Cost consideration, legal approvals, and regulatory adherence are all assessed as a part of a business development plan. Business development is not just about increasing sales, products, and market reach. In addition, reputation building has also proven to help facilitate business development. As a business moves from one stage to another, the importance of the factors changes. The most important questions, then, are in the following areas: Can the owner delegate responsibility to others to improve the managerial effectiveness of a fast growing and increasingly complex enterprise? Similarly, an entrepreneur contemplating starting a business should recognize the need to do all the selling, manufacturing, or engineering from the beginning, along with managing cash and planning the business’s course—requirements that take much energy and commitment. Both operational and strategic planning are being done and involve specific managers. In addition, the first professional staff members come on board, usually a controller in the office and perhaps a production scheduler in the plant. 0000000816 00000 n This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions. Of course, small businesses are not going to have it easy, unlike the big businesses who have more than enough resources to be able to pay for these partnerships immediately. 2. 0000358847 00000 n Every approval or disapproval is a learning experience, better preparing these professionals for the next challenge. Besides the extreme examples of franchises and high-technology companies, we found that while a number of other companies appeared to be at a given stage of development, they were, on closer examination, actually at one stage with regard to a particular factor and at another stage with regard to the others. Mass production marked by a “diffusion of objectives and an interest in the welfare of society.”. 3. If the franchisor has done sound market analysis and has a solid, differentiated product, the new venture can move rapidly through the Existence and Survival Stages—where many new ventures founder—and into the early stages of Success. This especially applies to countries where the laws are not so strict and allow for abuse to take place. What is 'business development'?

In the Survival Stage, however, the owner has achieved the necessary reconciliation and survival is paramount; matching of goals is thus irrelevant in Stage II. We made two initial changes based on our experiences with small companies. Possibly, the most recognizable practice of this growth strategy is by adopting the franchise model, which was how Walmart, Subway and The Body Shop grew. Once the pie has been divvied up, it is time to identify which slice of the pie seems to be the most receptive to the strategies of the business. Those companies that remain in business become Stage II enterprises. Choose cover letter template and write your cover letter. In the Success-Disengagement substage, the company has attained true economic health, has sufficient size and product-market penetration to ensure economic success, and earns average or above-average profits. Since business development involves high-level decision making, the business developer should remain informed about the following: Due to the wide-open scope of business development and activities, there are no standard practices and principles. A second serious period for goal matching occurs in the Success Stage. Does the new market require a customized—or altogether new—version of the product? The Case of Biotechnology. Or it may, as many companies do, remain at the Survival Stage for some time, earning marginal returns on invested time and capital (endpoint 2 on Exhibit 4), and eventually go out of business when the owner gives up or retires. Business growth can be achieved either by boosting the top line or revenue of the business with greater product sales or service income, or by increasing the bottom line or profitability of the operation by minimizing costs.

Some of these marginal businesses have developed enough economic viability to ultimately be sold, usually at a slight loss.

Productivity, Mindfulness, Health, and more. 0000002676 00000 n Small businesses vary widely in size and capacity for growth. Ossification is characterized by a lack of innovative decision making and the avoidance of risks. ), Exhibit 5 Management Factors and the Stages. To make a realistic decision on which direction to take, the owner needs to consider the personal and business demands of different strategies and to evaluate his or her managerial ability to meet these challenges. We offer business growth solutions to small and medium enterprises.

The organization is a simple one—the owner does everything and directly supervises subordinates, who should be of at least average competence. However, owing to the strong backlash from critics, they have changed their focus into helping businesses that are going to help the most people develop. So, there you have it.



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