses to make more informed decisions and tailor their strategies to meet evolving market
demands.

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Innovation and Product Development: Innovation is a key driver of business development,

with organizations investing in research and development to create new products, services, or
business models that address emerging customer needs or market opportunities. This may
involve developing proprietary technology, enhancing existing products, or diversifying
product offerings.

International Expansion and Globalization: As markets become increasingly

interconnected, many businesses are exploring opportunities for international expansion to tap
into new markets and diversify their revenue streams. This may involve establishing overseas
offices, forming strategic partnerships with foreign companies, or adapting products and
services to suit local market preferences.

Customer Relationship Management (CRM): Building and maintaining strong relationships

with customers is essential for business development. CRM systems enable businesses to track
customer interactions, manage sales pipelines, and personalize marketing efforts to enhance
customer engagement and retention.

E-commerce and Online Marketplaces: The growth of e-commerce and online marketplaces
has opened up new avenues for business development, allowing businesses to reach customers
across geographic boundaries and sell products or services directly through digital platforms.

Corporate Social Responsibility (CSR) Initiatives: Many businesses are integrating CSR
initiatives into their business development strategies, recognizing the importance of social and
environmental responsibility in building trust with customers, employees, and other
stakeholders.

Networking and Industry Events: Networking and attending industry events such as
conferences, trade shows, and seminars remain important business development practices,
providing opportunities to connect with potential customers, partners, investors, and industry
influencers.

Strategic Planning and Execution: Strategic planning is at the heart of effective business
development, with organizations developing comprehensive plans that outline their vision,
goals, and strategies for achieving growth. Execution is equally important, requiring strong
leadership, clear communication, and effective implementation to turn plans into action.

Overall, the diversity of current business development practices reflects the multifaceted nature
of driving growth and innovation in today's dynamic business environment. By embracing a

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range of strategies and tactics, businesses can position themselves for success and stay ahead
of the curve in an increasingly competitive marketplace.

Succeeding with business development:

Business development is the process of implementing strategies and opportunities across your
organization to promote growth and boost revenue. It involves pursuing opportunities to help
your business grow, identifying new prospects, and converting more leads into customers.
Business development is closely tied to sales — business development teams and
representatives are almost always a part of the greater sales. Although business development is
closely related to sales, it’s important to note what makes them different.

As mentioned, business development lives on the greater sales team yet it serves a different
function than typical sales work and responsibilities. Business development is a process that
helps your company establish and maintain relationships with prospects, learn about your
buyer’s personas, increase brand awareness, and seek new opportunities to promote growth. In
contrast, sales teams sell your product or service to customers and work to convert leads into
customers. Business development-related work simplifies the work of a salesperson or sales
manager. Let’s take a closer look at what business development representatives — the people
responsible for carrying out the various business development tasks — do next.

Business development representatives (BDRs) seek out and establish new strategies, tactics,
targets, employees, and prospects for your business. The goal of all BDRs is to find ways to
grow and provide long-term value for the business.

Possessing the necessary business development skills and experience will help your BDRs
achieve all of their day-to-day tasks and responsibilities.

Business Development Representative Responsibilities

Although some BDR responsibilities may change over time and as your business grows, the
following list will provide you with a solid understanding of typical BDR tasks.
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1. Qualify leads.

BDRs must qualify leads and pinpoint ideal prospects to determine who they'll sell to.
Typically, leads are qualified through calls, emails, web forms, and social media.

The key to qualifying leads (leads who are assigned to the BDRs as well as leads BDRs identify
themselves) is to consider their needs and then determine whether or not your product or
software could be a solution for them.

2. Identify and communicate with prospects.

By qualifying leads and searching for people who fit your buyer personas, BDRs will identify
ideal prospects. They can communicate with those prospects directly to learn more about their
needs and pain points.

This way, BDRs can determine whether or not the prospect will really benefit from your
product or service by becoming a customer. This is important because it increases the potential
of improved customer loyalty and retention.

Once the BDRs have identified ideal prospects, those prospects can be passed along to a sales
rep on the team (or sales manager, if necessary) who can nurture them into making a deal.

