Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Business Development

•Download as PPSX, PDF•
•
Harsh Pushkarna
Harsh Pushkarna

Business development creates long-term value through relationships, markets, and customers rather than short-term sales. It identifies partnerships that leverage revenue, distribution, or products rather than direct sales. Successful deals require proactive management and support across the organization. The right business developer engages resources to meet partnership goals. Hiring should match a person's skills to the company's product stage. Business development progresses from scouting opportunities to testing assumptions to scaling validated approaches. Deals should drive strategic goals rather than short-term momentum. Assessing opportunities by revenue, users, or markets helps gain team support. Legal agreements protect against risks while ideas become products and revenue.

1 of 12
BUSINESS DEVELOPMENT An inside story
Business Development
Business development is • Sales • Partnerships • Hustling NO • what, exactly, is business development • Business development is the creation of long- term value for an organization from relationship, market and customers.
Business Development is NOT SALES • Business Development will identify and create partnerships and NOT SALES • Business Development enable leverage for driving revenue, distribution or that enhance the product.
Management of deals - is Crucial • Business Development and Account Management is different • Successful deals are result of proactive and accountable management
Support - Essential for Business Development • Everyone should own part of the success or failure from the scratch. • A good business developer will engage internal resources to ensure the company can meet the goals and expectations of a partnership. • A lack of support will almost certainly lead to finger pointing and blaming when things go West.
Pacemaker V/s Hearing Aid Theory • It is equivalent to Quality V/s Quantity • Likely to lead failure if tried to build business purely on quantity. • The market is less willing to pay for a better user experience, even if they like the product and find it useful. • One way to remember this rule is the pacemaker versus the hearing aid theory : If you could only have one, which one would you choose?
. Hire - Right Person at the Right Time • A person with deep industry knowledge and strong network ready to “do deals” can turn into a disaster if it is too early in a company’s product lifecycle.
Commercialization Process • Scouting: At this point, business development is about identifying various routes to market, points of leverage and providing the internal team early market feedback. • Testing: At this stage, business development will close a few deals to test assumptions and provide measureable input before you scale the business. Analytical skills to set up a framework for what to measure, and examining the data, will determine if and where to scale based on the company’s strengths and vision. • Scaling: After gathering data from early deals and validating a path to achieve goals, business development is ready to start replicating deals and putting a support structure in place.
Make Deals Carefully • There is a difference between doing Deals and doing the Right Deals. • Many companies have been weighed down by a bad deal, they later regretted. • A good dealmaker can help identify a false signal • This is where you want to develop a level of understanding and trust with your business development person. • when there is just enough market momentum and revenue to mask the greater opportunity, a less experienced dealmaker or one with the wrong incentives can generate enough momentum and distract the company from the bigger opportunity.
Framework for Assessing Opportunity • In order to gain support from your team:- – Does it drive revenue, – lead to new users or enable the company to enter a new market or vertical? • When the goal is clear and measurable, it makes it easier to address issues like, “Why are we converting projections?”
Watching an Idea to become a Product • Bringing in the right business development person at the right stage – and following other guidelines, will keep your company on the right track. • A legal agreement brings a business arrangement including commercial terms – if things do not work out • This requires business development and legal counsel to assess the business opportunity versus the business risk • Building a company is hard and requires a lot of things to go well – having a great product and team. – Watching an idea become a product and a product generate revenue that becomes a successful company

More Related Content

Business Development

  • 3. Business development is • Sales • Partnerships • Hustling NO • what, exactly, is business development • Business development is the creation of long- term value for an organization from relationship, market and customers.
  • 4. Business Development is NOT SALES • Business Development will identify and create partnerships and NOT SALES • Business Development enable leverage for driving revenue, distribution or that enhance the product.
  • 5. Management of deals - is Crucial • Business Development and Account Management is different • Successful deals are result of proactive and accountable management
  • 6. Support - Essential for Business Development • Everyone should own part of the success or failure from the scratch. • A good business developer will engage internal resources to ensure the company can meet the goals and expectations of a partnership. • A lack of support will almost certainly lead to finger pointing and blaming when things go West.
  • 7. Pacemaker V/s Hearing Aid Theory • It is equivalent to Quality V/s Quantity • Likely to lead failure if tried to build business purely on quantity. • The market is less willing to pay for a better user experience, even if they like the product and find it useful. • One way to remember this rule is the pacemaker versus the hearing aid theory : If you could only have one, which one would you choose?
  • 8. . Hire - Right Person at the Right Time • A person with deep industry knowledge and strong network ready to “do deals” can turn into a disaster if it is too early in a company’s product lifecycle.
  • 9. Commercialization Process • Scouting: At this point, business development is about identifying various routes to market, points of leverage and providing the internal team early market feedback. • Testing: At this stage, business development will close a few deals to test assumptions and provide measureable input before you scale the business. Analytical skills to set up a framework for what to measure, and examining the data, will determine if and where to scale based on the company’s strengths and vision. • Scaling: After gathering data from early deals and validating a path to achieve goals, business development is ready to start replicating deals and putting a support structure in place.
  • 10. Make Deals Carefully • There is a difference between doing Deals and doing the Right Deals. • Many companies have been weighed down by a bad deal, they later regretted. • A good dealmaker can help identify a false signal • This is where you want to develop a level of understanding and trust with your business development person. • when there is just enough market momentum and revenue to mask the greater opportunity, a less experienced dealmaker or one with the wrong incentives can generate enough momentum and distract the company from the bigger opportunity.
  • 11. Framework for Assessing Opportunity • In order to gain support from your team:- – Does it drive revenue, – lead to new users or enable the company to enter a new market or vertical? • When the goal is clear and measurable, it makes it easier to address issues like, “Why are we converting projections?”
  • 12. Watching an Idea to become a Product • Bringing in the right business development person at the right stage – and following other guidelines, will keep your company on the right track. • A legal agreement brings a business arrangement including commercial terms – if things do not work out • This requires business development and legal counsel to assess the business opportunity versus the business risk • Building a company is hard and requires a lot of things to go well – having a great product and team. – Watching an idea become a product and a product generate revenue that becomes a successful company