Company Description/Overview
Products/Services Offered
Market Analysis
Marketing and Sales Strategies
Operations and Management
Financial Plan
Appendices
In simple terms, a business model is how the business will make money. Selling ice to eskimos, for instance, is a bad business model. Selling team jerseys to rabbit sports fans, on the other hand, is a solid business model.
The components of a business model are best illustrated by Swiss entrepreneur Alexander Osterwalder’s Business Model Canvas, which is a visual representation with nine sections. Four sections represent internal elements of a business that enable it to function and are related to costs.
Four other sections represent external elements that enable the business to bring in revenue and are related to the customer. The ninth section is the business’ value proposition.
The value proposition is at the heart of your business model. Your value proposition, which should be no more than two sentences long, needs to answer the following questions:
Key activities are all the activities required to run the business and create the proposed value. These can include product development and distribution and any other necessary activities.
The cost structure is a sum of all you’ll need to spend to make the business function. It’s the costs you’ll incur to run the business and bring in revenue.
Key partners are external partners involved in delivering value, such as vendors and suppliers, or maybe a bank.
Key resources are any necessary practical elements that come with a cost. These might include your office space, employees, and equipment like computers.
Revenue streams are the ways in which you receive payment from customers. You may have more than one revenue stream, such as via direct sales and subscriptions.
Customer segments are the groups of people to whom you provide goods or services. In other words, your target market. Maybe your products are aimed at younger women, for instance, or older men. Whatever your target segments, you should build customer personas of each group so that you know how and where to reach them with your marketing.
Customer relationships refer to how you interact with your customers to deliver value. Your interactions may be online only, by phone, in-person, or all of the above.
Channels refer to how you reach your customers, such as social media, internet search, direct sales calls, trade shows, and so on.
If you’re just starting a business, the Business Model Canvas is a great way to understand and examine your business model. One thing to remember is that the elements you put in your Canvas will be based on assumptions that will at some point be tested in the market and adapted as needed.
Another thing to remember is that you do not need to do a Business Model Canvas. It’s merely an exercise that can help provide insight into your business model.
A business plan is a detailed document that describes how the business will function in all facets. The key is in the “plan” part of the name. It will specify how you’ll launch your business, gain customers, operate your company, and make money. A business plan, however, is not a static document .
The initial version will be based largely on assumptions, supported by research. As you run your business you’ll constantly learn what works and what does not and make endless tweaks to your plan.
Thus, creating a business plan is not a one-time action – it’s a dynamic and continuous process of crafting and adapting your vision and strategy.
You’ll present your business plan to potential backers, though in recent years some investors have begun to embrace the Business Model Canvas as a tool to assess a business’ potential.
A strong business plan includes eight essential components .
The executive summary is the initial section of your business plan , written last, summarizing its key points. Crucial for capturing investors’ and lenders’ interest, it underscores your business’s uniqueness and potential for success. It’s vital to keep it concise, engaging, and no more than two pages.
This section provides a history of your company, including its inception, milestones, and achievements. It features both mission (short-term goals and driving force) and vision statements (long-term growth aspirations). Objectives, such as product development timelines or hiring goals, outline specific, short-term targets for the business.
Detail the product or service you’re offering, its uniqueness, and its solution to market problems. Explain its source or development process and your sales strategy, including pricing and distribution channels. Essentially, this section outlines what you’re selling and your revenue model.
Remember, although the financial section might seem daunting, it is pivotal for understanding the economic feasibility of your business. Proper financial planning helps in making informed decisions, attracting investors, and ensuring long-term sustainability. Don’t hesitate to engage financial experts or utilize tools and software to ensure accuracy and comprehensiveness in this section.
The appendices section of a business plan is a repository for detailed information too extensive for the main document. This can include resumes of key personnel, full market research data, legal documents, and product designs or mockups. By placing this data in the appendices, it keeps the main plan concise while allowing stakeholders access to deeper insights when needed. Always ensure each item is clearly labeled and referenced at the relevant point in the main document.
As you can see, business models and business plans have some similarities, but in the main they are quite different. Your business model explains the foundational concept behind your business, while a business plan lays out how you’ll put that model into action and build a business.
When you’re starting a business, it’s best to have both, as the work of getting them done involves learning about your business from every angle. The knowledge you’ll gain is likely to be invaluable, and could even be the difference between success and failure.
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Noah Parsons
5 min. read
Updated October 27, 2023
Many business owners know and understand the value of a business plan. The business plan is a key component of the startup and fundraising process and serves as a foundation for your organization. However, it only tells part of the story. To get the whole picture and have a framework on which to build your business you also need a strategic plan and an operational plan.
In its simplest format, a business plan describes the “who” and the “what” of your business. It lays out who is running the business and what the business does. It describes the products and services that your business sells and who the customers are.
A strategic plan looks beyond the basics of a business plan to explain the “how”. It explains the long-term goals of the business and how it expects to achieve those goals over the long term. A strategic plan explores future products and services that your business might offer and target markets that you might expand into. The plan explains your strategy for long-term growth and expansion.
An operation plan zooms into the details of your business to explain how you are going to achieve your short-term goals . It is the “when” and “where” of your planning process. The operational plan covers the details of marketing campaigns, short-term product development, and more immediate goals and projects that will happen within the next year.
First, let’s look at the difference between a business and a strategic plan. For review:
A business plan covers the “who” and “what” of the business. The strategic plan gives us long-term goals and explains “how” the business will get there, providing a long-term view.
In broader terms, the business plan tells us who by showing us:
The business plan answers the “what” by telling us:
The strategic plan, on the other hand, outlines long term goals and the “how”, focusing on the following:
So, your business plan explains what you are doing right now. Your strategic plan explains long-term aspirations and how you plan to transition your business from where it is today to where you want it to be in the future. The strategic plan helps you look more deeply into the future and explains the key moves you have to make to achieve your vision.
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While strategic planning looks at the long term and explains your broad strategies for growth, an operational plan looks at the short term. It explains the details of what your business is going to do and when it’s going to do it over the next twelve months or so. An operational plan covers details like:
The bottom line, your operational plan is the short-term action plan for your business. It’s the tasks, milestones, and steps needed to drive your business forward. Typically an operational plan provides details for a 1-year period, while a strategic plan looks at a 3-5 year timeline , and sometimes even longer. The operational plan is essentially the roadmap for how you will execute your strategic plan.
A great business plan can encompass both the basic plans for the business, the long-term strategic plan, and the near-term operational plan. Using a lean planning method, you can tackle all three phases of planning and make the process easy to review and revise as your business grows, changes, and adapts.
The lean planning methodology starts with a simple, 30-minute business plan that outlines the fundamentals of your business: who you are, what you are doing, and who your customers are. It’s a great way to provide a brief overview of your business.
From there, you can expand your plan to include your longer-term strategy. Adding greater detail to elements of the plan to explain long-term goals, milestones, and how your products and services will change and expand over time to meet changing market conditions.
Finally, your lean plan will cover financial forecasts that include monthly details about the short-term revenue and expenses, as well as longer-term annual summaries of your financial goals, including profitability and potential future loans and investments.
Regardless of the type of plan, you are working on, you need a team of players on hand to help you plan, develop, and execute both the operational and strategic plans. Remember, your business needs both to give it a clear foundation and a sense of direction. As well as to assist you with identifying the detailed work that has to happen to help you reach your long-term goals.
Learn how LivePlan can help you develop a business plan that defines your business, outlines strategic steps, and tracks ongoing operations. You can easily share it with your team and all of the right stakeholders, explore scenarios and update your plan based on real-world results. Everything you need to turn your business plan into a tool for growth.
Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.
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A good business development plan can set you up for success. Learn how to create your own from scratch with zero experience!
If you’re just starting with business development , chances are that you’re a little confused about how you should do it. I got lost many times during my entrepreneurial journey. One of those moments was when I had to write a business development plan for the first time.
Now, the main problem was that I didn’t have a clue about what a business development plan was to start with. And of course, when I started digging, I got even more confused. I found a lot of information online, but nothing that would tell me how to do it step-by-step.
So after some years of trying and failing, I finally found my way to deal with it and build my own business development plan.
Below I’ll explain how to write a business development plan and what information you should include in practical terms. But first, let’s define what a business development plan is.
A business development plan is a document that helps you implement your business development strategy in a step-by-step method. It involves a lot of research on the market and customers. But also, other aspects such as your competitors and buyer persona.
So, a business development plan is a detailed summary of important steps you’re going to take to grow your business. One key aspect to remember is that a business development plan is a LIVING document. This means that you have to update your plan continuously based on new information about your ecosystem.
This helps you strategize better but also ensures that it’s a document of quality insights.
A business development plan is divided into two main parts:
You can download our template for free at this link .
I’m a fan of organizing information in a structured, intuitive, and efficient way. Although it may sound basic, the first thing you should think about is to have a proper file you can consult on a daily basis.
It doesn’t have to contain every piece of information. Keep it simple by including only essential and key facts that will help you build an effective business development machine. Your business development plan needs to be easily accessible and quick to consult.
In this sense, you don’t need to get fancy and start looking for the latest software that promises you great time savings. Stick to something basic yet powerful. Google Sheets is your best ally when it comes to your business development plan.
So, the main goal of a business development plan is to keep information structured so that you can spot growth opportunities easier.
You can download our template for free at this link and start your business development plan.
Market research is a stepping stone in a business development plan. It’s an activity to gather more information about customers’ preferences and needs. Many companies overlook this step thinking that their intuition will guide them through their challenges. Intuition can be helpful, but it’s still essential to know your customers better using research and data.
After all, most ideas start off from intuition. However, basing an entire plan on assumptions is never a smart strategy to use in business development. So, do your homework and make sure you always take educated guesses before starting to work on your business development plan.
Market research takes into account 3 variables . These will tell you the realistic size of the market you’re trying to target.
The TAM takes into account the entire market you’re operating in and basically tells you how much annual revenue there is available for your product or service.
Now, finding this information can be the first bummer. To me at least, it sounded quite impossible to find out. Later, I figured that there are many people out there that dedicate their life only to market research.
You can use Google to find out this information. But of course, you first need to know what you’re looking for. The information you need, in this case, is basically knowing how many companies or people would benefit from your product or service.
You also want to know how many companies operate in your exact space both in terms of services and geography. To get relevant market news, try Googling “your industry market trends”, “your market report”, or “your industry report”.
Many big consultancy groups and governmental institutions dedicate a lot of time to this type of research. It’s a good and reliable starting point.
PRO TIP: Choose your sources very carefully. You’ll find a lot of random information, learn to filter out what you’re reading.
Once you know how big your market is, you need to check how much of it is already served by your competitors.
In this case, the information you’re looking for is all about your competition. You should ask yourself first how many of them you have.
Then you need to find out how well they’re doing and start hunting for as much intelligence as possible.
The info you need to look for is how many clients your competitors claim to have, what revenue they generate, and where they are present.
First, Google keywords to identify your competitors. Right after that, you can start digging deeper into their websites and find detailed info.
Bigger competitors will most likely have good press coverage. Read these articles to gather more insight.
Last, don’t overlook the importance of customer review websites. Customers can uncover many relevant details that your competitors don’t want to reveal. And of course, make use of technology to make the most out of your research.
The last step in your market research is to quantify how much you can realistically obtain with your business development effort.
Your SOM is your share in the market. So, to put it simply, it’s not possible to have an entire market buy only your products and services. There is a specific customer base that will buy from your company . So, your SOM refers to your market share and the people that can become your customers if they see a benefit from your products or services.
