Career Options: What is Business Development
Have you ever overheard an individual in a sharp business suit say, “I am into biz dev?” Ordinarily, this utterance may not interest most folks, until they observe the biz dev director get into his or her Ferrari and drive away.
So what exactly is Business Development?
- Is it about revenues?
- Is it about developing alliances?
- Or, is it about bulldozing (as some new venture leaders inaccurately allege)?
The folks at Degree Jungle asked a few graduate students for a “biz dev” clarification and most of them presented a similar definition:
Business development is the formulation of extended value for a business from patrons, markets, and partnerships.
At its core, business development is about determining how these business relationship elements blend with each other to generate possibilities for growth. To this extent, we chose to probe a little further and analyze the definition’s elements.
Extended Value In its most basic mode, “value” has to do with money, dollars or the lifeline of any company (but invisibles like “status” also enables businesses to flourish). There are lots of approaches to generate fast profits, but business development is not about make-a-profit-quick strategies, nor is it about neo-Darwinism approaches, which both generate value that vanishes as quickly as it appears.
Extended Value has to do with building business opportunities that linger over time, holding the doorways open for value to circulate regularly into a company. Consequently, extended value in business development implies generating remedies for establishment to expand systematically.
Patrons This element of the meaning is somewhat clearer–clients cover the expenses. They are the folks who purchase products and services, and without patrons, companies can’t stay alive nor will they have any business to develop.
That being said, there are patrons in some markets that do not add to a company’s growth. Enterprises can develop excellent products, but if clients are unfamiliar with the organizations that offer it, the establishments will never flourish. This reality by itself best explains how business development plays a duty in developing strong consumer bases.
Markets Patrons “reside” in distinct markets and connecting with these markets is certainly a matter of demographic strategies. A Frankfurt operation could only concentrate its marketing efforts in South America, which would leave out all customers in the European arena. Likewise, customer markets are labeled by group, standard of livings, and buying mentality. Therefore, business development is also about recognizing opportunities to connect with new customers and taking part in fresh markets for unlocking an extended value.
Partnerships Lastly, we have “partnerships.” Just like the Earth and the Moon need gravity to maintain their orbits, any prosperous business development initiative depends on basic groundwork of solid business partnerships. Developing; overseeing; and taking advantage of partnerships; which are founded on reliance, common recognition, and a shared admiration of each other’s value; is essential to enhancing a company’s extended value.
Relationships with colleagues, patrons, workers and the media are all pivotal to the growth of any business development endeavor, and because of this, partnerships earn their spot in any detailed meaning of the “biz dev” term.
- So, is business development all about revenues?
- Is it about alliances?
- Is it about bulldozing?
Well, honestly, yes; it’s all of these, and it’s a lot more. Business development is a complex and intriguing specialty that is worthy of visible awareness so that folks can admire the glamour of companies like Apple’s, Google’s, and Amazon’s capacity to become number one in their industries.