What is business development

Let’s start with the purpose of a business, according to the author business writer Peter Drucker ‘‘there is only one valid definition of business purpose: to create a customer.’’

Beyond that to retain customer/clients and make sufficient profit to sustain and grow the business, as well as satisfy the stakeholders.

Business development is a series of management disciplines that should work congruently to achieve those three aims create customers, retain them and make a profit.

Successful business development from a consulting point of view, which is my standpoint, is working on the business, maximising the results in certain key areas including:

Strategy, Marketing, Sales, Customer Service, Operations including IT and Finance, taking account of people management and leadership.

Techniques to measure the success of a business development project are again based around the three aims, number of new customers, improved retention and increased profitability.

You could argue that this is business improvement, but the difference between business improvement and business development is the additional aspect, which is managing the future of the business, looking forward to make sure as best you can in an ever-changing world, that the strategy is robust enough to sustain the business in the future.

Management need to undertake research, ask questions about the economic, political, technological and social influences, review the competition, ask questions about the changing market place and the anticipated needs of the customers/clients in years to come.

So part of business development includes the process of looking outside the business and thinking strategically, to ensure that the business changes to meet the needs of the future. Strategic Management.

Happy to take any questions if you want me to expand upon this subject.

Regards

Mark Wheatley

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