Unfortunately business development (BD) means different things to different people. While often seen as another word for sales, this is doing the craft a massive disservice.
In this post I’ll explore what BD is and what it is not. I’ll also provide a simple definition before detailing why I think the craft is so important.
What Business Development is Not
Business development is not sales.
Sales by definition is the action of selling. On the other hand, BD involves more than seeking and closing the deal. It requires strategic thinking and decision-making behind who to approach, and how to approach. Additionally, it focuses only on new opportunities that align with the long-term success of the company.
Business development is not transaction based.
Traditionally, sales are considered short-term and transaction based. Get the sale, ring the bell and move on. The strategic position of the sale in the wider context of the company’s goals is missing.
What Business Development Is
True enough, BD is, at its core, about the sale of products or services. However, rather than focusing on the transaction it wraps around the long-term goal of sustainably growing the business.
I consider the core components of BD to be:
- Sales and Pursuit—an aggressive pursuit of sales opportunities that align with the company’s vision and intent.
- Customer Relationships—the development of robust, trust-based relationships with customers.
- Commercial Integrity—a strong commercial acumen. The ability to sell products and services at a profit margin that aligns with the company goals.
- Productive Paranoia—an avid following of your company’s leading and lagging indicators.
- Market Intelligence—a deep understanding of the market, the key players, and consequences of any changes therein.
- Offering Intelligence—a deep understanding of the problem that your company solves.
- Adaptive Feedback Loop—a conduit for information between the market and the company. Ensuring customer and market feedback is heard and acted upon.
- Customer Service—a polite and professional approach in all dealings. You are the face of your organization.
So, what does this boil down to?
The act of sustainably growing your business.
Business development: A simple definition
Why Business Development is Important
Business development should be at the core of every business. The BD leader must have a seat at the leadership table. No one is better suited at aligning company decision-making to the point of view of the customer. These leaders operate in the heart of the marketplace, allowing them to identify shifts in customer behavior and initiate meaningful change to adapt.
Gwynne Shotwell, an accomplished aeronautical engineer, is a great example of a strong business development leader. She quickly transitioned into sales and BD while maintaining her engineering skillset. Shotwell saw a gap in Elon Musk’s SpaceX venture and joined as employee number seven, as the vice president of business development. Using both her technical and BD abilities to successfully position the space explorer as the industry leader made her an invaluable part of the company. So much so that she was promoted to president and chief operating officer (Vance, 2016).
The argument for having business development integrated into company leadership could not be stronger.
Summary
Hopefully this post has given you an insight into what business development is and what it is not. I’ve provided a simple definition that sets it far beyond the remit of sales alone.
Don’t make the mistake of hiring a salesman to be the face of your company. Look for BD leaders who can align the purpose and goals of your business with strategic customer pursuit and the growth of the business as a whole.
My new book Business Development Begins Here explores the foundations of this craft and will provide the tools to set you up for successful growth.
If you would like to get some free resources to help kickstart your business development journey follow the download link below. This gives you access to our Assess Workbook to help you work out where your company sits in the Sales Ecosystem. At the same link is our LinkedIn Roadmap to get your profile working for you.
