Definition of business development
What is the definition of business development? A common definition is that business development means development of an organisation’s business driven activities and processes. The objective is often growth and/or better profitability. In public organisations, this is usually called mission development, but to a large extent consists of similar activities although focus on growth and profitability sometimes does not fit in.
As an external consultant Naviro can contribute to these activities with capacity, experience and new ideas and perspectives. Naviro can also act as a neutral party between different stakeholders, and act as a sounding board. Business development projects are needed throughout the lifecycle of a company, although the objectives and methods may change over time. Today many companies work continuously with business development projects in order to stay competitive, profitable or to reach growth objectives. Large organisations may have a dedicated business developer employed, but from time to time still benefit from bringing in external resources to get fresh perspectives, specific experience or additional resources.
Ways to achieve growth
Growth of revenues and/or profits is the most common target of business development activities. So how does one attain growth? The answer is of course unique for each company and must be based on a careful analysis of the company and its environment. There are however some basic growth methods to choose between:
- Grow with existing products/services on an already served market
- Introduce new products/services on an already served market
- Introduce existing products/services on a new market
- Introduce new products/services on a new market
The last method is generally considered to be the most challenging and risky, although the reward may be high. Studies show that a vast majority of such risky projects fail.
In addition to or instead of these methods, a company can focus on increasing the profitability of the current offering (increased profitability through lower costs and/or better efficiency). Such work can have several similarities with business development, although focus often is more internal.
How to choose which method to use? Naviro can help to analyse your situation and choose between (and later implement) the choices you have. Typical activities that NAVIRO can assist with are:
- Analysis of new and existing customers and markets.
- Analysis of new and existing products/services.
- Analysis of customers’ needs and competitors’ profiles: Do we meet the customers’ needs better than competition? How can we be even better?
- Does the business plan match what you do in reality? If there is any difference, why is it so?
- Look for and effectuate synergies within the company or with other organisations
- Review of the organisation. Does it support business development? Is it effective? Is it motivated? Are the vision and the mission well-known?
- Studies of possible Mergers & Acquisitions.
- Review and development of dealers, agents and other market channels
- Develop the after sales market, if this is relevant
Business development and the business plan go hand in hand! Business development concerns vision, objectives, strategy and tactics. Business development is needed in order to follow the business plan in the long run, since the reality changes along the way. On the other hand, the business plan need to be revised based on results of the various business development projects.
Whatever your need may be in terms of business development, you are welcome to contact Naviro for a first open discussion. Together we will decide whether Naviro can help you develop, or if we could recommend other ways to move forward. We never take on assignments we are not fully competent to make a success of.