Definition of Business Development – Business or commerce is the activity of trading goods or services with the aim of making a profit. In economics, a business is an organization that sells goods or services to consumers or other businesses, for a profit. Historically the word business came from English business, from the word busy which means “busy” in the context of individuals, communities or society. In a sense, busy doing activities and work that brings profit.
In a capitalist economy, where most businesses are privately owned, businesses are formed to earn profits and increase the wealth of their owners. The owners and operators of a business are rewarded according to the time, effort or capital they provide. However, not all businesses pursue profits like this, for example cooperative businesses that aim to improve the welfare of all its members or government institutions that aim to improve people’s welfare. This business model contrasts with socialistic systems, where large businesses are mostly owned by the government, the general public, or unions.
Etymologically, business means a situation where a person or group of people are busy doing work that generates profits. The word “business” itself has three usages, depending on the scope — the singular use of the word business can refer to a business entity, namely a juridical (legal), technical, and economic entity that aims to make a profit or profit. Broader usage could refer to a specific market sector, for example the “television business”. The broadest use refers to all the activities carried out by the community providing goods and services. But the exact definition of “business” is still a matter of debate today.
Basic Forms of Business Ownership
While the forms of business ownership vary from country to country, there are several forms that are considered common:
1. Sole Proprietorship
A sole proprietorship is a business owned by one person. Owners of sole proprietorships have unlimited liability for company assets. This company is managed individually and has full responsibility for the continuity of the company and its capital comes from its own. Usually individual companies have advantages and disadvantages.
A partnership is a form of business in which two or more people work together to operate a company for profit. Just like a sole proprietorship, each partner (partnership member) has unlimited responsibility for the company’s assets. Guild can be grouped into a limited partnership and the firm.
A corporation is a business whose ownership is held by several people and is supervised by a board of directors. Each owner has limited liability for company property.
Cooperatives are businesses whose members are cooperative people or legal entities with the basis of their activities based on cooperative principles as well as a people’s economic movement based on the principle of kinship. Cooperative aims to improve the life of its members. The main characteristic of cooperatives that differentiates them from other business entities is that cooperative members have multiple identities. Dual identity means that cooperative members are owners and users of cooperative services.
Do you have good communication skills? Interested in the world of business? Like interacting with new people? Maybe business development (BD) is the right job for you.
What, really, is the job of a business development? Come on, see the explanation below.
What is Business Development?
Some people still think that BD is the job of a salesperson. In fact, the reality is not so. According to Forbes, BD is a process of creating long-term value for a company through customers, markets and business relationships.
I mean this, BD is the person responsible for finding ways so that the interaction of the three channels (customers, markets, and business relations) can create opportunities for the company to continue to grow.
Long-term value or what is commonly called long-term value itself is simply money, profit, image, or whatever is the main goal of a developing company. However, the person in charge of business development is not just trying to make as much profit as possible in a short time.
They also have to think about strategies and tactics in the long term for the development of the company. In other words, a BD must rotate money continuously so that the company is always profitable.
The Role of Business Development in the Company
The position of business development is very important for the company’s long-term business continuity. A company must be able to adapt to market demands by conducting business development.
Business development includes market research, improving and maintaining relationships with new potential customers, identifying and creating potential business opportunities. Therefore, a BD must be able to make a business strategy.
Business Development Factors in Making Strategy
Without customers, there will be no growing business. A BD must be able to read what problems are being experienced by customers, what they need, what value they are looking for.
It could be that customers really consider packaging when buying, or are more concerned with the quality of goods. This must be identified by a BD to then be able to respond to changing customer needs.
A product definitely has its own target market, but this target is dynamic. A BD has a duty to find new target markets and adapt their products to be accepted in that market.
Consumer behavior can be formed based on geographical location, demographics and psychographics. For example, the Javanese people, especially Yogyakarta and Solo, like sweet-tasting food because of the large supply of sugar in Java during the colonial era. BD can see this as an opportunity to develop sweet-tasting food products to target customers in Central Java, Yogyakarta and East Java.
Companies must be able to build good relationships between customers, clients, business partners, and investors. Without a relationship a business will not be able to develop and tend not to last long. BD is here to help build trust, image and mutually beneficial relationships. The goal is that the company’s relationship can run in the long term and sustainably.
Tasks Performed A Business Development
How? Are you familiar with Business Development? Now it’s time to discuss the tasks that a BD performs within a company.
1. Monitoring Market Developments
A BD is in charge of monitoring developments and existing market competition. So that he can see prospects for making product development strategies, new customers and partnerships.
2. Research to Determine the Target Market
BD is also responsible for clearly defining new target markets before adapting them to the product you want to develop. It is intended that the products made can be right on target and become a solution to customer problems.
3. Understand the Company’s Products
BD is also required to understand all of the company’s products/product knowledge complete with its advantages, features, raw materials to the processes carried out.
4. Coordinate with other divisions to develop products
Of course a BD also needs other divisions to support its performance. Starting from Sales, Marketing to Account Manager.
5. Developing and Presenting Business Development Strategies
BD is also in charge of designing various strategies related to business development. Such as strategies to increase customer loyalty, find new customers, partnership strategies, sales to monitor performance indicators. Because of that BD must have the ability in presentation, sales, and making agreements related to the strategy that has been prepared.
