A business development plan is an essential tool for all prudent entrepreneurs if they wish to remain in business. With the development and constantly-expanding use of the Internet, many entrepreneurs are finding it easier to tap their potential market, and market their products and services to customers across the globe. There are both niche specialists targeting specific business needs and generalists taking a 360° view of the firm and its strategy and objectives.
Another dynamic of this is that it can be difficult to admit that sometimes we need help, or it could be that upper management would take a dim view of our abilities if we asked for outside help with our internal processes. Incubators often employ a selective screening process assessing the feasibility and workability of the business plan of incubatee prospects before letting hem join the program.
We must first look at the business development process itself. During this phase of its existence, businesses experience expansion of its activities and enhancement of its customer base. Large management consulting firms offer a more diverse set of services compared to boutique consulting firms and are often international in scope.
For that reason, there are a multitude of professional service providers in the field of business development. Make sure to always discuss details of the engagement process and the scope of the services to be delivered. Strategic focus, institutional strengthening, human resource training and financial strategy, are some of the dimensions that a second stage business accelerator may offer.
The 5 Phases Of Business Development
A business development plan is an essential tool for all prudent entrepreneurs if they wish to remain in business. Managing a business development team member is similar to a sales team member in many respects. Hiring a business development person is different than finding a sales person for your team. Overall, boutique consulting firms focus on a limited scope of industries, and resolve business issues quicker than large management consulting firms that require more time for a specific project.
Many separate workgroups or business units support the BD process, from corporate management to the operations staff to production personnel and administrative staff inside the company, to third party Subject Matter Experts (SME) or professional proposal preparation personnel like those provided by third party consulting firms.
In many cases this role is a liaison between sales, marketing, procurement, and management. It might be hard to decide if and when to use various business development services. For example, life science and other firms with R&D cycles require more time in an incubation program service companies.
The Business Development Strategy is used to underpin your main Business Plan and essentially it sets out a standard approach for developing new opportunities, either from within existing accounts or by proactively targeting brand new potential accounts and then working to close them. While the business plan is critical for the success of the new venture, it is not the first step in the process. Undeniably, business development is a crucial component of a firm’s success – the opportunities forged today will define what the company is doing on tomorrow.
Working in business development is an excellent way to develop skills in strategy, negotiations, and managing partner and client relationships. Incorporate sales training for business development and growth. At this stage in the company life cycle business risk is beginning to decrease and the opportunity for true value creation presents its self, yet the path to that second level can be a long and tricky walk.
Companies that want to execute business deals with larger fortune 500 type companies should always highly consider hiring an expert that has preexisting relationships with the company that you want to do a deal with. This is an ideal time for businesses to consider expansion or diversification.
Business Development Plan
When it comes to improving the running of your business or building up a solid business from the ground up hiring a firm of business development consultants are a great way of increasing your profits and developing a solid business plan. Lastly, the value of business development services is discussed from the perspective of small and medium sized enterprises (SMEs). A company spends varying amounts of time in an incubation program depending the type of business and the entrepreneur’s level of business expertise.
Consultants often will require an hourly rate or fixed salary as well as some kind of bonus structure for placing deals together which may be a single payout for each business deal that is signed or a revenue share that is paid out over a period of time based on the amount of business that is ultimately generated from the relationships.
Starting a new business is far more than simply hanging a sign out and waiting for customers to pour through the door and I’m sure anyone willing to invest in a new venture is well aware of this fact. Implement – If your business is not at the stage to appoint a full time marketing director, at least hire an experienced business development professional to work with your company for a few days a month. A person that specifically focuses on business development will understand how to communicate potential business deals to perspective businesses in the right manner.
They come in the form of governmental institutions providing funding and support to entrepreneurs, and private institutions in the form of business angels and venture capitalists, business incubators and seed accelerators, second stage business accelerators, boutique consultancy firms, and large management consulting houses.
The business accelerator’s emphasis is on accelerated and sustainable growth, and to eliminate organizational, operational, and strategic bottlenecks that prevent the client firm from growing.