In any business it is important to define business development option(s), what challenges it should solve or business parts it should accelerate. Professionals who utilize select business development options are generally lower their risk and cost, their options are less demanding and provide an earlier return on investment.
Defining Each Category:
Joint Sales, This is a formal agreement between two or more people or companies with complimentary products or services aimed at similar customers or existing clients. Joint sales can be a solution to reaching a larger base of customers, increasing the value of the combined products or validating a lesser-known company.
Joint Marketing, "Going to market together" leverages the complimentary strengths of partners involved, overcoming weaknesses in marketing to reach a market. Case in point: A client has distinctive capabilities in product development but did not possess the proper distribution expertise to successfully reach the market. So, they created a joint marketing agreement with another company who lacked expertise in product development but had great distribution already in place.
Sales Lead Functions, This means you establish a way to quickly and clearly qualify potential clients. A valuable tool for this is developing a "lead qualification screen" that has 6 to 10 questions. A lead qualification screen can then be the basis for a "Lead Agency" program. Lead agency is an agreement with someone who does not work for your company but can supply a number of qualified lead introductions within a particular time period. Lead agents allow you to economically scale a sales campaign and expand your reach.
Formalize Marketing, Companies may need to separate marketing from sales or expand the role of marketing beyond promotion into other marketing areas. Some benefits include gaining a view of the market size and value, being more attractive to investors, and completing a go-to-market capability.
Licensing, Identify and secure a brand name, process or technology you use as an asset. Then, license it to a company that needs it to be successful. Consider the reverse so you can succeed.
OEM / Private Labeling, As the original equipment manufacturer (OEM) you supply a product or service that someone else markets. Conversely, you can have an OEM to you; you market it under your name (private labeling).
Intellectual Property Creation & Transfer, Combine to create services, technologies or products that can't be produced alone. This includes agreement on ownership of the results, how it will be used and who profits.
Research & Development, People and companies create these agreements to apply unique capabilities to produce services, technologies or products that can't otherwise be produced to solve a specific market need.
Joint Venture / Equity Position, With a joint venture, two or more companies combine in specific way to produce a new business. Ventures can be precursors to acquisitions or to validate a concept. An equity position is an investment with money or other resources in a venture.
Acquisition / Merger, Being purchased by another company or being the purchaser of another company can be done for expansion, overcome a weakness, gain a new capability or to take over a competitor. Mergers are done for similar purposes but, in principal, involve two equal partners or companies that create a new one.
Many small and medium sized businesses believe that business development options are only for large companies. This is not so.
What challenges do you have to be solved through business development options? How do you want to accelerate your business? What will you do different in your next steps toward success? The answers to these questions may help you evaluate which direction you need to head in order to achieve business success.
Jeofrey Bean, Principal, Del Mar Research & Consulting, specializes in providing solutions to marketing and business development challenges. He can be reached directly at (858) 334-9266 or [email protected]. For more information visit www.DelMarResearch.com.
Defining Each Category:
Joint Sales, This is a formal agreement between two or more people or companies with complimentary products or services aimed at similar customers or existing clients. Joint sales can be a solution to reaching a larger base of customers, increasing the value of the combined products or validating a lesser-known company.
Joint Marketing, "Going to market together" leverages the complimentary strengths of partners involved, overcoming weaknesses in marketing to reach a market. Case in point: A client has distinctive capabilities in product development but did not possess the proper distribution expertise to successfully reach the market. So, they created a joint marketing agreement with another company who lacked expertise in product development but had great distribution already in place.
Sales Lead Functions, This means you establish a way to quickly and clearly qualify potential clients. A valuable tool for this is developing a "lead qualification screen" that has 6 to 10 questions. A lead qualification screen can then be the basis for a "Lead Agency" program. Lead agency is an agreement with someone who does not work for your company but can supply a number of qualified lead introductions within a particular time period. Lead agents allow you to economically scale a sales campaign and expand your reach.
Formalize Marketing, Companies may need to separate marketing from sales or expand the role of marketing beyond promotion into other marketing areas. Some benefits include gaining a view of the market size and value, being more attractive to investors, and completing a go-to-market capability.
Licensing, Identify and secure a brand name, process or technology you use as an asset. Then, license it to a company that needs it to be successful. Consider the reverse so you can succeed.
OEM / Private Labeling, As the original equipment manufacturer (OEM) you supply a product or service that someone else markets. Conversely, you can have an OEM to you; you market it under your name (private labeling).
Intellectual Property Creation & Transfer, Combine to create services, technologies or products that can't be produced alone. This includes agreement on ownership of the results, how it will be used and who profits.
Research & Development, People and companies create these agreements to apply unique capabilities to produce services, technologies or products that can't otherwise be produced to solve a specific market need.
Joint Venture / Equity Position, With a joint venture, two or more companies combine in specific way to produce a new business. Ventures can be precursors to acquisitions or to validate a concept. An equity position is an investment with money or other resources in a venture.
Acquisition / Merger, Being purchased by another company or being the purchaser of another company can be done for expansion, overcome a weakness, gain a new capability or to take over a competitor. Mergers are done for similar purposes but, in principal, involve two equal partners or companies that create a new one.
Many small and medium sized businesses believe that business development options are only for large companies. This is not so.
What challenges do you have to be solved through business development options? How do you want to accelerate your business? What will you do different in your next steps toward success? The answers to these questions may help you evaluate which direction you need to head in order to achieve business success.
Jeofrey Bean, Principal, Del Mar Research & Consulting, specializes in providing solutions to marketing and business development challenges. He can be reached directly at (858) 334-9266 or [email protected]. For more information visit www.DelMarResearch.com.