3. Proactively seek new business opportunities.

Proactively seeking new opportunities — whether that’s in terms of the product line, markets,
prospects, or brand awareness — is an important part of your business’s success. BDRs work
to find new business opportunities through networking, researching your competition, and
talking to prospects and current customers.

If a new business opportunity is identified, BDRs should schedule marketing assessments and
discovery meetings with the sales reps on the team so they can all assess whether or not there’s
potential for a deal.

4. Stay up-to-date on competition and new market trends.

It’s important to stay up-to-date on your competition’s strategies, products, and target audience
as well as any new market and industry trends.

This will allow you to more effectively identify ideal prospects. It also helps your business
prepare for any shifts in the market that could lead to the need for a new approach to qualifying
leads and attracting your target audience.

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5. Report to salespeople and development managers.

As we reviewed, at most companies, BDRs report to sales reps and sales managers. BDRS
must communicate with these higher-ups for multiple reasons such as discussing lead
qualification strategies and how to get prospects in touch with sales reps to nurture them into
customers.

BDRs also have to report their findings (such as business opportunities and market trends) to
sales reps and managers. Relaying this information and collaborating with sales reps and
managers to develop and/or update appropriate strategies for your business and audience is
critical to your success as an organization.

6. Promote satisfaction and loyalty.

A BDR's interaction with a prospect might be the very first interaction that prospect ever has
with your business. So, creating a great first impression right off the bat is crucial to promote
interest early on.

Whether a BDR is working to qualify the lead, learn more about the prospect and their needs,
or find the right sales rep to work on a deal with them, their interactions with all of your
prospect’s matter.

Once a BDR researches the prospect or begins interacting with them, ensure they tailor all
communication towards the prospect. Customizing all content sent their way shows them
they’re being listened to and cared for. These actions are professional and leave a strong
impression.

In addition to understanding how BDRs help you grow, business development ideas are another
powerful way to engage prospects and identify new business opportunities.

Business development ideas are tactics you can implement to positively impact your company
in a multitude of different ways. They can help you identify ideal prospects, network more
effectively, improve brand awareness, and uncover new opportunities. The following tactics
are here to get you started — every business and team is different, meaning these ideas may or
may not be suited for your specific situation. (So, feel free to modify the list!)

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1. Innovate the way you network.

It’s no secret cold calls are less effective than they once were. Instead, innovate the way you
network by establishing strong relationships with your prospects. You can do this by meeting
with them in person at conferences, trade shows, or events related to your industry. Browse
your online networks including LinkedIn and other social sites for potential customers, too.
Reach out to the people who sign up for your email subscription or complete other forms on
your site.

2. Offer consultations.

Offer consultations and assessments for prospects. Talking about the ways your product or
service applies to their needs will help prospects decide whether or not they’ll convert. In
contrast, consultations and assessments may also bring to light the ways a prospect is not an
ideal fit for your product (which is equally as valuable since it prevents you from wasting any
time nurturing them or having to deal with an unsatisfied customer down the road).

3. Provide sales demos for prospects and leads.

Provide your prospects and leads with sales demos so they can see how your product or service
works in action. Ensure these demos are customized to show a prospect or lead how your
product solves their challenge. You can share these demos in person, over email, on your
website, or via video chat.

4. Nurture prospects.

Remember to nurture your prospects, whether it’s by phone call, email, meeting, or another
mode of communication. The point of lead nurturing is to provide any information needed
about your product or service so your prospects can decide whether or not they want to make
a purchase.

By nurturing your leads, you’ll be able to tailor the content regarding your brand and product
so your leads can better understand how your product will solve their specific pain points.
You’ll also be able to show your support for the prospect and ensure they feel heard and
understood by your company.

5. Provide prospects with several types of content.

Provide your prospects with different content types such as blogs, videos, and social media
posts so they can learn more about your brand and product or service.
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It’s best to meet your prospects where they are and provide the content they prefer to read or
watch. Ensure all of this content is downloadable and/or shareable so prospects can send it to
their team members to show them why your solution is their best option.

