The Importance of Business Development to SMEs
Grow or Die
The business environment today makes it essential that small and mid-sized companies make the issue of growth a priority. With the rapid changes in technology and business methods, any company that is not growing is losing ground. In virtually every significant market niche there are competitors that are employing best practices and changing the way business is carried out. If a company is not tracking those changes and growing enough to respond to them it will quickly find its margins and customer base eroding.
Regardless of management’s perspective on the issue of growth, it is important to recognize that these dynamics are external. Their causes and consequences are beyond the control of any one company and require a conscious effort to respond to them.
Making Growth Happen with Business Development
The concept of business development is the process of allocating resources to your company’s growth. It is taking the time to develop and implement both strategies and tactics that define a company’s path of growth. As an integral element of the business plan, the process of business development deals specifically with what is required to add new customers, new products and services, and seizing new opportunities. Profitable growth does not happen by accident. Likewise, growth is most successful when it is an outgrowth of planned initiatives and investments rather than simply responding passively to the market and customers. Solid market success is created by companies that find an effective balance between focusing on today’s operations while efficiently planning on tomorrow with wise business development efforts.