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Business development plan: A step-by-step approach

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A good business development plan can set you up for success. Learn how to create your own from scratch with zero experience!

If you’re just starting with business development , chances are that you’re a little confused about how you should do it. I got lost many times during my entrepreneurial journey. One of those moments was when I had to write a business development plan for the first time.

Now, the main problem was that I didn’t have a clue about what a business development plan was to start with. And of course, when I started digging, I got even more confused. I found a lot of information online, but nothing that would tell me how to do it step-by-step.

So after some years of trying and failing, I finally found my way to deal with it and build my own business development plan.

Below I’ll explain how to write a business development plan and what information you should include in practical terms. But first, let’s define what a business development plan is.

What is a business development plan?

A business development plan is a document that helps you implement your business development strategy in a step-by-step method. It involves a lot of research on the market and customers. But also, other aspects such as your competitors and buyer persona.

So, a business development plan is a detailed summary of important steps you’re going to take to grow your business. One key aspect to remember is that a business development plan is a LIVING document. This means that you have to update your plan continuously based on new information about your ecosystem.

This helps you strategize better but also ensures that it’s a document of quality insights.

A business development plan is divided into two main parts:

• Research: in the research phase, you learn more about your market, customers, and competitors.
• Action: you use your research and put it into action. Specifically, this translates into creating a value proposition, and content, and experimenting with ideas.

You can download our template for free at this link .

Step 1: Organize your business development plan

I’m a fan of organizing information in a structured, intuitive, and efficient way. Although it may sound basic, the first thing you should think about is to have a proper file you can consult on a daily basis.

It doesn’t have to contain every piece of information. Keep it simple by including only essential and key facts that will help you build an effective business development machine. Your business development plan needs to be easily accessible and quick to consult.

In this sense, you don’t need to get fancy and start looking for the latest software that promises you great time savings. Stick to something basic yet powerful. Google Sheets is your best ally when it comes to your business development plan.

So, the main goal of a business development plan is to keep information structured so that you can spot growth opportunities easier.

You can download our template for free at this link and start your business development plan.

Step 2: Market research

Market research is a stepping stone in a business development plan. It’s an activity to gather more information about customers’ preferences and needs. Many companies overlook this step thinking that their intuition will guide them through their challenges. Intuition can be helpful, but it’s still essential to know your customers better using research and data.

After all, most ideas start off from intuition. However, basing an entire plan on assumptions is never a smart strategy to use in business development. So, do your homework and make sure you always take educated guesses before starting to work on your business development plan.

Market research takes into account 3 variables . These will tell you the realistic size of the market you’re trying to target.

1 – Total Addressable Market or Total Available Market (TAM)

The TAM takes into account the entire market you’re operating in and basically tells you how much annual revenue there is available for your product or service.

Now, finding this information can be the first bummer. To me at least, it sounded quite impossible to find out. Later, I figured that there are many people out there that dedicate their life only to market research.

You can use Google to find out this information. But of course, you first need to know what you’re looking for. The information you need, in this case, is basically knowing how many companies or people would benefit from your product or service.

You also want to know how many companies operate in your exact space both in terms of services and geography. To get relevant market news, try Googling “your industry market trends”, “your market report”, or “your industry report”.

Many big consultancy groups and governmental institutions dedicate a lot of time to this type of research. It’s a good and reliable starting point.

PRO TIP: Choose your sources very carefully. You’ll find a lot of random information, learn to filter out what you’re reading.

2 – Total Served Market (TSM)

Once you know how big your market is, you need to check how much of it is already served by your competitors.

In this case, the information you’re looking for is all about your competition. You should ask yourself first how many of them you have.

Then you need to find out how well they’re doing and start hunting for as much intelligence as possible.

The info you need to look for is how many clients your competitors claim to have, what revenue they generate, and where they are present.

First, Google keywords to identify your competitors. Right after that, you can start digging deeper into their websites and find detailed info.

Bigger competitors will most likely have good press coverage. Read these articles to gather more insight.

Last, don’t overlook the importance of customer review websites. Customers can uncover many relevant details that your competitors don’t want to reveal. And of course, make use of technology to make the most out of your research.

3 – Serviceable Obtainable Market (SOM)

The last step in your market research is to quantify how much you can realistically obtain with your business development effort.

Your SOM is your share in the market. So, to put it simply, it’s not possible to have an entire market buy only your products and services. There is a specific customer base that will buy from your company . So, your SOM refers to your market share and the people that can become your customers if they see a benefit from your products or services.

SOM takes into account your brand awareness, market insights, but also competition. It helps you forecast potential earnings and also gain customers. Based on the research, you become aware of what your competitors are offering to the market. Moreover, you will be able to tailor your products and services to meet the needs and preferences of your customers.

Step 3: Competitor analysis

The third step to do when creating your business development plan is to do a competitor analysis . So far, I discussed market research and how it helps you get to know the preferences of your target audience better. But, to grow your business sustainably and profitably, it’s vital that you analyze your competitors as well.

First, figure out who your direct and indirect competitors are. So, in a Google search, we try to identify or find the ID of each company that competes in your market. This can be found in the website’s ‘About us’ section. Then, the aim is to find key personalities such as managers and executives, and so on.

Once you have this information, you can move on to products and services. You can find this on your competitor’s website as well. This specific section defines what the company specializes in. You can use this information to compare your products to those of your competitors and try to find ways to improve them.

Continue by checking their clients, and the pricing they offer for their products and services.

PRO TIP: Read the customer reviews of your competitors to spot their strengths and weaknesses. Use the insights to improve your offer.

Step 4: Customer research

After identifying your market share, you can start thinking of what kind of customers within this segment, you are trying to sell your products and services to.

The best way to tackle this is by running proper customer research that will provide you with your Ideal Customer Profile and Buyer Persona.

This is the part I like the most because it really helps you understand who you’re talking to. But how do you do it? First, if you already have some customers, start analyzing them. You want to gather more information on who they are, what they do, and their habitual traits.

For example:

• What job titles do these people have?
• How old are they?
• What communication tools do they use?
• Where do they hang out?
• What are their personalities like?
• What are their challenges?
• What do they do in their daily lives?

You can find all this info by simply checking social media profiles. Really, just by observing their social media platforms, you can get to know them in-depth! Take some time to check a few ones (at least 10) and you’re going to start seeing patterns.

Then, check some job descriptions about the people you’re targeting. This will highlight what are their professional responsibilities and how your product or service can help them. Last, it’s always advisable to run a survey.

Step 5: Build your Buyer Persona

Right after having run your customer research, you can now create your buyer persona.

The buyer persona is a semi-fictional representation of your ideal customers based on data and research,

In your buyer persona, you need to include all the relevant information you found through your customer research. It should look like something below:

Step 6: Value Propositions

The customer research concludes the research part of your business development plan. Now it’s time to put your insights into action and start building your business development strategy .

The first valuable asset you need to build is a value proposition.

A value proposition is the value your customers get should they choose to buy your products and services

The value proposition helps you communicate your value as a company and you can use it on your website, sales calls, social media posts, etc. Having a clear value proposition will help you attract the right audience and persuade potential customers to work with you.

Of course, a good value proposition is based on that, and if you followed all the steps, you should have all the insights you need.

To build a value proposition we will use the Job-To-Be-Done framework. This helps you identify what are the responsibilities of your buyer persona when they’re doing their job.

For example, a typical responsibility for a recruiter is to find the right talent .

Second, consider the pains and gains of your customers. Customers’ emotions are usually the reason behind their buying decisions. They influence their preferences, frequency of buying, and also which companies they buy from.

Especially the challenges are a crucial element in your value proposition because you can immediately link your solution to a concrete pain that your customers are facing.

For example, let’s go back to the example of the recruiter. We know that one main responsibility of a recruiter is to find talent. One major challenge for recruiters is to have enough time to process all the CVs they receive daily.

Now, let’s assume you work for a company that provides recruitment software that can automate CV screening.

A good value proposition, in this case, would sound like this:

Save 70% of your CV screening time using our recruitment software

Step 7: Content plan

Once you have your value proposition, the next step is to share it with your target audience. That’s when having a content plan becomes a must.

A content plan helps you strategize the type of information you want to feed your audience. It also helps you select the channels on which you should build your presence.

For content to be effective, you need to have a clear idea of your target audience when you write posts/emails, or articles. So, always consult your buyer persona before creating content.

Just like the value propositions, effective content revolves around the pain point you identified earlier. Use them to get the attention of your audience and provide valuable information that helps them alleviate these pains.

This will help you establish yourself as a valuable resource and when they will want to solve their issues, you’ll be the first to pop into their minds.

Step 8: Experiments

The last step in your business development plan is all about creativity and finding opportunities. This is the moment in which we create experiments to validate some of our business assumptions. Your experiment should be ideas that you think will bring sustainable growth to your company.

Once you identify some ideas, define some goals and set up the methodology you will follow to run this experiment. For example, if you heard of a new social media and you think your audience might be on it, build an experiment to validate if this is true and if it can bring you results.

Attach a goal to this idea, for example, generating 10 qualified leads on this new channel.

Then decide for how long you will run the experiment – ideally a couple of weeks. Once the experiment is over analyze what happened. If the experiment was successful, you need to scale this activity. If not, take the learnings for further improvements.

Read this article with 10 business development examples to have some ideas on how to implement your strategy.

The business development plan is a key document that helps you map your ecosystem and strategize your business development efforts .

It consists of a research part and an action part. In the first part, you analyze your market, competitors, and customers. In the second, you use your insights to build value propositions, content plans, and experiments.

The business development plan is a live document, so you have to update it every time you have new insights. Of course, you have to use it in your daily operations to make sure you’re on the right track.