SOM takes into account your brand awareness, market insights, but also competition. It helps you forecast potential earnings and also gain customers. Based on the research, you become aware of what your competitors are offering to the market. Moreover, you will be able to tailor your products and services to meet the needs and preferences of your customers.
The third step to do when creating your business development plan is to do a competitor analysis . So far, I discussed market research and how it helps you get to know the preferences of your target audience better. But, to grow your business sustainably and profitably, it’s vital that you analyze your competitors as well.
First, figure out who your direct and indirect competitors are. So, in a Google search, we try to identify or find the ID of each company that competes in your market. This can be found in the website’s ‘About us’ section. Then, the aim is to find key personalities such as managers and executives, and so on.
Once you have this information, you can move on to products and services. You can find this on your competitor’s website as well. This specific section defines what the company specializes in. You can use this information to compare your products to those of your competitors and try to find ways to improve them.
Continue by checking their clients, and the pricing they offer for their products and services.
PRO TIP: Read the customer reviews of your competitors to spot their strengths and weaknesses. Use the insights to improve your offer.
After identifying your market share, you can start thinking of what kind of customers within this segment, you are trying to sell your products and services to.
The best way to tackle this is by running proper customer research that will provide you with your Ideal Customer Profile and Buyer Persona.
This is the part I like the most because it really helps you understand who you’re talking to. But how do you do it? First, if you already have some customers, start analyzing them. You want to gather more information on who they are, what they do, and their habitual traits.
For example:
You can find all this info by simply checking social media profiles. Really, just by observing their social media platforms, you can get to know them in-depth! Take some time to check a few ones (at least 10) and you’re going to start seeing patterns.
Then, check some job descriptions about the people you’re targeting. This will highlight what are their professional responsibilities and how your product or service can help them. Last, it’s always advisable to run a survey.
Right after having run your customer research, you can now create your buyer persona.
The buyer persona is a semi-fictional representation of your ideal customers based on data and research,
In your buyer persona, you need to include all the relevant information you found through your customer research. It should look like something below:
The customer research concludes the research part of your business development plan. Now it’s time to put your insights into action and start building your business development strategy .
The first valuable asset you need to build is a value proposition.
A value proposition is the value your customers get should they choose to buy your products and services
The value proposition helps you communicate your value as a company and you can use it on your website, sales calls, social media posts, etc. Having a clear value proposition will help you attract the right audience and persuade potential customers to work with you.
Of course, a good value proposition is based on that, and if you followed all the steps, you should have all the insights you need.
To build a value proposition we will use the Job-To-Be-Done framework. This helps you identify what are the responsibilities of your buyer persona when they’re doing their job.
For example, a typical responsibility for a recruiter is to find the right talent .
Second, consider the pains and gains of your customers. Customers’ emotions are usually the reason behind their buying decisions. They influence their preferences, frequency of buying, and also which companies they buy from.
Especially the challenges are a crucial element in your value proposition because you can immediately link your solution to a concrete pain that your customers are facing.
For example, let’s go back to the example of the recruiter. We know that one main responsibility of a recruiter is to find talent. One major challenge for recruiters is to have enough time to process all the CVs they receive daily.
Now, let’s assume you work for a company that provides recruitment software that can automate CV screening.
A good value proposition, in this case, would sound like this:
Save 70% of your CV screening time using our recruitment software
Once you have your value proposition, the next step is to share it with your target audience. That’s when having a content plan becomes a must.
A content plan helps you strategize the type of information you want to feed your audience. It also helps you select the channels on which you should build your presence.
For content to be effective, you need to have a clear idea of your target audience when you write posts/emails, or articles. So, always consult your buyer persona before creating content.
Just like the value propositions, effective content revolves around the pain point you identified earlier. Use them to get the attention of your audience and provide valuable information that helps them alleviate these pains.
This will help you establish yourself as a valuable resource and when they will want to solve their issues, you’ll be the first to pop into their minds.
The last step in your business development plan is all about creativity and finding opportunities. This is the moment in which we create experiments to validate some of our business assumptions. Your experiment should be ideas that you think will bring sustainable growth to your company.
Once you identify some ideas, define some goals and set up the methodology you will follow to run this experiment. For example, if you heard of a new social media and you think your audience might be on it, build an experiment to validate if this is true and if it can bring you results.
Attach a goal to this idea, for example, generating 10 qualified leads on this new channel.
Then decide for how long you will run the experiment – ideally a couple of weeks. Once the experiment is over analyze what happened. If the experiment was successful, you need to scale this activity. If not, take the learnings for further improvements.
Read this article with 10 business development examples to have some ideas on how to implement your strategy.
The business development plan is a key document that helps you map your ecosystem and strategize your business development efforts .
It consists of a research part and an action part. In the first part, you analyze your market, competitors, and customers. In the second, you use your insights to build value propositions, content plans, and experiments.
The business development plan is a live document, so you have to update it every time you have new insights. Of course, you have to use it in your daily operations to make sure you’re on the right track.
The business development plan is one of the assets you will build during our training. Would you like to shake up your business development career and work in a more structured way? Then join our next cohort .
Last, if you are a company wanting to train your business development team, our custom training solutions are the best way to take your team to the next level.
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Your business development strategy can be key to the success or failure of your firm. In this post, we’ll explore how to create a strategy and associated plan that can propel an individual, a practice or an entire firm to new levels of growth and profitability.
Business development (BD) is the process used to identify, nurture and acquire new clients and business opportunities to drive growth and profitability. A business development strategy is a document that describes the strategy you will use to accomplish that goal.
The scope of business development can vary a lot from organization to organization. Consider the model professional services organizations use to get new business shown in Figure 1.
Figure 1. The three stages of the business development funnel
The first two stages of the model, Attract Prospects and Build Engagement, are traditional marketing functions. The final stage, Turn Opportunities into Clients, is a traditional sales function. In its traditional role, business development would be looking for new channels of distribution or marketing partners.
But roles are changing and naming conventions evolve. In today’s world many firms refer to the entire marketing and sales process as business development. We know, it can be confusing. So let’s sort it out a bit.
Marketing is the process of determining which products and services you will offer to which target audiences, at what price. It also addresses how you will position and promote your firm and its offerings in the competitive marketplace. The result of all this activity should be an increasing awareness of your firm among your target audience — and a stronger flow of qualified leads and opportunities.
Download the Business Development Guide
Historically, business development has been a subset of the marketing function that was focused on acquiring new marketing or distribution relationships and channels. While this role still exists in many companies, the business development title has become interchangeable with many marketing and sales functions.
Sales is the task of converting leads or opportunities into new clients. Business development is a broader term that encompasses many activities beyond the sales function. And while there is some overlap, most traditional BD roles are only lightly involved in closing new clients.
Business development is often confused with sales. This is not too surprising because many people who are clearly in sales have taken to using the title of Business Developer . Presumably this is done because the organization believes that the BD designation avoids the stigma sometimes associated with sales.
Nowhere is this practice more prevalent than in professional services. Accountants, lawyers and strategy consultants do not want to be seen as “pushy sales people.” This titular bias is firmly rooted despite the fact that developing new business is an important role of most senior members of professional services firms. Also, the many aspects of the traditional business development role (finding new distribution channels, for instance) don’t translate easily to the professional services environment.
Since so many clients want to meet and get to know the professionals they will be working with, the Seller-Doer role is well established in many firms. The preference for Seller-Doers also tends to discourage firms from fielding a full-time sales force.
As an alternative approach to leveraging fee-earners’ time, some firms have one or more Business Developers on staff. In the professional services context, these folks are often involved in lead generation and qualification, as well as supporting the Seller-doers in their efforts to close new clients. In other organizational contexts, this role might be thought of as a sales support role.
The result of this confusing picture is that many professional services firms call sales “business development” and make it part of every senior professional’s role. They may also include some marketing functions, such as lead generation and lead nurturing, into the professional’s BD responsibilities.
It is on this expanded role — in which business development encompasses the full range of lead-generation, nurturing and sales tasks — that we will concentrate on in this post.
See also: Heller Consulting Case Story
To clarify what the professional services business development role entails, let’s consider this business development example:
Bethany is the Director of Business Development at a fictional mid-sized architecture firm. She is not an architect herself. Nor is she involved in any aspect of delivering client projects. Instead, her role is exclusively focused on signing new business for her firm—whether new or existing clients.
For new clients, Bethany spends much of her time responding to RFPs, communicating directly with inbound leads generated by the marketing/sales enablement team, and nurturing potential clients that she met at a recent industry conference. Bethany also collaborates with the marketing team in the development of any materials she needs to sell to new accounts.
When it comes to existing accounts, Bethany also plays a major role. She meets monthly with delivery teams to understand whether current client projects are on scope or if change orders are needed. She also maintains a relationship with clients’ key stakeholders. If an opportunity for more work opens, she knows that her relationship with the client is an important component of the potential deal.
In this example, Bethany is the primary driver of business development but that does not mean she is doing this alone. Her colleague, Greg, is a lead architect at the firm. While Greg’s primary focus is delivering for his clients, business development—and even marketing—is also an important part of his professional life. Greg often attends industry conferences with Bethany, where he is a speaker and subject matter expert and she is the primary networker. The business development dynamic should not end with Bethany, and it should permeate the whole organization.
In this business development example, you can see that the range of roles and responsibilities is wide. This is why it is essential that business development be delivered strategically. Let’s talk about what that means.
Not every business development activity has the same impact. In fact, many are opportunistic and tactical in nature. This is especially true for many Seller-Doers.
Caught between the pressures of client work and an urgent need to bring in new business, they cast about for something quick and easy—maybe a small piece of business at a low price point—that will produce short term results. Of course, this is no real strategy at all.
Strategic business development is the alignment of business development processes and procedures with your firm’s strategic business goals. The role of strategic business development is to acquire ideal clients—the kind that are highly profitable and aren’t overly demanding—for your highest priority services using brand promises that you can deliver upon.
Deciding which targets to pursue and strategies to employ can be a high stakes decision. A good strategy, well implemented, can drive high levels of growth and profitability. A poorly conceived strategy can stymie growth and frustrate valuable talent.
Yet many firms falter at this critical step. They rely on habit, anecdotes and fads — or worse still, that innovation killer, “this is how we have always done it.” In a later section, we’ll explain how to develop your strategic business development plan. But first let’s explore some of the strategies that might go into that plan.
Let’s look at some of the most common business development strategies and how they stack up agains what today’s buyers are looking for .
Networking is probably the most universally used business development technique. It’s built on the ideas that professional services buying decisions are rooted in relationships, and the best way to develop new relationships is through face-to-face networking.
It certainly is true that many relationships are established in that way. And if you are networking with members of your target audience, you can develop new business. But there are limitations. Today’s buyers, however, are very time pressured, and networking is time consuming. It can be very expensive, if you consider travel and time away from the office.
Newer digital networking techniques can help on the cost and time front. But even social media requires an investment of time and attention.
A close relative of networking, referrals are often seen as the mechanism that turns networking and client satisfaction into new business. You establish a relationship, and that person refers new business to you. Satisfied clients do the same.
Without question, referrals are common, and many firms get most or all of their business from them. But referrals are passive. They rely on your clients and contacts to identify good prospects for your services and make a referral at the right time.
The problem is, referral sources often don’t know the full scope of your services or the range of ways you can help a client. So many referrals are poorly matched to your capabilities. Other well-matched referrals go unmade because your referral source fails to recognize a great prospect when they see one. Finally, many prospects that might be good clients rule out your firm before even talking with you. One study puts that number at over 50%.
