Many people are confused with the terms business development and sales. Business development is the effort to identify business opportunity by researching, analyzing and introducing a new product or a new service to the market. It focuses on the implementation of the strategic business plan of financial, technologies, products and services, companies, and the establishment of strategic partnerships to improve organizational profit.
Therefore, a successful business development within an organization is seen when the business grows and generates more cash then expenditures. On the other hand, the sales function is only part of the business development activity where, a sales person is required to sell the product or service. It is just a selling activity.
The 80/20 Rules in Business Development
80/20 principal (Pareto principle – Vilfredo Pareto, July 15, 1848 – August 19, 1923 ) is essential to balance up between the output (expenses) and the input (revenue), cause and consequences, and effort and results in a business. This principle helps to create the stakeholder value and generate most money with the least expenditure of assets and efforts (time).
80/20 rule is important to guide where the business is making profits and where the business is losing money. In business development, innovation is important.
There are four ideas in which we are able to help in business development:
- 80 percent of the result is from 20 percent of the business planning.
- 80 percent of the value is from 20 percent of the resources.
- 80 percent of the growth and profits comes from 20 percent of the customers.
- 80 percent of the product or service is from 20 percent of the cost.
So, analyze your activities and reassess the application of sour resources. Do you engage in Business
Development or are you a Sales Person?