The business development plan is one of the assets you will build during our training. Would you like to shake up your business development career and work in a more structured way? Then join our next cohort .

Last, if you are a company wanting to train your business development team, our custom training solutions are the best way to take your team to the next level.

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From Idea to Maturity, the Five Stages of Business Growth

Whether attempting to increase market share, improve profitability or add staff, every company is trying to grow. Doing so means navigating complex challenges and finding inventive routes forward during that business growth process.

Following are the five stages of the business lifecycle and the steps you can take to increase your chance of success along the way.

Development Stage

Whether you’re pursuing a lifelong dream, or you’ve identified an unmet need in a specific market, taking the initial steps to start your own business can be an exciting time. But with so many factors to consider, the process can also be confusing and challenging. If you’ve made the decision to take the entrepreneurial leap, doing so with a clear plan in place—a roadmap of sorts—will help guide you along the way and prepare you for the inevitable twists and turns that come with starting, and growing, a new business.

So, where do you start? Your best bet is to develop a detailed business plan. Whether you’re in need of funding, a set of goals (and timelines to meet them), a detailed customer profile, or all the above, statistics show that new business owners who start off with a plan are twice as likely to succeed as those that don’t.

With countless resources online to choose from, settling on a specific business plan template can feel a bit overwhelming. But remember, there are no right or wrong answers. The best first step is simply to take one. To help you get started, take a look at this comprehensive, step-by-step business plan resource from Inc. Magazine .

Remember, every business is unique, and your business plan will be as well. One thing that every plan should include, however, is a realistic reflection of your company’s aspirations. It’s also important to understand that most successful business plans regularly evolve over time as reviews are performed, milestones are reached, marketing plans are modified, and new targets and objectives are identified.

While business plans can go a long way in helping you build a business that’s more attractive to outside investors, during these early stages of a business, it’s important to continue creating a foundation that sets you up for success, regardless of outside interests.

That foundation will look different depending on your business’ focus and your ultimate goals, but here are a few items to consider when setting yourself up to take your first big steps into the market:

• Identify how your concept/product/idea fills a need in the market
• Gauge how well accepted it will be in the market
• Determine your ideal outcome – from profits to adoption-rate to overall effectiveness

Start-up Stage

Once you have a plan in place, it’s time to put it into action—kicking off the next stage of business growth: the start-up stage. During this time, you will test the viability of your big ideas—as well as the effectiveness of your capabilities—and this stage can represent a series of make-or-break moments for many small business owners.

But we’re not talking pass/fail tests here. If things aren’t progressing the way you want or need them to be, it’s okay to reassess and pivot as you go. This flexibility will allow you to figure out what changes need to be made to build a healthier, more resilient business. And a large part of building a stronger business comes with attracting (and holding on to) a team that shares your vision and mission—one that can help you do the work necessary to carry out your collective plan.

At this important stage of development, the people you hire can have a lasting, positive impact on the culture, values, and performance that defines your business. That’s why it’s important to build a team that doesn’t just share your goals, but also has the skillset and diversity of ideas necessary to help you achieve them. It’s a tall task, to be sure, but it is possible. And if you’re struggling to find (or attract) the employees you need to make it all happen, there are experienced, outside resources, like G&A, who can help you navigate the recruiting process and build a pipeline of experienced talent.

Another key to creating and maintaining positive momentum, is having the necessary capital on hand to make it all happen. Whether raising money, finding investors, or managing cash flow, knowing your options, and maximizing their potential, can go a long way toward giving you the stability you need to help get your business off the ground.

Read about five different funding options to consider from Forbes .

Ultimately, the start-up stage is when you start to put all the pieces together. As you continue to establish the core elements of your business, a few key areas to focus on include:

• Establishing a customer base and market presence
• Managing accounts in a way that best suits your operation
• Navigating the way your funds are sourced and allocated

Growth Stage

Once you’ve hit a comfortable groove, you’ll be ready to look ahead to the next phase—growing your small business.

The potential for growth is an exciting prospect but knowing how (and when) to make it happen can be a bit of a strategic balancing act. Matching the pace of your increased cash flow and client base without losing sight of the core tenets of your business, for instance, is a struggle that many successful companies have had to navigate.

So, before you fully lean into a growth spurt, take time to review and recalibrate your existing business plan to match your new reality. Doing so can help you more easily determine what is necessary from both a financial and interpersonal perspective. This practice can also provide you with a better understanding of what you’ve achieved, while helping you identify unforeseen opportunities or specific areas for improvement in your business model before plotting your growth strategy.

These strategies from Small Business Development Center experts across the country can help get the ball rolling.

There is no one-size-fits-all solution when planning your next steps, but here are a few simple questions that can help guide your way:

• What’s your small business best at right now?
• What’s driving profits?
• What does the current competitive landscape look like?
• What are current market conditions?

As a growing business, your goal is to identify your market differentiators and what’s driving your profits, then come up with strategies to efficiently expand both.

Expansion Stage

Characterized by a new season of rapid growth and increasing distribution channels, your expansion stage is when you test the boundaries of what is possible for your small business.

At this point in the life of your business, finding ways to increase your market share or revenue streams requires a very detailed understanding of your company’s strengths and what they’re worth on the open market. With that understanding in place, you can begin your evaluation of potential expansion routes and chart a course into new markets to reach new customers. To see how that expansion might look for your business, check out these recommendations from the U.S. Small Business Administration (SBA) .

Regardless of the shape your expansion takes, the key to doing so successfully is to understand the limits of your business while aiming to maximize its potential. One expansion solution, for example, might involve merging with or acquiring another business. Here, the SBA explains the difference between the two and their functions; but these are just two of the many options at your disposal. Expanding with success means finding the solution that best fits your unique business.

Maturity Stage

When your company reaches the maturity stage, it’s the result of a lot of hard work and perseverance, along with a business idea that has proven its worth. Through strategic planning and maneuvering, you and your team created the perfect climate for success—helping you to evolve from start-up to industry standard bearer. It’s now, for mature businesses, that the importance of growth merges with the need for retention and other business interests.

Although maturity is considered a final stage for business growth, it is not a finish line, or a time to sit back, put the evolving strategies and planning aside and coast along for years to come. Businesses are living, breathing entities. Long-term success requires inspiration, continued commitment, and an ability to meet the needs of an ever-changing world and customer base with new products and ideas. Stagnation, at this point, invites greater competition and makes reacting to market trends more cumbersome.

There are any number of ways to keep your offerings fresh and navigate a potential decline stage. Here are a few creative suggestions from the small business section of the Houston Chronicle .

Another way to help ensure continued momentum, is to revisit your business plan once again, and determine whether pivoting to a new expansion stage or considering an exit strategy is the way forward. Evolution, expansion, and reinvention are the hallmarks of any business with a long history of success. If you take into consideration what’s right for you, your team, and your business, the sky's the limit.

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As your company grows, so do your responsibilities. For administrative support, access to better, more affordable benefits, comprehensive HR expertise, and more time to focus on the strategic direction of your business, HR outsourcing could be a great option for you and your team. For more information on what a PEO can offer your business, contact one of our experienced business advisors

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What Is the Development Stage in the Life Cycle of a Business?

What Is the Development Stage?

Development stage refers to the first phase in the life cycle of a new business. During the development stage, companies focus on establishing themselves through activities such as market research , product development, and the construction of new manufacturing facilities.

The different phases in a business’s life have been characterized by economists as the business’s “life cycle”. While the development stage is the first in this cycle, it is followed by periods of market introduction, growth, maturity, and decline.

Key Takeaways

• The development stage is one of the stages in the life cycle of a new company.
• The development stage is considered a very difficult stage and is characterized by a high probability of failure.
• For investors with a high capacity and willingness to bear risk, development-stage companies can occasionally offer spectacular returns.

How the Development Stage Works

Development-stage companies have often not generated any revenues. At the same time, they may be incurring mounting expenses as they seek to ramp up operations. Development-stage companies are prone to chronic cashflow shortages and have a high rate of failure. Investors in development-stage companies must therefore have a high risk tolerance , and often seek to reduce their risk through diversification.

For investors who have the financial resources and temperament necessary to bear the associated risks, investing in development-stage companies can occasionally produce fantastic returns. Whereas most development-stage companies are unlikely to reach success, the few that do become successful can attain valuations that are tens or even hundreds of times that paid by their earliest investors. For this reason, venture capitalists (VCs) and other early-stage investors often find that a very small percentage of their portfolios are responsible for a large percentage of their overall return on investment (ROI) .

The development stage is a famously difficult period in the life of any business, as the company’s founders must attempt to develop their business model despite while also relying on relatively meager and uncertain financial resources. Oftentimes, early-stage investors will only provide funds in stages; the next installment of their funding is conditional on the achievement of specific performance objectives.

For developing companies, this uncertain funding outlook can make it challenging to attract and retain new customers and employees who may be reluctant to sign contracts with a company that might prove unable to deliver on its promises. Similarly, investors face a very high risk of failure when backing development-stage companies because these companies’ business models are still relatively untested. When these investments fail, moreover, investors often lose all of their invested capital.

Example of Development Stage

An example of a development-stage company was Pebble Technology, an early product innovator in the market for wearable devices . Pebble Technology created one of the first commercially viable smartwatches, attracting widespread attention through its successful crowdfunding campaigns.

Through its flagship product, the Pebble Watch, the company attracted growing demand from consumers before encountering cashflow difficulties in its attempts to scale up production. Eventually, Pebble Technology became insolvent and sold off its assets to its competitor, Fitbit ( FIT ).

MIT Technology Review. " How Pebble Is Killing It on Kickstarter ." Accessed Nov. 14, 2021.

fitbit. " Fitbit, Inc. Acquires Assets From Pebble ." Accessed Nov. 14, 2021.

