For example, let us consider Netflix’s journey, which transitioned from a DVD rental service to a global streaming giant. By carefully planning and executing a strategic roadmap, Netflix not only expanded its market reach but also revolutionized the entertainment industry. Their success story underscores the importance of a well-thought-out business development strategy.
What is business development?
Now, when we talk about business development, what comes to mind? Yes. Business development refers to the plans and activities your business uses to expand. It encompasses a range of strategies and initiatives aimed at growing a business, expanding its reach and identifying new markets. It is the what, the how, and the when of what you will commit to, to ensure you achieve your business development goals.
Why it is important?
So, what does this plan do?
- This plan gives you a vision of where you are headed and gain clarity on your goals.
- It enables you to manage your resources easily and effectively.
- The plan creates the time and space to check market risk, update and change whenever necessary to limit threats and expand on opportunities.
How to create a good business development plan?
Build Your Team
Now, this is important, to start you have to get the right people on board to ensure you have a successful business development strategic plan. Although normally your team will depend on the size of your organization and the departments you have available, you can still start with this list.
- The leader: The first member of the team is the most important stakeholder. They are the leader, the ones responsible for recruiting the team, keeping the team focused, and ensuring the plan is both developed and implemented. This person should be passionate about business development, should have experience in this area, and should be able to engage and influence others.
- Sales professional: You need a member of the team who is responsible for sales, one whose role is engaging with customers, selling products, and delivering on goals.
- Marketing representative: It is important to have a member on the team who can speak from the perspective of branding, market reputation, competitive analysis, and overall lead generation.
- Product development: This is the expert team member who focuses on product design and development. You need this member to ensure you have perspective on what your plan will need to cover to update current products, develop needed new products, and help with market research and new market development.
- Finance: You need someone on the team who understands the budget and has key insights into how the goals are determined for each division of business development.
- Human resources: You need a member on the team who has an understanding of the current talent on the team, the skill sets team members have, and where the gaps are. As well, they can help support any training or recruiting needs.
If you bring the right team together, clearly define their roles, and have a strong and inclusive leader in place to help guide and focus the team, then you have more than you need to design the right business development strategic plan for your organization.
Define Your Goals
When we started this website, we just plunged into it without having any preconceived idea or knowledge about it. We knew we wanted it to be a valuable website for insights and information. However, we didn’t know who we wanted to make content for, when we wanted the website to be finally live or any important plan for it. And, because of that, it took longer than we would have hoped to finally set it up and get some traffic. So what’s my point?
When it comes to business development of any form, whether you want to enter a new market, boost sales, or launch new products or services, start by identifying clear, specific, and measurable goals which although may be short-term, they are based on helping you move closer to achieving your long-term goal.
Let me give you an example. If your long-term goal is to expand into five new markets globally in the next five years, your short-term goal might be something like expanding into the Chinese market by the end of this year. That way, your short-term goal helps you move closer to your long-term goal.
Netflix’s journey from a DVD rental service to a global streaming giant is a prime example of how clearly defined goals can drive business success. When it was founded in 1997, the company initially operated as a mail-order DVD rental service. At that time, their primary goal was to disrupt the traditional video rental industry dominated by Blockbuster by offering a more convenient and user-friendly service. But, as technology advanced, Netflix recognized the potential of online streaming and redefined its goals to align with this emerging opportunity. It set an ambitious goal to expand its streaming service to a global audience, increase its content library with exclusive and original content and enhance user experience to boost customer retention. By 2016, Netflix was available in over 190 countries, significantly increasing its subscriber base and revenue potential. Some examples of goals are;
- Revenue Targets: Increase revenue by a certain percentage.
- Market Penetration: Enter new geographic markets or demographics.
- Product Expansion: Launch new products or services.
- Partnerships: Establish strategic partnerships to enhance offerings.
Conduct Market Research
Now after defining your goals, understanding your market is crucial in any successful business. Every business needs to differentiate itself from its competitors. This means you need to know who your potential customers are and understand their needs, preferences, and pain points. You need to know the value you are bringing to the market, who your main competitors are, and analyze their strengths, weaknesses, and strategies. You also need to stay updated on the latest trends and changes in your industry. This knowledge Will help you anticipate market shifts and adapt your plan accordingly.
