All You Need To Know About Business Development And Management

• By : Staff Writer
• Business Development
• 0

Introduction

Business development and management are very crucial aspects when it comes to organizational growth. A business idea acted upon gives rise to its development, especially when there is proper management. For the effectiveness and efficiency of any business, good managerial skills are required. Hence, developing and managing a business, if done properly, acts  as the thread that ties together all of a company’s departments and functions. It also helps a business expand and improve its sales, revenues, customer service, brand awareness and product offerings.

Table of Contents

• What is business development
• Concept of business development
• Principles of business management
• Advantages of business development and management
• Challenges of business development and management
• Conclusion

What is Business Development?

Business development involves the strategic methods and processes of starting and growing a business for the optimization of sales and profits. It also creates a long-term value for an organization from customers, markets, and relationships. Although, it could also mean any activity that serves a small or large organization, profit or non-profit enterprise the purpose of ‘developing’ the business in some ways. 

Hence, business development activities can be done internally or externally by a business development expert. External business development can be facilitated through strategic Planning methods. Thus, it is put to place by governments to help small businesses. Moreover, building reputation has also proven to make business development easy. While the internal business development entails activities carried out by the business owners to propel the growth of the business.

Generally, business development can be one of the fastest ways to grow your business. Notwithstanding, it can also be most time-intensive. It however, requires focus, planning, consistency, persistence and hard work. Moreover, doing it right may pay big dividends; while doing it wrong could be demoralizing. 

Concept of Business Development

Generally, business management refers to the functions and activities that contribute to the effective utilization of people and resources in an organization to achieve business objectives. Hence, it is a means to achieve an end. Essentially, there are basic functions in business management, and they are:

Planning 

Planning is the starting point. In this part, you create your business plan and concept and how you are going to achieve it. Planning is an essential part in launching a business. In planning you make a realistic assessment of your business goals and objectives. It also entails mapping out detailed strategies with backup plans through which the organization can achieve its desired business aims and objectives.

Organizing

This comes after planning. This is the point where you organize all your business resources like employees, machines and finance into a well detailed unit. Organizing helps you get your objectives right. However, it involves delegating duties to different members of the organization with the mission of the objective in view.

Staffing

The staffing function involves the performance appraisal of employees. This could be achieved through the selection, placement, training, development, compensation, and evaluation of the activities of the employees. Likewise, businesses need to be staffed with competent and efficient people who can do the necessary work to make the business successful. 

Directing

Directing involves pointing out or showing someone the right course or way of doing things. It however, involves directing the course and affairs of the business from finance to employees. Hence, business owners maps out the guidelines and activities of the day -to- day affairs of the organization.

Controlling

Controlling is the constant and active monitoring of people, processes and other resources of the organization. Therefore, this is the point where you track the performance of all the resources of your organization ensuring they are on the right track. More so, controlling helps you evaluate accurately whether all the resources of the organization are utilized optimally for the desired business goals and objectives. Hence, it involves making corrections wherever and whenever there are deviations, and errors.

Principles of Business Management

All businesses need to be concerned about management principles. Management decisions will impact the success of a business, the health of its work environment, its growth, objectives, and customer value and satisfaction. Moreover, a business well managed, will do incredibly well compared to the one that is ill managed.

The principles of business management include the following;

Have a Quality Product

Developing a business idea is as a result of you having something to offer the public. The quality of your goods and services will ultimately determine the future of your business. Selling substandard or adulterated goods will however, do more harm than good to your business. Subsequently, ensure you sell good and quality goods or services as this results to attraction of new customers and retention of old ones. Always ensure everything about you speak excellence. 

Know your Industry and Competitors

Selling what no one wants to buy is a good way to fail in business. Hence, pricing your goods competitively is a good trick in business. For instance, customers will always patronize the business owner who sells quality and affordable products than the one who also sells quality and more expensive products. Whichever way, ensure you understand the competitiveness of a business before venturing into it.

Sales and Marketing Strategies

This is the link between production and consumption. It facilitates the consumption of what is produced. Understanding the fundamentals of marketing through traditional and digital media and effectively using them to share your company’s products and services, is a good way to market and attract sales.

Build a Great Staff

An integral aspect of any business is the ability to properly manage the staff members. The more you value your staff, the more effort they put into growing the business. Maltreating or disrespecting your employees could lead to the downfall of any business. More so, train them to also understand the mission and goals of the organization.

Division of Labor

This is a very important aspect of business management. It ensures every employee is doing what needs to be done and at the right time. By placing your employees in their area of expertise will not only sharpen their skills but will also boost the efficiency, productivity and the accuracy of the employees.

Equity

Treating your employees equally or based on their productivity will eliminate strife and increase team work. As an employee of labor, ensure you treat your employees fairly, regardless of age, sex, religion, and personality type.

Advantages of Business Development and Management

Hence, there are a number of key areas in which someone tasked with business development can help effect change and promote growth across departments. Here are basic reasons why business development and management is important.

1. It creates room for building important relationships and connecting with clients, colleagues and important personnel.

2. Business development and management can serves as a strategic means of maximizing revenue and minimizing costs. 

3. It can help improve the company’s overall image. With the aid of marketing,  a business developer can help an organization build a better brand. 

4. It opens up expansion into new markets. Launching into new areas of opportunity could serve as a lucrative growth strategy.

5. Proper management of business helps the organization to stay on top of the market and new opportunities.

6. A business developer and manager can use demographics and customer data to access new segments of customers.

7. It ensures proper management of staff and resources.

8. Business management helps create a dynamic organization.

9. It helps in achieving group goals and brings about an increase in efficiency.

10. Generally, it helps in the development of a society

Challenges of Business Development and Management 

1. Cash flow management. Organizations can run into bankruptcy as a result of inability to properly manage the flow of cash.

2. Inability to meet up with customer demands as a result of high level of competition.

3. As the organization grows, it however, becomes more difficult to exert control over the development and management of the activities of the organization.

4. Inability to know when to delegate and when to get involved.

5. Inability to keep up with market changes.

6. Some business owners find it difficult in knowing when to abandon a strategy.

Conclusion

Business is very important in our everyday activities. The success of a business is dependent on the ability to develop and manage it properly. Thus, venturing into business is not as difficult as it may seem to appear. With the right business idea and a concise knowledge of it, launching a business is possible. However it doesn’t grow overnight, hard work, consistency, patience and perseverance are great tools to implement these business strategies. Business development and management can also as means of developing a country.