Business Development

What is Business Development?

Business development (BD) is the process of creating long-term value for an organization through customers, markets, and relationships.

Unlike sales, which focuses on closing individual deals, business development focuses on strategic opportunities that generate sustainable growth over time.

Business Development Activities:

• Strategic partnerships and alliances
• Channel development
• Market expansion into new segments or geographies
• Strategic relationships (not just customer acquisition)
• Mergers, acquisitions, and investments
• New product/market fit exploration

• Sales: Close individual deals (short-term revenue)
• Business Development: Create strategic value (long-term growth)

Why Business Development Matters

Sustainable Growth

BD creates compounding advantages.

Strategic partnerships, channel relationships, and market positions compound over time—each new relationship creates more opportunities.

Competitive Moat

BD builds barriers to competition.

Exclusive partnerships, preferred channel relationships, and strategic alliances make it harder for competitors to displace you.

Diversification

BD reduces dependency on any single channel.

By developing multiple routes to market—direct sales, partners, resellers, marketplaces—you reduce risk and increase stability.

Business Development Strategies

Channel Partnerships

Partner with others who reach your customers.

Channel Partnership Examples:

• Resellers and VARs (Value-Added Resellers)
• System integrators and consultants
• Agencies that serve your target market
• Technology partners (integrations, co-selling)

Strategic Alliances

Deeper than transactional partnerships.

Strategic Alliance Characteristics:

• Joint go-to-market activities
• Co-development of products/features
• Shared revenue models
• Long-term commitments

Market Expansion

Enter new markets systematically.

Expansion Approaches:

• New geographic territories
• New vertical markets
• New customer segments
• New product lines

Business Development Skills

Relationship Building

Long-term relationship cultivation.

Key Skills:

• Networking and relationship nurturing
• Stakeholder management
• Negotiation and deal structuring
• Trust and credibility building

Strategic Thinking

Ident high-leverage opportunities.

Key Skills:

• Market analysis and opportunity sizing
• Competitive landscape assessment
• Partnership fit evaluation
• ROI and value modeling

Communication

Articulate complex value propositions.

Key Skills:

• Executive presence and presentation
• Clear written and verbal communication
• Storytelling and vision articulation
• Cross-functional collaboration

Key Takeaways

• Business development = creating long-term strategic value, not just closing deals
• Focus: partnerships, channels, market expansion, strategic relationships
• BD vs. Sales: strategic growth vs. individual deals
• Activities: channel partnerships, strategic alliances, market expansion, M&A
• Skills: relationship building, strategic thinking, communication
• BD creates sustainable competitive advantages and growth moats

Sources:
- Harvard Business Review - What is Business Development?