In every company we often use these two words, Business Development, but what is business development?
The majority of business owners and managers will say that it is all about sales. “If we have 20% more sales this year we have developed our business”. Some will say that it is a combination of sales and marketing. “Without the marketing we cannot attract new clients to sell, so we need marketing and sales to develop the company”. Both of them are right to a certain point, but it is not complete as far as what business development really is.
I have seen many good definitions that try to explain what exactly it is, but here I will give you a definition, based on my experience, which I believe that it is simple and complete.
Definition: Business Development is any activity of an organization that creates value and leads to sustainable growth.
Any activity of an organization can be: marketing, management, sales, communication, advertising, seminars or training (for the personnel), social media, other projects and so on. This activity has to create value (revenue, profitability, assets, knowledge, etc.) and it has to lead to sustainable growth, which means that the organization will expand constantly, as a result, also the value that it is created. If we have all the above mentioned conditions then we are talking about the correct meaning of business development. It can be on the short run, but mostly it is about the long run. It is about setting always the base for the next level.
Therefore, business development is not only sales and marketing. These activities are included among with many others. It is a duty of every business to monitor, control and optimize all the necessary activities that create value in such a way that they lead to sustainable growth.