Before going into any new market Netflix conducted extensive research to understand the viewing preferences of various demographics and regions. They analyzed the strategies of key competitors like Hulu, Amazon Prime Video, and other traditional cable networks, which enabled it to identify opportunities to differentiate itself and offer unique value to its subscribers. Kept a close eye on trends in digital content consumption, technological advancements, and regulatory changes across different markets. This allowed the company to anticipate shifts in consumer behaviour, adopt new technologies like streaming, and navigate regulatory challenges effectively.
Identify Opportunities for Potential Partners and Customers
Now that you have researched your target market and know your competitor’s strengths, weaknesses, and gaps in the market, you can look for opportunities where your business can fill a gap or meet an unmet need. You can explore either new markets where there is demand for your product or service form strategic partnerships or collaborations that can enhance your offerings and reach or develop new products or services that address emerging customer needs and industry trends.
We can see this when Netflix identified the opportunity to expand its services globally, it entered new international markets with tailored content, and different pricing strategies and invested heavily in producing original shows and movies. Where it had hits like “Stranger Things”, “The Crown” and “Squid Game”, did not only attract new subscribers but also helped retain existing ones. They also developed sophisticated algorithms for personalized content recommendations, which increased viewer engagement and satisfaction.
Network and Build Relationships
You and your team can leverage Attending industry events and conferences which will serve as opportunities to meet, connect and form partnerships with others in your industry. You will also gain the opportunity to stay up to date with industry trends and related technology
Develop Your Value Proposition
Your value proposition should clearly articulate what sets your business apart from the competition. It should answer the question, “Why should customers choose us?” Focus on the unique benefits and value your product or service provides. For Netflix, their value proposition was a convenience for the customer where they could order DVDs online and have them delivered to their homes, eliminating the need to visit a physical rental store. But since technology evolved and the needs and preferences of its audience also changed Netflix updated its value proposition to invest in original content and give an ad-free experience which served as its unique selling point.
Create your Action Plan
You would need to develop a detailed action plan that outlines how you will achieve your goals. This could include your marketing strategies, sales strategies, customer retention strategies, existing customers, resource allocation strategies, your team members and the tools and technologies you will use.
In the early 2000s, Netflix faced a rapidly changing market landscape with the advent of digital streaming technology. Recognizing the need to adapt, they devised an action plan to transition from physical DVDs to digital streaming. They knew that to make a significant impact, they needed to harness both digital and traditional marketing channels. Initially, Netflix leveraged email marketing and social media platforms to engage potential customers directly. They ran targeted campaigns on Facebook, Twitter, and YouTube, highlighting their vast library of films and TV shows available for instant streaming. They also partnered with influencers and content creators to reach a broader audience. For traditional advertising, Netflix used billboards and TV commercials, especially during high-viewership events like the Super Bowl, to create a massive buzz. Their ads often focused on exclusive content and new releases, enticing viewers to subscribe to the service. For example, the campaign for their original series “House of Cards” was widely advertised, building anticipation and drawing in a substantial subscriber base. To attract new users, Netflix also offered a variety of flexible subscription plans.
This means they understood that giving potential customers a risk-free way to try their service would lower entry barriers significantly. So, Netflix introduced a free trial period, allowing users to explore the platform’s offerings without any financial commitment. This strategy proved immensely successful, converting many trial users into paying subscribers.
Implement and Monitor
Now you need to put your plan into action and monitor its progress regularly. Use key performance indicators (KPIs) to measure success and make adjustments as needed. Some of the performance you can monitor are,
- Sales Revenue – Measure the total sales generated.
- Customer Acquisition Cost (CAC)- Calculate the cost to acquire a new customer.
- Customer Lifetime Value (CLV) – Estimate the total value a customer brings over their lifetime.
- Market Share – Track changes in your market share over time.
This stage will prepare you to stay agile, be prepared to pivot your strategy based on performance data and market feedback and help you make a decision on the last stage.
keep your plan adaptable
Check your business development strategy to assess what’s working and what isn’t. You would need to gather feedback from your team, customers, and stakeholders in the form of surveys, polls, social media interactions, and direct feedback mechanisms to collect opinions and suggestions then use this information to refine and improve your strategy over time. For example, after the release of a new feature, service or product you could send out surveys to gauge user satisfaction and gather suggestions for improvement.
Conclusion
Although crafting a winning business development plan takes time however with the right team, tools and strategies in place you will already have one leg on the road to success with your business.
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