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Importance of business development

A business or company, whether small, medium or multinational, has a great influence on the economy of a country, city or sector, since they are the ones that provide, through a great financial cycle, the financial stability that is necessary to maintain a population.

Therefore, it is necessary to know the importance of business development, since it can directly affect the country’s economy.

Business development is a very broad concept made up of other definitions and concepts, but basically it is the growth, progress and expansion of a company, taking care of a series of elements with the purpose of obtaining all the objectives that are presented with the passing of time.

Importance of business development
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Table of Contents

Why is it important for companies to grow?

Normally the growth of a company is directly based on the possibility of productivity, that is, if it has better or higher productivity, which in turn includes the ability to continue providing the product or service in a stable manner.

A good business development includes having higher productivity over time, where other factors grow correlatively, such as customer portfolio, physical space, employees, profits and the chances of success within the sector or niche.

So why is it important for companies to grow?

The advantage of business development or growth of a company can be seen from two perspectives, how it influences the company and how it influences the sector (country, state, locality) in which the company is developing.

Advantages of business development.

Business development can be a complicated thing to obtain, but at the moment of achieving it, the following advantages can be visualized in the company:

  • Increase in opportunities in the specialty sector or in the niche to which the company belongs.
  • Business development allows for product expansion and productivity growth.
  • To be able to respond adequately and with more tools to the demands of the market where your company develops.
  • Increased participation, awareness and capitalization of your company's brand.
  • Reasons for innovation, change and standing out from the competition.

Advantages of business development within a region

The importance of the companies in their region of development lies in what the community, state or country obtains thanks to the growth of the company.

  • The development of a company automatically boosts the economy, first of the locality and due to its growth, it can influence the economy of the country.
  • Growth in the labor field, the larger the company, the more personnel it needs and this stimulates the creation of jobs.
  • Increased productivity and investment, the greater the business development, the greater the amount of productivity and investment by the sectors of interest.
  • Increases the regions's income to the economy of the locality where the developing enterprise is located.

The importance and analysis of business development lies in what can be obtained in a micro and macro way with the growth of a certain company.

You can get PDF documentation on the importance of business development, to go deeper into the subject.

What is the development cycle of a company?

Like any process, the growth of a company has stages that must be fulfilled in order to be able to say that it is going through the stages of growth. The stages of business development can be located from the birth of the company to its decline, closure or bankruptcy.

Let’s look at the stages that make up the development cycle of a company.

Depending on the business development stages PDF document you find, you may come across 4 or 5 stages of growth, we will try to cover 5 stages to have a more complete information.

Initial or startup phase

It covers the creation of the company and its first months or years (whatever it takes to grow) of life, where the importance lies in obtaining clients, positioning the company’s brand and organizing in an administrative manner everything necessary to obtain success in the future and initiate growth.

Growth or survival phase

Market demand is growing and the company has achieved a good positioning, having a larger number of clients, more physical space and personnel in charge.

The product or service offered has the characteristics to satisfy the potential client portfolio that has been created over time. It is important to plan and project new objectives at this stage in order to continue growing.

Success or take-off phase

At this stage of the business development cycle, you can see the company stable, with profits and great recognition within the niche to which it belongs.

But there is also a small decline in demand, because the company enters the major leagues and there is a lot of competition. This is the stage in which it is decided to remain stable or seek the take-off of the company.

Maturity phase

It is time for a change. At this stage of business development, it is very important to innovate and get out of the comfort zone, since stability, further growth or total decline of the company may depend on it.

Decline phase

The last phase of the business development cycle, where the company’s productivity drops and the statistical results are negative, normally leads to the closure of the company.

It is important to understand that this stage is always present, it depends on a good management that occurs after a few months or years.

Business development examples

Truly any large company could be used today as an example of business development, since they all started as something small to which they put motivation and drive to be large companies today. But specifically we can use the following as examples of business development:

  • Starbucks: Started in 1971 as a small coffee bean store.
  • Amazon: Started in 1995 as a family-owned book trading business.
  • Facebook: Started in 2004 as a school project of a group of young people.

And so we could continue with all the companies that are recognized today. Therefore, it is essential to analyze the importance of business development and carry out the necessary strategies to pass and overcome all the stages of business development.
References

Economipedia

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