Business development is a process that involves stepping away from day-to-day operations and looking at where you want your business to go. It often requires research to identify customers, competitors, opportunities and threats. Your strategic plan should include top-level objectives with desired outcomes and deadlines. It should also outline the responsibilities, budgets and resources needed to implement the goals.
Identifying Your Target Market
Identifying the market that will most benefit from a business strategy development is one of the most important parts of the process. This information will shape the company’s marketing, sales and product development strategies. Companies may gather this information through surveys, social media, personal emails or quick phone calls to customers. It can also be found through market research and SWOT analysis. The results of these efforts should be monitored and recorded. It will help keep businesses motivated and can help determine aspects of the process that need improvement. It is especially important for companies that are still growing.
Identifying Your Competitors
Once a business has clarity about its target audience and the value it brings to its marketplace, it needs to learn as much as possible about the competition. It can include any direct competitors and businesses that provide solutions to the market in ways different from your own. Competitive analysis comprises identifying product offerings, pricing strategies and customer service standards. It also should identify the areas where each competitor outperforms your business and what steps you need to take to improve. It’s also important to include measurable data points through which you can document positive outcomes from your plans, such as new leads or contacts.
Identifying Your Opportunities
Business development strategies are effective when they identify opportunities that allow businesses to maximize profits. These opportunities can be found in several places, such as new market spaces, the presence of complementary products or the potential for increased sales and profits. The first step in identifying business development opportunities involves thoroughly analyzing the company’s internal and external drivers. It should include strengths, weaknesses, opportunities and threats analysis. The next step involves identifying the unique qualities that distinguish your product or service from others. It helps you stand out in a sea of similarities and provides a platform for differentiation.
Identifying Your Strengths
An objective look at your company’s operational capabilities is necessary for effective strategic planning. It may involve examining areas where growth is unlikely to provide commercial benefits or that could require more work and investment than the company can afford. This stage also involves identifying your company’s strengths to customers, differentiating it from competitors and setting it apart from other businesses in its field. It helps to create a clear direction for generating new business and informing your sales team’s activities. This step will also help to identify opportunities for improvement. The resulting plan should be balanced against the realities of your business model and financial forecasts.
Identifying Your Threats
While it’s important to work on your business’s weaknesses, there’s also value in recognizing and addressing the external threats that may impact your company. These often exist outside the company’s control, such as a material shortage caused by tensions in a country that affects production costs or a new technology allowing a competitor to capture market share.
Identifying Your Goals
For a strategic plan to be effective, it must include specific, measurable goals. Generalized objectives like increasing efficiency or reducing inventory are not useful because they’re too broad in scope. Instead, focus on identifying top-level objectives that will bring you closer to your five-year vision. These are the goals that will drive business growth. Once you’ve identified your goals, ensure everyone in the company is on board with the strategy. It can be accomplished by including the organization’s objectives in performance evaluations and putting in place tools that assist your team in remaining organized and on task. It consists of a sales management system that allows you to keep track of new business opportunities and nurture them efficiently.