8 Essential Tips for Your Business Development
There is a lot of confusion surrounding a “Business Development” position. Is this position needed in the company? What are the scope of work? What are the criteria for suitable candidates to occupy their seats? How to assess its effectiveness?
Although the title of his work is Business Development, which if translated means Business Development, but actually the scope of work of people who will occupy this position is more than just looking for loopholes to develop business. They must be smart to read trends, smart to analyze the situation, and be able to make the right decisions, which will bring more profits to the company. It is this strategic role that ultimately makes CEOs and business owners anxious, and chooses to ask the HR consultant, “If we want to hire a Business Developer, what kind of people would you recommend?”
Usually, the Business Development position itself will only be found in large companies, while small to medium scale companies choose to insert the role of business development work among job descriptions of several other managerial positions. This is what sometimes makes it difficult for business people to determine who is the most appropriate person to work with, what to do later, and how the company can monitor its work and work effectiveness.
If you are a startup business owner who is looking for a Business Development position to develop your online or offline business, then the following article is worth listening to, because it will thoroughly discuss the key to successful business development for beginner companies, including ways to avoid incidents involving Business Development (BizDev) which is often frustrating.
1. Hire the right person at the right time
Is it a business developer who has deep knowledge of your business, and a broad network of partnerships and is ready to spawn the “deal” with you always the best? Not necessarily. On the contrary, they can be disastrous if they are employed in the company’s life cycle that is too early. For you to know, there are three stages of the commercialization process – and not necessarily everyone is suitable to occupy the Biz Dev position at each of those stages.
– Scouting: This is the earliest phase of a company. At this stage, Biz Dev’s main function is to target the right target market and look for pathways that can be taken to penetrate it. Identify things that can be the company’s selling points, and provide feedback in the form of actual market trends for internal teams. The ability to work together with a product development team and technicians will be a key capability that must be possessed. For those who want to know how to determine the target market that we have to aim at, can read this article.
– Testing: At this stage, Biz Dev should have been able to spawn several agreements to test the market predictions that you have made, and provide measurable input before you start calculating the exact amount of your target market. A good analytical ability to design a framework that will facilitate the process of determining measurement criteria, and to study data, will help determine whether the company really needs to take market measurements, and if so, where the measurement should be done, depending on the strength and vision of the company itself.
– Scaling: After collecting data from the initial agreements, and validating the pathway that will help you achieve your goals, at this stage Biz Dev should be able to start multiplying agreements with third parties, and putting supporting structures in the right place.
2. Business Development Is Not Always Regarding Sales
In general, Biz Dev will identify and build partnerships that increase the company’s selling value, to ultimately attract revenue, distribution, or increase the value contained in the product or service being marketed itself. This is clearly different from Sales, which is almost always focused on ways to generate more income for the company. A similar difference will be seen when you try to decide to hire a sales leader at the initial stage of forming a company, or when the company is at a more mature stage.
3. Post-Agreement Management Is Very Important
All successful agreements depart from credibility and management proactivity – which in this case is represented by the Biz Dev and Account Management teams. In most cases, the account manager is not the same person as Biz Dev who initially agreed to an agreement. Ideally, the account manager will offer various compensation and incentives related to meeting goals set jointly by both parties. If you don’t feel ready to allocate one more person to support the agreement with a third party, then you should think twice before accepting the agreement.
4. Qualitative vs. Quantitative
Companies sometimes try to build their businesses purely by relying solely on qualitative propositions, which are very difficult and have a greater risk of failure. Markets are usually less tempted just by luring better transaction experiences, or more improved connectivity, even if they actually like the product, and find it useful. Quantitative values, such as reducing costs, bringing in more income, attracting more new customers, etc., will increase the chances of drastic success. One easy way to always remember this theory is to remember the analogy of pacemakers vs. hearing aids. If you can only have one, which one will you choose? I don’t need to give the answer again, right?
5. Support for Business Development Very Needed
A good business developer will integrate internal resources in such a way, to ensure the company can achieve its goals, and hope for a good partnership. The absence of support will almost certainly lead to a state of blame, and accuse each other when things that are not expected begin to occur. Remember that, like and sorrow, all parties involved must feel both.
6. Creating a Thinking Framework to Assess Existing Opportunities
In order to get support from your team, everyone must understand why this company needs a deal. Will it increase income, bring in new customers, allow companies to explore new markets, or increase company image vertically? These goals are usually summarized in a business plan. When goals are clearly defined, measurable and in accordance with the mindset of everyone in the team, it will be easier to achieve them.
7. Establish a careful agreement
There is a significant difference between collaborating and establishing the right collaboration. A good collaborator will be able to help sniff out the wrong signal, when there is market momentum and income with a certain value that seems to disguise the magnitude of the opportunity hiding behind it. Conversely, inexperienced collaborators, or those who offer wrong choices can produce moderate momentum, which ultimately diverts the company from better opportunities. There have been many examples of companies that have been forced to swallow bitter pills just because of unwise decisions of cooperation, which they regretted. At this stage, you need to develop a level of understanding and confidence with your business development team.
8. There Are No Legal Issues
A legal agreement validates a business cooperation agreement, and includes commercial terminology, and what arrangements must be made when the cooperation agreement does not take place as planned. This requires the business development team and legal consultants to sit together and calculate business opportunities compared to the risks to be faced, and explain the conclusions that were finally obtained to the management team.
The conclusion that we can present to you is that building a business is not an easy matter, and requires that you make sure everything is working in accordance with the expected functions, from products to your HR team. However, the opportunity to see your idea develops into a product, which will then bring in revenue, which makes you grow into a leading company is priceless. Entering the right business development team at the right time, and following the other recommendations we have said above, will help ensure your company is on the right track.