Business Development Strategies

Understanding the Basics of Business Development Strategies

Modern successful organizations use strategic business development planning to set priorities, focus energy and resources on agreed-upon goals, and evaluate and adjust the organization’s direction in response to changing conditions. So, what are the key points of strategic planning?

The main goals of strategic business planning

The current stage of development of the world economy is characterized by the instability of the operating conditions of enterprises, which is caused by the increase in the level of mobility of external factors and the strengthening of their influence on the internal environment. Therefore, enterprises’ effective activity and further development are impossible without developing and implementing a strategy.

Strategic planning is an organizational and management activity that outlines priorities, focuses energy and resources, and enhances functionality. Strategic planning determines the agreement on the planned goals, results, and adjustment of the organization’s activities following the changing environment. Strategic planning sets promising directions for the development of the enterprise, defines the main types of its activities, and allows linking marketing, design, production, and financial activities into a single system. The strategic plan ensures the adaptation of the enterprise to the external environment, the distribution of resources, and the internal coordination of activities to identify strengths and weaknesses. As a basis for comparison, the business development plan allows business leaders to identify deviations from the given course of action, determine the causes of these deviations, and plan measures to eliminate them. Having developed a business plan, you can predict the future situation more accurately.

The role of a business development plan for investors

The external purpose of drawing up a business plan is to attract financing from external sources in the form of investments or loan funds, to attract the attention of investors and the bank, to convince them of the sufficient level of efficiency of the investment project and the high level of enterprise management. In addition, each investor will want to evaluate the profitability of investing in the proposed investment project, the ratio of possible returns from the project, and the riskiness of investments. The best way to do this is to study and analyze the business plan of the investment project. It gives the investor an answer to whether it is worth investing in this investment project and under what conditions it will be most effective at the level of risk acceptable to the investor.

The element of the strategic business plan

A strategic business development plan serves as a road map that defines the direction the company should take and helps managers prepare for potential obstacles. There are no clear rules on what the structure of a strategic plan should be, but it is desirable to include the following elements in it:

  • Analysis of internal drivers – strengths and weaknesses, determined by the method of SWOT analysis (strengths, weaknesses, opportunities, and threats).
  • Analysis of external factors should cover factors such as the market structure, the level of demand, and other factors that affect the market formation.
  • A vision statement is a concise statement of how you see your business in five to ten years.
  • Higher-level goals are the main goals that need to be achieved for your business vision to be realized. It may include attracting a new type of customer, developing new products and services, or securing new funding sources.
  • Implementation – identify the key actions (with desired outcomes and timelines) that must be completed to achieve your top-level goals.
  • Resources – sources of funding, number of personnel, requirements for their knowledge and skills, as well as premises and equipment.