If you are immersed in the world of SMEs, you must be clear about the definition of business development. Knowing this will allow you to focus much better on the objectives of your company to contribute to its growth and positioning within the market.
Notes on the definition of business development
When we talk about business development we refer to the progress that an organization has over time. This is achieved through training and innovation strategies that strengthen the skills of the employer and his employees, all in order to improve the conditions of the company.
This may sound a bit fuzzy, but if we want to fully understand the definition of business development, we must bear in mind that it is an integrative concept that involves many areas and actions within a company.
Characteristics of business development
If we see the definition of business development as a whole that involves many parts, we can better understand what it is about. That is why we want to show you the main characteristics so that you can better assimilate the concept:
- Business development takes into account the constant training of the human part. All this in order to promote productivity and efficient management of the company’s resources.
- Within business development it is of utmost importance to have a defined business culture. This is the bridge that links all the elements of an organization. The corporate culture are the values and goals that characterize the company and each of its members.
- The definition of business development must involve leadership as a key concept. This is because only a leader can make the interests of the organization commune with the interests of individuals. An adequate leader must have the necessary skills to drive production and empathize with the work team, if there is an understanding between both parties, this translates into opportunities for development.
- Innovation is the characteristic that differentiates the best from the rest, that is why it is a vital word when it comes to business development. For the concept of innovation, human capital is seen as a competitive advantage, it is at this point where it is linked with knowledge management. In this line of meaning, it is ultimately up to the work team that a company is capable of adapting to a globalized market, being up to the different challenges that it demands.
Economic growth within the definition of business development
Many people often take business development as synonymous with economic growth. However, we must tell you that they are two different things. Economic growth is part of business development, but it is not necessarily comparable.
So that you better understand the above, think that there are some companies that, in order to achieve business development, decide to minimize their size, then you will notice that although it may seem, growth is not equal to development.
Business growth refers to the process by which a company increases its size. This generally occurs as a consequence of increased demand. Thus, when we talk about business growth we are talking about higher or lower productivity.
As you must be imagining, economic development must consider economic growth as one of its flagship strategies to consolidate itself.
Stages of business development
At this point you should bear in mind that each company is different and therefore what works for one may not be very favorable for another. However, according to the approaches of multiple theorists, a scheme has been outlined that includes the different main stages of business development. Analyze each one and see where your company is or how you can improve.
1. Forecasting and planning
At this point you must analyze the characteristics of your business and based on the findings, plan the direction lines to achieve your objectives. Here you must also take into account the possible inconveniences that you may encounter along the way, in this way you will be prepared to face any challenge.
After having clear lines of action, it is time to structure the planning so that it becomes a solid plan. Create schedules, choose work teams and based on these assign the proposed goals and times.
Bearing in mind that one of the keywords of economic development is leadership, you must choose the competent leader or leaders who will be in charge of your projects. This will help you to better define each of the strategies.
4. Integration of resources
At this point you must define what type of resources you have, both human and non-human. This point is vital because they are the inputs to enhance the economic development of your company.
After being clear about what, how, when, where and with whom, it is time to undertake each of the actions. Movement is the fundamental cause of the development of any organization. It is from action that results are derived.
During the execution it is important to go back over and over again on the original plans, either to verify that they are being fulfilled, or to be able to modify them if necessary.
6. Creativity and training
Regardless of whether your company is already on the road to economic development, you must not lower your guard. It is important that both you and your team are in constant training. This will be the insurance to know for sure what the needs of the current market are and what they expect from you. Training stimulates creativity, and these two ingredients are essential for innovation, an extremely necessary element when thinking about economic development.
Another tip that can help you improve the creativity of all your staff is to carry out group activities focused on this topic and on teamwork, since both things complement each other directly and need a little exercise.
7. Look for strategic allies
In today’s world, successful companies know that they cannot function as separate islands in the sea of business. Look for strategic allies, sign up for groups of companies and entrepreneurs that can help you open new doors and improve your business idea.
They do not necessarily have to be buyers or suppliers, think about all the possible products and services you need for your business, and analyze how you can, at the same time, benefit the businesses of your allies. If there are negotiations in which you can pay directly with your product, much better.
We hope that all this information has helped you understand the definition of economic development, and that this article also offered you the necessary lights to understand what are the steps to follow to get there.