Business development, or biz dev, looks very different depending on your industry and organization's specific needs. However, this strategy uses partnerships, networks, and markets to build long-term value for — and to grow — your business.
A business development strategy typically focuses on the top of the sales funnel, where prospective customers are just learning about your business. Sometimes, these strategies concentrate on identifying and nurturing promising leads, guiding them toward contact with your sales team, who can then take over to close the sale. Other times, the focus is on increasing networking efforts to boost the business’s visibility and establish strategic partnerships.
Your business's particular strategy depends on its maturity and overall needs, whether it involves developing relationships, increasing revenue streams, or finding new opportunities for advancement and long-term sustainability.
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What are the benefits of having a business development strategy?
A thorough business development strategy supports an organization's growth by outlining the steps needed to increase its value and generate strong leads. It acts as a road map for teams, engaging multiple departments and aligning them toward common goals that support a business's long-term advancement.
Guided by business development strategies, teams can effectively identify growth opportunities and develop new relationships or nurture existing relationships with key partners. This tactic can open your business to new possibilities and expanded markets while improving your brand's image, giving it a competitive and innovative edge. Following a business development strategy can also streamline processes and mitigate risk, reducing costs and boosting your bottom line.
A thorough business development strategy supports an organization's growth by outlining the steps needed to increase its value and generate strong leads.
How to create a business development strategy for your business
Consider the following five important factors as you craft your business development strategy.
Identify your target audience
The first step to creating a solid business development strategy is identifying audiences that offer growth potential. This audience can be small, but it must be relevant to your business and present opportunities for advancement.
Start by examining the demographics of your current customer base to guide your strategy. Focus on specific demographics, such as location or age, to pinpoint firms or individuals that can propel your business forward. This analysis helps avoid wasted efforts on prospects who are unlikely to become customers.
Perform market research
Once you have defined your audience, conduct market research to understand their challenges and needs, and observe the existing solutions to these problems. This step can guide your value proposition, identify market gaps, and present ways your offerings can meet customers' needs.
Familiarize yourself with your competitors during this stage, too. Research other businesses in your market and assess their strengths and weaknesses compared to your business. Doing so can help you understand your market position and inform your strategy so you stand out.
Set clear goals
Establish SMART — specific, measurable, attainable, relevant, time-related — goals to drive your business development strategy and introduce prospects to your sales funnel. These goals may include anything from entering a specified amount of markets within a specific time frame to achieving a revenue goal to improving customer satisfaction scores by a designated percentage.
While these goals don't have to be directly related to revenue generation, they should align your team's efforts across various departments and integrate with your broader business strategy.
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Generate leads and build your network
To streamline your business development strategy, determine which channels can most effectively help you achieve your goals. Common approaches include a combination of networking, referrals, advertising, cold calls, and content marketing.
While traditional channels like face-to-face networking excel at building relationships, they can be time-consuming and costly. Digital networking platforms, like LinkedIn, offer a cost-effective alternative. Paid advertising and content marketing targeted at the platforms your audience uses most can effectively generate leads and develop your network. Additionally, leveraging referrals from satisfied customers can broaden your network and generate new leads, though these connections can be inconsistent.
Continuously monitor your progress
Once you implement your business strategy, monitor its progress by using key performance indicators (KPIs). These indicators provide measurable benchmarks for your business and ensure that your strategy performs as it should.
KPIs can include deals closed, revenue growth, or customer retention rates. Each business should track the KPIs in line with their defined goals. Revisit your business development strategy regularly using KPIs to drive any changes or adjustments.
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This story was originally written by Sean Peek.
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