The most precise definition of business development is a set of assignments and methods to develop and achieve growth possibilities within (and between) businesses sustainably and productively. However, in usage, most companies use the term individually, depending on what they require that capacity to do for them.
Business developers across companies participate in one common aim: spotting and implementing new growth possibilities.
A set of assignments and processes meant to improve and implement growth opportunities within (and between) organizations sustainably and profitably is called business development.
The explanation here is “growth opportunities.” In most circumstances, “new opportunities” means more than “new clients.” It also involves:
- Gaining new partners
- Accessing new markets
- Promoting new products
Difference Between Marketing and Business Development
The distinction between business development and marketing can often be challenging to identify and can be made more complicated because business development can resemble drastically different from company to company. Here’s the exception: Marketing is primarily about drawing new leads and customers. Business development is about establishing relationships with businesses to create new possibilities.
Marketing is the customer-facing department of your organization. The primary goal is to entice customers. It is achieved in three ways:
- Recognizing your ideal customers by formulating an Ideal Customer Profile (ICP)
- Keeping a consistent brand and managing various channels (website, ads, social media, etc.) to stay at the tip of your ideal customers’ minds.
- Tutoring customers about organization, products, and offers
Business Development Activities
Business development is all about connections. The principal goal is to develop strategic partnerships and alliances with other organizations in your target business. It involves developing a relationship with a lead founder to drive them closer to a sale and leveraging prevailing relationships to create referrals and new markets in various geographic territories.
Skills Required for Business Development
In general, BDRs serve with the sales and marketing departments, contributing support to attain their goals. It demands a novel blend of marketing, presentation, and sales skills:
- Marketing Skills: Business development executives focus on developing relationships. They also require promoting their brand, gaining extensive intelligence of new markets, following the competition, identifying and training new target prospects.
- Communication Skills: Requesting opportunities, maintaining long-term connections with strategic partners, monitoring concerns of potential clients, and sharing valuable data with stakeholders requires effective communication and listening abilities.
- Sales Skills: BDRs usually share basic skills with sales representatives, including prospecting, qualifying leads, sustaining relationships with potential and current clients, and updating sales customer relationships, administration databases on all transactions & activities, with follow-ups.
Sales Development vs. Business Development
Since there’s no agreed-upon explanation, as you might imagine, there’s always uncertainty around how this role varies from sales roles. Business developers essentially go after new opportunities, and those need longer intervals to close.
1. BDRs and SDRs operate in various stages of the customer survey
These two functions incorporate other parts of the corresponding customer journey.
- Top of the funnel – BDRs gain new leads, begin a conversation with them, and instruct them about the resolution.
- Bottom of the Funnel – Sales Representatives and Account Executives utilize qualified leads in possibilities and persuade them to purchase.
It’s like a machine line.
2. BDRs and SDRs perform different tasks
Because BDRs and SDRs work on various sales funnel stages, they offer multiple kinds of tasks. Business Developers typically start conversations with cold leads. Therefore, they consume a lot of time:
- Attending events
- Uniting on social media
- Originating new initiatives
- Organizing business development activities with marketing and sales
Sales reps regularly engage with hot leads, people who are now considering their specific solution. Therefore, they employ their time:
- Handling calls, demos, or meetings
- Consulting and problem solving with prospects
- Persuading potential customers to keep them
Business developers explore new and productive ways to create leads. Sales reps utilize proven methods to get customers.
3. BDRs and SDRs don’t ever follow on their target
Business developers must understand who the ideal target is to concentrate on leads that the sales team can close. Identically, sales reps require to assess a bit of information. It is deservingly pursuing or not quickly.
Sales & Business Development Work Together
Business development and sales experience a common goal: to secure the company’s success. However, sometimes the distinctions between the two teams can prevent you from attaining this goal. There is various stuff you can do to promote better collaboration between business development and sales. These suggestions will help you improve performance by encouraging you to hit your target consistently. There are four fundamental things you can take to make it a strong relationship between Business Development and Sales:
- Unquestionably define the sales and business development areas
- Determine your ideal customer sketch
- Establish regular alignment conferences
- Increase transparency and constant feedback
- Connect bonuses to team achievement
Business development is a potent tool for business growth — but not everyone realizes it. As a result, it’s moderately underrated and unappreciated. And the truth that it’s so firmly tied to sales (but isn’t sales) produces even more complexity. We are now at a platform where business development is marking its borders. Organizations are investing in this role to remain ahead of the competition. Developments in customer behaviors make business development vital. People now have many ways to find (or not find) your company, and business development is the only role of understanding the trends and getting new channels to connect with prospects. That being the fact, the best investment a company can offer is to establish a strong team that links marketing, business development, and sales — all straightened and working together towards the common goal!