So you’re a CEO looking to grow your business but you’re having trouble finding the right guy and tools to help. This scenario isn’t uncommon, and believe me, you’re not alone. These following tips will help you develop your business and help you avoid common frustrations you may find along the way.
Hiring the Right Person at the Right Time
The first thing that many new business owners aren’t aware of is that there are three stages of the commercialization process for a business. It’s essential that you hire somebody that is familiar with development targets for each stage.
The scouting period is when you’re seeking out marketing methods, points of leverage and providing your internal team with market feedback. Here, your target business development strategy is gaining the ability to work with product and internal team building.
Closing the first few deals will put you in the testing stage. Here, you’ll need analytical skills to create a framework that you will use to measure and examine data. These results will provide direction to where you should scale your business based on the company’s strengths and visions.
This puts you into the scaling period. This is where you’ll implement your business development strategy.
Sales and Business Development Different Things
Sales are all about driving revenue. Business development, on the other hand, involves identifying and creating partnerships that will drive revenue, leverage distribution or enhance the product.
There’s More to Just Making a Deal
There’s afterwards. Successful deals are a result of accountability and proactive management. You need to make sure you have the sources available to support a deal, ensuring that the proposed incentives and compensations are met. This way the goals acquired in the initial deal are consistently met.
Qualitative Versus Quantitative
Building your business based on a qualitative value proposition is more likely to result in failure. At the end of the day, people want what costs less and you can’t forget that numbers don’t lie—even if that means sacrificing a better user experience. When developing a business your main goals should be to have lower costs, drive revenue and get more customers.
Keep Everybody in the Loop
In order to gain support from your team, they must always understand why new deals support the company’s development strategy. This will get your employees eager to work towards achieving upcoming goals.
Make Deals Carefully
Trust for your business development person is vital. If they have the power to influence major business deals, it’s important that they’ve proven that they’ve followed up on opportunities that have increased market momentum and revenue. A less experience dealmaker may steer the company in the wrong direction.
Keep Yourself Protected
Always ensure that there is a legal binding contract that codifies any business agreement. Include commercial terms as well as what happens if things do not work out.