Understanding Business Development
What is Business Development?
“ You can do anything but not everything.”
Every year an employer meets with their employees to evaluate their performance. These reviews provide guidance and feedback, allowing the employee to improve as well as grow within the company. Similarly, business development provides a framework for a company to develop beyond its conception, focusing on growth opportunities both within and outside the company. However, while performance reviews for your employees are regularly scheduled, usually annually, it can be difficult for management to determine when hiring a business development specialist is warranted.
Many business authorities suggest as the business matures, it should aim to build its business development expertise internally. Working with small businesses, these organizations do not have funding to staff a full-time employee to manage, research, and audit functional areas of your business. Therefore, it can be helpful to hire a business development specialist. Acting as a consultant, the specialist will develop creative solutions to explore new markets and partnerships to fine-tune internal processes and operations. Below are a few questions to assist in hiring a Business Development Specialist.
How do you determine if your company needs to hire a Business Development Specialist?
The simplest answer is to review your business plan. If your company has met 60 % of your corporate projections listed in your initial business plan then you should make plans to hire a specialist in the next 2 years. However, if your company’s performance is lacking, hire someone immediately. While few companies will perform accordingly at the specific time-frames, an upward trend of revenue is desired. A business development specialist would help to determine why your company’s growth is not on-trend.
Where will the Business Development Specialist begin?
While it is not cost-effective to have the specialist review the entire history of your company, a snapshot will be necessary. Therefore, financial records will help tremendously. Frequently small businesses employ a pay-as-we-go attitude towards record keeping. The current pandemic has taught small business owners the pitfalls of that approach. Many small business owners were shut out of applying for necessary loans and assistance due to failure to maintain appropriate financial data. By reviewing your financials, the specialist can reflect on your company’s performance then provide a structured platform to discuss expectations and areas of improvement.
What do I do if my small business has not maintained appropriate records?
It is difficult to understand a story if you start in the middle. With that in mind, you will have to devote a few weeks creating records. Since cost is a major issue for a small business, it would be wise to create as many records as you are able before hiring a bookkeeper or accountant. Research free or trial apps or low-cost bookkeeping software for small business owners. However, remember bookkeepers and accountants are paid by the hour, so bring in the professionals once you have done your homework.
