What is business development?
Your company’s future prosperity may depend on the methods you employ to expand your client base. It’s the key to a successful business makeover that results in more connections, better leads, and more sales. Building a strategy and a plan to implement it can catapult an individual, a group, or an organisation to greater success.
Business development is the process of identifying, cultivating and acquiring new clients and business opportunities to promote the growth and profitability of an organisation. Fundamentally, it is the process of creating long-term value for a firm through its customers, markets, and partnerships. The business growth strategy is the document that explains the approach you will use to achieve your objective.
Top 7 Strategies for smarter business development
Your business development team is the key to accelerating your company’s growth. But does your business development team appropriately evaluate potential partners? Are they taking a long-term perspective on your company and its place in the industry? We have identified seven successful business development tactics for accelerating business growth.
1. Make good use of the 80/20 principle
As stated in the 80/20 rule, your company’s success will be determined by just 20% of your signed contracts. The success rate of your company development team will skyrocket if they grasp this one basic concept. You can’t pursue every possible business partner; instead, you should zero down on the most important ones. 80% of your business development effort should be spent on the 20% of partners that are crucial to your tech ecosystem, if you’re a technology consulting firm, for example.
2. Using social media to identify key decision-makers
Thanks to the rise of social media platforms, it is now much simpler to locate and network with influential people. Using LinkedIn, find out who makes the big decisions at a company or organisation, so you can talk to the right people in your business development team. Social media may make it simpler to get in touch with influential people than to repeatedly leave voicemails. For this purpose, I have found great success using LinkedIn’s standard search features, which allow for refinement via a variety of different filters. The same is true of their sales and recruitment goods. To identify relevant people who are participating in discussions and linking postings, groups are also great. Finding influential decision-makers in this way is also beneficial.
3. Prioritize relationships over commerce
Every new agreement is a relationship, not a transaction, and this might be easy to forget in some fields. To be “simply another logo” that may be shown on your website as a partner is an insult no one wants to receive. The best advice I can provide is to give something to your partner that will genuinely benefit them, with no strings attached. As an alternative, you can invite them out for drinks or dinner for reasons other than business. Relationships are crucial in business, as they are in daily life. If you run a software product engineering firm, for instance, it’s crucial that you form partnerships with organisations who share your vision for the IT sector and are committed to the same long-term goals.
4. Once you've signed a contract, don't forget about it
Though it seems clear, many firms, especially those offering technology consulting services, fail to follow this guideline. When they finally sign on a new partner, they are so overjoyed that they don’t take the time to consider what comes next. I’ve learned that it’s also important to plan for following up, fulfilling your end of the bargain, and hitting all major benchmarks and deadlines. That is to say, you need to be a reliable collaborator.
5. Prioritize customer retention and repeat business
Similar to the sales process, it is much simpler to pitch an idea to a current partner than it is to locate a brand-new one. How often have you heard a technology company announce a new project that builds on top of an existing relationship in order to “deepen” the relationship? That’s the commercial equivalent of having a client return for additional business.
6. Invest in "win-win" agreements that expand the pie for all parties
For maximum success, your company’s business development team should aim to forge mutually beneficial strategic alliances and collaborations. That’s what businesspeople term a “win-win” agreement because it benefits everyone involved. Further, if word gets out that you sign deals that everyone can get behind, offer doors could fling open for you.
7. Don't sign deals just to sign contracts
It’s easy to get caught up in the “growing for growth’s sake” mentality in industries like technology consulting and software product engineering. If you’re signing deals left and right because they’re convenient, ask yourself if they really fit in with your company’s long-term goals. It’s important to sign contracts that will actually help your business, rather than just signing them for the sake of issuing a news release.
These seven business development strategies for expanding a business will help you lead your firm toward a promising future of rapid expansion. Signing up new business partners can put you ahead of the pack and bring you closer to the top of your sector. It’s pastime to make some adjustments to the way you do business.
Businesses frequently employ many approaches to business development, figuring out which combination works best for them and their goals. Any strategy for expanding a company must, however, be meticulously honed to avoid wasting time and money on unfruitful attempts to attract new customers. There is little practical utility in having good intentions when it comes to expanding a firm. In order to achieve success, it is best to stick to one simple strategic plan rather than experimenting with multiple complex ones. When done properly, paring down to the essentials always yields superior outcomes.
The ultimate fate of your company rests on the shoulders of your business development plan. Creating a strategy and action plan that will help you and your business reach new heights of success should be among your top priorities.