Profit is one of the most important metrics for a business. Every year you want to see the amount you make going up. The way you achieve this growth is varied, but it all comes down to business development.
When you break it down, business development is about how you increase profits. This is done through the way you structure your company, the internal systems you put in place, how you generate leads, manage customers and business partners, and implement your PR and marketing strategies.
In this guide, we’ll look at the different levers of business growth. I’ll then show you how you can apply some of these strategies to increase company profits.
What Should A Business Consultant Know?
If you are going to implement a business development strategy you need to understand the company and the markets it operates in. There are three key bits of research that will help you do this. You will need to:
- Review your market so you understand the opportunities within your industry
- Analyze the company so you understand its situation and the business development opportunities available
For a small to medium-sized business analyzing the market mainly involves competitor analysis. You want to review the fastest growing businesses in your vertical and identify if there are any lessons you can learn from them.
To give you an example, below is a template an e-commerce store could use to do an online competitor analysis.
In addition to the competitor research, you might spend time looking at broader economic trends. How much time you spend on this research will vary by niche and be impacted by the size of the company.
A small company might just need information about the local market. If you are operating in a number of markets you’ll need to consider more factors. This could cover things like currency fluctuations and regional economic growth rates.
Following on from this you should do a SWOT analysis.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The analysis provides a framework to establish internal and external factors impacting your business. It also gives you insights into the current state of the firm across different departments.
Your SWOT analysis should cover every part of your customer journey. It will include:
- How you generate leads for your
business Howyou turn those leads from a prospect into a customer
- The customer retention strategies you have in place
The customer journey cuts across different departments of your business. It covers marketing, sales, customer support, and more. This is the external customer-facing part of your business.
Of course, the SWOT analysis also looks at the internal structures and systems you have in place customers don’t see. This is the business admin. It’s how you manage your employees.
Ultimately the aim of this business review is to help you understand the state of the company. The more information decision makers have the better the development strategy should be. Well, in theory at least.
Before you set about implementing your business development strategy make sure to set goals. I cover how to do this in the next section.
How to Set Your Business Development Goals
Most businesses refer to company goals using the acronym KPI. This stands for Key Performance Indicators. Business people like to use acronyms because it makes them feel important.
I’ll just call them goals.
Having company goals provides you, and the people working for you, with something to aim towards. Goals are important because they provide quantifiable targets that you can review. Ideally, you want to have a single overarching company-wide goal.
This company goal needs to be easy to understand, but ambitious to achieve. So for example, if you were running an online software company your goal might be:
- Generate $1 million is Annual Recurring Sales (ARR) within two years
That’s a pretty easy goal to understand.
Now you need to break that goal down into chunks that people can achieve. You do this by first breaking the goal down into targets for each of the departments in a company. If I were to continue with the example above this might look like:
- Sales: Generate 200 $500 a month subscriptions within 12 months
- Marketing: Get 20,000 unique visitors a month within 12 months
- Business Planning: Launch in the Spanish speaking market within 12 months
- Product Management: Reduce customer support bug complaints by 60% within 12 months
These goals will then be broken down again into sub-goals, which are applied to individual employees. The image below shows what this might look like.
This is the kind of business management systems that companies like Google put in place. It helps keep people accountable to targets and provides them with a way to achieve their goals.
Once you have set targets, primarily the top level company goal, you are ready to look at how to achieve it. This is where you need to come up with business development targets that you could apply to help boost growth.
Business Development Across Departments
Most businesses can broadly break down their operations into four sectors. The larger a company is the more these sectors are broken down into constituent parts.
- Management: For a small firm administration essentially this covers how your employees are managed and the company runs. Large companies will break this down into different departments like HR, Finance, business planning, etc.
- Marketing: This is how you make people aware of your product. Marketing can cover everything from the creation of content through to management of social media channels and paid advertising campaigns.
