What is business development

 business development software training systemsIn November 2007 I had a meeting with a policy of Invest Hong Kong , the state agency for promoting and attracting investment in their offices Cotton Tree Drive, Central. Back then, in my e-contracts cards appeared the position of Sales Manager, with which I never got to feel comfortable.

In explaining what I did, Sunny told me I should put on my card the charge of “Business Development Manager”. Since then, I have dedicated myself to investigate the position, the competences and the own profile of this area, so used as misunderstood in organizations of all types and sizes.

Negative definitions are often useful when dealing with complex concepts like this. Therefore, we will start by

What the business development area does NOT do

– Exit to sell: This is a task for the sales department, which requires different skills and experience. Often testing or sampling of products or services are performed, but always with the support of the sales department, which is responsible for the deployment.

– DEVELOP and media planning and campaigns: This encompasses the area of marketing. Marketing activities must conform to the strategy marked by the business development area in terms of time, concepts, values, goals, segmentation, etc. But the business development area does not design or execute marketing actions.

– Hire staff: Develop a business does not mean increasing the workforce. The growth of the activity or turnover often requires increased resources, but the relationship between the two phenomena have a causal link, not a functional identity.

– Negotiate or execute mergers and acquisitions: You may come to the conclusion that it is necessary to grow inorganically through acquisition or participation in society. It corresponds to the business development department to analyze and recommend these operations, but the decision rests with the board of directors, and execution to the legal department or mergers and acquisitions.

– Get Funding: The financial department is responsible for managing and secure funding for the activity of the company. If additional resources are needed, they have the necessary contacts, knowledge and skills. The business development department has to analyze the financial needs of each action or strategy, but it is not for a move to meet those needs, as it could cause friction with the overall financial policy.

So what people do business development? Basically, it is an equally operative and strategic unit, which defines where the business should evolve to continue growing.

The need for a business development department usually arises in mature companies that are in the post-development phase, that is, they have already lived the launch and expansion, and are not satisfied with growing at ratios of 1-5% in A phase of permanent maintenance; Although, of course, any business, at any moment, needs professionals capable of glimpsing where the activity, the resources and the efforts should be directed, depending on the environment, the equipment and the situation of that company. So,

What does a business development department do?

– Opportunities: Define new opportunities from the context in which the company develops. Maybe it’s a new geographical area, an unexplored segment or a new product or service. Untapped markets are possible, and must be covered with a segmented and uncontestable supply.

– Creation of needs: If there is an opportunity, maybe you have to create it. How do we get users in this segment to buy something that everyone else buys? Is a product feasible that solves a need that the consumer does not know?

– Synergies: Strategic agreements, mergers and acquisitions, partnership policies and any other alliance to leverage the growth of structures or efforts made by third parties. The ability to reach agreements of short, medium and long term is fundamental for any business.

– Lateral thinking: Can we do the same thing another way to be more effective? Can we optimize our performance? Are there underlying opportunities that we have not exploited? These are some of the questions that should be asked in any business development department.

– Strategy: In any organization, even in smaller, you need someone to set aside some time to think about the future vision and mission, who knows the context and forward market and competition. An early adopter with experience and strategic ability, but capable of analyzing, documenting and planning innovation.

At a time when everyone talks about innovation, business development is an area of innovation applied to a model, an organization, a particular business.

If you’ve got here, I’m sure you do not agree with many of the things I’ve said, so I encourage you to share and comment on them. Gracias thanks