What is Business Development?

To explain the concept of business development in simple terms; it can be summarized as the process of putting forward ideas, initiatives, and activities to help improve a business and conducting efforts to implement them. The main goal of business development activities includes generating desired increases in revenues, achieving success in growing the company, increasing company profits by establishing strategic partnerships, and making strategic business decisions. Successful business development practices affect almost all departments within a company, including sales, marketing, production, human resources, accounting, finance, product development, and sales management. Employees or managers who manage practices regarding business development should be aware of new market opportunities, expansion possibilities, competitive developments, and the company’s current revenue sources. This way, they can carry out business development practices as they should.
Business development activities are conveyed and organized across different departments, including sales, marketing, project management, product management, and sales management. Creating a network on behalf of the company, conducting negotiations, forming partnerships, and cost-saving efforts are significant activities in terms of business development. All mentioned different departments and activities strive to be carried out in alignment with business development goals and try to fulfill their activities. If actions are taken as a whole within the company, it can be said that business development activities achieve their purpose.

What Does the Business Development Department Do?

Development departments are also known as business development departments. Members of the business development department are responsible for a range of core objectives within and outside the organization. They are tasked with examining companies' products, services, and operations while providing consulting assistance when necessary. They also analyze the business environment, including regulations and constraints affecting their company. Development specialists use their analyses to increase their companies' sales and profits. Additionally, they seek ways to improve the performance of sales and marketing departments. For instance, these specialists can study sales territories and help find more efficient routes. Development department managers can also identify ways to increase the revenues of marketing departments, such as outsourcing advertising functions and conducting similar activities. These employees often use market research to enhance their analyses. For example, they may investigate commercial clients to uncover key weaknesses in the customer service department.

In business development departments, there are usually high-level executives or vice presidents who work closely with strategic planning managers to develop fundamental marketing strategies to grow the business. For example, they may propose specific acquisitions and mergers to increase the company’s sales and market share. They can also recommend various applications to leverage new technologies to streamline the existing product line.

Business development departments are tasked with finding and identifying new market segments. Small companies sometimes reach their highest sales in existing markets. Development departments can ensure that suitable new markets are found. In turn, the development manager can examine the demographics of various fields by finding socio-economically similar markets to the company's existing markets. The development department would then conduct market research to test the company's products in new markets before adding them.

What is the Purpose of Business Development?

When it comes to organizational growth, business development serves as a bridge connecting all functions or departments of a company and assists in improving and increasing a business's sales, revenues, product offerings, capabilities, customer services, and brand recognition. Additionally, various purposes of business development can be listed as follows:
● It benefits the company in establishing important relationships,
● It is a crucial strategy for increasing revenue and reducing costs,
● It helps improve the overall image of the company,
● It can provide openings to new markets.

What Are Business Development Methods?

Today, there are various business development methods implemented by companies and institutions. These methods can be listed as follows:
● Levey theory: This method involves presenting free thoughts prepared in advance during meetings attended by employees and managers, attempting to produce without criticism or discussion. This practice is also known as the “conditional association method.”
● Filter method: All ideas and thoughts are gathered in a common area. Afterwards, counter-theses are presented to refute these ideas and thoughts, and ideas are shaped.
● SWOT analysis: The strengths and weaknesses of a business or institution are revealed, and recommendations made through discussions are converted into a thought structure. You can refer to our article for more information on SWOT analysis: https://odsdanismanlik.com/tr/makaleler/swot-analizi-nedir-2/
● Renewable series techniques: This is a technique where thoughts are contemplated and discussed for the purpose of creating opportunities. Ideas that do not provide high profit or benefit are put forward and discarded directly.
● Simulation technique: Goals are envisioned within a future time frame. Employees and managers simulate this environment virtually to generate new ideas. Afterwards, these ideas are discussed and agreed upon collectively.

In addition to the given methods; there are many different business development methods such as the Closed Box method, Osborn technique, and Formality method. Companies can find the appropriate method by consulting a business development expert.

How is Business Development Implemented?

As mentioned earlier, there are various methods for implementing business development. Before starting to apply these methods, you can review the following stages and activities and then benefit from the methods we provided above.
● Conduct comprehensive market research.
● Increase visibility and awareness.
● Promote thought leadership.
● Conduct social assistance.
● Transition qualified customer candidates into sales.
● Provide exemplary customer service.
● Create sales content from success stories.

What Are Examples of Business Development Reports?

Examples of business development reports can be listed as follows:
● Market research report: This report presents the results of the market research conducted and examined by the business. Contents of the report may include market size, competitors, and customer needs.
● Business development project report: The business development project report presents the results of the company's business development practices. Contents of the report may include project objectives, activities performed, results, and project costs.
● Product development report: The product development report explains the outcomes of the new product developed by the company or institution. Contents of the report may include product features, market needs, costs, and expectations.
● Strategy determination report: As the name suggests, the strategy determination report contains the results of the studies conducted to define the company’s business development strategies. Additionally, it includes market research results, competitors, the current situation, and future goals among its contents.
● Financial analysis report: The financial analysis report is prepared to present cost and benefit analysis of business development practices. Project costs, expectations, and profit margins may be included in this report.
● Collaboration and communication report: The collaboration communication report consists of the collaboration and communication practices undertaken by the company with its business partners. The content of the report may include the information, opinions, and suggestions of business partners.