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Stages of business growth

Before you leap into growth, reflect on where you’ve come from. Find out the stage of business growth you’re at.

Launch and learn: the startup stage

This is a tricky stage even when things start slow. But some businesses need to grow straight away.

Challenges you faced

Most startups are trying to get established in the market, work out supply chain wrinkles, and stay within their budget.

Strategies that helped

• Keeping a close eye on your cash flow
• Focusing on your immediate goals
• Adapting to feedback from your customers

Check out our guide on how to start a business to learn more about the startup stage.

Sure and steady: the early growth stage

Established businesses ideally start to see consistent customer and revenue growth.

Challenges you’ll face

Now is when you need to meet the demands of increasing sales and customer numbers. Dividing your time between day-to-day jobs and big-picture growth can be a tough challenge.

Strategies to help

• Formulate a business growth plan
• Nail down your processes and make them more efficient
• Set up effective management and reporting systems
• Hire people who can free you up to lead the business strategy

Bigger and better: the expansion stage

Once your business is humming along – with solid cash flow and good processes – you can pursue more opportunities. The trick is in choosing the right ones.

Getting more customers, expanding into new markets, and developing new revenue streams will be the main challenges at this stage of business growth. Plus you’ll probably have people to manage.

• Plan carefully so you identify a strategy that gives good return on investment
• Be realistic about what you can achieve with the resources you have
• Focus on areas that complement your existing strengths rather than areas with increased risk

Navigating the stages of business growth

Every business is different. You may be content with the stability of steady growth and choose not to expand in a big way, or you may skip the gradual growth stage altogether and go straight to more rapid expansion. Whatever stage your business is currently in or whichever you choose next, understanding each stage can help you anticipate the challenges and increase your chances of success.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Growing your business

Are you ready to drop the hammer and take your business to the next level? Let’s look at how to grow.

Now that you’re in the growth stage of your business, set things in motion with a business development plan.

Understanding your business performance will help you grow. Check out common examples of small business KPIs.

Increasing sales revenue is one obvious way to help grow your business. But how do you sell more?

You can grow your business by selling more things to more people, or fewer things to fewer people. Let’s look at how.

You’re all set to grow your business. But there’s so much to keep track of. Xero’s got resources and solutions to help.

Download the guide to growing your business

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From Startup to Success: Business Growth Stages

Updated: March 11, 2024

Published: September 14, 2023

What do businesses and butterflies have in common? Both have distinct stages of transformation they must undergo in order to achieve their full potential. 

Before emerging as the beautiful creatures they are, butterflies must progress from egg to caterpillar to chrysalis; businesses must also push through growth stages to reach true and lasting success. 

Each stage serves a purpose, allowing businesses to adapt, learn, and evolve. 

Understanding the importance of these stages and embracing the challenges and opportunities they bring allows businesses to grow their wings and soar to new heights.

What are business stages? 

Business stages are the different phases of a company’s life cycle, which include:

• Seed stage/startup stage: The initial phase where the business is launched and establishes its presence.
• Growth stage: A period of increasing customers and market share.
• Expansion stage: The stage where the business scales its operations, enters new markets, and expands significantly.
• Maturity stage: The stage where the business reaches stability and focuses on maintaining its position.
• Decline/renewal stage: A phase marked by decreased performance, requiring strategic efforts to revitalize the business.

Strategies for business life cycle stages

Every business starts somewhere. But it’s not where you begin that matters — it’s how you progress through the stages of development to become a success in your industry.

Here’s an overview of the five business life cycle stages, their challenges, and strategies to overcome them.

1. Seed stage/startup stage

At the seed stage , businesses embark on the exciting journey of turning an idea into reality. This initial phase of business development is all about validating the concept, gathering resources, and securing early funding. This stage is also called the startup stage .

To obtain funding, entrepreneurs approach investors or leverage crowdfunding platforms to raise the necessary capital to fuel the business’s growth.

Goals at the seed stage:

• Developing a clear value proposition and defining the target market
• Securing early customers and generating revenue
• Refining the product or service offering based on customer feedback
• Conducting market validation and pilot testing
• Implementing effective marketing and sales strategies

Challenges at the seed stage include:

• Managing limited resources and funding constraints
• Building brand awareness and customer trust
• Navigating regulatory and legal requirements
• Dealing with rapid growth, which can hurt quality without the right team in place

Strategies at the seed stage:

• Build a strong founding team: Assemble a team with complementary skills and expertise to enhance the business’s chances of success (e.g., partnering with a technical co-founder to develop the product while focusing on marketing and sales).
• Establish a network of mentors and advisers: Seek guidance and support from experienced mentors and advisers who can provide valuable insights and help to navigate challenges (e.g., joining an incubator program that offers mentorship and networking opportunities).
• Develop a clear value proposition and define the target market: Clearly articulate the unique value the product or service offers and identify the specific target market it aims to serve (e.g., conducting market research to understand customer needs and preferences and refining the value proposition accordingly).

In this pivotal stage, businesses lay the foundation for future growth and pave the way for the exciting stages that lie ahead.

2. Growth stage

After successfully navigating the seed stage, businesses enter the growth stage — the transition from startup to rapid expansion and development. This stage is about achieving consistent revenue growth, scaling operations, and expanding the customer base.

Goals at the growth stage:

• Invest in marketing and sales to drive customer acquisition
• Optimize operational efficiency and supply chain management
• Expand distribution channels and enter new markets

Challenges at the growth stage include:

• Maintaining quality as production increases
• Managing cash flow to accommodate expanding operations and increased costs
• Attracting and retaining top talent to manage growth
• Navigating increasing regulations and compliance requirements

Strategies at the growth stage:

• Build a strong management team and organizational structure
• Implement scalable systems and processes
• Continuously monitor and adjust growth strategies

Factors influencing growth and expansion include effective marketing and customer acquisition strategies, strong leadership and management capabilities, and access to capital and strategic partnerships.

To sustain growth, businesses focus on:

• Investing in infrastructure and technology
• Expanding distribution channels and entering new markets
• Building a high-performing team and fostering a culture of innovation

By embracing the opportunities and challenges of this stage, businesses set themselves up for continued success and market dominance.

3. Expansion stage

You planted the seed of a business idea and grew it into a fast-growing company. Now it’s time to expand into new markets and grasp opportunities you never could have before. 

During the expansion stage , businesses aim for market dominance and brand building. This may include venturing into other countries and regions to find new customers to sell to.

For example, an ecommerce business may expand its operations into the international market by opening an online store in a new language or country. Or partnering with a warehouse in that country to ship products directly to overseas customers. 

Goals at the expansion stage:

• Diversifying products or service offerings to increase sales
• Scaling production capacity and distribution channels
• Hiring additional talent and building a high-performing team
• Strengthening partnerships and alliances

Challenges at the expansion stage include:

• Increased financial risk: Expanding into new markets carries the risk of greater financial losses due to unanticipated costs and lack of customer demand.
• Loss of focus: With the need to focus on multiple regions, businesses can lose sight of their core mission and risk losing customers in existing markets.
• Growing pains: Companies transitioning from the startup stage to larger operations may experience growing pains, such as difficulty hiring top talent, increased operational complexity, and higher overhead costs.
• Increased complexity and management issues: Expansion requires complex management processes and structures that can be difficult to implement quickly. For example, a small retail business opening multiple new store locations may face challenges in managing inventory, staffing, and customer service across different locations.
• Market saturation and competition: As businesses venture into overseas markets, they may have to compete with established players or face market saturation.
• Regulatory and compliance complexities: Companies must contend with increased regulatory requirements for each new market they enter, as well as different compliance standards in each country.

Strategies at the expansion stage:

• Develop a clear expansion strategy: Create a well-defined strategy outlining specific goals, target markets, and the steps required to enter and establish a presence in new markets (e.g., setting a goal to enter three new international markets within the next two years and outlining the market entry process for each).
• Build strategic partnerships: Form alliances with local businesses or distributors in the target market to leverage their existing networks, local knowledge, and customer base (e.g., partnering with a local distributor in a foreign market to gain access to their established distribution channels and customer relationships).
• Adapt products or services: Customize offerings to meet the specific needs and preferences of the new market (e.g., modifying product packaging and labeling to comply with local regulations and cultural norms).
• Invest in talent acquisition and training: Hire and train talent with expertise in the target market (e.g., recruiting local sales representatives who have a deep understanding of the local market dynamics and customer preferences).

4. Maturity stage

The maturity stage signifies a company’s establishment in the market with a stable customer base. This stage is characterized by intense competition and price pressure, requiring businesses to optimize operations and maximize profitability.

Goals at the maturity stage:

• Profit maximization: Focus on optimizing operations and cost management to maximize profits (e.g., streamlining processes, negotiating favorable supplier contracts, and implementing efficiency measures).
• Market share retention: Maintain and defend the existing market share by continuously delivering value to customers and staying ahead of competitors (e.g., monitoring market trends, conducting competitive analysis, and adapting marketing strategies to meet changing customer preferences).
• Customer retention and loyalty: Build strong relationships with existing customers and enhance customer loyalty to ensure repeat business and positive word-of-mouth referrals (e.g., implementing customer loyalty programs, providing excellent customer service, and offering personalized experiences).
• Product and service innovation: Continuously innovate and improve products or services to meet evolving customer needs and stay relevant in the market (e.g., conducting market research, gathering customer feedback, and investing in research and development).