Importantly, there are new digital strategies that can accelerate referrals. Making your specific expertise more visible is the key. This allows people to make better referrals and increases your referral base beyond clients and a few business contacts.
Learn More: Referral Marketing Course
Can you develop new business directly by sponsoring events and advertising? It would solve a lot of problems if it works. No more trying to get time from fully utilized billable professionals.
Unfortunately, the results on this front are not very encouraging. Studies have shown that traditional advertising is actually associated with slower growth. Only when advertising is combined with other techniques, such as speaking at an event, do these techniques bear fruit.
The most promising advertising strategy seems to be well-targeted digital advertising. This allows firms to get their messages and offers in front of the right people at a lower cost.
Professional services firms have been using phone calls and mail to directly target potential clients for decades. Target the right firms and roles with a relevant message and you would expect to find new opportunities that can be developed into clients.
There are a couple of key challenges with these strategies. First they are relatively expensive, so they need to be just right to be effective. Second, if you don’t catch the prospect at the right time, your offer may have no appeal relevance — and consequently, no impact on business development.
The key is to have a very appealing offer delivered to a very qualified and responsive list. It’s not easy to get this combination right.
Here, the strategy is to make your expertise visible to potential buyers and referral sources. This is accomplished through writing, speaking or publishing content that demonstrates your expertise and how it can be applied to solve client problems.
Books, articles and speaking engagements have long been staples of professional services business development strategy. Many high visibility experts have built their practices and firms upon this strategy. It often takes a good part of a career to execute this approach.
But changing times and technology have reshaped this strategy. With the onset of digital communication it is now easier and much faster to establish your expertise with a target market. Search engines have leveled the playing field so that relatively unknown individuals and firms can become known even outside their physical region. Webinars have democratized public speaking, and blogs and websites give every firm a 24/7 presence. Add in video and social media and the budding expert can access a vastly expanded marketplace.
But these developments also open firms to much greater competition as well. You may find yourself competing with specialists whom you were never aware of. The impact is to raise the stakes on your business development strategy.
It is common to combine different business development strategies. For example, networking and referrals are frequently used together. And on one level, a combined strategy makes perfect sense. The strength of one strategy can shore up the weakness of another.
But there is a hidden danger. For a strategy to perform at its peak, it must be fully implemented. There is a danger that by attempting to execute too many different strategies you will never completely implement any of them.
Good intentions, no matter how ambitious, are of little real business development value. Under-investment, lack of follow through and inconsistent effort are the bane of effective business development.
It is far more effective to fully implement a simple strategy than to dabble in a complex one. Fewer elements, competently implemented, produce better results.
Next, we turn our attention to the tactics used to implement a high-level strategy. But first there is a bit of confusion to clear up.
The line between strategy and tactics is not always clear. For example, you can think of networking as an overall business development strategy or as a tactic to enhance the impact of a thought leadership strategy. Confusing to be sure.
From our perspective, the distinction is around focus and intent. If networking is your business development strategy all your focus should be on making the networking more effective and efficient. You will select tactics that are aimed at making networking more powerful or easier. You may try out another marketing technique and drop it if it does not help you implement your networking strategy.
On the other hand, if networking is simply one of many tactics, your decision to use it will depend on whether it supports your larger strategy. Tactics and techniques can be tested and easily changed. Strategy, on the other hand, is a considered choice and does not change from day to day or week to week.
Which business development tactics are most effective? To find out, we recently conducted a study that looked at 824 professional services firms. The research identified those firms that were growing at greater than a 20% compound annual growth rate over a three-year period.
These High Growth firms were compared to firms in the same industry that did not grow over the same time period. We then examined which business development tactics were employed by each group and which provided the most impact.
The result is a list of the ten most impactful tactics employed by the High Growth firms:
There are a couple of key observations about these growth tactics. First, these techniques can be employed in service of different business development strategies. For example number four on the list, speaking at targeted conferences or events, can easily support a networking or a thought leadership strategy.
The other observation is that the top tactics include a mix of both digital and traditional techniques. As we will see when we develop your plan, having a healthy mix of digital and traditional techniques tends to increase the impact of your strategy.
Now that we have identified the key business development strategies and tactics, it is time to consider the business development skills your team will need. Business development skills require a broad range of technical skills but there are some that make a difference.
When the Hinge Research Institute studied marketing and business development skills in our annual High Growth Study , we found that the firms that grow faster have a skills advantage within their marketing and business development teams.
In Figure 2 below, we see which business development skills are the most important for the high growth firms:
Figure 2. Skill ratings by marketing function (High Growth vs. No Growth firms)
Let’s dive into the top three skills from this list.
The number one business development skill high growth firms enjoy are strong project management skills. And for experienced business development specialists, this makes good sense. Staying organized, accurately tracking business development activity, and managing accounts are essential for building and maintaining strong business relationships. Sound project management practices also allow the business development team to product stronger proposals more quickly without sacrificing quality.
The next most important skill is simplifying complex concepts. In business development conversations, it is vital that team members are able to communicate your firm’s service offerings and capabilities in a ways that prospects can understand. Speaking in industry jargon or presenting overly complicated charts creates unnecessary confusion and friction. Therefore, it is no surprise to see that the fastest growing professional services firms have an advantage in communicating complex information in a way that buyers understand.
The third most important business development skill is data analytics. Firms that make a habit of regularly monitoring key metrics have a real advantage. They can see what marketing techniques are working and which are having problems. The allows them to make course corrections in near real time. Firms that rarely or never look at data are running blind, relying instead on potentially misleading anecdotal evidence.
Review the other business development and marketing skills in the figure above and determine which skills your team should aim to develop. Developing these skills should be a key priority of your business development team.
A Business Development Plan is a document that outlines how you implement your business development strategy. It can be a plan for an individual, a practice or the firm as a whole. Its scope covers both the marketing and sales functions, as they are so intertwined in most professional services firms.
Here are the key steps to develop and document your plan.
Who are you trying to attract as new clients? Focus on your “best-fit” clients, not all possible prospects. It is most effective to focus on a narrow target audience. But don’t go so narrow that you can’t achieve your business goals.
The more you know about your target audience the better equipped you will be to attract their attention and communicate how you can help them. What are their key business issues? Is your expertise relevant to those issues? Where do they look for advice and inspiration? What is the competitive environment like? How do you stack up?
What makes you different? Why is that better for your target client? Are you the most cost-effective alternative? Or the industry’s leading expert? However you position your firm, your claims need to be true, provable and relevant to your target audience. It is very useful to document this positioning as you will use it over and over again as you develop your messages and marketing tools.
Pick the broad strategy or strategies you will use to reach, engage and convert your prospects. You can start with the list of top strategies provided above. Which strategy fits with the needs and preferences of your target audiences? Which ones best convey your competitive advantage? For example, if you are competing because you have superior industry expertise, a thought leadership/content marketing strategy will likely serve you well.
A great place to start is the list of the most effective tactics we provided above. Make sure that each technique you select fits your target audience and strategy. Remember, it’s not about your personal preferences or familiarity with a tactic. It’s about what creates a connection with your audience.
Also, you will need to balance your choices in two important ways: First, you will need tactics that address each stage of the business development pipeline shown in Figure 1. Some techniques work great for gaining visibility but do not address longer-term need to nurture prospects over time. You need to cover the full funnel.
Second, you need a good balance between digital and traditional techniques (Figure 2). Your research should inform this choice. Be careful about assumptions. Just because you don’t use social media doesn’t mean that a portion of your prospects don’t use it to check you out.
When, how often, which conferences, what topics? Now is the time to settle on the details that turn a broad strategy into a specific plan. Many plans include a content or marketing calendar that lays out the specifics, week by week. If that is too much detail for you, at least document what you will be doing and how often. You will need these details to monitor the implementation of your plan.
Often overlooked, these important considerations often spell the difference between success and failure. Unimplemented strategies don’t work. Keep track of what you do, and when. This will both motivate action and provide a great starting place as you troubleshoot your strategy. Also monitor and record the impacts you see. The most obvious effect will be how much new business you closed. But you should also monitor new leads or new contacts, at the bare minimum. Finally, don’t neglect important process outcomes such as referrals, new names added to your list and downloads of content that expose prospects and referral sources to your expertise.
If you follow these steps you will end up with a documented business development strategy and a concrete plan to implement and optimize it.
The Business Development Guide
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Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.
Investopedia / Ryan Oakley
Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.
Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.
A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.
There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.
While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.
A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.
While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.
Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.
The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.
Common elements in many business plans include:
Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.
Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.
A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.
How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.
The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.
A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.
As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.
University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.
Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."
Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."
Harvard Business Review. " How to Write a Winning Business Plan ."
U.S. Small Business Administration. " Write Your Business Plan ."
SCORE. " When and Why Should You Review Your Business Plan? "
3-minute read
Business plans are often confused with strategic plans, but they’re not the same thing. Every company should have both types of plan, and it’s important to know the differences between them so your business to benefit from both.
“A business plan describes the foundations of a company, its owners, its capabilities, the industry and market(s) in which it operates, how it generates revenues and its financial projections,” says Jérôme Côté, a Business Advisor with BDC’s Advisory Services who counsels companies on strategic planning.
“A strategic plan assesses the current environment of a business, both internally and externally. It establishes future goals and targets and describes the strategies it will implement to reach them.”
In other words, a business plan describes a current business or a specific new project. A strategic plan talks about how you want to change your company to grow or be ready for the future.
Like everything else in life, the nature of business needs a plan in place to follow and measure. Crafting a strategic roadmap isn't just a suggestion—it's a necessity.
This is one of the key elements of a startup or even a business division within an organization that is expanding or diversifying. It has every resource element and needs to be mapped out for the business, including projected milestones for the future.
However, every business strategist needs to know that there are some subtle differences between what constitutes a business plan, and the several differences it has with a strategic plan. Let’s walk through the different elements that comprise each and understand the outcome each aims to achieve.
A business plan is exactly what the name suggests— a plan to start and run a business or a new entity of an existing business; usually either an expansion in a newer region or a diversification into a new market. Business plans are mainly created for internal reference purposes or external funding purposes, with the latter being the common usage. They form the basis of all business strategies and decisions made at the ownership level in an organization. The most essential components of a business plan include:
Organizational Plan - This is the core of a business plan, and it includes the mission and vision statement, along with the market in which the company plans to operate. This plan also encompasses thorough market research to gauge the potential of the business, crucial for securing funding or sponsorship. It articulates the rationale behind the business's growth trajectory, outlining clear timelines for achieving milestones along the way.
Financial Plan - A robust financial plan is the bedrock of any successful business venture, where cash flow reigns supreme, and a meticulously crafted balance sheet serves as the ultimate scorecard. A financial plan includes some of the most important elements of the entire business plan and includes elements like projected cash flow statements, capital requirements, a summary of projected overheads, a projected balance sheet including assets and liabilities, and income and expense statements.
Remember to regard this as the central nervous system, for it permeates and influences almost every aspiration the enterprise hopes to attain.
Sales and Marketing Plan - We mentioned “almost” everything above for this very reason. Sales and marketing form the other significant component of the business plan. These include sales forecasts and overheads, marketing and brand management summaries, and market share projections that the business hopes to achieve within a time frame.
Business plans are indeed comprehensive and all-encompassing. They form the basis of the business's existence or the rationale for investments in it. But what about translating these plans into action? How do we ensure that the sky-high goals set forth are actually achievable?
Strategic plans constitute the basis of operations and responsibilities within the business. These plans lay the paths out for each member of the organization to follow and define the functional outline and the key outcomes for every project and process within the business. A strategic plan goes on to define the operations and their outcomes within the organization, its departments, and its employees. The single thread connecting strategic planning with the business plan is the vision of the organization, and for obvious reasons— vision serves as the guiding light for strategy formation, which, in turn, directs the day-to-day operations of the business.
