Ten tips for a successful business development process (1-5)
Business Development Process – An entrepreneur has identified the business Development Process he or she wanted to start and raised the capital. After due registration and identifying the premises, one starts the operations. Running and sustaining a business is as difficult as starting one. For a Development Process, every day is a challenge that has to be tackled and hence needs to have strategies in place to keep going.
Invest in good human resources, they are a vital asset
Depending on the nature of the industrial raw materials, premises and equipment may be required for starting a business development meaning and for on-going operations. However, the most important asset for any organization is its human resources whether it is a small retail outlet, a medium sized manufacturing unit or company providing financial, technical or media services.
Automation may have streamlined the operations in many industries, reduced labor requirements and improved efficiencies, however, robots and automated software are no substitutes for human effort and talent, therefore, it needs to be nurtured. Even in a retail operation whether it is food, groceries, books and stationery, textiles and a variety of other sectors, the quality of the salesman matters, his or her pleasing manners, ability to communicate with customers and understanding their requirements are vital for Business Development Process and income. The golden rule is that pay handsomely for the best talent even if that means reduced income for the business owners for a while. Without these talents, the company cannot hope to make a dent in the market.
As the company grows, a full-fledged human resources department may have to be set up to manage payrolls, appointments, ensure that employees are satisfied and sufficiently motivated. In many industries such as IT and Business Development Process Outsourcing (BPO), attrition rates are high not only because there is a huge requirement for talented professionals but could also be due to poor HR management. Huge costs are involved in training a new employee at the entry and mid-management levels. If the company is not able to keep their employees for some time it will have an impact on the projects and hence in customer satisfaction. Keeping attrition rates low and motivating employees through leadership and organizational programs will go a long way in the company’s business development meaning.
Ensure cash flows, profits will follow
Many entrepreneurs invest their life savings or even borrow to start a Business Development Process or expand operations. However, care should be taken in managing the finances. If the company doesn’t have enough cash flow or revenue stream, then day-to-day expenses and monthly expenses such as salaries, rent, consumables, payment to third-party service providers would be affected. When employees and other stakeholders don’t receive their payments on time, it will negatively impact the company operations.
Cash flow is like the blood in our body, it needs to constantly circulate in the company’s system so that all routine expenses are taken care of. Some banks do provide working capital requirements through overdraft facility (OD) but that will be against some collateral provided by the entrepreneur either in gold, property or shares of major companies. Any such financial support availed comes with an interest cost which should be covered by the revenue received. Many online start-ups launched with much fanfare peter out soon not because the ideas were inherently unviable but there was no proper revenue model worked out. In the absence of such a model, the company will be incurring costs but not generating income.
In the beginning, the owners or promoters may not be able to take home any money and gradually they need to build a reserve to grow the Business Development Process.
Advertising and the media - get noticed to grow
No business can survive without getting noticed by the people. Whether it is a mom-and-pop store in the neighborhood or a company having regional or nation-wide operations or a pure-play online business development and marketing, they need to get noticed by the consumers. Hoardings, banners, newspaper and TV advertisements, online promotions all may be required to an extent to make the companies and brand presence in the consumer minds.
Initially, there may not be a huge budget for market promotion activities, however, brand or product awareness is vital for sales growth and can’t be avoided. Even small retail outlets or businesses sent out flyers to nearby homes and commercial establishments to make their presence felt. Some companies use hoardings on vehicles specially designed for them and employ young boys and girls to distribute leaflets or play some audio-video promotional clippings to attract the crowd and to distribute leaflets.
Importance of Unique Selling Proposition (USP)
A company’s product or service may not appeal to a consumer just on qualitative merits but has to seen providing some value to the consumer. Hence, experts point out that consumers may not be willing to spend for a product on better user experience or increased engagement even if they find the product good and useful.
It should be perceived quantitatively as providing a lower cost solution, helps reduce drudgery as in a dishwasher or washing machine and improved convenience parameters. Or it could be environmental benefits from driving a noiseless battery-charged car or an organic food free of pesticides and insecticides.
Importance of brand building
Any commodity available in the market may qualitatively be as good as the other. But consumers perceive brands to be always providing value and quality to consumers every time. That is the reason why the industry needs to develop brands to grow. Branding begins from the creation of logo, the unique selling proposition (USP), positioning in the market whether it is at entry level, regular or premium category and what all images and ideas should be associated with it.
Real estate firms focusing on sea-view properties highlight the lifestyle and refined taste for natural surroundings. The premium motorbike targeted at teenagers and the youth could focus on power and passion of owning such a vehicle.
However, brands create a huge responsibility on the part of the company to invest in research to bring out innovations and modifications to the products. In fact, many companies don’t even spend 1% percent of their turn over for R&D which is very vital for their growth.