Challenges at the maturity stage include:

• Market share and differentiation: Companies must strive to retain their market share and differentiate themselves from competitors, especially in a crowded marketplace.
• Changing customer preferences and market trends: Adapting to evolving customer preferences and market trends is crucial to sustain growth and remain relevant.
• Cost-efficiency and innovation fatigue: Balancing cost-efficiency while continually innovating can be a delicate task as businesses attempt to optimize resources.
• Continuous product or service innovation: Constantly exploring new features, functionalities, or improvements to stay ahead of the competition.
• Enhancing customer experience and loyalty programs: Providing exceptional customer service and loyalty programs to cultivate customer loyalty and increase retention.
• Exploring new markets or diversifying offerings: Seeking opportunities in untapped markets or diversifying product/service offerings to expand the customer base.

Strike a balance between maintaining existing operations and exploring new avenues for growth to stay competitive and continue thriving in the marketplace.

5. Decline/renewal stage

Declines happen to even the best companies, but there’s a silver lining for those that remain resilient and make the right business decisions. Apple, Tesla, and Netflix are excellent examples of coming out on top after declining during recessions, demand changes, and major competition. 

Here’s a look at the goals, challenges, and strategies businesses can use at each stage.

Decline stage

This is when a company experiences a downturn in performance and requires strategic efforts to revive its operations and get back on track.

Goals at the decline stage:

• Recognize signs of decline in the business
• Understand the reasons for decline and the challenges faced
• Develop transition strategies or exit plans

Challenges at the decline stage include:

• Declining sales and market share
• Obsolete products or services
• Increasing competition or disruptive technologies

Strategies at the decline stage:

• Restructure operations and implement cost-cutting measures
• Seek strategic partnerships or acquisitions
• Consider business closure or divestment options

Renewal stage

This is when a company implements strategic efforts to bounce back from a decline, rejuvenate its operations, and regain momentum for future success.

Goals at the renewal stage:

• Identify opportunities for revitalization and reinvention
• Address challenges and reposition in the market
• Focus on growth and sustainability

Opportunities at the renewal stage include:

• Introduce new products or services
• Adopt emerging technologies or business models
• Enhance brand image and customer engagement

Strategies at the renewal stage:

• Conduct a comprehensive business review and analysis
• Develop a strategic plan for transformation
• Implement change management and innovation initiatives

Successfully navigating the growth stages of a business requires strategic thinking, agility, and resilience. By taking proactive steps to identify opportunities for growth, diversifying offerings, and innovating services or products, businesses can remain competitive in an ever-changing market, increasing their chances of success. 

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Resources for Your Growing Business

How to write a business development plan: a step by step guide.

So we’ve already tackled how to write the infamous business plan , but now that you’re in the growth stage of your business – what’s next?

Many business owners will look to write a business development plan with the aim to make their business better. Running a business is never a stationary job, you constantly have to be looking to grow and improve.

But what exactly is a business development plan and how do you write one? Let’s find out.

Here’s What We’ll Cover:

What Is a Business Development Plan?

How to write a business development plan, key takeaways.

A business development plan is a document put together by the business owner with the aim to grow and improve their business. The plan will set goals for growth and explain how you will achieve them.

A business development strategy can have a short-term or long-term focus, or both. They should also be constantly reviewed and revised as things shift and your goals may change.

A health plan is one that builds as your business evolves.

A standard business development strategy can be split up into 6 different sections, each one with a different aim and purpose. These sections are:

You should always be looking to grow your business. In this section, you will identify where growth will come from. For example, whether it’s new product development, adding different services or breaking into new markets. Your main business development goals should always point towards growth.

According to a U.S. Bank study, 82% of small businesses fail because of poor cash flow management and understanding. That’s why it’s vital that you have a constant eye on your funding and your bottom line.

You need to understand how you’ll fund your business development. So in this section, you should lay out your current capital, and how much more you will need to sustain growth.

3. Financial Goals

You should have a good idea of your current revenue, costs and profits. These numbers can then be used as a starting point for setting new, more ambitious revenue goals. This is for when you have expanded and developed your business.

4. Operational Needs

When growing a business, your operational needs will change. For example, what started out as a two-person job can develop into needing a whole team of people. So in this section, you will need to identify what things about your business will need to change to accommodate and promote growth.

5. Sales and Marketing

No business can succeed without a strong and stable sales team and marketing team. As your business grows, so will your sales and marketing needs. So you will need to take the time to figure out your target market and what sales and marketing efforts will promote growth. You should then put all of your focus on those efforts.

It’s vital that your sales process and marketing strategies are strong and sturdy enough to support a growing business.

6. Team Needs

Every strong business needs a strong team around it. When you started your business, it’s likely that you shouldered a lot of the jobs and responsibilities. As your business grows, you’ll soon come to realize that you can no longer do this alone.

So as a business developer, you need to think about what jobs and tasks you are best and most effective at. You should then correctly delegate the other responsibilities to the appropriate team members. This is often a good way to figure out if you have the right team around you. If you dread the thought of offloading tasks to your team, you may not have the trust in your team that you should.

Business development plans may seem like a relatively daunting task. But once you figure out the basics then they can almost write themselves.

You need to have an open mindset, a realistic approach and the ability to accept some potential failures.

Expanding and developing a business is hard work, but with the right plan in place, you are giving yourself the best chance possible.

Are you looking for more business advice on everything from starting a new business to new business practices?

Then check out the FreshBooks Resource Hub .

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The 4 Phases Needed to Develop a Successful Business Plan

David Gordon

• January 5, 2021
• Type Articles

As they say in the military, “The enemy has a say.” The key to winning is adjusting. In 2021, expect COVID-19 will continue to impact the first half of the year, while the second half could represent different opportunities. Further, a new presidential administration, with its new initiatives, could impact your market looking toward 2022 and 2023.

This is where business planning comes into play.

Planning is about understanding the landscape, knowing what you want to achieve and then determining how to achieve it. It requires gathering information to understand your environment; determining current deployment; resources; where you can solicit assistance and then determining what you need to do (or procure) to give your team the resources needed to achieve the goal. Then, it is all about execution – developing a plan to achieve your future goals.

The phases of developing a plan include:

1. Introspection, Research & Insights

2. idea generation, 3. aggregation & execution, 4. ongoing evaluation and refinement.

While it sounds comprehensive, and it can be, it can also be streamlined. It all depends upon your organization, style and, if you use an outside facilitator, their ability to ask the right questions, understand your business/industry and add ideas.

This first step is critical. It is about gathering information: quantitative information and qualitative insights.

This can comprise macroeconomic information, marketplace information, industry insights and data analysis. The goal is to have a sense of where the economy and market are going while understanding your strengths, weaknesses, opportunities, and threats (SWOT), which comes from information gathering.

Understand your relationship with your market, your company, your customers, and the potential of each. Data can deliver these insights. Internal business intelligence data, combined with external economic data, can be powerful tools.

Some additional areas to consider include:

• Do you “plan” expecting today’s COVID-19 environment or a different one? For how long?
• What is your expectation of the market? Future macro trends and the potential opportunities that they can create? For example, how will the new presidential administration’s likely focus on clean energy and the climate impact your markets?
• How have your processes been impacted?
• More importantly, how are customers and their customers being impacted? What are their new expectations? What is their outlook?
• What is your staff’s input?

As part of this process, “customer” insights can be beneficial. This should be 360-degree input. From end-customers/contractors, distributors (if you are a manufacturer), salespeople (and reps/RSMs), perhaps even employees or suppliers. Ask their opinion about the market, their opportunities, how “you” can improve and more. Those who contribute want you to succeed.

Next, ask departments how they can improve. How can “you/they” be easier to do business with? What additional value can each bring to their customers? What processes need to be improved? How can utilization, and productivity, increase? What is their value proposition, and the company’s, today and what could it be?

If you are in sales, the issues are the same, but focus on their goals and account package. Where are customer needs? Where are they going? What is your value proposition, according to your sales organization? How can you generate more? What do you need to be successful (or, more importantly, what does your company need to do to be more successful with your customers/in your territory?)

Ask what is important for account retention as well as for taking share. Then prioritize.

It is about asking for information, seeking opportunities, developing ideas, changing models and anticipating the future, becoming knowledgeable. Going into 2021, many companies will be more conservative with investments and will seek to reallocate funding. Focus and enhancing models will be critical. Opportunities abound.

Once you have gathered information and know the current and projected state, the next phase is identifying what strategies you want to continue. Conduct an idea generation exercise to determine what’s next.

This brainstorming exercise helps identify what new strategies will emerge. Consider what competitors are doing. Look at distributors/manufacturers in other industries or markets. Ask customers what would be of benefit to them.

Next it is about aggregating the ideas, developing a project plan and calendaring the activities to ensure time implementation.

For some initiatives, you may want advance time to present the strategy to your key suppliers or distributors to gather their input, or perhaps get their buy-in. For distributors, remember your 2021 earned co-op funds will probably decline, as they are based upon 2020 performance.

Gather the thoughts, determine the feasibility, gain budgetary insight and then prioritize. Inevitably, you cannot do everything. Every company is, at some point, resource-constrained.

An area that is challenging for most companies is ongoing evaluation of strategy with periodic reviews that allow the company to refine its strategy. It is like taking a road trip and finding out that there is construction on a segment of the highway. You can slow down or consider a detour/alternate route that enables you to continue. Adjustments are needed in plans. The key is achieving the end goal within the defined timeframe.

Reporting these metrics to various stakeholders also helps earn buy-in for future initiatives.

Strategic planning is a commitment to intentionally succeed. It is a leadership decision that reinforces to your staff that the company has a roadmap to achieve success and is committed to profitable growth. Involving your team helps develop a better “product” as well as earns their buy-in to the strategy, to implementation and to success.

Planning can be a process, or it can be a workshop. The key is, have a plan so you can be intentional in your actions.

David Gordon is president of Channel Marketing Group, a distribution strategy and marketing consulting firm helping distributors, manufacturers and representatives in the industrial and construction industries generate insights and ideas to drive growth. For more information on Channel Marketing Group, visit channelmkt.com . Reach Gordon at [email protected] . 