In a word— synchronization. A robust and well-laid-out strategic plan establishes the much-needed sync between teams and their objectives. Not only that, it also provides a guide for daily operations alongside the focus and direction that teams often need to get the job done, on time and within budget. When all these components are integrated into a cohesive network, the true value of a strategic plan emerges—a seamless and grand orchestration of departments, teams, and individuals using the resources allocated to them to achieve the key performance indicator that they are responsible for.
When tasked with creating a strategic plan for your business, you will need to incorporate certain components that will ensure that the stakeholders are aligned completely with the organization’s goals and objectives. These include:
Vision and Values - The vision statement is the most important component of the strategic plan and the most overarching. It propels the organization towards established goals and the values that every employee and stakeholder must incorporate.
Goals - These are short, medium, or long-term, depending on the scope of the strategic plan. They provide the much-needed context for the organization to undertake initiatives that meet the vision while maintaining the values.
Guiding Principles - Often, organizations face crossroads where they must decide which steps to take next, to reach their vision. Principles are included in strategic plans to align teams towards the vision when faced with a dilemma and form a critical part of strategic planning.
Action Plans - A sum of key initiatives, processes, and projects that are required to be performed on a pre-determined periodic basis for the goal to be accomplished. These also include the time frames for each stakeholder responsible for each option. They usually follow the DACI format for each action (Driver, Approver, Contributor, Informed)
SWOT Analysis - The quintessential component, the Strength, Weaknesses, Opportunities, and Threats analysis of the strategic plan lends context to all business actions vis-a-vis the external environment. This includes competitors, market forces and conditions, identification of internal and external threats, and several other factors.
Read This - SWOT Analysis: How to Strengthen Your Business Plan
Here’s a table highlighting the main differences between a Business Plan and a Strategic Plan with a focus on the key components of each—
In all businesses, a strategic plan serves as the foundational blueprint, akin to a meticulously drawn map for a general. It provides the essential guidance and direction needed for the entire organization to navigate toward success. It is crucial, therefore, to acquire the necessary skills and certifications for employment as a business strategist who would be entrusted with creating it. Know more about how to become a successful and sought-after business strategist today!
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How to write a business development plan: a step by step guide.
So we’ve already tackled how to write the infamous business plan , but now that you’re in the growth stage of your business – what’s next?
Many business owners will look to write a business development plan with the aim to make their business better. Running a business is never a stationary job, you constantly have to be looking to grow and improve.
But what exactly is a business development plan and how do you write one? Let’s find out.
Here’s What We’ll Cover:
How to write a business development plan, key takeaways.
A business development plan is a document put together by the business owner with the aim to grow and improve their business. The plan will set goals for growth and explain how you will achieve them.
A business development strategy can have a short-term or long-term focus, or both. They should also be constantly reviewed and revised as things shift and your goals may change.
A health plan is one that builds as your business evolves.
A standard business development strategy can be split up into 6 different sections, each one with a different aim and purpose. These sections are:
You should always be looking to grow your business. In this section, you will identify where growth will come from. For example, whether it’s new product development, adding different services or breaking into new markets. Your main business development goals should always point towards growth.
According to a U.S. Bank study, 82% of small businesses fail because of poor cash flow management and understanding. That’s why it’s vital that you have a constant eye on your funding and your bottom line.
You need to understand how you’ll fund your business development. So in this section, you should lay out your current capital, and how much more you will need to sustain growth.
You should have a good idea of your current revenue, costs and profits. These numbers can then be used as a starting point for setting new, more ambitious revenue goals. This is for when you have expanded and developed your business.
When growing a business, your operational needs will change. For example, what started out as a two-person job can develop into needing a whole team of people. So in this section, you will need to identify what things about your business will need to change to accommodate and promote growth.
No business can succeed without a strong and stable sales team and marketing team. As your business grows, so will your sales and marketing needs. So you will need to take the time to figure out your target market and what sales and marketing efforts will promote growth. You should then put all of your focus on those efforts.
It’s vital that your sales process and marketing strategies are strong and sturdy enough to support a growing business.
Every strong business needs a strong team around it. When you started your business, it’s likely that you shouldered a lot of the jobs and responsibilities. As your business grows, you’ll soon come to realize that you can no longer do this alone.
So as a business developer, you need to think about what jobs and tasks you are best and most effective at. You should then correctly delegate the other responsibilities to the appropriate team members. This is often a good way to figure out if you have the right team around you. If you dread the thought of offloading tasks to your team, you may not have the trust in your team that you should.
Also Read: Tuckman Theory of Team Development
Business development plans may seem like a relatively daunting task. But once you figure out the basics then they can almost write themselves.
You need to have an open mindset, a realistic approach and the ability to accept some potential failures.
Expanding and developing a business is hard work, but with the right plan in place, you are giving yourself the best chance possible.
Are you looking for more business advice on everything from starting a new business to new business practices?
Then check out the FreshBooks Resource Hub .
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Business Education
19 Aug, 2024
Distinguishing business models from plans is crucial for success. Models outline value creation and profit generation, while plans detail strategies, research, and projections. Together, they form the blueprint for long-term success and operational execution.
A business model is the backbone of any company, detailing the plan for how it intends to operate, generate revenue, and make a profit. It's less about the nitty-gritty details found in a business plan and more about the overall concept of how the business creates value for customers and captures value for itself. Essentially, a company's business model describes the way the company sells its products or services and how it establishes and maintains customer relationships to achieve financial success.
At its core, a business model involves identifying the value proposition of the company, which is what makes its products or services attractive to customers. It also outlines the customer segments targeted, the key activities and resources needed to operate, and the channels through which it reaches its customer base. Importantly, it details the revenue streams the business will pursue to generate income and the cost structure that outlines the expenses involved.
A business plan is a detailed roadmap for building a successful business. Unlike the broader strokes of a business model that describes how a company creates and delivers value, business plans are a comprehensive document that outlines the specifics of business strategy. They serve as a guide to what the business intends to do and how it plans to do it and are often used to attract investors and secure financing.
The heart of a business plan includes an executive summary, which is a snapshot of the business and its plans for success. This section briefly explains the business idea, key objectives, and how the business will achieve its goals. It's followed by detailed sections that outline the business's structure, market analysis, value proposition, marketing and sales strategies, financial projections, and more.
Key components of a business plan include the business model canvas, which lays out the key resources and activities needed to operate the business. It also delves into the cost structure, detailing all the expenses the business will face. A thorough market analysis assesses the existing market, target customers, and competitive landscape. This helps in formulating a solid marketing strategy and establishing a unique value proposition that sets the business apart from its competitors.
Financial planning is also crucial, with sections dedicated to expected financial performance, revenue generation, and a detailed financial forecast. This helps potential investors and business owners understand the financial viability and growth potential of the business.
There are many types of business models, each defining a unique way a company creates value for its customers and generates profits. Understanding different business models helps owners and entrepreneurs select the right approach for their business concept and target market. Here are some common business models:
Understanding these business models helps a company decide the best strategy for market entry and growth. Each model has its own set of operational details, target market strategies, and financial implications. Selecting the right business model is crucial for a company's success, aligning with its core values, customer needs, and long-term goals. As the business evolves, it may adopt multiple models or shift strategies to adapt to changing market conditions or customer feedback.
Understanding the difference between a business model and a business plan is crucial for anyone diving into the world of entrepreneurship or looking to scale their business. Here are the key differences:
While a business model provides a conceptual framework for understanding how the company creates value and money, the business plan offers a detailed guide on how to implement these concepts and achieve specific business goals. Both are vital, but they serve different purposes and address different needs within the business's lifecycle.
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Dive into the nuances of Business Plans & Models. Uncover their key differences, applications, and tips for strategic growth. Master your business journey today!
November 28, 2023
In the world of business, two terms often emerge as foundational elements to startup founders, seasoned entrepreneurs, and everyone in between: the Business Plan and the Business Model. Both are crucial, yet their roles, purposes, and impacts are distinct, and understanding these differences can mean the difference between the success and failure of an enterprise.
In a landscape where innovation is rampant and industries are constantly evolving, having clarity about one's business direction is indispensable. It's akin to a sailor knowing the direction of the wind and having a map. While the wind's direction can be equated to the broader strategy of the sailor (the Business Model), the map which plots out the course in detail is akin to the Business Plan.
Yet, with these tools being so pivotal, it's alarming how often they are misunderstood or used interchangeably. Some entrepreneurs pour weeks into crafting the perfect business plan, only to realize they haven’t clarified their fundamental business model. Others sketch out a brilliant business model on the back of a napkin but falter when asked for the detailed strategy and projections that a business plan requires.
This guide aims to dissect the nuances between a Business Plan and a Business Model, highlighting their unique roles in the entrepreneurial journey and offering insight into how each can be harnessed most effectively. By the end of this exploration, readers will have a clear roadmap (pun intended!) for their own business endeavors, understanding when, why, and how to leverage each tool.
In order to delve deep into the distinctions between a Business Plan and a Business Model, it's imperative that we first lay down clear definitions for each term. This ensures that as we progress, we're aligned in understanding and can avoid any ambiguities. So, let's start by putting these cornerstone concepts under the microscope.
A Business Plan can be envisioned as a detailed blueprint for setting up a business and ensuring its success. It's a comprehensive document that articulates what a business intends to achieve and the strategies it will deploy to make those aspirations a reality. Let's break down the typical components:
A Business Model is akin to the conceptual foundation of a business. It succinctly defines how a company plans to generate revenue, make a profit, and ensure sustainability in a competitive market. Core components of a business model include:
With these definitions at our fingertips, it becomes easier to discern the distinct role each plays in the grand scheme of establishing and running a business. As we progress further, we will delve into how these elements differ in scope, objective, and application.
Having delineated clear definitions for both a Business Plan and a Business Model, it's now time to pinpoint their distinctive differences. While both tools are essential to a business's success, they serve varied purposes and are used at different stages of the entrepreneurial journey. Let's explore the primary differences between the two:
In essence, while the business model is about conceptualizing the heart and soul of the enterprise, the business plan is about putting flesh to that skeleton, bringing it to life with details, strategies, and actionable steps. Grasping these nuanced differences is vital for entrepreneurs as they chart the course of their business journey.
The distinctions between a Business Plan and a Business Model are clear, but knowing when to deploy each can be equally as crucial. Their application at the right junctures can enhance clarity, attract resources, and drive effective implementation. Here's a guide on when to use which:
In summation, while the Business Model encapsulates the very soul of the enterprise, the Business Plan serves as the detailed blueprint for bringing that vision to fruition. Knowing when to focus on each, and how to leverage them effectively, can guide businesses through their initial setup, growth, challenges, and expansions. Both tools, when used strategically, are the compass and map guiding a business towards its envisioned success.
A theoretical understanding of the distinction between Business Plans and Business Models is one thing, but observing them in practice can offer an invaluable perspective. Let’s explore some real-world examples that showcase these tools in action:
In essence, these examples vividly illustrate how the foundational concept of a business (Business Model) is different from the detailed strategy for its operation and growth (Business Plan). While the model captures the essence, the plan dives into specifics. Both are integral at different stages, and as seen with companies like Netflix, they need to be revisited and revised as the company evolves.
Throughout this exploration of Business Plans and Business Models, one thing remains abundantly clear: both are indispensable tools in the toolkit of every entrepreneur and business leader. However, understanding the nuanced differences between the two and knowing how to deploy each effectively can significantly impact a company's success.