6. Communicate with marketing.

Although business development lives in the sales department, that doesn’t mean internal
business development work only involves other members of the sales team. Host regular
meetings and maintain open lines of communication with the departments at your company
that impact your ability to succeed such as marketing and product development.

Think about it this way: Marketing creates content and campaigns for your target audience
about how your product or service resolves their challenges. So, why wouldn’t you want to talk
to them about the blogs, campaigns, social media posts, and website content they’re creating
for the people you’re selling to?

Your reps and BDRs can share any content the marketing team creates directly with prospects
to help them convert, as well as inform the marketing team of any content they feel is missing
for prospects. If there are projects or campaigns out of your scope, you can opt to hire a
marketing agency to help fill the void. But, like your marketing team, they'll need to understand
your product and how to connect with your target audience.

7. Invest in your website.

You never get a second chance at a first impression, and in many cases, your website is exactly
that — your prospects' first impression of your brand. So, it serves you to make it as accessible,
navigable, visible, and helpful as possible.

Taking strides like making your site visually engaging, connecting your social media profiles,
optimizing your site for search engines, linking to collateral like sales content, and maintaining
an active blog can go a long way when conducting business development.

8. Push your employees to expand and refine their skills and knowledge.

Business development is never stagnant. Strategy, technology, and market conditions are all
constantly evolving — so you're best off having your employees stay abreast of these trends.

Anyone involved in your business development should be liable to develop new skills as
needed. If your organization adopts any sort of new technology, thoroughly train anyone the
change touches on how to use it.
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Encourage your employees to learn more about both the nuances of their field and the industries
they serve. Is artificial intelligence starting to shift the dynamics of a specific industry? If so,
make the BDRs who serve that market learn all they can about how it might change the nature
of the companies they interact with.

Business Development Process

A business development process is the combination of steps your business takes to grow
effectively, boost revenue, improve relationships with leads, and more. These steps are what
your business development team will work on every day. It includes everything related to
delighting customers along each part of the buyer's journey.

By working through your business development process, your team will have a strong
understanding of your organization-wide goals, sales targets, current business situation, who
your target audience members are, and more.

1. Conduct extensive market research.

Successful business development rests, in large part, on you understanding your market and
target personas. If you have no idea who you're trying to sell to and the state of the market they
comprise, you can't successfully implement any other point on this list.

Study and survey your current customers to see who tends to buy from you. Look into your
competition to get a feel for where you fit into your broader market. And take any other strides
to get a better feel for the "who" behind your successful sales — without that intel, you'll never
be able to shape the "how" side of your business development.

2. Raise visibility and awareness.

Business development, as a broader practice, extends beyond your sales org — your marketing
department can also play a central role in the process. You can't source a base of potential
customers if no one knows who you are.

Actions like constructing an effective website, investing in paid advertising, leveraging social
profiles, participating in co-marketing partnerships with industry peers, and maintaining an
active blog can all go a long way in supporting successful business development.

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3. Promote thought leadership.

This point is sort of an extension of the one above. Establishing credibility is one of the more
important steps you can take when doing business development. You can't just stop with
prospects knowing who you are — they need to trust you if you're ever going to earn their
business.

Publishing in-depth, industry-specific blog content is one way to get there — if you can show
that you have a firm grasp on every aspect of your field, you can frame yourself as a reliable,
knowledgeable resource for your customers. That kind of trust often translates to sales, down
the line. Other media like webinars, white papers, and video content can also help your case.

4. Conduct outreach.

Actively reaching out to prospects is one of the most crucial, traditional elements of business
development. You need to touch base with prospects if you're going to vet them and ultimately
convert them to qualified leads.

This step is typically supported by extensive research on individual prospects, paired with
contacting warm and cold leads proactively but not aggressively. BDRs typically shoulder this
responsibility — and for many people, it's the aspect of the process most closely associated
with the term "business development."

5. Qualify leads.

Once your BDRs have connected with leads, they need to qualify them to determine their
viability and understand whether they're worth the sales org's time and effort. That generally
entails having conversations with leads and asking the right qualifying questions to reveal their
fit for your product or service.

