Why is there emphasis or literature on developing business development skills in running a small business ?

by BlueCigarIO. Posted on Sep 13, 2020    9    7


I always thought it was sales that would make you or break you but one of my cousins who also owns an automotive store was making like 7X what I was making.

I asked him what he was doing and he has deals with the local auto-sellers to do their mechanical work. So this brought him a ton of volume.

I was also watching TV and noticing the partnerships Amazon was doing left and right. And I began wondering if deal making and Business Development is actually more important than becoming good at cold sales.

I wonder why there is no emphasis on business development and so much emphasis on sales ? Converting 1 or 2 people out of a 100 cold sounds a lot more inefficient than learning how to create an enticing partership/deal with a local auto-dealer that benefits both parties.


Comments

mynameisreeves 1

I can totally understand your frustration. In my industry, there is a lot of emphasis on creating referral relationships. There are upsides and downsides to both. The upside of course as you’ve mentioned above is that you have a reliable stream from a third-party that’s basically doing all the heavy lifting and just sending you the work that you need to do. The downside comes if they decide to keep their work internal and they no longer use your services so becoming reliant upon those can be a problem if they decide to go in that direction

agcoustic 1

For the right businesses it is a great tactic. Our sales funnel typically starts with partner business rather than individual consumers. If we want to grow more, essentially we start connecting with other businesses that can mutually benefit from our services. Our particular market is pretty niche so typically our leads from other businesses are more qualified.

Zazenp 2

The issue is that there’s no single strategy for “small business”. Some definitely need modern websites and others don’t. Some need to network like crazy and others don’t. Anytime someone tells you what you need before knowing what industry you’re in, they don’t know what they’re talking about.

Derp_Animal 2

Your definition of business development is slightly inaccurate. It is not about developing partnerships.

Business development is strategic. Sales is tactical.

When you do business development, you analyze avenues, processes, market needs and look at the profit/loss opportunity. Business development decides where to invest company resources (sales, marketing, product, etc.) to maximize profitability.

Sales/marketing are the business development bitch. They go after the customers, markets, segments that the business development team has identified. They actually implement the strategy, they don't define it.

A sales without business development will chase the leads in front of his nose without knowing whether they are the best for the business. Whether that is cold calling or trying to get partners, it is the same. It is tactical. However good a sales person is, if that sales reaches out to the wrong customers/partners, he will close nothing. A mediocre sales who taps into the right customers will be a lot more successful.

So yes. Business development takes precedence over sales. But business development might very well conclude that partnerships are a waste of the company's time and that cold calling is the way to go. Or that instead of repairing cars, the business should become mechanics of large company trucks.

VictoriousSecret111 5

Buddy, what you’re referring to is also known as sales...