Business development stages: 10 key steps
Business development is an increase in the profit of an enterprise, attracting customers, developing personnel, and producing skills. A business development strategy is a document that describes step by step how the company will develop and what needs to be done for this. The scale of business development varies from company to company and depends on the specifics.
What is the company's development strategy
So, the very first and main thing in developing a company's strategy is a competent and understandable strategic plan. To create it, it is necessary to take into account the specifics of the enterprise, market trends. Second, strategy is clear leadership, a long-term plan, and a clear understanding of the principles of doing business. Thirdly, you need a maneuver that will allow you to leave competitors behind and go to a higher level.
Company development strategy: development instructions
How to quickly create a business development strategy, this question arises for many entrepreneurs, but it is not recommended to rush in such a matter. Methods for developing a company's strategy. It is best to sit down and gradually complete each of the following steps:
- A new strategic goal needs to be formed to be achieved. You must clearly understand for yourself what you and your business need
- Formation of a new strategic goal. For the development of any company that has been on the market for a long time, new ideas are needed. Most often these are some kind of novelties, or enhancement of existing goods.
- In-depth analysis of the current state of the company. Note, there is no point in working through this step if step 2.
- Selecting the target audience is not completed. Who are your clients? What do they need to offer them to interest and push them to buy? You need to feel the buyers. And satisfy all their "Wishlist".
- And now, the most important thing is to create a unique selling proposition that will speak on behalf of your company, for you and your product. To create such an offer, you need to find the individuality and uniqueness of your company.
- Assess the prospects in the market, knowledge of trends and competition will help you in this. Identify your business strengths and weaknesses. As well as potential opportunities.
- Finally, the implementation plan. It can be advertising, banners on the Internet, TV shows. Attracting customers by dialing numbers and other methods.
Business development strategy (example)
Take Apple, which is known to absolutely every person. Before the release of a new smartphone model, a strategic plan for bringing the model to the market is drawn up. Other companies are being analyzed, and a detailed sales and marketing plan is being worked out. Strategic advantages are compiled, why Apple is better than others, and so on. Other functions that only this company has that others do not.
What should be considered when creating a business strategy:
- What will be the management structure
- sales plan for 3-6 months (minimum)
- product / service line
- transparent and understandable business processes between departments
- scheme for delegating tasks and assignments
- rules and requirements for personnel reporting
- clients and their psychotypes
- advertising policy
- customer acquisition strategy
- marketing channel development plan
- content creation plan to attract attention to the company's services
- structure , functionality, design and usability of the corporate website for clients
Business consulting for drawing up a development strategy
You can order consulting services for creating a business development strategy on the Internet and offline in our company. Our experts will assess and draw up a detailed step-by-step business development strategy.
Author: Your Mentor. Date of publication: January 27, 2021.
What will you do if a business opportunity arises that seems right for your organization but doesn't fit into your business model? It may be something strategically attractive, where potential opportunities are visible in the distance, but the implementation is not clear to you. It is from such situations that business development begins.
Business development is a functional area of a company responsible for defining and developing new business areas. All this requires a combination of new products, new markets and new distribution channels.
Business development: what is it?
Business development is about driving growth, mainly by finding new partnerships, customer categories and lines of business. It's like being an explorer looking for opportunities even before the map was drawn.
Let's list the main stages of the business development cycle with new partners:
- seeking new strategic relationships;
- exploring mutually beneficial opportunities;
- developing and signing an initial agreement;
- implementing cooperation;
- identification of the broader potential from this cooperation.
Let's say you have a restaurant and a new office building is opening nearby. You can talk about business development with the building management. You can provide the building employees with attractive discounts at lunchtime, arrange for food delivery to the office, or perhaps the company is looking for a partner in organizing buffets for important meetings in this office building. The goal of business development is to find mutually beneficial relationships between organizations.
After the field of activity is developed and the conditions are determined, the projects that were launched to develop the business are transferred to the various departments of the company for further development. For example, the design department is working on improving the product, the marketing department is developing new conditions to attract more customers in a collaborative environment, etc.
Business development aims to identify growth opportunities through partnerships, develop new relationships and develop long-term opportunities. In small organizations, these tasks are performed by the owner or founder of the company, but as the organization grows, it is often useful for them to have dedicated teams that can look beyond the horizon of future relationships with customers, partners, and suppliers.
Anything that is new, different or uncertain, but which will ultimately lead to sustainable business, is at the core of business development. Let's say you are developing a weight loss app and your company sells that app to consumers. Your business development team may be exploring partnerships with healthcare organizations that may offer the app to patients. Or food companies that could print the QR code of your app on their packaging. The idea is to find a way that the app will help other businesses, which in turn will help your business.
Why do organizations need business development? Because almost all departments of the company (production, marketing, sales) are focused on working in the current conditions. They sell products with known prospects, sell them to established market segments, or improve their products for existing customers. Strategic teams plan for the future, but in the abstract.
From this material you will learn:
- Key stages of business development from scratch.
