In today’s competitive market, knowing what to do at each stage of your business keeps you ahead of your competitors by ensuring that you predict market changes even before they occur. The reason must businesses fail is because they overlook underlying principles guiding the sector in which they find themselves. It is always good to decide on those business strategies that you can apply to your business once is on the market in order to stay valid. In this article, Wayne Francis, a business developments expert takes us through the process and tries to make us understand some key terminologies that exist in the field. When asked the definition of business development, this is what he has to say.
“In the simplest terms, business development can be summarised as the ideas, initiatives and activities aimed towards optimising your business. This includes increasing financial performance, growth in terms of business expansion, increasing profitability by building strategic partnerships, technology and making strategic business decisions. The goal main goal is to create long term embedded value for the business and to make it more sustainable and robust. “
He further makes us to understand that, there is no best way to organize a business, to lead a company, or to make decisions. An organisational decision-making style that is effective in some situations, may not be successful in other situations. An optimal successful Business Development Strategy depends on various Internal and External factors.
- INTERNAL FACTORS
The biggest challenge business face when trying to optimize is that the management team uses the same thinking as when they created the problem. Einstein defines this as “insanity” – Doing the same thing repeatedly and expecting a different result. They apply no innovation or forward-thinking methods. Mostly they stick to best practice but businesses like UBER, AMAZON and AIR BNB have changed the landscape completely by thinking differently and disrupting the industry. If this is not done, you will be left behind. Other internal factors such as resources, capabilities, experience, but also the size of the company influence business development decisions.
- EXTERNAL FACTORS
Speaking about external factors, we must understand the difference between the macro and micro environment. To analyse the macro-environment, and its influence on your Business Development Strategy, managers need to continuously analyse the trends happening around the world. These changes are related to political, economic, social, technological, environmental, and legal issues. In addition to macro-environmental factors, managers also need to analyse the micro-environment which includes specific trends, structures and powers existing in their specific industries. The level of competition based on the amount and power of competing rivals and substitutes, the quality and power of distribution channels and entry barriers to the industry all influence the possibilities for business development directions and methods.
In business today, the practice of innovation isn’t just about creating new products. It’s about discovering completely new markets that meet previously unknown and therefore untapped consumer needs. Especially in the age of Internet commerce, the act of innovation becomes an even greater challenge, awash in a sea of new ideas. Therefore, the drive toward a clear Business Development Strategy by selecting and executing the right ideas and bringing them to market before your competitors takes on an urgency that has been previously unknown… Read More
Wayne Francis is an experienced Business Executive, Entrepreneur and Business Turnaround Strategists. His key strength is Business Optimisation through innovation and focused leadership. He is currently the Managing Director and Founding Partner of Exponential Group a boutique Management Consulting firm that assists start-ups and corporates with Business Optimisation Strategies in order to maximise returns and create long-term embedded value.
His career spans over 25 years in Corporate blue-chip companies across the African continent with over 15 years at Executive C level (EXCO).