Business development is two aspects of business development. Just two different ways of referring to the identical process of putting your company’s product into the hands of customers. Do you agree? Sales and business development are not the same things.
Business Development Vs Sales Review
Instead, consider the two roles as two parts of a whole. Both positions exist to assist in the growth of your company, but they do so in different ways. Continue reading to learn how sales and business development differ, as well as which components of the sales process each team is responsible for.
First and foremost, let’s talk about the basics. There are two sorts of “business development” activities that are usually referred to as such, but they are very different in terms of job function and value within a company.
Business development, in the classical sense, refers to efforts aimed at expanding your company’s reach into new markets, such as developing joint ventures with other companies to offer Company X’s product to Company Y’s customers.
It’s the process of finding, attracting, and getting new clients. The goal is to meet and exceed the revenue and growth targets set for your firm. However, the type of business development we’re discussing is a specialist sales function known as sales development. Business development reps (BDRs) and sales development reps (SDRs) are two different types of sales development reps.
These are usually entry-level sales positions that can lead to careers in sales, account management, or customer success management. Business development representatives are responsible for researching, prospecting, and qualifying prospects before handing them on to the sales team to develop and close. SDRs do not have quotas, which means that while they are accountable for bringing in enough qualifying leads to produce a particular amount of revenue, they are not directly responsible for closing agreements.
Closing is the most important aspect of sales. After obtaining a qualified lead from an SDR, salespeople complete the transaction. In some cases, sales representatives may undertake further qualifications, but their primary goal is to seal deals. Sales reps are also in charge of showing the goods, dealing with objections from prospects, and preparing contracts.
The business function and process of closing transactions with customers to generate income for a corporation is known as sales. Business development is the role and process of identifying potential good-fit customers and establishing a relationship between a company and a solution so that the sales team may pitch and close the deal. Despite the fact that sales and business development are two separate teams and functions, it’s easy to see how important it is for both strategies to work in tandem: effective selling is impossible without dedicated business development, and business development relationship-building is only possible if a company has a solution and a reputation for being able to help meet a market need.
Difference between business development and sales
Simply put, business development takes precedence. It’s the process of creating well-researched, quality leads for your sales staff to follow up on. Business development is all about producing leads, and the most common job titles related to it are Business Development Representative (BDR) and Sales Development Representative (SDR). Second, sales are entirely focused on closing a winning contract with qualified prospects generated by your company’s business development initiatives. It’s all about the transactions in sales.
Sales positions have a wide range of titles, but most revolve around terms like Sales Representative, Account Manager, or Account Executive.
Furthermore, while developing a sales team from the ground up, deciding which job (business development vs. sales) to hire first or recruit more of in the early days can be tough. Start by asking yourself which one sounds like a larger priority inside your firm right now that you’ve defined the distinction between business growth and sales.
If your solution has received clear market validation and you’re consistently closing a high percentage of the prospects you speak with, but you just need a higher volume of leads to keep your pipeline flowing, hiring a business development rep and training them on how to prospect for the right leads should be your top priority.
If you have more qualified inbound leads than you can handle but don’t have enough time to follow up with each one, schedule a meeting, give a demo, and close the transaction, your focus should be on hiring more sales agents to assist you to close more of your hot leads.
Although it appears to be a simple process, getting to this point can take some time. While resources are limited until sales recruiting becomes a viable option, it’s natural for founders and other members of the team to take on both business development and sales-related activities in the early stages of your firm or before obtaining funding as a start-up.
That’s fine for a while as long as the founder-driven sales stage is performing well and your income is increasing. As your firm grows and you can afford to spend in better solving your bigger problem generating more leads or hiring salespeople to close more of the leads you already have the separation of the two jobs should become more evident and specialized.
The primary goal of clearly dividing tasks within your sales team is to allow individuals to specialize within their roles. Division of labor: Also known as task separation within any system, the primary goal of clearly dividing tasks within your sales team is to allow individuals to specialize within their roles.
Anyone who spends most of their day performing the same set of tasks will likely develop competence far faster than those who spend the day task-switching between several different things. It’s no different within your company when it comes to separating business development and sales. Allowing members of your sales team to focus completely on prospecting or closing allows them to attain a degree of proficiency in their role that would otherwise be difficult to accomplish.
Rather than splitting their time (and mental capacity) or task-switching throughout the day, your business development reps can concentrate on bringing more qualified prospects into the company’s pipeline. Your sales reps, on the other hand, are free to focus solely on the essential activities in your sales process that have been shown to complete more transactions and earn more revenue.
Finally, building an atmosphere that accelerates the development of expertise is invaluable in terms of organizational benefits since you will be able to produce and close more leads.