Business Development and Sales activities both help grow your business, but they achieve this end in different ways.
Business development is the practice of identifying, attracting, and acquiring new business. The aim is to reach and surpass your company’s revenue and growth goals. These activities involve researching, prospecting, and qualifying leads before passing them off to the sales team to further develop and close.
Sales is all about closing. After receiving a qualified lead, sales staff take the deals across the finish line. Sales staff might perform some additional qualification in certain circumstances, but their primary objective is to close deals. They are also responsible for demonstrating the product, handling prospect objections, and drafting contracts.
Many companies, particularly SMEs, work tirelessly day-to-day to identify new business opportunities from whichever source they can. Countless hours are spent talking to existing customers, new prospects or networking contacts or even family and friends in the hope that some-one will eventually place an order.
That is a very dangerous and extremely stressful way to run a business that really cannot be sustained over the longer term. Too many hard-working owners have put several years’ hard graft into building their businesses only to see them fail. Not for the lack of effort or commitment but because they didn’t have an effective sales strategy.
The overall primary objective of an effective sales strategy is to identify how your company will get your product or service in front of prospects that have a definite Need and the Ability to Purchase. By understanding their business, their industry and their needs, you will be able to create a typical prospect profile that will form the basis of your “new prospect” targeting campaign.
There are several potential routes to market. Many businesses utilise multiple sales channels including: Telesales, On-line, Direct Mail, Field Sales or via preferred Partners. When deciding the most effective route to market, it is very important to consider critical factors such as the AOV (average order value) compared to the COS (Cost of Sale).
Another key consideration is the ability of the individual to actually sell. Only too often, particularly in SMEs, staff are drafted into roles that they are not suited for or trained to do. Can they pitch effectively? Can they handle objections and most importantly, can they close the deal?
Why not let a YTKO business consultant work with you to develop ongoing strategic plans for your sales and business development? We can streamline processes, enhance brand awareness and mentor your sales team to focus on growth.
Thanks to GetSet For Growth, we now implement our marketing activities in a smarter and more strategic manner that yields results.
Head of Corporate Immigration, Hartley Bain Solicitors