On Business Development Strategy
December 17, 2012 Leave a comment
Business Development is a goal for practically all businesses. Few businesses will be uninterested in expanding their sales and profits. The real issue is how to proceed with business development.
The immediate response might be to:
- Add more products or services
- Expand the sales force
- Spend more money of publicity
While all or some of the above might ultimately prove to be the right business development option, the real starting point should be an analysis of existing business operations. Such an analysis could reveal overlooked opportunities for business development.
For example, the analysis could reveal:
- A change in the product or service features could make them more attractive to customers, and lead to a higher volume of repeat sales or higher word-of-mouth publicity leading to additional first sales
- Training existing salespersons and organising their work more purposefully could lead to higher effectiveness and more sales with existing sales team
- Changing the publicity mix could lead to greater reach and better results at existing or even lower costs
Business modelling is a great way to analyse current business operations. Modelling involves identifying all the factors and functionalities involved in determining the success of the business, and looking at how these are currently organised. For example, how does the business go about:
- Acquiring customers
- Supporting customers to use the product or service to derive the value they expect from it and
- Delivering the product or service in a way that is convenient to customers?
Such a review is likely to bring up lower cost and/or better quality options for carrying out different functions. Both lower costs and better quality can lead to improved business volumes.
Perhaps more importantly, a comprehensive review possible with a sound business modelling exercise can bring up key gaps in existing strategies. And one or more of these neglected functions could be the bottleneck that is preventing faster growth of the business. By focusing on overcoming this bottleneck, growth could achieve a momentum that exceeds expectations.
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