The difference between Business Development and Sales
Many consider BD’s work the same as sales. In fact these two jobs are different. People in business development are tasked with advancing a company with its business development strategy. For example by developing new markets, selling subsidiaries to other companies, and the like.
The job of a sales development also aims to increase profits for the company. However, sales development is more responsible for cooperation or purchasing contracts, handling prospects, and providing demonstrations of the products being sold.
Sales development is more focused on the products being sold and profit from these sales. Even though these jobs are different, the two are related, you know! Sales could have entered into the business development section.
With the same goal of making a profit, they can work together to exchange strategies in order to achieve the targets expected by the company. Imagine if the BD task was done alone without sales, maybe the development achieved by the company would not be maximized.
Business Development Responsibilities
Have you got a little enlightenment about the work of BD? Well, now is the time to find out what BD’s work and responsibilities are:
- Do market research.
- Look for new customer opportunities and maintain relationships between customers or clients.
- Collaborate with other divisions to meet market or client needs.
- Develop and present the company’s business development plan.
- Conduct research on the company’s business development on a regular basis.
- Understand the company’s products, competitors, and business position in the market.
- Work closely with the sales department to get promising new prospective clients or customers.
Skills Required A Business Development
Interested in becoming a BD or even want to swerve to become a BD? Check out the skills needed by a BD below:
1. High Motivation
Becoming a BD requires high motivation and discipline at work. A BD should not give up easily and be able to meet targets within limitations and deadlines.
With a very diverse task focus, the ability to manage time and priorities must also be owned by a BD. A BD must also be smart in managing the resources available to the team and the company so that they can support business growth.
Not only working behind the scenes, a BD must also have good communication skills. The reason is, they have to communicate with potential customers, clients, teams, and also present in front of colleagues or clients.
Not only with sales, BD also works a lot with the marketing division to promote the brand. Therefore, a BD should also have basic skills in marketing.
In his work, a BD will be faced with negotiating with existing clients or potential clients who have the potential to work with the company. Well, in this case a BD must hone skills in negotiating so that all projects are successful.
6. Data Analysis
There will be a lot of data that must be analyzed by a BD. From monthly sales growth data, investor data, client data, to also data from competitors that need to be analyzed and studied. This is where accuracy and data analysis skills are needed. Data is not just writing, you know! A lot of data contains image patterns, numbers, number patterns, and even mathematical operations.
A BD must also be able to compile data and present it to superiors in language that is easy to understand. If you are confident in your data analysis skills, you may be a great fit to work in business development.
7. Project Management
Working to develop a business is indeed a complex and high-risk thing. Becoming a BD requires high responsibility because the company depends on your fate.
In becoming a BD, you must be prepared to face all the best and worst possibilities. You have to handle not only projects, but teamwork, team support, and problem solving. In this case, leadership needs to be instilled in your mind so that all the projects you lead can run smoothly and be in harmony with the team.
How to Become a Business Development Associate
If you are interested in becoming a bizdev, here’s how to become a business development:
1. Look for Internship Experience
In order to make it easier to get a job as a business development person, internship experience is needed. With an internship, you can learn earlier from previous companies about their business models and learn from seniors.
Nowadays, many companies are opening internship vacancies for business development. You can search on job vacancy sites with the keyword business development internship. One of the job vacancy sites that you can use is LinkedIn.
2. Keep Up-to-Date with New Developments
To become a reliable business developer, extensive knowledge of all aspects of the business industry is required. Always update your knowledge by reading economic news, technological developments and also industry. Develop knowledge of marketing, accounting, or management so that it can help you in your future work.
3. Prepare CV
To get the first job, of course, you need a Curriculum Vitae (CV) to apply for a job. A good business development CV should be written in a way that highlights your abilities and accomplishments. If this is the first time you have made a CV to apply for a business development job, you can see an example CV below for reference.
Business Development Manager Career Path
The senior level of the Business Development Manager position is to become VP Business Development or Director of Business Development – EKRUT. However, the career journey to become a Business Development Manager is not easy to achieve. To get to this point you can start a career as Customer Service, Sales or Marketing. Only after having a lot of experience, you can become a Business Development Representative. From Business Development Representative then the next career path is Business Development Manager.
At the senior level, there are several positions that you can get, including being the Vice President of Business Development or becoming the Director of Business Development. By knowing some of the qualifications above, now you have a clear picture of the role and duties of a Business Development Manager, right?
Business Development Manager Career Projection 2022
Quoted from Forbes, currently, many businesses are looking for ways to recover from financial losses suffered in the past year and successfully transition to “The Next Normal” – a term that refers to the emerging post-pandemic era created by McKinsey.
This begs the question: How can organizations strategize for growth and prepare their Business Development teams to better understand and align with their goals.
Therefore, career projections for 2022 for Business Development Managers are still a crucial point to maintain the company. The most sought-after candidates are candidates with the ability to innovate and adapt in the new normal era.
The position of Business Development Manager must understand the changing situation, so that the company will be better prepared in articulating issues for future plans and preparing business plans while still thinking ahead.