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How to Write a Business Plan

How to plan for the 5 stages of small business growth

The five stages of small business growth:

• Stage 1: Existence
• Stage 2: Survival
• Stage 3: Success
• Stage 4: Takeoff
• Stage 5: Maturation

From the initial startup stage to launch, and from expansion to maturity, your small business will go through many stages of growth. No small business ever stays the same.

To address the unique needs, opportunities, and challenges of those stages, you need to understand what can happen during each and how to set goals at each point to get the most out of that potential period of growth.

1. Stage 1: Existence

The first stage involves formalizing your business idea into a viable startup . In this seed stage, create a business plan , develop the business, and craft a roadmap for your company. This stage also involves deciding on the product or service you plan to sell to fuel your company’s revenues and profitability.

When your business is just starting out, your strategic growth initiatives should focus on finding the right customers and convincing them to buy your products or services. That means researching who might benefit from what you’re selling and determining why your offer alleviates those pain points. You’ll also need to define your vision and values, which will frame your brand identity and help your target audience better understand what you stand for.

2. Stage 2: Survival

After you’ve launched your business and your target audience knows you exist, the next stage can be the most challenging. That’s because only a small percentage of businesses make it through their first year — let alone the next five years.

Even if you offer a product or service that’s in demand, you’ll need to do more to sustain the company in the early stages. You must increase new revenue to help the company move from relying on outside funding or your bootstrapping efforts.

Your business development goals should include identifying the most efficient ways to sustain your current growth over the long term and through various economic cycles. Developing customer relationships beyond the first purchase can help fuel that revenue.

Focus your marketing efforts on building credibility and trust, extending brand awareness, and creating loyal new customers. At this stage, it can help to have influencers who convince others of your company’s value.

3. Stage 3: Success

Your business model has shown signs of market acceptance. This stage is a turning point. It’s when you determine how to maintain that success while continuing to grow. You could exploit the company’s current accomplishments and expand operations. Alternatively, you might decide to focus on the company’s current stability and profitability.

Before picking a path, consider factors like competitive pressure as well as market demand. What are your audience’s current needs, and how could those needs change in the future? How robust are your current operational efficiencies? Can they support an expansion into new markets ?

This will help you pinpoint cost and productivity improvements that add to your profit margin. Making any changes now could also better position your company for growth whenever you decide to expand.

4. Stage 4: Takeoff

During this stage, you’ll need to focus on creating rapid growth by adding new products or services or expanding into new territories. You might even be able to acquire smaller competitors.

Growing quickly through either of these two strategies will usually require a significant cash infusion. Your options might include a strategic partnership with another brand, an initial public offering of stock, or further investor assistance.

Companies sometimes struggle if they reach this stage because they tend to grow too quickly or run out of cash to fund growth opportunities. Outside assistance and additional or new leadership can help steer the company through this challenging growth stage.

5. Stage 5: Maturation

At some point, your business will mature — but you shouldn’t look at this fifth stage as the final one. It’s true that many companies languish in this stage as leadership struggles to figure out the best way to continue growing. Stagnant revenues could indicate that market conditions have changed. What you offer may no longer be relevant to your audience whose needs or issues have perhaps evolved.

To remain relevant, research what’s changed and how to pivot. In doing so, you may find yourself back at the survival stage, looking for a way to add a product or service or expand into a new territory or audience. You may even want to consider an exit strategy, such as selling your company or merging with another.

Management factors influence business growth

These are general guidelines to follow for each of the stages of business growth, but keep in mind that every company develops in its own way, based on specific management factors. Business growth depends on the financial, human, systems, and business resources available. Having a solid and sustainable source for these resources helps a new business owner respond to the opportunities and challenges during each of these stages.

As the owner of the business, your goals, operational and managerial capabilities, and strategic acumen also play a key role in how your company responds to each opportunity and challenge that appears along the business lifecycle . To ensure you’re an asset that stimulates your company’s growth, continue to assess what you’re doing, get outside advice from an advisor, and continue learning and developing to improve your own capabilities.

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Great learning experience. There is precious information you have shared about 5 stages of small business growth. Business growth depends on the principles you applied and the vission and mission.

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How to Create the Right Business Development Plan

Key Highlights

• A business development plan is a strategic roadmap that outlines the steps and strategies needed to achieve specific business goals, such as identifying new opportunities, expanding into new markets, forging partnerships, and improving overall performance.
• A well-crafted business development plan provides clear direction, allocates resources efficiently, aligns teams, and allows for tracking progress and measuring success.
• Key components of a business development plan include setting goals, understanding target audiences, analyzing the competition, creating marketing and sales strategies, and implementing action plans.
• Startups should focus on high-impact growth opportunities, maximize their marketing budget, build strategic partnerships, and prioritize teamwork. Large organizations should invest in long-term strategic initiatives, diversify their business development efforts, leverage their resources and expertise, and establish talent development programs.

Whether steering a fresh-faced startup or commanding a massive corporate ship, mastering the art of crafting a robust business development plan is your secret weapon for success.

In this comprehensive guide, we’ll take you through the process and strategies of creating a robust business development plan. Whether it’s leveraging market research to identify new opportunities or utilizing the power of partnerships to accelerate growth, these strategies will equip you with the tools to navigate the dynamic business landscape confidently.

• What is a Business Development Plan?

A business development plan is a strategic roadmap that helps a company grow and succeed. It outlines the steps and strategies needed to achieve specific business goals. These goals may include identifying new opportunities, expanding into new markets, forging partnerships, and improving overall performance.

Now, you might be wondering why you need a business development plan. First, it provides a clear direction for your company’s growth, ensuring your efforts are focused and targeted. For example, if your goal is to enter a new market, the plan will outline the necessary research , partnerships, and marketing efforts required to achieve that goal.

But that’s not all. A well-crafted business development plan also helps you allocate resources more efficiently , preventing wasted time and money. By outlining priorities and setting realistic timelines, you can ensure that every aspect of your business gets the attention it deserves.

Moreover, a business development plan can be one of the most powerful tools for team alignment . When everyone on your team understands the company’s objectives and strategies, they are more likely to work together seamlessly, improving overall productivity and efficiency.

A solid plan also allows you to track progress and measure success. By setting specific targets and monitoring key performance indicators (KPIs), you can quickly identify areas that need improvement and adjust your strategies accordingly.

In short, a business development plan is your company’s GPS, guiding you toward growth and success. By creating a comprehensive and actionable plan, you can ensure that your business is always moving forward, ready to seize new opportunities and overcome challenges along the way.

• Key Components of a Business Development Plan

A comprehensive business development plan should include several key components to guide your organization’s growth efforts. These components provide a structured framework for identifying, evaluating, and pursuing growth opportunities. 

Here’s a detailed look at each element:

• Goals : Clearly defined objectives and measurable targets guide your business development efforts. These goals should align with your overall business objectives and include short-term and long-term targets. When setting goals, consider using the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure they are clear and actionable.
• Target audience : A thorough understanding of your ideal customers contributes to crafting a more effective business development plan. This includes identifying their needs, preferences, and behaviors. In addition, understanding your target audience can tailor your marketing and sales strategies to reach and engage them more effectively. To identify your target audience, consider conducting market research through surveys, interviews, and focus groups, analyzing demographic data, and studying your competitors’ customer base.
• Competition analysis : A detailed examination of your competitors is necessary to identify their strengths and weaknesses and potential opportunities for differentiation. This analysis should include data on market share, product offerings, pricing strategies, marketing tactics, and customer experience. By understanding your competition, you can develop a unique value proposition that sets your organization apart and attracts your target audience.
• Marketing and sales strategies : A well-integrated strategy to engage your target audience, advertise your products or services, and produce leads significantly contributes to effective business development. Your marketing and sales strategies should be tailored to your target audience’s preferences and behaviors, using the most effective channels and tactics for reaching them. This may include content marketing, social media advertising, email campaigns, events, and other promotional activities.
• Action plans : A clear, step-by-step guide that lists the tasks, duties, and deadlines needed to reach your business development objectives is valuable for maintaining focus on your progress. This action plan should include short-term tasks, such as launching marketing campaigns or attending networking events, and long-term initiatives, like developing new products or entering new markets. Regularly reviewing and updating your action plan will ensure that your business development efforts remain focused and aligned with your objectives.
• Business Development Process

The business development process is a series of steps to identify, evaluate, and pursue growth opportunities. While the exact process may vary between organizations, it typically includes the following stages:

• Market research and analysis: In this stage, you’ll gather information about your target market, including customer demographics, preferences, and pain points. This research will help you identify potential opportunities and understand the competitive landscape better. Techniques for market research include surveys, interviews, focus groups, and analysis of existing data sources. For example, a software company looking to expand its product offerings might conduct surveys to determine which features are most desired by potential customers, helping them tailor their new product to meet market gaps.
• Identifying potential opportunities: Based on your market research, you’ll identify growth opportunities that align with your organization’s strengths and capabilities. This may include entering new markets, developing new products or services, targeting new customer segments, or forging strategic partnerships. For instance, a small e-commerce business might realize that its products appeal to a specific age group and decide to target this demographic more aggressively with marketing campaigns.
• Evaluating the feasibility of each opportunity : Once you’ve identified potential growth opportunities, assess their practicality. This involves analyzing the potential benefits, risks, and resources required for each option. You’ll want to consider factors such as market size, competition, barriers to entry, and the potential return on investment (ROI) . For example, a manufacturing company considering expanding its production capacity might delve into specifics such as the costs of acquiring new machinery, hiring and training additional staff, potential supply chain complexities, and the projected increase in revenue from enhanced production capacity.
• Developing a business development strategy : After evaluating the feasibility of each opportunity, you’ll create a strategic plan to pursue the most promising ones. This plan should outline your objectives, target markets, value proposition, and the specific tactics you’ll use to reach your goals. Your strategy may also include a timeline for implementation and key performance indicators (KPIs) to measure progress. For example, a health and wellness company might enter a new market by launching a line of supplements. Its strategy could involve targeted marketing campaigns, influencer partnerships, and social media marketing.
• Implementing the strategy and measuring results: In this final stage, you’ll implement your business development plan. This involves executing the tactics outlined in your strategy, such as launching marketing campaigns, developing new products, or establishing partnerships. Throughout the implementation process, ensure you monitor your results using the KPIs established earlier. Regularly measuring your progress will help you identify areas for improvement and make any necessary adjustments to your strategy. For instance, a B2B service provider might track the number of new clients acquired, revenue growth, and customer satisfaction scores to gauge the effectiveness of their business development efforts and make data-driven decisions to optimize their approach.
• Creating a Business Development Plan

Let’s consider a hypothetical example of a software company aiming to expand into the healthcare industry to demonstrate how a business development plan can be created.