This is one of the most pivotal moments in the business development process — in some
respects, it could be considered its last step. Successfully executing this point typically means
the process, as a whole, has worked.

6. Provide exemplary customer service.

Business development is an ongoing process that involves virtually every side of your business
in some capacity — and customer service is no exception. Your service org needs to keep
current customers happy to generate positive word of mouth and bolster your company's

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reputation. That kind of effort offers you credibility and can generate referrals, making business
development more straightforward and effective.

7. Develop sales content from success stories.

Another part of business development is translating customer satisfaction into actionable,

promotable sales content — pointed, product-specific content that's used to generate sales.
While marketing content is used for thought leadership and garnering general interest, sales
content is used to appeal to potential buyers, looking into your company specifically.

Sales content can come in a variety of forms, including case studies and testimonials — two
mediums that lean heavily on your current customer base. When you use customers'
experiences to generate interest in your business, your business development efforts essentially
come full circle.

Business development plan

The purpose of a business development plan (or strategy) is to set realistic goals and targets
that allow your reps to grow the business, close more deals, identify prospects, align members
of the sales team (and other teams, company-wide), and convert more leads.

1. Craft an elevator pitch.

You can simplify any initial communication with prospects by having an elevator pitch ready
to go. This elevator pitch should explain your company’s mission and how your product or
service can solve the needs of your target audience. Your elevator pitch should grab the
attention of prospects and leads — and get them excited to learn more about what you offer.

Additionally, you can help your team determine which elevator pitches used by both BDRs and
reps are most successful in converting leads and then document it in your greater strategy so
everyone has access to it.

2. Set SMART goals.

Set SMART goals for your strategy — meaning, make sure your targets are specific,
measurable, attainable, relevant, and timely. By creating SMART goals for your business

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development plan, you’ll be able to ensure these goals are aligned with those of your entire
company.

For example, if one of your goals is to increase your number of identified qualified leads this
quarter by 5%, make the goal specific by determining the type of prospects you’ll focus on and
how you’ll identify them.

Then, decide how you’ll measure your success — perhaps by measuring the number of these
prospects who then go on to talk with a sales rep to learn more about the product or service.

You determine this goal is attainable due to the fact you increased your number of qualified
leads last quarter by 3%. 5% isn’t too much of a leap.

Your goal is relevant because you know it’ll help your business grow — it pushes you to make
a greater impact on your team by contributing to the sales team’s ability to close more deals
and boost revenue. Lastly, it’s timely because you’ve set this goal for the quarter.

3. Conduct a SWOT analysis.

As mentioned above, part of any role in business development is to stay up-to-date on market
and industry trends and understand your competition. This is where SWOT analysis comes in
handy — SWOT stands for strengths, weaknesses, opportunities, and threats. The key to using
SWOT analysis correctly is to have a clear goal in mind first.

For example, if your goal is to determine the best way to handle outreach with prospects, you
can begin talking to your BDRs, sales reps, sales managers, and current customers about what
works best for them.

Next, think about your strengths — what does your business do well? Maybe you have a large
support team that provides helpful onboarding for new customers. Or you have several remote
reps who can meet face-to-face with prospects in their desired location.

(You might have multiple strengths that make you stand out, so don’t be afraid to list them all
and which ones have the greatest impact on your customers.)

Now, think about your weaknesses. Are your product’s limited offerings requiring some leads
to consider your competition’s product in addition to yours? Is the need for your product
growing faster than your production, or faster than you’re able to establish a large customer
support team to assist your customers?

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Onto your business opportunities. Think about where you’re going as a business and what you
know you can accomplish. For example, maybe your business has recently partnered with
another company that can help you boost brand awareness and attract a much broader base of
leads and customers.

Lastly, who are your threats? Think about your current competition — who’s producing a
product or service like yours and is attracting a similar target audience? Who could become
your competition in the future — is there a market gap that another company (new or
established) could identify the need for and begin selling?