- 3 mistakes that stifle business development (+ ways to solve them)
- Today the Internet rules: stages of e-business development
- What problems hinder the development of international small and medium-sized businesses in Russia at the present stage
Any business project in the course of its life overcomes specific stages of growth. Knowing these stages of business development and understanding how to behave in them is the basis for increasing the chances of expanding the company and improving its financial performance.
And it doesn't matter if you have an online store of household appliances or your own restaurant, or a sewing factory - in all these areas there are similar problems and nuances. If you want to understand such intricacies and strengthen your position in the modern market, read our article below.
Key stages of business development from scratch
Let's talk about the stages that make up the life cycle of a business, as well as why you need to invest in your business, even if it is already at the stage of maturity.
The life cycle of an organization is represented by regular stages that are characteristic of any field of activity. If we take the seemingly opposite areas - catering, industry and retail, then all companies in these segments will face similar difficulties and stages. Economists compare the processes taking place during the entire period of the organization's activity with those of living organisms. Let's consider the main stages of business development in more detail.
1. You need to decide on the direction
This is a difficult point. Usually, people have a hard time making choices if there are too many options. And business offers a huge number of promising areas. Of course, you will find something inappropriate, but even after that, you will have a wide choice.
To make it easier for you, make a list of the areas of activity that appeal to you in terms of personal interests or your skills. Analyze each area, crossing out what does not meet the criteria.
Why do this? To increase your chances of success. Everyone knows that if you do what you love, the efficiency of work increases significantly.
In the previous article, I talked about 5 rules of financial control. In continuation, we will consider the concepts of management and business development.
Have you heard the business mantra "Do not work in business, but ABOVE business?" The question arises, HOW to work on the business. Understanding the answer is critical to management and will often contradict classic financial textbooks.
Concept: the result of the business lies outside the business And there are all ways of business growth
Only clients bring income to business, and there are only 3 ways to grow a business:
- More clients.
- More amount of sales to one customer.
- Sell to one customer more often.
There are no income centers in business. There are only cost centers.
Concept: Business is a Cost Stream
Even financial professionals with years of experience often assume that cost and expense are the same thing. But this is not the case. Examples:
Purchasing goods from a supplier is a cost. Determine the cost of goods in the warehouse. The costs of production, materials and employee salaries determine the cost of production. And they become expenses when selling. When passed to the client.
We can only manage actions and resources (financial, material, as well as actions and time of managers and employees). In other words, manage costs. The only way to drastically cut costs is to shut down. Therefore, it is necessary to highlight the costs leading to the result and remove the unprofitable ones.
In other words, in order to earn more, you need to spend more.
1. Why did you choose our company? - I, like all candidates before me and after me, sent my resume to a dozen places. Where I get a job faster and more profitable, it’s good.
Show in full. 2. Why do you think we should choose you? - Do you need workers at all? Well, here I am. Worker. It is me who should be chosen, if only because I am clearly smarter than all those who poured standard nonsense on these questions. smarter than you, by the way, because I would never ask such stupid questions.
3. What salary would you like to receive? - $ 2.5 million per year. This is how much the President of the United States gets. then in general for a question like this? Naturally, I want to receive as high a salary as you can pay me. But you won't pay anyway. Then there is nothing to show off. All the same, the choice is mine: you say the price, I say whether I agree or not.
4. Why did you leave your previous job? - What difference does it make to you why I left. You won't change anything for me anyway. What will the answer give you? First, I’m lying. Secondly, suppose, I will answer honestly: a small salary or lack of career growth, or hopelessness, or did not get along with the team, or did not like the boss's dog. So what? You don't know if I will get along with your boss, the team and their dog. And you won't know until you try.
5. Where do you see yourself in 5/10/20 years (in our company)? - If I am so talentless as to stay in your company for 5 years, then I should not be hired at all. And the company is yours. Here's a counter question for you: what are the company's plans for the next 5/10/20 years? What? There are no such. So if you yourself do not know what will happen to you in 20 years, will the company be and what niche it intends to occupy, then how do I know? You are using drugs here, not otherwise.
6. What achievements did you have at your previous job? ”“ And your resume is not enough for you, then. Oh well. I did a great job and did an excellent job of my duties. This is an achievement! If your employees work in such a way that they work well only occasionally, then I will disappoint you: with the right leadership and good work, there should be no achievements! It is necessary to work, and not toil with nonsense and achieve achievements!
7. How would you like to see your boss? - I would like not to see him. This is the time. And two - no difference. Seriously, I don't care what he looks like. The main thing is that he should be the boss: one who can formulate tasks normally and clearly.
8. What dignity do you have? - I can play and spit on a harp 10-15 meters in length. If you need my qualifications, then it is indicated in the resume. If you need something else, then ask about it. And if you yourself do not know what you want and what you need, then, sorry, I can’t help you. To formulate hidden and unclear desires - this is what you need to see a psychiatrist.
9. What are your shortcomings? - You will decide what you need, and I will tell you if I have a drawback for this, otherwise I have a drawback - I sing well in tenor, neighbors complain, but at the conservatory they said talent. Here's another drawback: when I eat soup, I spoon towards myself, not from myself.
If you don't know what you need, then hire me, we are amazingly suited to each other: I also have no idea what you need. We will have love and understanding.