• Step 1: Set Clear Goals and Objectives

The company sets a specific goal: “Increase our market share in the healthcare industry by 15% within the next two years.” This goal is SMART, as it is specific, measurable, achievable, relevant, and time-bound.

• Step 2: Conduct Market Research and Identify Your Target Audience

The company conducts market research to understand the healthcare industry’s needs, preferences, and pain points. They gather information through surveys, interviews, and focus groups with healthcare professionals and analyze existing data sources such as industry reports, whitepapers, and case studies.

• Step 3: Analyze Your Competition

The software company identifies its key competitors in the healthcare market, analyzing its product offerings, market share, pricing strategies, marketing tactics, and customer experience to understand its strengths and weaknesses and find potential areas for differentiation.

Step 4: Develop Marketing and Sales Strategies Based on market research and competitor analysis insights, the company tailors its marketing and sales strategies to the healthcare industry. They develop targeted content marketing campaigns, engage healthcare influencers, attend industry events, and create healthcare-specific case studies to showcase their software solutions’ value.

• Step 5: Create an Action Plan

The company outlines specific steps, responsibilities, and deadlines to expand into the healthcare market. They assign tasks to team members, establish clear communication channels for progress tracking, and ensure everyone is working towards the same objective.

• Step 6: Monitor and Measure Results

The company tracks the performance of its business development activities using key performance indicators (KPIs), such as the number of healthcare leads generated, conversion rates, and revenue growth in the healthcare sector. They regularly review these results to make informed decisions about adjusting strategies and allocating resources more effectively.

• How to Customize a Plan for Startups vs. Large Organizations

The development of a business, whether a startup or a large organization, requires a thorough understanding of its unique needs and opportunities. Nonetheless, creating a business development plan might vary between startups and large organizations. Startups often have limited resources and focus on immediate growth opportunities. 

In contrast, large organizations may allocate more resources to long-term strategic initiatives. Regardless of your organization’s size, tailoring your business development plan to meet your unique needs and goals is valuable.

• For Startups
• Identify high-impact growth opportunities : When creating an action plan for business development, startups might consider focusing on options that offer quick wins. For example, a startup could target a niche market segment with unmet needs or provide a unique solution to an existing problem. Airbnb, a startup in its early days, tapped into the unmet demand for affordable accommodations by allowing homeowners to rent out their spaces to travelers.
• Maximize your startup marketing budget : Startups frequently work with restricted budgets, making it necessary to utilize economical business development and marketing channels that deliver the most significant ROI. For instance, content marketing, social media, and email marketing can be powerful tools for startups to build brand awareness and engage with their target audience without breaking the bank. In addition, consider prioritizing essential expenses, seeking strategic partnerships, and exploring innovative ways to reduce costs and increase efficiency throughout your business operations.
• Build a strong network of strategic partners : Partnerships can help startups access new customers, resources, and expertise. For example, a startup could partner with complementary businesses to offer bundled services, co-host events, or cross-promote products. Dropbox, for instance, partnered with Samsung to provide pre-installed Dropbox storage on Samsung devices , significantly increasing their user base. To connect with larger companies for potential partnerships, attend industry events, conferences, and trade shows, and leverage social media platforms like LinkedIn to identify and engage with key decision-makers. Establishing relationships with industry leaders can open doors for collaboration.
• Prioritize teamwork and collaboration : Startups often feature smaller teams, so establishing a teamwork-driven atmosphere that bolsters productivity and capitalizes on resource allocation proves beneficial. Encourage open communication, delegate responsibilities, and set clear expectations to ensure your team works efficiently and effectively towards your business development goals.
• For Large Organizations
• Invest in long-term strategic initiatives : Large organizations can benefit from focusing on strategic business development initiatives that capitalize on their established market presence and resources. For example, large businesses can diversify their business development activities to mitigate risks and capitalize on growth opportunities. This may involve exploring new customer segments, entering different industries, or adopting new technologies. Google’s diversified portfolio, including investments in artificial intelligence, self-driving cars, and renewable energy, demonstrates this approach.
• Diversify your business development efforts : Large organizations can explore opportunities in new markets and industries to drive innovation and growth beyond their core business. This can include investing in research and development (R&D) to create innovative products or forming strategic partnerships with companies from other sectors. Amazon’s continuous expansion into new industries, such as healthcare and grocery, exemplifies this approach. By broadening their scope, large organizations can capitalize on emerging trends and stay ahead of the competition.
• Leverage your organization’s resources and expertise : Large organizations have a wealth of resources and expertise at their disposal. They can develop innovative solutions and strategies to drive business growth by tapping into this knowledge. Take IBM, for example. This tech giant leverages its profound technological know-how and data analysis expertise to develop ground-breaking solutions, like their AI platform, Watson. Watson has revolutionized industries ranging from healthcare, where it aids in diagnosing diseases and suggesting treatments, to finance, where it helps banks in risk assessment and fraud detection. The key here is leveraging what you have to create solutions that drive growth and add value for your clients’ businesses. 
• Establish robust talent development programs : One unique strength of large organizations is their capacity to develop and nurture talent within their ranks. These businesses can continuously enhance their workforce skills by investing in comprehensive training and development programs, fueling innovation and growth. This approach also helps to retain top performers, reducing turnover and promoting a high-performance culture. For instance, consider the case of General Electric. GE’s renowned leadership development programs have been instrumental in grooming a cadre of leaders who have gone on to hold top positions within GE and other major corporations. Large organizations can foster a culture of excellence, innovation, and continuous improvement by focusing on talent development.
• Strategies for Generating Creative Business Development Ideas

Don’t be afraid to challenge conventional wisdom and explore alternative business development models that deliver value to your customers. Innovation contributes to business growth and helps maintain a  competitive edge.

Here are some tips and examples to help you develop innovative business development ideas:

• Encourage a culture of innovation : Foster an environment where employees feel empowered to share their ideas, experiment, and take risks. Promote open communication and collaboration and recognize and reward innovative thinking. Google’s “20% time” policy, which allows employees to dedicate 20% of their working hours to passion projects, has resulted in successful products like Gmail and Google Maps.
• Monitor industry trends and technological advancements : Stay informed about the latest developments in your industry and related technology sectors. This can help you identify new opportunities for growth and stay ahead of the competition. For instance, consider the rapidly advancing field of AI in healthcare. Companies like Zebra Medical Vision leverage AI for early disease detection , using sophisticated algorithms to analyze medical imaging data and detect anomalies that could indicate conditions like cancer, liver disease, or cardiovascular issues. This use of AI improves diagnostic accuracy and significantly accelerates the process, potentially saving lives by enabling earlier intervention.
• Leverage internal expertise and resources : Tap into your organization’s wealth of knowledge and resources to identify innovative solutions to business challenges. For example, Google’s Project Aristotle analyzed data from hundreds of teams within the company to identify the key factors that made teams effective. By leveraging its internal expertise in data analysis and organizational behavior, Google was able to implement new strategies and foster a more collaborative work environment, ultimately driving innovation and growth.
• Explore strategic partnerships and collaborations : Collaborate with external partners, such as complementary businesses, suppliers, or research institutions, to access new ideas, resources, and expertise. Take the case of the collaboration between Starbucks and Spotify, for instance. This innovative alliance allowed Starbucks employees to influence the music played in stores via Spotify playlists, enhancing the in-store experience for customers. Simultaneously, Spotify users could access these playlists, driving user engagement on their platform. This symbiotic relationship amplified brand exposure for both parties, demonstrating the power of strategic partnerships.
• Experiment with new business models : Don’t be afraid to challenge conventional wisdom and explore alternative ways of delivering value to your customers. Innovative business models can often lead to significant growth opportunities. For instance, the subscription-based model adopted by companies like Dollar Shave Club and Spotify disrupted traditional sales models in their respective industries.
• Embrace a problem-solving mindset : Encourage your team to approach business challenges with a problem-solving mindset , focusing on finding creative solutions that deliver value to customers. This mindset can help drive innovation and uncover new business development opportunities. Tesla’s mission to combat climate change led to the development of its innovative electric vehicles and solar energy products.
• Role of Business Development in Sales

Integrating business development and sales strategies drive growth and revenue generation. Business development activities, such as lead generation , market research, and partnership development, support sales efforts. By identifying and nurturing leads, conducting market research to understand customer needs, and fostering strategic partnerships, business development teams can help sales teams close deals more effectively.

Conversely, insights from sales interactions can inform business development efforts and help refine marketing and sales strategies, contributing to the organization’s longevity.

In addition, when a company continually learns from its sales interactions and applies those insights to improve its offerings, messaging, and customer engagement tactics, it is better positioned to adapt to changing market conditions and customer preferences.