A Business Model provides the visionary blueprint of a company – it's the big picture that showcases what the company stands for, its primary methods of generating revenue, and how it intends to deliver value to its target market. It’s the foundation upon which a company is built, a reflection of its core identity.
On the other hand, a Business Plan dives into the specifics, detailing the strategies, operations, financial projections, marketing approaches, and other key components necessary to bring the business model to life. It's the roadmap, detailing the route a business needs to take to achieve its goals.
In the rapidly changing world of business, where consumer preferences evolve, technologies disrupt traditional operations, and markets are continually in flux, having a robust business model is crucial. But it’s the detailed business plan that allows businesses to navigate these complexities with precision, foresight, and strategic acumen.
Drawing inspiration from real-world examples, we've seen how giants like Netflix and Uber have effectively utilized both these tools. They've conceptualized innovative business models and then deployed detailed business plans to capture market share, adapt to changes, and remain at the pinnacle of their respective industries.
In conclusion, as an entrepreneur or business leader, think of the business model as your compass, giving direction and purpose. The business plan is your map, detailing the terrain and showing the path forward. With both in hand, you're not only set for the journey but also equipped to tackle the challenges and capitalize on the opportunities that lie ahead.
Foundational Differences: A Business Model provides an overview of how a company creates, delivers, and captures value, whereas a Business Plan delves into the detailed strategies, operations, and financial projections for realizing the model.
Strategic Application: The Business Model sets the core vision and foundation for a business, while the Business Plan acts as a roadmap, detailing steps for achieving business goals and milestones.
Real-world Applications: Successful companies, such as Airbnb, Uber, Netflix, and Dropbox, have effectively conceptualized innovative business models and employed comprehensive business plans for strategic execution and growth.
Necessity for Adaptation: Both the business model and business plan should be revisited and revised periodically to ensure alignment with evolving market realities and business objectives.
Call to Action: Entrepreneurs and businesses should constantly reflect on, refine, and update their models and plans, engage with experts, commit to continuous learning, and actively share insights to ensure sustained success.
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As a business owner, you obviously want to expand your business and increase your network.
But the question is, how to get started on it?
It’s simple! A business development plan is the first step you need to take.
A business development plan is much more than a piece of document. It is what defines your current positioning and helps you devise and implement a strategic plan.
That, in turn, doesn’t just bring in sales, but also goodwill and long-term relations with your stakeholders.
Having a business development plan is like living a healthy lifestyle – it will only offer great things in return but it does demand a little effort and time.
Whereas, a business with no such plan is bound to misplace time, energy and suppress its growth.
So, let’s learn a little more about this business-altering plan. Have a seat because we’re in for a ride!
A business development plan is a detailed strategic plan on how to develop your business by implementing various ideas, tactics, and strategies that assist a company in scale better in every sphere of the business. This business development plan is what defines your current positioning and helps you devise and implement a strategic plan to grow in the market.
Simply put, it is the development of long-term value that a firm enjoys from all of its stakeholders.
A business development plan is a guide to bring everyone in the organization on the same page and get them to work towards a common goal.
For your firm to not just be complacent and make big leaps in the industry, a business development plan is a must!
Now, let’s see how this development plan is beneficial for your firm…
1. helps a business boost sales.
Profitability is one of the key metrics to judge a business’s growth.
Devising a strong business development plan helps a business to understand the markets that are the most profitable and which plans need to be pursued first.
Business development plans also involve documenting your firm’s revenue model and all of its pros and cons.
This way, you can better assess what changes need to be made in your revenue model and what other streams can be added to it.
Read more: Business Letters: Definition, Types, Format, and Tips!
Expansion into new markets is always a coveted opportunity for any business.
Business development is all about staying ahead of current trends and curating plans to make the expansion possible.
It’s this research that makes you better acquainted with the best target audiences and customers for your firm and thus paving way for entering new, undiscovered markets.
As discussed earlier, a good business development plan requires assessing a company’s key demographic and target markets.
It acts from a customer’s perspective so that the business can bring forward a solution to a problem large enough to make profits.
This way the focus turns to the “customer is king” model which works to promote loyalty among customers towards your brand.
When business development plans are created, it’s not only the customers that are analyzed but also the daily working of the firm.
A business developer can use this information and assimilate it into marketing campaigns.
By keeping potential customers in mind, a firm can address how they strive daily to help satisfy the needs of their customers.
This makes for a solidified marketing campaign.
Now that we know why a business development plan is so crucial, let’s get to creating one!
Step 1. revisit your vision.
When you started your business, you probably asked yourself the “Where do you see yourself a year from now?” question.
Well, the business development plan starts right there! This is the focal point for all your inspiration.
It defines what YOU want from your firm, and that’s why it’s necessary to think-free and dream high.
Do you want to have a certain amount of sales?
Do you want to win the best local business award?
Whatever it is. Start right here. Articulating what you think you need to reap from your business is where it all starts.
It’ll serve as a baseline to get your firm going and keep you motivated despite hardships.
The next step is to evaluate your own business.
Conduct SWOT analysis to identify your strengths, weaknesses, and what markets you can venture to.
Align these with your vision, check where you’re slacking and what you need to do to achieve your vision.
For example:
Acme, a beauty brand has the vision to become an international firm in the next two years. Let’s say that their strengths are:
Whereas their weaknesses are:
This way they can focus better on what needs to be tweaked and work towards attaining their vision.
Read more: Business Documents: Definition, Types, Benefits & Steps to Create Them!
“When you speak to everyone, you speak to no one.”
Sums it all up, doesn’t it?
Without knowing your exact audience, there is no way to make it through in any industry.
A business development plan looks forward to deciphering this and assessing changing trends which helps you find the best-fit audience.
For more details on how you can identify your target audience, check out our blog:
(Linking our target audience blog here once it’s published online)
Knowing what other competitors offer will act as a great tool to understand how your business stands out.
Assess what pricing policies they use, what marketing campaigns they’ve undertaken, and what worked for them.
This way you can identify the best strategic moves for your business moving forward!
Read more: Business Report: What is it & How to Write it? (Steps & Format)
From the evaluation you’ve done so far, start setting priorities for what you think needs to change.
And then depending on those, start listing what all possible solutions could help solve them. Mention anything and everything you think would work.
For example: Let’s consider our previous example of Acme which was lacking on its marketing fronts. Now their possible solutions could be:
Thus, a firm can tackle all its issues by listing down every possible way to address them.
This brainstorming session may seem far-fetched but can lead you in the right direction and help you find the most accurate solution to your problems.
Once you’ve devised a plan, it’s important to set dates.
For example: If you plan to begin a marketing campaign, make sure it gets started by a certain date and yields results by a certain date.
Only when you set smaller goals, you’ll be able to achieve your vision.
These goals will set you and the people in your firm into motion and serve as a reminder as to what’s expected of them.
Although many firms overlook this part, it’s utterly crucial.
Now that you have implemented your plans and you’re ready to achieve your vision, it’s time to assess it.
Monitor the impacts and document all of it as you go, so when you get back to it a year from now, you’re more informed about what went wrong and what yielded shining results.
Read More: Reasons Why You Should Write a Business Plan!
Now you’ve not only created your development plan and assessed it, but you’ve also got ideas and insights into what you need to include in your next one!
Sounds like a concrete business documentation plan may require an even faster and smarter tool!
Well, it’s time for you to meet Bit.ai…
We know that creating a business development plan is a complex task and it seems like it requires highly proficient documentation skills…
Well, let us break that bubble for you!
With Bit, you can make documentation fun and exciting and create the perfect business development plan for your business.
Working with Bit is very simple. With its integrated and interactive tools, it will take you much less time to create documents and you’ll get solid results too!
Don’t believe us? Check out some of its amazing features:
Trust us when we say that no documentation tool out there is as robust as Bit. It even offers a free account for up to 5 users and we think you should absolutely give it a try!
Our team at bit.ai has created a few awesome business templates to make your business processes more efficient. Make sure to check them out before you go, y our team might need them!
We know that everyone craves success but only very few have the patience and perseverance to reach that peak of glory.
A business development plan may not scream success when you’re creating it, but it’s a stepping stone that will take you there!
It will constantly acquaint your organization with its long-term goals, and help it strategize and execute its plans in a resounding manner.
We hope that we’ve gotten you all fired up to get started with your business development plan. Follow our steps and you’re ready to rock!
Don’t forget to let us know how it goes by tweeting us @bit_docs. We’d be happy to hear from you!
Further reads:
13 Business Goals You Must Set In 2021
Formal Report: What is it & How to Create it!
Growth Plan: What is it & How to Create One? (Steps Included)
Market Orientation: What is it & How Does it Work? (The Complete Guide)
15 Business Intelligence Tools & Software Every Business Needs!
Tactical Plan: What is it & How to Create an Effective One?
Unique Selling Proposition: What is it & How to Create Your Own?
KPI Report: What it is & How to Create a Perfect One?
Marketing Research: Definition, Process & Tools!
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The smartest online Google Docs and Word alternative, Bit.ai is used in over 100 countries by professionals everywhere, from IT teams creating internal documentation and knowledge bases, to sales and marketing teams sharing client materials and client portals.
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In the dynamic world of entrepreneurship, our choice of words matters. Our vocabulary can often become a veritable alphabet soup of jargon, acronyms, and those buzzwords (I'm looking at you, "disrupt").
And let's not get started on business cliches – "circle back," "synergy," “deep-dive,” etc.
Yet sometimes, it's worth pausing to consider the words we casually sprinkle around in our business conversations. In a previous article, we explored the differences between strategic and tactical business planning , two related but distinct approaches to guiding a business. Now, we're going to delve into another pair of terms that often get used interchangeably but have unique implications: "business plan" (the noun) and "business planning" (the verb).
The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan . Think of it as a road map – it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan), it often gets shoved in the glove compartment, forgotten as part of the organization's action plan until the next road trip (i.e., additional funding ).
Business planning is not a static concept, but rather a dynamic verb. It's an ongoing process that necessitates continual adjustments. It's about creating a holistic, interconnected value-creating strategic plan that benefits all stakeholders. This includes attracting top-tier employees, ensuring a return on lending or investment, and making a positive impact on the community, whether online or in real life.
That being said, the customer remains at the heart of this process. Without customers, there are no sales, no revenue, and no value. Everything else is contingent on this key element.
If we were to compare the business plan to a map, then business planning would be the journey. It's a continuous process of making strategic decisions, adapting to new paths, and steering the business towards its goals. Sometimes, it even involves redefining objectives midway.
So, let's do a "deep-dive" (I couldn't resist) into these two terms, examining their application in the real world. Along the way, we'll uncover some tools that can aid us in the ever-evolving process of strategic business planning and the more finite task of crafting a winning business plan.
Alright, let's take a closer look at a phrase we've all tossed around: the business plan. Imagine it as the detailed blueprint of your organization's goals, strategies, and tactics. It's like the North Star for your entrepreneurial ship, shedding light on the key questions: what, why, how, and when (speaking of questions, here are some FAQs about the business plan ).
Writing a solid business plan isn't easy , especially if you're just dipping your toes into the world of business planning. But don’t worry; we'll get to that (eventually).
So, let's break it down. What does a business plan document consist of, exactly?
A business plan is an essential instrument, not just for securing funding, but also for communicating long-term goals and objectives to key stakeholders. But, while a business plan is essential for many circumstances, it's important to understand its scope and limitations. It's a tactical tool, an important one, but it's not the be-all and end-all of business strategy. Which brings us to our next point of discussion: business planning.
