Profitable and stable firms are never result of improvisation; every business planning to be successful long term and expecting to be in the market year after year needs to develop optimized processes to maximize added value and minimize production costs. This is applicable to primary sector, industry and services. With this mindset, the action of creating new business and opportunities becomes a scientific process instead of something more related to craftsmanship than to engineering.
Tools like business plans, business intelligence and forecasting turn business development into a science. It is possible to create a “business algorithm” composed of a set of rules to follow that leads after a finite number of steps to a final result; being this result the goal of our business development plan.
The Basic stages of business development process are:
- Opportunity identification
- Goal definition
- Analysis of the market
- Resource planning
- Business communication and lead generation
- Information gathering and reanalysis
- Product development
- Sales and product delivery
- Reengineering of non performing processes and business relationship consolidation
It is important to note that business development process is not a static process. It is a constant development process with successive refining cycles. There is the need to adapt continuously the process to new innovations and business environment changes. The ability to do the last will define who stay in the market long term and should be performed by business development consultants with support from management and business operations departments.
Business development executives focus on the following competencies during business development process:
There is also a less spoken form of business development. It is always in the mind of everyone when thinking in business development the image of a new innovative business that makes money from a new market, product or service. But it is important not to underestimate the power of developing new business lines from core business operations. It is very common to think in totally new business lines when current operations are underdeveloped, but improving and expanding core business operations provides more leverage and resources than going into more complex projects without expertise or appropriate business intelligence.
In sort, business development process is the science of creating new optimized, systematic, quantifiable and repeatable processes to grow business operations.