Back to 1997, AOL buys AIM instant messenger to integrate it in their service. September 7, 2016 Apple pairs with Nike creating Apple Watch Series 2. This is business development, and you just read two examples of partnerships between companies, which buy/create products for another company’s clients.
Business development and sales, two complementary roles
Today many entrepreneurs tend to consider that business development and sales are the same thing. This is a misconception, and if you use these two terms interchangeably, you are doing it wrong. In The Palgrave Encyclopedia of Strategic Management by Dr. Mie Augier and Prof. David J. Teece, business development is defined as:
the tasks and processes concerning analytical preparation of potential growth opportunities, and the support and monitoring of the implementation of growth opportunities, but does not include decisions on strategy and implementation of growth opportunities.
If you imagine a timeline between two points, sales (A) and marketing (B), business development is between them, more close to the last one. The reason for this position is very simple: business development implies brand placement and awareness, market research and expansion, and as you can see, all are shared goals with point B.
A business developer is researching, prospecting, and qualifying leads before passing them off to the sales person to further develop and close the process. While a business development person will identify and create partnerships that enable leverage for driving revenue, the sales person will focuses almost exclusively on closing the deal and driving revenue.
It is true that in the beginning, many small companies have one person for the both roles. Only when they need to expand and grow, they separate and clearly define the roles of business development and sales teams because this will allow each member to focus on what they know best.
Knowing the difference will help your company growth.
For business development please contact,
Sandra Tanase
Managing Partner | Head of Israel Mission
Mob: +40 79 9999299