If we view the business plan as a blueprint, then business planning is the architect. But let's be clear: we're not building just any old house here. We're building the Winchester Mystery House of business. Just as the infamous Winchester House was constantly under construction , with new rooms being added and old ones revamped, so too is your business in a state of perpetual evolution. It's a dynamic, ongoing process, not a one-and-done event.
In the realm of business planning, we're always adding 'rooms' and 'corridors' – new products, services, and market strategies – to our 'house'. And just as Sarah Winchester reputedly consulted spirits in her Séance Room to guide her construction decisions, we consult our customers, market data, and strategic insights to guide our strategy. We're in a constant state of assessing, evolving, executing, and improving.
Business planning touches all corners of your venture. It includes areas such as product development, market research, and strategic management. It's not about predicting the future with absolute certainty – we’re planners, not fortune tellers. It's about setting a course and making calculated decisions, preparing to pivot when circumstances demand it (think global pandemics).
Business planning is not a 'set it and forget it' endeavor. It's akin to being your company's personal fitness coach, nudging it to continually strive for better. Much like physical fitness, if you stop the maintenance, you risk losing your hard-earned progress.
Now that summer is here, my Solo Stove stands as a tangible testament to effective business planning.
For those unfamiliar, Solo Stove started with a simple yet innovative product – a smoke-limiting outdoor fire pit that garnered over $1.1 million on Kickstarter in 2016, far exceeding its original objective. Since then, it has expanded its portfolio with products tailored to outdoor enthusiasts. From flame screens and fire tools to color-changing flame additives, each product is designed to fit seamlessly into modern outdoor spaces, exuding a rugged elegance that resonates with their target audience.
This strategic product development, a cornerstone of business planning, has allowed Solo Stove to evolve from a product to a lifestyle brand. By continually listening to their customers, probing their desires and needs, and innovating to meet those needs, they've built a brand that extends beyond the products they sell.
Their strategy also includes a primary "Direct To Consumer" (DTC) revenue model, executed via their e-commerce website. This model, while challenging due to increased customer acquisition costs, offers significant benefits, including higher margins since revenue isn’t split with a retailer or distributor, and direct interaction with the customer.
Through its primary business model, Solo Stove has amassed an email database of over 3.4 million customers . This competitive advantage allows for ongoing evaluation of customer needs, driving product innovation and improvement, and enabling effective marketing that strengthens their mission. The success of this approach is evident in the company's growth: from 2018 to 2020, Solo Stove’s revenue grew from $16 million to $130 million , a 185% CAGR.
While 85% of their revenue comes from online DTC channels, Solo Stove has also enhanced their strategic objectives by partnering with select retailers that align with their reputation, demographic, and commitment to showcasing Solo Brands’ product portfolio and providing superior customer service.
Solo Stove's success underscores how comprehensive business planning fosters regular assessment, constant evolution, and continual improvement. It's more than setting goals – it's about ceaselessly uncovering ways to deliver value to your customers and grow your business.
However, even successful businesses like Solo Stove can explore additional strategic initiatives for growth and diversification, aligning with their strategic direction and operational planning. For instance, a subscription model could provide regular deliveries of products or a service warranty, creating a consistent revenue stream and increasing customer loyalty. Alternatively, a B2B model could involve partnerships with adventure tourism operators, who could purchase Solo Stove products in bulk.
These complementary business models, when integrated into the operational plan, could support the primary DTC model by driving customer acquisition, providing ongoing revenue streams and expanding the customer base. This strategic direction ensures that Solo Stove continues to thrive in a competitive market.
In the realm of business strategy, there's an intriguing chicken-and-egg conundrum: which comes first, the business plan or business planning? The answer is both straightforward and complex: they're two sides of the same coin, each indispensable in its own right and yet inextricably linked.
The process of business planning informs and modifies the business plan, just as the business plan provides a strategic foundation for the planning process. This interplay embodies the concept of Model-Based Planning™, where the business model serves as a guide, yet remains flexible to the insights and adaptations borne out of proactive business planning.
Let's revisit the Solo Stove story to elucidate this concept. Their business model, primarily direct-to-consumer, laid the groundwork for their strategy. Yet, it was through continuous business planning – the assessment of customer feedback, market trends, and sales performance – that they were able to refine their model, expand their product portfolio, and enhance their growth objectives. Their business plan wasn't a static document but a living entity, evolving through the insights gleaned from ongoing business planning.
So, how can you harness the power of both the tactical business plan and strategic business planning in your organization? Here are a few guiding principles:
The sparks truly ignite when you understand the symbiotic relationship between tactical business plans, strategic business planning, and the achievement of strategic goals. Crafting a tactical business plan (the noun) requires initial planning (the verb), but then you need to embark on continuous strategic planning (the verb) to review, refine, and realign your strategic business plan (the noun). It's a rhythm of planning, execution, review, and adjustment, all guided by key performance indicators.
Business planning, therefore, isn't a one-off event, but rather an active, ongoing process. A business plan needs constant nurturing and adjustment to stay relevant and guide your organization's path to success. This understanding frames your business plan not as a static document, but as a living, breathing entity, evolving with each step your business takes and each shift in the business landscape. It's a strategic roadmap, continually updated to reflect your organization's objectives and the ever-changing business environment.
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However, modern businesses can be a bit shaky. The day-to-day of business ownership can feel as though an earthquake is constantly testing these key pillars. If you could only choose one pillar to hold your business together as the others fell away, you would likely need to rely on sales. Without it, revenue would stagnate. This is why building out a business model that is heavily sales-centric isn’t that wild of an idea: so much so that I might actually advise some startups to skip the step of developing a business plan altogether or replace it with something a bit more agile.
Developing A Sales Plan, Not A Business Plan, For A Lean Business
The first step to starting a business is to create a business plan. Right? Well, if you’re running a lean business, you may be able to save time with just a sales plan.
Think about it. A truly effective sales plan is robust and includes enough information to ensure steady business growth. For businesses that don’t require investors or strategic partnerships, a business plan may be less of a necessity. So, rather than focusing your efforts on your company profile, you can place more attention on your sales performance.
A great example is how a sales team might view prospecting as "scary." Data from a 2015 Hubspot study showed that reps struggle with prospecting more than other parts of the sales process. Developing a sales plan with a well-thought-out prospecting strategy can help lessen the struggle and speed up the sales process.
In those crucial first years of business ownership, many companies fail. Maybe the failure is due in part to a lack of initial research, but it is 100% due to a lack of sufficient revenue. So, while it’s imperative not to overlook any aspect of business ownership, you’re likely undervaluing your sales plan by just making it one piece of your business plan. In my experience as a founder and CEO, I've found that you can help keep the lights on by placing a greater emphasis on your sales plan -- even if you run into other operational snafus.
What To Know Before You Build Your Sales Plan
It’s important to understand that in order for a business to successfully flourish in any industry, you generally need to do a great deal of structuring, planning and self-correcting.
• Know your brand. At the core of any business are its "actions" -- they make up its brand. Your brand should be instinctual by the time you even have your first customer interaction. You should reflect your brand from both an internal and external lens for every who, what, why and how of your business. Your actions won’t feel as unique and authentic if only your internal team gets to feel them. Likewise, you may not come off as genuine if you don’t operate internally in the same way you present yourself to customers. A brand is the heart of every customer engagement, and therefore, it’s the heart of every sales plan.
• Know your industry. What are your customers going to expect from you? What have they seen enough of already? You don’t want to be the black sheep of the industry, yet you can’t afford to blend in as a newcomer. With the right amount of upfront research, you can find that right balance of industry expectations and what makes you unique.
• Know your products. From every practical application to every whimsical extra feature, every member of your team should be deeply intimate with the ins and outs of your products. No detail is too small when you’re trying to develop sales collateral, marketing strategies and elevator pitches.
Key Elements Of A Comprehensive Sales Plan
Whether you have a business plan or not, developing your sales plan is not the time to cut corners. As you’re putting together your sales plan, heavily consider these key elements:
• Define your market. How big is your market, and what slice are you trying to cut out for yourself? What events or innovations are defining or redefining your industry?
• Define your territory. Beyond any geographical location, your territory encompasses your position within your market, your digital presence and your ideal client. Understand where you are now within your industry, but constantly search for opportunities to get to where you want to be.
• Define your sales channels. Where does your audience spend their time? What channels make sense for your industry, product and brand identity? You don’t want to waste your resources marketing in the wrong channels, but you certainly don’t want to miss out on key opportunities to engage.
• Fill in the gaps. No business starts off at its ideal finish line. In order to achieve continual growth for your business, you’ll likely need some assistance from industry experts. Whether you’re hiring a new employee or collaborating with a contractor, consider the gaps between you and your ideal annual revenue and the smartest ways to fill those gaps.
If you’re looking to start a new business venture, don’t let an underdeveloped sales plan be your downfall. Consider the ways you can take traditional business planning and amplify your new startup with a sales-centric strategy.
A business development strategy is a comprehensive plan for growing your company.
This growth can involve acquiring new customers , expanding into new markets, or developing new products or services. Our experts can help you identify growth opportunities , set clear goals, and determine the best approaches to achieving them.
Typical business development activities include networking, forming partnerships , doing market research, and launching sales initiatives—all aimed at boosting growth. Even though business development has a lot of potential, it comes with its own set of challenges:
One major challenge is figuring out which markets are the most profitable and how to reach the right audience. Many businesses struggle to pinpoint their most lucrative customers, leading to inefficient marketing and missed opportunities. This task involves understanding market dynamics, consumer behaviors, and demographic trends. Misidentifying target markets can waste resources and result in poor ROI.
Attracting and identifying leads that are likely to convert into paying customers is another big hurdle. The lead generation process can sometimes attract the wrong audience or fail to nurture potential leads effectively. Balancing the quality and quantity of leads is tricky, and ineffective lead generation can lead to spam or irrelevant communications, frustrating and disengaging customers.
Building and maintaining strong relationships with potential customers is crucial but challenging. Establishing trust and rapport requires consistent effort and strategic communication. As businesses grow, they often struggle to keep up regular, personalized interactions. High customer expectations for responsiveness and personalization make this even harder.
Standing out in a crowded market is a persistent challenge. Differentiation requires understanding what makes your business unique and effectively communicating that value proposition. Many businesses need help identifying their unique selling points (USPs) or conveying them convincingly. Without clear differentiation, it’s tough for customers to choose between similar products or services, leading to decision fatigue.
Business development can take a lot of time, and figuring out how to allocate limited resources is a major challenge. Budget, time, and personnel constraints make it tough to prioritize activities that will yield the highest returns. This can lead to inconsistent service quality or delayed responses, negatively impacting the customer experience .
Maintaining rapidly changing market conditions and customer preferences requires agility and foresight. Staying ahead of trends and quickly adapting strategies is challenging. This involves continuously monitoring the market, analyzing data, and being ready to pivot when necessary. Slow adaptation can lead to losing relevance and market share, as customers often quickly adopt new trends and technologies.
Navigating long sales cycles can take time and effort. They require persistent follow-up, sustained engagement, and patience, which can strain resources. Maintaining engagement and momentum over extended periods is challenging for businesses. Additionally, the longer the sales cycle, the higher the risk of losing customers to competitors or changing market conditions.
Building and leveraging professional networks for business opportunities is essential but tough. Effective networking requires strategic effort, time, and genuine connections. Many businesses need help identifying the right events, platforms, or individuals to network with. Maintaining and leveraging these relationships over time can also be resource-intensive.
