Business development involves investing time and energy into a series of building blocks that add up to a visionary concern. It encompasses the goals, strategies and activities that shape business growth. Here’s a breakdown of these fundamental business components and how they impact future profits.
Sales and Marketing
For any firm to succeed, it needs a solid sales and marketing plan. Companies with high budgets can capture markets quicker and more broadly with strategies such as TV advertising, trade show presentations, distribution of free samples, cold calling and personal visits. Startups with low budgets should focus on digital marketing, print and social media.
Strategic Business Partnerships
One of the critical steps to building a market is partnering with successful companies in your region, along with other forms of networking and negotiating with local business leaders. Startups can achieve goals much faster by teaming up with more prominent players that have vast resources for building brand awareness. Another winning partnership strategy is getting assistance from legal, financial and supply chain experts.
Establishing Business Development Planning
Business development hinges on essential factors such as research, project management and product management. Planning should map out where the products will be manufactured or where the services will be based. It’s crucial to meet government compliance and industry standards across different nations and jurisdictions. Brand building requires time and careful matching of marketing channels with the target market.
The company structure needs to be well-defined and set up for cost efficiency. Conducting a cost-benefit analysis with an emphasis on cost savings yields enormous advantages. Keys to arriving at these milestones include brainstorming, SWOT analysis (strengths, weaknesses, opportunities, threats), as well as analysis on current industry trends and growth projections. Even more profound benefits come from customization strategies according to customer feedback, competitive analysis, and exploring market gaps.
For a firm to expand physically and financially, it needs to study logistics for new facilities and outsourcing complex areas such as billing, accounting and IT services. Keys to venturing into new market disruption are conducting high-quality research of market opportunities and patents, negotiating with third-party vendors and in some cases lobbying for new laws that favor the industry.
Business growth results in the culmination of long-term planning and reaching milestones on schedule. Developing an exit strategy or vision for future growth can result in lucrative mergers and acquisitions, going public or attracting venture capital. It’s important to remember that business development is flexible and wide open to custom solutions, as owners and managers should always be open to constructive criticism and business model adaption to market changes.
This article was originally published at JoeShew.org.