- Sales: How you turn a prospect into a sale. There’s normally a crossover between sales and marketing.
- Customer Management: How you provide the product or service to the customer and the systems you have in place to deal with issues. This will cover everything from project leads who are responsible for managing a client or partner, through to customer service.
It’s impossible to provide comprehensive feedback on the business development strategies that you can apply to your company. Factors like what niche you are operating in, the market you are operating in will determine your strategy.
With all that said, there are three things to consider when developing your business development strategy.
Employee Training & Retention
The key differentiator for most companies, especially in the service sector, are your employees. In order to grow your company, you want to attract the best talent, provide them with awesome training, and then keep them.
To attract the best talent you need to primarily target the right people, and offer a competitive salary. However, it’s not all about the money. Company reputation, benefits, career prospects, and work-life balance are all factors that people consider when looking for a suitable job.
The factors listed above are all things that you have control over and should emphasize in the copy you put on your website, and your job ad. By looking at how you can make your job more appealing, you can improve your odds of attracting and retaining the best talent thereby reducing employee churn.
Cost Cutting & Efficiency
Efficiency is something that most companies aspire towards. However, the reality is that the majority of companies could be made more efficient, thereby increasing productivity or decreasing labor costs.
In order to identify opportunities for business development, it’s a good idea to first review the systems that are in place across the company. There are numerous layers to this. For example:
- If you can improve the onboarding process for new employees then they can start working faster
- Interviewing employees across different departments can be used to identify problems impacting work, or areas of unnecessary overlap between staff. A strategy could then be developed to solve the issue
- A data-driven review of sales outreach can be used to identify the best way to engage and convert new leads. This strategy can then be applied across
The list goes on.
Once you have identified a problem you can work on a strategy to resolve it. For example, at my wife’s travel company I systemized and templatized the process of managing customer inquiries and orders. While it took a lot of time to develop this system and put it in place, once it was operating she was able to deal with orders faster.
I spent time developing a similar system to manage the people who work with me on this site.
These business development strategies are like the addition of oil to an engine. They help your company run more smoothly, which frees up time and puts you in a great position to take advantage of new opportunities.
Probably the most exciting area of business development is starting a new project. This might be entering a new market, opening a new store or something else entirely.
Like most things in life, a large part of making the most of these opportunities will be down to planning. Take a considered approach. Analyze the opportunities, and mitigate the risk before implementing your business development strategy.
Of course, the opposite can also be true. Your business might be losing money and you need to employ drastic actions in order to make a profit. While you will need to follow the same strategies that are suggested above, time will be against you. You need to be strategic and decisive.
How to Implement Your Business Development Goals
After you have finished strategizing you need to implement your business development goals. You need to be strategic in your approach. It’s important to balance the ongoing tasks that will need to continue for the company to be profitable against your new business development strategies.
You will need to analyze the capacity available within the organization to achieve these tasks and the associated costs of implementation. This requires strategizing and planning. Depending on the complexity of your business development goals you might well need to plan well in advance.
Most companies will manage this process through the annual business plan. This is where tasks are broken down into quarters, and then months, with clear outputs. Having such a strategy available for everyone to access helps you stay focused and avoid the temptation of making rushed decisions. This is especially important for large companies that are generally slower than startups at implementing new business strategies.
Keep in mind that your business strategy is not fixed. Make sure to periodically review your business development strategy. Analyze what is working and what is not, then adapt your strategy.
Wrapping it Up
In this guide, I’ve tried to share with you a systematic approach to business development that is relevant to your needs. The outline of the article is broad enough that there will be takeaways you will find useful. However, these are only broad brushstrokes. You will need to customize this strategy to fit the needs of your company.
If there is one lesson I’d like you to take away from the article is the importance of breaking things down into manageable chunks. Before you implement a business development strategy analyze your situation. Use this information to dictate the most appropriate course of action. Once you have done this set out a plan for how you will incorporate these new ideas into your company.