Keeping up with the fast-paced evolution of digital technologies and platforms is a common challenge. Businesses need help to stay updated with the latest digital marketing trends, tools, and best practices. This includes creating compelling content, optimizing for search engines, and effectively using social media. Poorly executed digital marketing can lead to irrelevant or intrusive ads, negatively affecting brand perception.
Setting achievable and measurable business development goals is crucial but often problematic. Goals that are too ambitious or too conservative can hinder growth. Aligning goals with the overall business strategy, market conditions, and available resources is essential. Unrealistic goals can demotivate teams and lead to over-promising and under-delivering, eroding trust and satisfaction.
Defining and measuring the success of business development efforts is essential for continuous improvement but challenging to execute. Identifying the right metrics and tracking them effectively can be difficult. This involves integrating various data sources, analyzing performance, and making data-driven decisions. Inaccurate or incomplete measurement can lead to misguided strategies and missed opportunities.
Addressing internal resistance to new business development strategies is a significant hurdle. Change is often resisted due to fear of the unknown, comfort with the status quo, or lack of understanding of the benefits. Managing organizational culture, communicating effectively, and involving stakeholders in the change process is crucial. Internal resistance can lead to delays, reduced morale, and suboptimal implementation of new strategies.
Building a solid business development strategy is key to growing your company and ensuring its success. It's not just about having a great product or service; it's about strategically planning and executing steps to expand your reach, attract new customers, and improve your bottom line. Whether you're a startup trying to gain traction or an established business looking to grow further, a well-thought-out strategy can make all the difference.
Let’s break down six essential steps to create an effective business development strategy. These steps include defining your target market, setting long-term goals, understanding your audience, gaining a competitive advantage, optimizing your sales process, and fostering a culture of adaptability. These elements are crucial for helping your business survive and thrive in a competitive market. By following these steps, you can create a roadmap for sustainable growth and long-term success.
Conduct thorough market research to identify the most lucrative segments. Analyze market size, growth potential, customer demographics, and the competitive landscape. Focus your resources on the most promising opportunities. This approach leads to a higher return on investment (ROI) for marketing efforts and a stronger customer connection.
Long-term goals provide direction and purpose, guiding decision-making and resource allocation. Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals are crucial for clarity and focus. For example, instead of setting a vague goal like "increase sales," a SMART goal would be "increase sales by 20% within the next year through targeted marketing campaigns." Align your goals with your vision and mission, ensuring they are ambitious yet realistic.
Delve deep into customer demographics, preferences, behaviors, and pain points through surveys, focus groups, and data analysis. This understanding allows you to tailor products, services, and marketing efforts to meet the specific needs of your audience. Increased customer satisfaction, loyalty, and higher conversion rates are the positive outcomes of this tailored approach.
Identify what sets your business apart from competitors. Analyze your unique selling propositions (USPs) and ensure they are effectively communicated to the market. This may involve innovation, superior customer service, better pricing strategies , or a distinctive brand identity. Gaining a competitive advantage helps you attract and retain customers even in a crowded market.
Map out your sales process from lead generation to closing the deal and identify any bottlenecks or inefficiencies. Adopt new technologies, improve communication and collaboration among teams, and establish clear workflows. Train your sales teams and continuously refine sales tactics based on performance data. Actively participate in industry events, trade shows, and networking groups, and prepare for these interactions with clear objectives and follow-up plans.
Overcoming resistance to change and fostering a culture of adaptability is crucial for implementing new business development strategies. Communicate the benefits of change, involve employees in the process, and provide training and support. Creating an adaptable culture helps you remain resilient in the face of market shifts and emerging trends. Increased innovation, improved employee morale, and a stronger competitive position are the positive outcomes of fostering adaptability.
Market research is a fundamental component of a robust business development strategy. It provides valuable insights that inform various aspects of your business, from understanding your target audience to refining your competitive advantage.
Market research provides the data and insights needed to make informed decisions, reduce risks, and capitalize on market opportunities. It ensures that your business development efforts are grounded in reality and poised for success. By offering evidence-based strategies, it reduces the time-consuming trial-and-error process.
Analyzing industry trends and customer preferences can help you develop unique selling propositions (USPs) that give you a competitive edge. Market research provides detailed demographic and psychographic information about potential customers, enabling you to tailor your products, services, and marketing efforts to meet their needs. Understanding where your audience spends their time online and what content resonates with them helps create targeted ads and social media posts that drive higher engagement and conversions.
Market research provides a clear understanding of market potential and growth opportunities, allowing you to set realistic and achievable objectives that align with your overall business strategy. Knowing your industry's key players, trends, and pain points will enable you to engage in meaningful conversations and build valuable relationships. It also streamlines your business development and sales processes by identifying the most effective strategies and tactics for attracting and converting leads.
At Simon-Kucher, we specialize in crafting robust business development strategies tailored to your unique needs. By leveraging deep industry knowledge and data-driven insights, we identify and implement the most effective tactics to attract and convert leads.
Strategic business development planning is vital for setting a clear direction and ensuring all activities align with your goals. We assist you in formulating comprehensive strategic plans, including market entry strategies, expansion plans, and diversification opportunities. Our expertise ensures that every aspect of your business development is meticulously planned and strategically sound. Contact us today.
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Becoming partly sunny; drier but brisk and unseasonably cool. .
Mostly clear and quite cool.
Updated: August 20, 2024 @ 9:32 am
The proposal, offered by Jaindl Land Co. and known as Farmersville Estates, calls for single-family homes on 206 building lots on 290 acres.
WFMZ.com Reporter
BETHLEHEM TWP., Pa. - The Bethlehem Township Board of Commissioners reviewed a sketch plan for a proposed cluster housing development Monday night.
The proposal, offered by Jaindl Land Co. and known as Farmersville Estates, calls for single-family homes on 206 building lots on 290 acres by Nazareth Pike, Farmersville Road, Butztown Road and Green Pond Road, north of Route 22. The lot is currently agricultural farmed land and the land rests in the township's Agricultural Zoning District.
Of the 290-acres which consist of four parcels, 214 acres rest in Bethlehem Township. Three of the four parcels are north of Route 22 and are bounded by Hecktown Road to the west and Farmersville Road to the east, Route 22 to the south and undeveloped property to the north. The municipal boundary between Bethlehem Township and Lower Nazareth Township is located immediately north of the parcels.
A 35-acre parcel south of Route 22 will be preserved for open space. Additional open space is proposed within the developed area on the north side of the highway. The open space will consist of recreation space for residents such as pocket parks, small ball fields, walking trails and landscaped coves.
Jaindl officials said main site access will be via new direct connections to both Farmersville Road and Hecktown Road. The internal road system for the project site consists of local roads that connect to the main roads provide main site access, one connection to Farmersville Road and one connection to Hecktown Road. All proposed development lots will be serviced by public water and sewer utilities with connections to existing utility lines located in these two main roads.
In examining the development, a single-family lot area will encompass 20,000 square feet. This is less than the 43,560-square-foot by-right lot.
Commissioner Michael Hudak noted concerns about access points to and from the development. Commissioners who spoke said they had no issue with the cluster development, although President John Merhottein said he was "torn" about the cluster development concept.
"If I consider reducing the amount of lots and that would reduce the amount of traffic, would that make sense?" developer David Jaindl asked Monday night. He added later he would reduce the lot total by 10 to 15. Most commissioners supported such a scenario.
Land Development Agreement Extension
The board granted an extension request by developer J.G. Petrucci Co. involving required improvement on a lot the company owns at Lehigh Valley Industrial Park VI.
The company noted most of the required improvements to the site have been completed. However, since the company does currently not have a tenant for the site, they will not obtain a building permit to construct the proposed building prior to the Aug. 23 deadline.
"For that reason, there are a minimal amount of improvements that currently are secured which JGP does not propose to complete prior to Aug. 23. These items cannot be accomplished feasibly until such time that the project goes vertical."
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Anil dhirubhai ambani ventures, in its application, has argued that the company was not heard while allowing the iihl to use the brand for three years, as it was not a party to the resolution plan.
By Suresh P. Iyengar
Anil Dhirubhai Ambani Ventures (ADAVPL), a Reliance Group company, has filed an interim application in the National Company Law Tribunal (NCLT) to stop Hindujas-owned IndusInd International Holdings (IIHL) from using ‘Reliance’ brand name after the implementation of resolution plan.
The NCLT, while approving IIHL’s resolution plan on February 27, had allowed the company to use the Reliance brand for three years from the date of approval of the plan for the purpose of implementing the resolution plan transaction.
NCLT will hear the matter on Tuesday.
ADAVPL, in its application, has argued that the company was not heard while allowing the IIHL to use the brand for three years, as it was not a party to the resolution plan.
It stated that Anil Dhirubhai Ambani Ventures and Reliance Capital, which is currently under the Insolvency Resolution Process, entered into a Brand Licensing Agreement on April 1, 2014. Under the agreement, ADAVPL granted RCap a non-exclusive, royalty-free licence to use the brand for 10 years, which has also expired.
ADAVPL has argued that the agreement does not create any interest in the brand in favour of RCap, but only allows permissive use thereof. Given this position, the brand is not an “asset” of RCap within the meaning of the term as used in Section 18 of the Insolvency and Bankruptcy Code, and ADAVPL has requested the cessation of brand usage by IIHL immediately after implementation of the resolution plan, said the petition.
According to sources close to the development, the brand ‘Reliance’ is equally owned by Mukesh Ambani and Anil Ambani, and the same cannot be allowed to be used by any other company or individual.
Moreover, the Hindujas have completed the registration of their own brand for the RCap companies in Mauritius.
Earlier this month, NCLT directed the RBI and the Department of Industrial Policy and Promotion to consider approval for IIHL application for closing its deal to acquire RCap. IIHL has already deposited ₹2,750 crore in the offshore and onshore escrow account of Committee of Creditors and submitted the binding term sheet.
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More than three years after it was selected to receive $23.5 million in state funding, and with construction behind schedule and yet to begin, the plan for a downtown Des Moines soccer stadium is showing signs of life.
The Iowa Soccer Development Foundation announced Monday that it has formally submitted its application for the Iowa Reinvestment District funds , which would come from a share of sales taxes generated by the stadium and other improvements, including an adjoining Global Plaza site for special events. Under state law, the Iowa Economic Development Authority board now has until July 1, 2025, to approve the plans.
The 6,300-seat stadium — expected to cost $95 million — would be developed by the Krause+ development arm of the Krause Group, former owner of the Kum & Go convenience store chain. The USL Championship League, the second tier of U.S. professional men's soccer, has granted a franchise for a Des Moines team, though plans for the stadium will need to be approved before it becomes official.
"This development will serve as a cornerstone for future growth and vibrancy downtown, and we are eager to see it come to life," an Iowa Soccer Development Foundation news release quoted Des Moines Deputy City Manager Matt Anderson as saying.
The project's next steps include completing an agreement with the city of Des Moines for use of a remediated Superfund site where the stadium and plaza are slated to be built, between Martin Luther King Jr. Parkway and the Raccoon River, just south of downtown. The city in 2021 cleared the land of the remnants of the former Dico wheel and chemical factory.
The development group said it also will request a vote by the Polk County Board of Supervisors for the county's promised $7 million contribution — and suggested it may seek substantially more.
The Iowa Soccer Development Foundation still needs to raise a final $19.5 million to cover costs. The group had been negotiating for additional money from the city of Des Moines.
No timeline was announced for the stadium's construction, which originally was to have been completed in 2024. Amid increases in construction costs, the Iowa Soccer Development Foundation announced in 2022 that the completion date would be delayed at least a year — an estimate it has not updated since.
