Sustaining a business isn't merely about maintaining stability; continuous growth is essential for survival. Savvy business owners recognize this reality, employing business developers to explore vast opportunities while the sales team focuses on acquiring new clients and managing contractual aspects. Bringing along a business developer can be a wise step in your business and marketing strategy.
The primary responsibility of a business developer is to drive revenue growth and facilitate company expansion. They achieve this by pinpointing fresh business prospects, exploring untapped markets, forging new partnerships, devising innovative approaches to engage existing markets, and introducing novel products or services tailored to these established markets' needs.
But, there are multiple challenges in hiring one.
- Firstly, how do you scope out the volume of work and time you would need to have a business developer help you?
- Secondly, what exactly are they expected to do in your company?
- And how do you ensure you know what they are supposed to do in your team?
Let's tackle these questions one by one.
What does a Business Developer do?
Business Developers are commonly engaged by corporations spanning diverse industries to accomplish their business objectives. Leveraging their expertise in sales and various business capacities, they bring forth innovative concepts that propel a company toward future growth within its industry.
Their role involves conducting comprehensive market research and assessing their company's existing products and services, aiming to implement necessary enhancements for heightened customer involvement.
Additionally, Business Developers often undertake travel to negotiate client contracts across different states or countries, seeking to secure new business partnerships.
Their day-to-day responsibilities include:
Meeting with clients
Business Development Managers (BDMs) initiate client interactions, often through in-person meetings or virtual sessions like video calls and business meals, constituting a significant part of their daily routine. They spend their week engaging with individuals, arranging future meetings, showcasing products/services, and enticing potential clients before passing them to the sales team.
While the sales department also holds numerous meetings, they primarily engage with clients initiated by BDMs. Depending on the company's structure, salespeople are typically responsible for finalizing deals and contract signings. Afterward, account executives take charge of maintaining enduring client relationships.
Reaching out to prospects
Cold calls and emails stand as a cornerstone for sales efforts. Establishing client meetings involves extensive emails, with many going unread or unnoticed. The sales team and BDMs communicate via emails, messages, and calls, ensuring prompt responses to address client queries and uncertainties. An extra step would be to have a glowing public presence, for example a LinkedIn profile, where they can implement social selling techniques.
Researching potential expansion opportunities
Business developers continually seek new markets for the company's expansion. Market research, encompassing PEST(LE) analysis (Political, Economic, Social, Technological, Legal, and Environmental factors), assists BDMs in profiling potential clients.
The sales team, guided by this direction, initiates client outreach. They also conduct personalized research on a client-to-client basis to tailor their offerings accordingly.
Reporting to other stakeholders
Business development and sales will work closely with each other and report to upper management for bigger decisions.
Reports are regularly reviewed, often standardized, and encompass Key Performance Indicators (KPIs). Managers meet the sales team to discuss progress and goal achievements. BDMs present results to upper management, illustrating the realism of their sales forecasts.
Must-have skills for Business Developers
A great business developer will be resilient, curious, emotionally intelligent, and adaptable. But on the technical side, each of the following skills will contribute to a Business Developer's ability to navigate the complexities of B2B relationships, understand industry dynamics, effectively communicate ideas, and ultimately drive business growth through strategic planning and execution.
Demonstrated ability in business-to-business (B2B) sales
This skill signifies a Business Developer's expertise in understanding the nuances of B2B sales processes. It's crucial for identifying, nurturing, and closing deals in a business landscape focusing on long-term relationships and complex decision-making structures.
Familiarity with project management methodologies
Understanding project management methodologies aids in organizing and implementing strategies effectively. It ensures the smooth execution of plans and initiatives, aligning them with the company's objectives.
Familiarity with the industry, including equipment, logistics, and supply-chain management
Industry knowledge is paramount for Business Developers. Understanding the industry landscape, equipment, logistics, and supply-chain management enables them to tailor solutions that align with client needs and industry trends.
Problem-solving skills to propose mutually beneficial solutions
Identifying challenges and proposing innovative and mutually beneficial solutions is crucial. It allows Business Developers to overcome hurdles, satisfy client requirements, and forge strong, sustainable partnerships.
Proficiency with the required software
Mastery of documentation tools, spreadsheets, and word processing tools streamlines the creation of impactful presentations, reports, and proposals. It effectively conveys ideas, data, and strategies to clients and internal stakeholders.
Ability and willingness to attend meetings with prospective and existing clients
Being ready to travel for client meetings demonstrates commitment and dedication. Face-to-face interactions build trust and strengthen relationships, which are fundamental for successful business partnerships.
Impeccable verbal and written communication skills
Effective communication is the cornerstone of relationship-building. A Business Developer needs these skills to articulate ideas, negotiate deals, and maintain clear and professional correspondence with clients and stakeholders.
Education and experience requirements
Ideal candidates for Business Developer roles typically hold a Bachelor's degree in business management, industrial technology, or related disciplines.
However, practical experience in previous jobs is often a suitable alternative to formal education. Additionally, candidates with non-degree credentials, such as certification as a Business Relationship Management Professional or a Certified Business Relationships Manager from the Business Relationship Management Institute, are highly regarded.
Most of a Business Developer's training occurs on the job while accumulating experience in sales and business development.
Candidates for Business Developer positions should boast previous experience in B2B sales, showcasing a track record of achieving sales targets.
Furthermore, experience in project management, industrial technology, supply-chain management, and logistics signifies a competent candidate.
Specific industry-related experience also bolsters the potential success of Business Developer candidates. Moreover, leadership skills gained from previous managerial roles are considered especially valuable.
Other applications of Business Development
In essence, the skills of Business Developers are widely applicable across industries where their expertise in sales, strategic planning, relationship building, and market analysis is crucial for business growth, expansion, and success. The skills of Business Developers are versatile and can be applied across various industries and sectors. Here are some areas where the skills of Business Developers are highly valuable:
- Corporate sector: Business Developers are essential in corporations of all sizes, contributing to revenue growth, identifying new markets, and fostering partnerships.
- Technology industry: Within the tech sector, Business Developers help in establishing strategic alliances, identifying potential clients, and expand market reach for tech products and services.
- Manufacturing and industrial sectors: They play a crucial role in identifying business opportunities, improving supply chain management, and forging partnerships within the manufacturing and industrial sectors.
- Healthcare industry: Business Developers contribute by establishing collaborations between healthcare providers, negotiating contracts, and introducing innovative solutions.
- Financial services: In the finance sector, business developers help expand client portfolios, create strategic alliances, and introduce new financial products or services.
- Retail and consumer goods: They aid in market expansion, identifying consumer trends, and developing partnerships within retail and consumer goods sectors.
- Consulting firms: Business Developers contribute to client acquisition, relationship building, and expanding the consulting firm's service offerings.
- Non-profit organizations: Even in non-profit sectors, business developers help secure funding, establish partnerships, and expand the organization's reach and impact.
- Startups and entrepreneurship: They assist startups in market entry strategies, partnership development, and scaling operations.
- Real estate and construction: In these sectors, business developers help identify investment opportunities, negotiate deals, and form partnerships for development projects.
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