SWOT analysis allows you to identify the ways your company can create opportunities to grow
and expand. It also helps how you establish new processes to address any weaknesses or threats
such as identifying more qualified leads, efficiently converting prospects into customers, and
shortening the sales cycle.

4. Determine how you’ll measure success.

Depending on the SMART goals you created and the SWOT analysis you performed, you’ll
also need to decide how you’re going to measure your business development success.

Here are some examples of common business development KPIs that can help you analyse
your efforts:

Company growth

Changes in revenue

Lead conversion rate

Leads generated per month/ quarter/ predetermined time

Prospect and customer satisfaction

Pipeline value

Reach

5. Set a budget.

Depending on the type of business development goals you set for the team, you may determine
you need to set a budget. Consider your resources, the cost of any previous business

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development strategies you’ve developed, and other important operational line items (what you
need, who’s involved, etc.).

Collaborate with the greater team to determine the amount you’re willing to, and need to, spend
on business development to get the process started at your company.

6. Always keep your target audience in mind.

Whatever it is you’re working towards, keep your target audience and ideal prospects in mind.
Assess their needs and understand exactly how your business and product or service will meet
their pain points.

After all, this audience is the group who is most likely to buy your product. Make sure your
plan addresses them and their needs so your team can convert more of them and grow your
business.

7. Choose an outreach strategy.

As we’ve reviewed above, a major component of business development is finding new

prospects and potential customers. To find new prospects, you’ll need to decide how you’ll
perform outreach, or connect with these potential customers. Here are some ideas:

Network

Use referrals

Upsell and cross-sell

Sponsorship and advertisement

Also, review any expectations or guardrails related to outreach reps are held to so your business
has only professional and on-brand interactions with prospects.

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Business development to business development management

(BDM):

The transition from business development to business development management (BDM) marks
a shift from individual initiatives to a more strategic and structured approach to driving growth
and innovation within an organization. Here's how this evolution unfolds:

Focus on Strategy: While business development often involves ad-hoc initiatives to identify
and pursue growth opportunities, BDM emphasizes the development and implementation of
overarching strategies to drive sustainable growth. This includes setting clear objectives,
defining target markets, and outlining the steps needed to achieve growth goals.

Integration with Organizational Goals: BDM aligns business development efforts with
broader organizational goals and objectives. This involves collaborating closely with senior
leadership and other functional areas of the organization to ensure that business development
initiatives support the overall mission and vision of the company.

Team Leadership and Management: In BDM, the focus shifts from individual contributors
to leading and managing teams of business development professionals. This may involve
recruiting and hiring talent, providing coaching and mentorship, and fostering a culture of
collaboration and innovation within the team.

Strategic Partnerships and Alliances: BDM places a greater emphasis on building and
nurturing strategic partnerships and alliances as a key driver of growth. This includes
identifying and evaluating potential partners, negotiating partnership agreements, and
managing ongoing relationships to maximize value for all parties involved.

Data-Driven Decision Making: BDM relies on data analytics and business intelligence to
inform decision making and drive strategic priorities. This includes leveraging data to identify
market trends, track performance metrics, and measure the effectiveness of business
development initiatives.

Process Optimization and Continuous Improvement: BDM involves streamlining and

optimizing business development processes to improve efficiency and effectiveness. This may
include developing standardized procedures, implementing technology solutions, and
establishing metrics for measuring success and identifying areas for improvement.
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Risk Management: BDM involves assessing and mitigating risks associated with business
development initiatives to ensure the long-term viability and success of the organization. This
includes evaluating potential risks and opportunities, developing contingency plans, and
implementing risk mitigation strategies to minimize exposure.

Stakeholder Engagement and Communication: BDM requires effective communication and

engagement with a wide range of stakeholders, including customers, partners, investors, and
employees. This involves articulating the value proposition, building consensus, and fostering
trust and transparency to drive collaboration and alignment towards common goals.

Overall, the transition from business development to business development management

represents a maturation of the organization's approach to driving growth and innovation. By
adopting a strategic, data-driven, and collaborative approach, businesses can position
themselves for long-term success and sustainable growth in an increasingly competitive
marketplace.

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