Foundation spokesperson Abby Bottenfield said in an email Monday that construction will not begin on the site until the funding gap is closed. Her email listed the county's expected share at $17 million.
County Administrator John Norris acknowledged that additional funding could be approved.
"We have had discussions of an additional $10 million spread out over multiple years to ensure the Global Plaza and stadium can be built and to finally close the book on cleaning up the DICO site," he said in an email.
Anderson, in a statement, said the city "is proposing to support the Capital City Redevelopment District... with a $19.5 million incentive package that would include $1.5 million for the construction of the Global Plaza, an investment of up to $13 million in continued environmental remediation costs on the DICO site, and the City designing and building SW 16th Street, connecting Martin Luther King Jr. Parkway to Tuttle Street, at a cost of approximately $5 million.”
Bottenfield's email said other major sources of funding include $23 million from Krause Group Chair and CEO Kyle Krause and wife, Sharon, and more than $14 million in private donations, it said.
The foundation said it will reveal updated renderings as the project progresses.
“We’re thrilled to be bringing professional soccer to Iowa,” Krause said in the foundation's news release. “We can’t thank the United Soccer League enough for their ongoing support and consideration of our great community.”
Krause has previously said his company intends to spend $500 million developing a host of other projects around the stadium and in downtown's Western Gateway, where it has its headquarters opposite the Pappajohn Sculpture Park and owns several other properties, including the former Crescent Chevrolet building that now houses Big Grove Brewing's Des Moines tasting room.
The Des Moines soccer stadium isn't the only one Krause has in the works. He owns the Parma Calcio 1913 team in Parma, Italy, and in an interview with Italy's Gazzetta di Parma published Feb. 23, Luca Martines, the team's corporate managing director, said Krause intends to fully fund the team's new stadium. It's now budgeted to cost $150 million , up from a 2021 estimate of about $97 million.
From the time of Krause's acquisition of the team in September 2020 through the end of last year, according to team financial filings, Parma Calcio has lost about $313.9 million .
Krause also owns the lower-level Des Moines Menace soccer team.
The sale of Krause Group's Kum & Go stores to the Utah-based Maverik convenience store chain was completed in 2023. Terms of the deal between the privately held companies were not disclosed, but Reuters reported the Krause Group had been seeking $2 billion.
Addison Lathers covers growth and development for the Des Moines metro. Reach her at 608-931-1761 or [email protected], and follow her on X at @addisonlathers.
Tyler Jett is an investigative reporter for the Des Moines Register. Reach him at [email protected] , 515-284-8215, or on X at @LetsJett. He also accepts encrypted messages at [email protected].
Staying current is easy with Crain’s news delivered straight to your inbox.
Developers plan warehouse-to-apartment conversions in the west loop.
Rachel Herzog is a commercial real estate reporter for Crain’s Chicago Business. She joined Crain’s in 2023 from The Real Deal, where she had covered commercial real estate in Chicago. Before that, Herzog wrote for the Arkansas Democrat-Gazette. She is a graduate of UNC-Chapel Hill, receiving a bachelor’s degree in media and journalism, as well as a separate degree in Hispanic literature and culture.
Two local developers are planning projects that would add hundreds of residential units to the already booming West Loop while repurposing unused commercial space.
Skokie-based F&F Realty has proposed a 325-unit apartment complex at 1060 W. Van Buren St., with 111 units in the existing eight-story warehouse building on the site and an additional 214 in a new, 290-foot tower, according to 34th Ward Ald. Bill Conway’s constituent newsletter.
Separately, Chicago real estate firm Base 3 Development wants to convert the vacant seven-story vintage building at 1220 W. Van Buren St. into 112 apartments, according to information shared at a community meeting in July.
Both projects would be among the latest in a series of proposals that seek to capitalize on downtown Chicago’s steady rent growth while breathing new life into vacant or underutilized commercial buildings as demand for workspace has waned. In July, another downtown alderman notified his constituents of a developer’s proposal to convert a mostly vacant office building on the Magnificent Mile into 320 dwelling units , and in June, a city panel signed off on subsidies for projects to turn four office buildings in the LaSalle Street corridor into more than 1,000 apartments .
A venture led by F&F Realty founder David Friedman paid $12 million for the more than 100-year-old building at 1060 W. Van Buren St. in December 2023, according to Cook County property records. Real estate information database CoStar Group lists just one tenant in the 108,000-square-foot building, manufacturer Universal Overall. Friedman didn’t respond to a request for comment on the proposed redevelopment.
F&F Realty is also the developer of the 45-story apartment building at 727 W. Madison St., which sold for almost $232 million in August 2023. The firm has a major stake in the local apartment sector, primarily in the suburbs, and paid $74 million for a 504-unit property in Des Plaines in 2022.
Base 3 Development is the second company to take a stab at repurposing the building at 1220 W. Van Buren St. Another local real estate firm, The Missner Group, bought the building in 2016 from Oxxford Clothes after the suitmaker moved out. Missner planned to convert the property into loft offices but didn’t lease any of the space; the firm put the building up for sale in 2021 .
Base 3 is purchasing the building, the developer’s zoning attorney, Liz Butler of Taft Law, said at the community meeting. A deed couldn’t be located in property records as of today, so it wasn’t immediately clear if the transaction had been completed. Base 3 didn’t return a request for comment on the redevelopment proposal.
Butler said at the meeting that the developer plans to submit a zoning application in the fall. If the City Council approves the zoning change, permitting and construction is expected to begin in the first quarter of 2025, and the building would be ready for occupancy around spring 2026, Butler said.
The project is a “compelling opportunity to reactivate what has been a vacant and dormant building,” she said at the meeting.
Both redevelopment proposals were first reported by Urbanize Chicago.
Rockbridge Capital bought the 200-room inn next to McDonald's global headquarters nearly three years after developer Sterling Bay put it up for sale.
Andy Gloor, one of Chicago’s preeminent real estate developers, says now is the time for those with capital to make a contrarian bet and invest in commercial real estate.
A venture led by a Chicago entrepreneur is leasing a shuttered restaurant space in a historic building steps from the Magnificent Mile, where he's said to be planning a new magic-themed dining and entertainment concept.
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Now that you're in the growth stage of your business, set things in motion with a business development plan. A business development plan sets goals for growth and explains how you will achieve them. It can have a short-term or long-term focus. Review and revise your plan as often as you can. And keep building on it as your business evolves.
Business development planning is incomplete without measurable goals, as the individual department members can't see where to go without a big, red "X" on the map. Strategy development. Create a game plan for reaching your goals, including tactics for marketing, sales, and partnerships. Resource allocation.
The biggest difference between a strategic plan vs. a business plan is its purpose. Existing companies use the strategic plan to grow their business, while entrepreneurs use business plans to start a company. There is also a different timeframe for each plan. Generally, a strategic plan is conducted over several years while a business plan ...
The purpose of a business development plan (or strategy) is to set realistic goals and targets that allow your reps to grow the business, close more deals, identify prospects, align members of the sales team (and other teams, company-wide), and convert more leads. 1. Craft an elevator pitch.
Business development is the process of planning for future growth by identifying new opportunities, forming partnerships, and adding value to a company. It involves understanding the target ...
Here are some differences between a business model and a business plan: Focus Business models are descriptions of how a business plans to deliver products and services to customers. They focus on specific sales funnels, marketing strategies and similar areas. In contrast, business plans are more comprehensive explanations of every facet of a ...
A business model is the foundation of any business idea; it basically outlines how the concept offers value and potential for growth. Essentially, a solid business model ensures that the business will make money. A business plan, on the other hand, is the business owner's plan to put that model into action. It's much more detailed and ...
How to use your business plan for strategic development and operations. A great business plan can encompass both the basic plans for the business, the long-term strategic plan, and the near-term operational plan. Using a lean planning method, you can tackle all three phases of planning and make the process easy to review and revise as your ...
The business development plan is a key document that helps you map your ecosystem and strategize your business development efforts. It consists of a research part and an action part. In the first part, you analyze your market, competitors, and customers. In the second, you use your insights to build value propositions, content plans, and ...
A Business Development Plan is a document that outlines how you implement your business development strategy. It can be a plan for an individual, a practice or the firm as a whole. Its scope covers both the marketing and sales functions, as they are so intertwined in most professional services firms. Here are the key steps to develop and ...
Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...
What is a strategic plan? In contrast to a business plan, a strategic plan sets out a company's goals and defines the actions it takes to get there. The audience is your own team. Its key purpose is to build alignment and decision-making capacity to ready your company for the future. For example, if a company's business model is ...
Whether elaborate or simple, a written business plan is an assembly of facts, ideas, assumptions and projections about the future. Here are three ways to use a written plan: 1. Document the due ...
Strategic plans constitute the basis of operations and responsibilities within the business. These plans lay the paths out for each member of the organization to follow and define the functional outline and the key outcomes for every project and process within the business. A strategic plan goes on to define the operations and their outcomes ...
A business development plan is a document put together by the business owner with the aim to grow and improve their business. The plan will set goals for growth and explain how you will achieve them. A business development strategy can have a short-term or long-term focus, or both. They should also be constantly reviewed and revised as things ...
A business plan usually lays the foundations of a company's business decisions and strategies at the ownership level. A strategic plan typically establishes the foundations of responsibilities and operations within an existing business. It explains the strategy for each team member to follow and defines the functional outline and significant ...
Business Plan: A business plan is a detailed document that outlines the specific strategies, goals, and actions of a business. It's a comprehensive plan that includes market analysis, financial projections, and operational details aimed at guiding the business's trajectory and attracting investors. Scope and Detail:
It's the foundation upon which a company is built, a reflection of its core identity. On the other hand, a Business Plan dives into the specifics, detailing the strategies, operations, financial projections, marketing approaches, and other key components necessary to bring the business model to life.
A strategic business development plan allows you to identify markets and products with high-profit potential, enabling you to prioritize partnerships and make informed decisions. It also helps you reduce expenses, uncover untapped growth opportunities, and allocate resources efficiently.
A business development plan is a detailed strategic plan on how to develop your business by implementing various ideas, tactics, and strategies that assist a company in scale better in every sphere of the business. This business development plan is what defines your current positioning and helps you devise and implement a strategic plan to grow ...
The business plan, a noun, is a tactical document. It's typically created for a specific purpose, such as securing a Small Business Administration (SBA) loan. Think of it as a road map - it outlines the route and the destination (in this case, the coveted bank loan). But once you've reached your tactical goal (in this case, getting the loan ...
Developing a sales plan with a well-thought-out prospecting strategy can help lessen the struggle and speed up the sales process. In those crucial first years of business ownership, many companies ...
A business development strategy is a comprehensive plan for growing your company. This growth can involve acquiring new customers, expanding into new markets, or developing new products or services.Our experts can help you identify growth opportunities, set clear goals, and determine the best approaches to achieving them.. Business development challenges
BETHLEHEM TWP., Pa. - The Bethlehem Township Board of Commissioners reviewed a sketch plan for a proposed cluster housing development Monday night. The proposal, offered by Jaindl Land Co. and ...
Comments. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.. We have migrated to a new ...
A delayed plan for a soccer stadium in downtown Des Moines is showing signs of life, applying to receive state dollars it was awarded three years ago. News lowa Caucuses Sports Opinion Business ...
Base 3 Development is the second company to take a stab at repurposing the building at 1220 W. Van Buren St. Another local real estate firm, the Missner Group, bought the building in 2016 from ...
The UK government signed off on London City Airport's plan to grow passenger numbers by nearly a third, angering environmental campaigners who say it will increase carbon emissions.