This adaptability ultimately leads to stronger customer relationships, increased customer loyalty, and sustained business growth, all contributing to the organization’s longevity.

Examples of successful sales development plans often include a strong focus on collaboration between business development and sales teams and the use of data-driven insights to optimize lead generation and conversion efforts. For instance, a software company wants to expand its market share in a new industry vertical.

To achieve this, the business development team conducts thorough market research to identify key players, customer pain points, and potential partnerships within the new industry. This information is then shared with the sales team, who uses the insights to tailor their pitches and address clients’ specific needs in the new market.

Simultaneously, the sales team shares feedback from client interactions, allowing the business development team to fine-tune their research and partnership strategies. This continuous learning and adaptation process leads to higher conversion rates and increased revenue and strengthens the company’s ability to thrive in the long term.

• Case Studies

Examining case studies of successful companies can provide valuable insights into how business development and sales strategies can be effectively integrated to drive growth and achieve long-term success.

• Amazon: Embracing Customer Obsession

Amazon’s relentless focus on customer satisfaction has driven its innovative business development and sales strategies. By leveraging data analytics and customer feedback, Amazon continually refines its offerings and sales approach to cater to customers’ evolving preferences. This customer-centric mindset has led to innovations such as Prime membership, one-click ordering, and Alexa voice assistant, which have enhanced the customer experience and fueled Amazon’s growth.

• Salesforce: Revolutionizing CRM through Collaboration

Salesforce, a pioneer in cloud-based customer relationship management (CRM) solutions, has successfully integrated business development and sales by fostering a collaborative culture . They encourage cross-functional teams to work together to identify new markets and develop innovative solutions. This collaborative approach has enabled Salesforce to remain at the forefront of the CRM market, continuously delivering cutting-edge products and services that meet customer needs.

• Slack: Transforming Workplace Communication

Slack, a widespread team collaboration platform, demonstrates the power of effectively integrating business development and sales strategies. By conducting extensive market research and user feedback, Slack identified a gap in the market for a user-friendly, intuitive communication tool. This insight led to the development of a platform that streamlined workplace communication, transforming how teams collaborate . Slack’s sales team leverages this value proposition to drive adoption, resulting in rapid growth and widespread industry acclaim.

Creating the right business development plan can significantly benefit any organization seeking growth and success. To maximize your chances of success, focus on understanding your organization’s unique needs, setting clear goals, conducting market research, and developing effective marketing and sales strategies. In addition, emphasize innovation, collaboration, and continuous improvement to stay ahead in the competitive business landscape.

As you develop your plan, create actionable steps and regularly monitor progress to ensure continuous growth and identify areas for improvement. By embracing a culture of innovation, teamwork, and continuous learning, your organization will be well-equipped to navigate business development challenges and achieve long-term growth and success.

Financial Advisor Daniel Brown is an experienced and knowledgeable financial advisor at spoolah.com. He has been in this industry since 2008 and has a strong understanding of economic trends, all types of financial planning, ways of creating plans for meeting short-term and long-term financial goals, etc.

Table of Contents

Business view all, non-dilutive funding: what is it and how does it work, what companies are in the consumer services field, exploring career options: is capital goods a good career path, is healthcare a good career path.

How to Create a Business Development Plan (Insights From a Six-Figure Business)

I’ve grown three successful businesses in the last decade. A large part of my success is down to planning. This is certainly the case with Launch Space, where I offer SaaS consulting services.

Having a business development plan has helped me avoid a lot of silly rookie mistakes. It also kept me focused, which is important for business owners. In this guide, you will learn how to create an actionable business development plan you can apply to your business.

What is a Business Development Plan

A business development plan is a document that outlines the steps you will take to get your company off the ground. It’s a roadmap of sorts, but it also serves as a marketing tool and sales pitch for your product or service.

The business development plan should include everything from where you are now to where you want to be in the future. This can help you determine what kind of strategy needs to be implemented to achieve your goals. Having a plan in place should help you better assign your resources and set relevant Key Performance Indicators to track your progress.

How to Create a Business Development Plan

One of the first things I did before setting up Launch Space was design a business development plan to outline my goals. The following paragraphs will walk you through a tried and tested formula I used that you can follow. Let’s jump right in.

1. Analyze The Competition

Every great business plan is based on research. Well, most great plans are based on research. Ice cream at midnight is rarely planned, but it’s pretty great 😀

The first thing I do when creating a business development strategy is to review the company and consider the target market. You need to understand the strengths and weaknesses of your company. It’s important to also review your competition, customer (creating a customer persona is handy), and review market trends.

Let me use Launch Space as my example. During my review of the competitive landscape for this business, I discovered some of the following:

• There are only a few agencies that provide specialized services for SaaS firms. Most agencies don’t have a clear target audience.
• Most SEO agencies lock clients into a 6 or 12-month contract. A long contract is a big commitment for a company. For example, $4k a month is a $48k contract.
• Many clients don’t see a return on investment from working with an agency. Trust in the agency is a big issue for clients.
• Most SEO agencies don’t promote their services through guest posting on authority sites.

You will gain many useful insights by researching your niche and conducting competitive intelligence before you make a plan. The research is a chance to test your assumptions, and gain insights.

2. Identify Your Business Opportunities

At the end of the research phase of your business development plan, you need to review the information you gathered about your company, the target market, and your customer base. Spend time analyzing all the data. You will use these insights to create your business development plan.

For Launch Space, my goal was to find ways to do things that are disruptive and help me stand out. I created a table. On one side I listed my insights. On the other side, I listed the opportunities for my business.

Your research helps you understand the market. You can then use those insights to identify business opportunities and define your competitive advantages.

For example, through my research, I learned that one of the biggest issues agencies have is trust. They naturally don’t trust an agency they have never met. Skipping a contract would allow me to differentiate myself from the competition. In fact, I made the fact you don’t need to sign a contract key part of my sales copy . You can see this on the homepage I created with a landing page builder .

When I made my business plan, I didn’t have a company. If I had a company with lots of customers, I’d still do the same type of research. However, I’d spend more time reviewing company operations. I’d look at what are the main drivers of growth for the company. I’d also consider what are the company’s biggest problems.

3. How to Set Your Business Development Goals

The next stage of business development is to set targets. Your targets help you understand what you want to achieve and measure your success. You should make sure your goals are SMART – Specific, Measurable, Attainable, Relevant, and Time Based.

When I created my business plan for Launch Space, I set a single company goal. The goal was ambitious and easy to understand.

I then created sub-goals for the different parts of your business. So for example, for my website, I started with the following goal.

• Generate $10k in monthly recurring revenue

That’s a pretty easy goal to understand. I then thought about how to achieve that target. My sub-goals look like this.

• Sales Goal: Secure 1 new client each month from cold outreach
• Delivery: Every two months get 1 client to increase their order
• Human Resources: Hire 1 full-time member of staff

I then looked at the things I would need to do to achieve each sub-goal.

For example, if I was to get one new client a month I would need to meet with five potential clients. I estimated that to secure those meetings I would need to cold email 200 businesses a week. Those were my activities for that goal.

Those activities are quantifiable. I can tell you if I sent 200 emails in a month. Businesses like Google have these sorts of systems in place to measure targets. It helps keep people accountable and provides management with a way to check progress.

Setting my goals helped me develop a strategic plan. That company target is the common goal. You can use this goal to align the operations of your sales team, operations team, and marketing team.

4. Create Standard Operating Procedures

After you have finished strategizing you need to implement your business development goals. There are too many variables in place for me to provide you with many useful insights for this part of the process.

However, there is one business development tip I can share…

As you work on tasks, create Standard Operating Procedures (SOP). Standard Operating Procedures are a set of rules for how the company operates.

Your SOP should build on your business development plan. For example, I have created a whole set of SOP for things like candidate sourcing and sales outreach.

I started by setting sales targets for the company with SMART goals . I then looked at how I’d achieve those goals. Then, I tested my approach. Once I found a system that worked, I broke the job down into chunks.

I listed out all of the things I needed to do to complete the task. I then gave this information to an employee. They did the work.

Systemizing your business in this way has multiple benefits. It helps you:

• Reduce the amount of time it takes to complete a task
• Keep information when a person leaves the company, which speeds up the transition. Role-based access in product management tools and maintains institutional knowledge.
• Ensure vital tasks get completed every month

Keep in mind that your business strategy is not fixed. As a business developer, make sure to periodically review your business development strategy. Analyze what is working and what is not, then adapt your strategy.

5. Review Your Progress

The final stage of your business development strategy is the review stage. This is where you put a date in the diary and say, “in three months’ time we should be…”

Then, you can review progress against your goals.

The purpose of these reviews is to see how you’ve done against your business goals. Just as importantly, a review is a chance to adjust your business plan to make sure that it aligns with what you’re trying to accomplish.

You can incorporate things like a SWOT analysis in your quarterly or annual review. Periodic reviews help you assess your progress, identify weaknesses, opportunities, and threats.

During a review, you should assess the validity of your business goals. Make sure they are still relevant to your company. If they are, great. If not, change your business development goals.

Look at the activities in your business that make the most money. For example, at Launch Space I’m making around:

• SEO Consulting work = $20k+
• Private training = $3k
• Affiliate marketing  = $0.5k

It’s easy to see what makes the company the most money.

I then look at how I can maximize growth through my SEO consulting work over a quarter. Periodic reviews help me ensure my business development strategy aligns with the drivers of company growth.

You should also review the problems the company is facing. For example, as Launch Space grows I often find myself spending a lot of time doing a job that doesn’t help the company scale.

I don’t want to get stuck managing the day-to-day tasks that don’t add value to my business. It’s a pain point.

