Recently, I joined a colleague for a cold-one at Crossroads Brewing here in Prince George. With the mercury hovering around 30ºC (86F), it was a great way to wind up Thelma day. Part-way through our visit, we were joined by two others - both of whom held Business Development roles with their respective companies.
Putting “Business Development” on a business card confounds me. In years past, people in “BD” roles handed out business cards with titles like Account Manager, Sales Manager, Sales, Sales Representative, Regional Sales – Northern BC, Online Sales, or Marketing. These titles were handy because they conveyed a sense of what that person’s day-to-day job might look like. Today though, I’m left with the impression that having the title of Business Development is just a nicer way to say “Sales Rep” without admitting to having a sales job.
[There is a] disconnect between what business development truly entails and what it is perceived to be.
Let’s get into it.
This topic has been a fascination of mine since January’s Mining 4 Beer event. It was there that, for the first time, I noticed that from start-ups to established corporations, professionals labeled as Business Development Managers or Directors are now commonplace. However, upon closer inspection, it’s evident that many of these roles are essentially sales positions with a fancy title.
My intent for writing about this stems from what I view as a short-sighted view on business development because Business Development is more than just sales.
Too often, I hear owners or General Managers tell me of their plans to hire a “business development” person or get “someone to do BD”. Worse, sometimes I hear that they’re going to fire their BD person! Both phrases are hallmarks of the disconnect between what business development truly entails and what it is perceived to be. So, before you hire (or fire) a business development person, let’s look more closely at the components of BD.
Market Research and Analysis:
At its core, business development starts with your understanding of the market. This involves thorough market research and analysis. Where are the new opportunities? Are there emerging trends? This requires more than just knowing who your customers are, it requires you to understand their business. If you understand their business, you’ll understand how you can provide value.
The trouble is, we’ve forgotten how to network! With so much technology at our fingertips we’ve forgotten how to shake hands and hand out a business card.
Strategic Partnerships:
BD is also about building strategic partnerships that can drive growth. Whether such an alliance is a simple collaboration or something more substantial like a joint venture, or strategic alliance, the goal is to leverage each other's strengths and resources to achieve mutual benefits.
Sales and Marketing
This section is what prompted me to write this post - while sales is a component of business development, it's just one piece of the puzzle. Sales professionals focus on converting leads into customers, but good business development means developing marketing strategies that drive awareness and generate the leads for salespeople to act on. Further, sales professional are the ones who provide boots-on-the-ground feedback to the marketing team and to management that will help drive the overall knowledge of the market.
My point? Do you have a marketing strategy? If you don’t, you’ve put your salespeople at a disadvantage. If you do, but you’re not including your sales staff in the strategy, you’re likely imparing your ability to generate new business and grow the company.
A marketing strategy will define your strategic approach to web content, social media, and promotional campaigns – all of which are aimed at attracting and engaging potential customers. The focus is about creating a demand. Your strong business development strategy will have a cohesive sales and marketing plan that aligns and complement with your overall growth objectives.
Product Development
Innovation is a critical aspect of business development. Keep this in mind because, nowadays, you compete with vendors across town AND around the world. Pay close attention to how your clients are using your products. Ask questions and share this feedback with your suppliers so that there’s an opportunity to improve. If you don’t currently manufacture a finished product, your good questions may reveal an opportunity for you to start producing a product or patenting an idea. You never know!
Networking
Anyone who has worked with Pivotleader over time, has heard me talk about the “power of relationship”. I believe that business is all about the relationships you hold and, I believe, your good relationships will play a role in each of the previous four points:
Market Research and Analysis A good network will help you understand your market and make your market research easier.
Strategic Partnerships: A good network will enable you find the sorts of strategic partnerships and alliances you seek.
Sales and Marketing: A good network will generate referrals
Product Development: A good network will help you innovate and put you in touch with people who can help you do so.
The trouble is, we’ve forgotten how to network! With so much technology at our fingertips we’ve forgotten how to shake hands and hand out a business card. We’d rather forward a newsletter or send a survey than email a person directly. We’d rather email than call. We’d rather call back than leave voice mail. We’d rather call the office than call a mobile. We’re more connected than ever but we’ve never been so impaired to communicate.
Yes, effective networking includes social media interactions, but it also requires something less scripted – it requires engagement at industry events, and conferences. It could mean participating with your professional association. It could mean agreeing to give a speech or host a workshop on an emerging trend or hosting an industry event of your own.
Do you have a marketing strategy? If you don’t, you’ve put your salespeople at a disadvantage.
Financial Planning and Management
At some point you knew the topic would turn to money. So before your hire or fire someone in a Business Development Role, commit some time to planning and ask yourself some honest questions.
What is it that you want to accomplish? Do you have a Strategic Plan?
How well are your current BD efforts supporting your Strategic Plan? Why? Why not?
How well have you supported your BD staff? Did you and your team draw up a marketing plan or did you simply hire a “BD Guy” and provide a cellphone?
These are just a few key questions to get the ball rolling, but the point is that I find that few companies have fully appreciated the importance of aligning their business development efforts to their overall strategy. It’s a practice that seems so counterintuitive.
Wrapping Up
Good business development requires market research, attention to strategic partnership opportunities, sales and marketing, attention to product (service?) development, networking, and a budget. In a new company, these responsibilities may fall to one or two people. In a larger company, there may be a team dedicated to BD. Either way, in today’s competitive business environment, good BD requires understanding the true scope of what defines BD – it’s more than a new website, it’s more than a new logo and it’s far more than just sales. If you recognize this and invest accordingly, you’ll be better positioned to seize new opportunities, innovate, and thrive.
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Norm Adams, a Certified Professional Business Coach, Project Manager, and Business Developer, was selected the 2023 Business Coach of the Year by the Professional Business Coaches Association of Canada (PBCA). Norm also co-hosts Mining4Beer events (along with Perry Cook) all over Northern BC. These free networking sessions are sponsored by industry and provide great opportunities to 'get your networking game on'. Do you have a marketing strategy for your company? Contact Norm today at norm@pivotleader.com.
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