Contrary to popular belief, I believe there is a big difference between Sales and Business Development. It is certainly a popular topic that has been covered a lot over the years. More often than not it comes with varying views and no clear winner. Why does it matter, really?
For many companies and industries, business development is just a sexier name for sales. Both can provide a truly rewarding career path, but at some point in the past both the sales function and the business development function appear to have morphed into one another. This is not ideal as it leads to confusion for those in it, and those looking to get into it. It is true both exist to help grow a business but they achieve this in different ways. With that said, there is a clear line between them both, and I like to think they complement each other well.
In order to better understand the above, I think it’s helpful to take a step back and think about what sales is. Sales is about driving revenue today and closing. Think Alec Bladwin’s “Always Be Closing” speech in Glengarry Glen Ross...(apologies for the language)
The sales cycle tends to be short. The focus is more on converting leads into sales as quickly as possible. It is transactional in nature and entirely focused on execution. We know the number of sales we need to achieve in a set time frame so lets go after it.
Like sales, business development is also revenue generating. It does so by opening up new opportunities. And, it does so with a greater emphasis on strategic thinking. It's responsible for the identification of revenue generating opportunities that have the potential to drive growth in the business. This could be through entry into new markets, complementary product and service lines or third party partnerships, for example. Unlike sales, business development tends to have a longer sales cycle, is more strategic in choice and direction, and takes a slightly longer term view on revenue generation and strategic growth. It is far more aligned to the longer term strategic goals of the business.
Done well, business development could be about shaping and underpinning next year’s budget and forecast in line with the company’s strategic plan, whilst sales would be about delivering on this year’s budget and targets. In other words, sales makes sure your business is running in the short term. Business development reassures your business will survive and/or grow in the long term.
Up above I introduced the theme of sales versus business development and where i think they differ. Noting that the debate between the two was a well-trodden path. In my world there does seem to be a genuine overlap between the two which is unlikely to right itself. Especially when there seems to be an increase in expectation that any sales person should have the ability to business develop and vice versa.
With that said however, I think modern day business does require both functions in order to survive and move forward and there are people out there who can fill both duties. However, as cost rationalisation, margin and the bottom line remain key indicators of success and failure for businesses, I can see what has shifted expectations, and ultimately led to the confusion in the first place.
Mackenzie Black
Enabling Strategic Ambition With Execution
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