If you ask a group of people what they think business development is, you would most likely get a few different answers. There is even a chance that your own view of business development and sales may be used interchangeably.
Business development involves more of a strategic approach such as strategy, marketing, customer management, and partnerships; these activities encompass about 75%-80% of the approach, and sales about 20%-25%.
When I get asked the question, does business development have something to do with sales? Yes, it does. Is it related to business growth? Most definitely it does. Does it have anything to do with business strategy? There is a good chance it does.
Business development is a culmination of these different activities but most importantly, it’s all about shifting to the point of view of the client. This will provide you with that new perspective and will have you balance your efforts across these key activities that you and your client will both need and address. Whenever you conduct your business development efforts make sure to take the perspective from the client’s point of view and try to develop a deeper understanding of what their problem is. Realize that the client only cares about one thing and that’s their own group or company’s survival and the problem that they are facing. The client is only interested in you if they identify a need/problem or pain point that you can solve and provide a solution for it. It’s the kind of value that you can provide them that will enable them to consider your firm for the project.
If your firm’s approach is strictly from a sales perspective, generally, the economy of scale is to grow as large as you can. The strategy is to sell your product or service with a clear price and value directly to an identifiable individual client.
From a Business development perspective, the economy of scale is much smaller because the approach to your service is more strategic with the intent to create a partnership. It entails cultivating a relationship with the client and provide a service that could be more cyclical by working through existing partner infrastructures.
In my 14+ years of professional experience in management consulting, business development has been stretched to encompass a wider variety of activities with the intent to stay smaller in size. In its most traditional definition it is all about developing partnerships, which often includes some sales. Whereas, strictly sales are more transaction oriented where scalability is the differentiator.
Ernest is a Director for Bradson Consulting. The firm with a unique model, combines client relationships from Fortune 100 and 500 companies like Nike, T-Mobile, AT&T, Microsoft, and Expedia etc. with a deep network of the region’s top consulting talent. This approach provides our clients with senior consultants with the specific expertise and industry experience that is relevant and applicable to their needs. Our clients engage us for both leadership and execution within critical business initiatives.