Business Development: A Basic Overview of Activities
Simply put, business development entails activities, ideas, and initiatives meant to improve a business. This includes expansion of business activities, increasing revenue, increasing profits through strategic partnerships, as well as considering the strategic direction a business should take. Here’s a quick guide to business development.
Basics of Business Development
Business development activities involve multiple departments, including project management, marketing, product management, sales, and vendor management. Business development also entails cost-savings efforts, partnerships, networking, and negotiations. Business development goals drive all these activities and departments. For instance, say you’re manufacturing a product in California, and your business development team is considering the potential for expansion. After research, studies, and due diligence, your team determines that you can potentially expand to a new market, e.g., Mexico.
If your business is in Ventura County, EDC can support your business development efforts by helping you with international market research, export/import regulations advising, export/import documentation, international financing, and international logistics and distribution.
Essential Business Development Activities
Sales – The sales team focuses on a given market or set of clients with a set revenue target. For example, if your business development team evaluates the Mexican and projects that you can sell 1$ million billion worth of products in 2 years, your sales team will then anchor their sales strategy on your development team’s projected revenue numbers.
Marketing – Marketing entails advertising and promotion to ultimately get your customers to purchase the concerned products. Marketing undergirds the sales team’s efforts. Your business development team will allocate a suitable budget to the marketing team.
Strategic Initiatives or Partnerships – When entering a new market, you need to consider whether you will go solo or enter into strategic partnerships with local companies. Your business development team will collaborate with your finance and legal team to weigh the pros and cons of either option and choose the one that’s best suited to your business.
Business Planning/Project Management – Will you need a new manufacturing facility in your new market, or will you use your current facility and import it into the new market? If you opt to use your current facility, will you need to expand it? Such considerations will be deliberated by your business development team based on time and cost assessments. Once a decision has been made, the project management team will do the implementation.
Product Management – Various countries have varying market requirements and regulatory standards. For instance, an electronic product can be allowed in China but might fail to meet quality standards in Germany. Will you need to customize or develop new versions of your products for the new market? The product management handles this type of work based on your business strategy. The regulatory adherence, legal approvals, and cost considerations are evaluated as components of your business development plan.
Vendor Management – When entering the new market, will you need external vendors? How will you need a logistics and distribution partner? Will you need to partner with retail chains for sales? Your business development team will work through these considerations.
Cost Savings – Your development team will consider strategic decisions you need to make to boost your bottom line. This includes cost-cutting measures, such as opting for video conference calls instead of employees flying to meet partners and clients.
Networking, Negotiations, and Lobbying – Some business initiatives require soft skills. For instance, you may need to do some lobbying if you penetrate certain markets. You’ll also need to network and negotiate with certain parties, including regulators, government authorities, and vendors. Your business development team will handle such activities.
If your business is in Ventura County, Business Forward Ventura County offers immense business development resources. Contact us today for further details.
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