New business development refers to all the efforts involved in developing new businesses, including product or service development, product or service’s design, and business plan design. Although many small businesses fail, those that succeed owe their success to their business development team. A successful business requires an organized strategy, which includes planning and designing, product testing, and sales, distribution, and service support. Business development, therefore, focuses on all the functions involved in developing new businesses. The term ‘business development’ is somewhat of a misnomer, however, as it is not entirely directed at marketing strategies. The term is also used to refer to all of the elements that constitute a company’s product or service’s development.
When breaking down business development into separate functions, consider the following: development of product or services design; development of business plan design; and development of business marketing strategy. Each of these areas of function involves a specific set of activities, which are usually accomplished in separate steps. Product or service’s design is typically characterized by product development and the conceptualization of a unique product or service to be marketed. Business plan design typically involves the creation of a company’s financial forecast and strategy, which can then be presented to prospective investors. Finally, marketing strategy involves planning, production, distribution, and service support.
As stated earlier, each of these functions are involved with a different set of skills, depending on the type of business. For example, marketing requires a large amount of knowledge and planning skills, whereas production involves a great deal of product or service development. In addition, each of these processes is also required to be performed differently, which is why business development specialists often work with other disciplines such as marketing, accounting, and technical management. While some business experts will work only on one of these functions, others will focus solely on one, such as product development and product design. Still other business experts specialize in multiple functions, such as marketing and management. Regardless of how they choose to work, a successful business takes several different components into consideration. These components include marketing strategy, product development, product testing, business plan design, and business design; and a well-planned business plan, while highly important, is only part of the business of a successful business.