When I get stuck in a task, I try to find a way to free up my time. Normally that involves, creating SOP and then outsourcing the work.

In this guide, I provided you with an example of my business development strategy. I showed you how I put together a business strategy that allowed me to scale a marketing agency from a side hustle to a six-figure business in less than 12 months.

I hope you’ve found this article interesting. If you have any questions, hit me up in the comments below.

About the author

Nicholas Prins

I'm the founder of Launch Space. We work with global companies helping them scale lead generation through SEO and content marketing. Head over to the homepage to find out more.

How to Start a Small Business: Step-by-Step Guide

How To Start a Credit Repair Business In 8 Steps

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner

The 7 Stages of Starting and Running a Business

The Lifecycle of a Business

Darrell Zahorsky is an expert in search engine optimization (SEO) and marketing. He has worked for companies and clients such as Blackberry, ADP, and Subway.

The Seed Stage

The start-up stage, the growth stage, the established stage, the expansion stage, the decline stage, the exit stage, frequently asked questions.

Hero Images / Getty Images

A small business goes through various stages of development. Your challenges will change and require different approaches to be successful. You need to be able to anticipate upcoming challenges and have strategies to succeed at each stage of the business lifecycle.

Key Takeaways

• Start with one idea while working to establish a customer base and market presence
• Focus on expanding and growing your business even after it becomes profitable
• Work with valuation experts and tax professionals if you're planning on exiting your business

The seed stage of your business lifecycle is when your business is just a thought or an idea. Most seed-stage companies will have to overcome the challenge of market acceptance and pursue one opportunity. Don't try to take on too much at once.

At this stage of the business the focus your focus should be on making sure your idea works well with your skills, experience, and passions. You'll also need to decide on a business ownership structure, come up with a business plan, and get funding.

You might be able to self-fund your business, get investments from friends and family, or apply for government grants. If you have some sort of existing client base for your business already, you may be able to get them to invest.

Once your business legally exists, you'll need to make sure you can provide whatever products or services you're planning on selling, and establish a customer base and market presence. You might need to change your business strategy or raise more cash if your expenses are higher than anticipated.

Try not to burn through your cash too quickly. It may take longer than you anticipate for your business to become profitable or break even.

If your business is growing, that means that your revenue and customer base are also likely growing. You might need to hire and train new employees to handle with the additional workload that comes with a growing business.

You may also need to invest additional money in the company to maintain your success. If you don't have enough cash available, you might be able to take out a loan through the Small Business Administration.

It's still a lot of work to maintain your business once it's become self-sustaining or even profitable. Make sure you're maintaining or growing your revenue stream by keeping up with any new developments in the industry or changing customer preferences.

If your original business is doing reasonably well, or if it can't grow anymore without a new customer base, it may be time for the business to expand into a new market. In some cases it may be easier for you to expand into a small, niche market, because a larger market is likely to be more competitive and may take longer to break into.

Make sure you do plenty of planning and research before deciding where to invest your resources. You may want to focus on markets that are related to your existing business.

In the decline stage, sales, profit, and cash flow all decline. A business owner might be forced to sell or close their business if they cannot sufficiently cut costs or increase their profits. A business might be able to avoid declining by reinventing itself, or branching out into new markets or technologies. That way, it can reposition itself and begin new growth in the marketplace.

There are a few ways you might leave a business that you started. You might be able to sell your business and start a new venture, the business might not have worked out, or you might be ready to completely retire from work.

Can You Sell Your Business?

Even though it might have taken years of hard work to build the company, you'll need to consider its real value in the current marketplace. A qualified valuation expert can help you figure out the fair market value of your business and may be able to help you come up with a strategy to help you increase the profitability of your company before you sell.

Closing Your Business

In some situations, you may need to close rather than sell your business. If you have any partners, you'll need a written agreement when closing the business. If you have an LLC or a corporation, you need to legally dissolve it.

You'll need to cancel any registrations, permits, licenses, and business names as well as your Employer Identification Number. Make sure you notify federal and state tax agencies that you are closing your business.

Make sure all your financial obligations have been met. Pay any employees you might have, and handle final returns of income tax and sales tax. You'll need to maintain business documents after the business has closed, including tax and employment records.

You'll need to keep tax and employment records after your business has closed. You'll typically need to hold onto these records for three to seven years.

If you can, you'll also want to consult with a tax expert or financial advisor while closing out your business. That way you can make sure you're meeting all of the necessary requirements.

What Is the Stage After Start-Up?

The stage after the start-up stage is the growth stage. You'll need to make sure your business begins to grow a revenue and customer base.

How Do I Start My Own Business From Scratch?

You'll need to do market research to find out if your idea has the potential to be profitable. You'll also need to write a business plan and figure out how to get funding for your business, whether it's through investors, loans, or self-funding.

U.S. Small Business Administration. " Loans ."

CFI. " Business Life Cycle ."

U.S. Small Business Administration. " Close or Sell Your Business ."

The Business Planning Process: 6 Steps To Creating a New Plan

In this article, we will define and explain the basic business planning process to help your business move in the right direction.

What is Business Planning?

Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.

The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.

The process includes writing a new business plan. What is a business plan? It is a written document that provides an outline and resources needed to achieve success. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.

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The Better Business Planning Process

The business plan process includes 6 steps as follows:

• Do Your Research
• Calculate Your Financial Forecast
• Draft Your Plan
• Revise & Proofread
• Nail the Business Plan Presentation

We’ve provided more detail for each of these key business plan steps below.

1. Do Your Research

Conduct detailed research into the industry, target market, existing customer base,  competitors, and costs of the business begins the process. Consider each new step a new project that requires project planning and execution. You may ask yourself the following questions:

• What are your business goals?
• What is the current state of your business?
• What are the current industry trends?
• What is your competition doing?

There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.

You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.

2. Strategize

Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.

This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.

3. Calculate Your Financial Forecast

All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.

Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.

A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.

This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.

4. Draft Your Plan

With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.

If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.

5. Revise & Proofread

Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.

Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.

6. Nail the Business Plan Presentation

The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.

Business Planning Process Conclusion

Every entrepreneur dreams of the day their business becomes wildly successful.

But what does that really mean? How do you know whether your idea is worth pursuing?

And how do you stay motivated when things are not going as planned? The answers to these questions can be found in your business plan. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way. ​

Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.

Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.

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Other Helpful Business Plan Articles & Templates

10 Key Business Development Strategies (with Examples)

In today’s world, if you want your business to grow and succeed, you need a good plan for making it happen.

There are many different ways to help your business grow, and in this article, we’ll discuss some of the best business development strategies and techniques available.

There’s a lot you can do, from finding more customers for what you already sell to coming up with new products to sell or even teaming up with other businesses.

We’ll also examine how using the Internet and technology can benefit your business and why it’s important to consider how your business affects the world and people’s lives.

What is a Business Development Strategy?

A business development strategy is a plan that a company follows to grow and get better.

Imagine it like a map that helps a business decide where to go next to make more money, find more customers, or introduce new products.

It involves figuring out what the business is good at, what customers want, and how to reach more people or sell more things.

The goal of a business development strategy is not just to grow sales, but also to build a sustainable business model that can adapt to changing market conditions and capitalize on new opportunities.

A well-crafted business development strategy ensures that a company remains competitive and continues to thrive in its industry.

Business Development Strategies

Download the above infographic in PDF

1. Market Penetration Strategy

When we talk about business development strategies, a market penetration strategy is like the bread and butter for companies aiming to grow. It’s all about making your existing products or services a bigger hit in the markets you’re already playing in. Imagine trying to sell more ice cream in a town that loves your flavors — that’s market penetration.

Why it’s important: It’s less about reinventing the wheel and more about pushing the pedal on what already works. You can cut prices to outdo the competition, ramp up your marketing to make sure everyone knows your name, or offer deals that customers can’t resist.

Examples: Let’s say you run a coffee shop in a bustling neighborhood. To increase your market share, you might introduce a loyalty card that gives customers a free drink after they buy ten. This not only encourages repeat business but can also bring in more foot traffic as word spreads.

Why it’s a smart move: By focusing on market penetration , you’re building on your existing successes. It’s a tried and true method among business development techniques that can lead to increased sales without the costs and risks associated with targeting entirely new markets or developing new products from scratch.

In essence, beefing up your presence in current markets with strategies that have proven their worth can be a game-changer for your business. It’s about maximizing what you already do best and making sure as many people as possible know about it.

2. Market Development Strategy

Diving deeper into our exploration of business development strategies, let’s chat about the market development strategy. It’s like being an explorer, charting unknown territories, except instead of new lands, you’re venturing into new markets or customer segments with your tried-and-true products or services.

Why it’s exciting: Market development is thrilling because it opens up a world of possibilities. You could take your existing product and introduce it to a different city, country, or even a completely new demographic. It’s about finding new playgrounds where your product can shine.

Examples: Imagine you’ve been selling an innovative bike lock in urban areas where biking is a popular mode of transportation. A market development strategy might involve launching this product in suburban areas where there’s a growing interest in biking, thanks to new bike-friendly infrastructure.

How it works: This approach requires research and understanding of the new market. You’ll need to know what these new customers want, how they shop, and what kind of messaging speaks to them. It’s a classic technique in business development strategies that can pay off by expanding your customer base and opening new revenue streams.

Why it’s a brilliant tactic: By leveraging market development, you’re not just sticking to the safe confines of your existing market. Instead, you’re taking a calculated risk to grow your business. It’s a powerful way to utilize your existing successes and replicate them in a new context, making it a cornerstone among business development techniques.

In conclusion, market development is about seizing new opportunities and taking your successful product or service to new frontiers. It’s an adventurous and strategic move that requires understanding and adapting to new markets, but with the right approach, it can significantly amplify your business’s growth.

3. Product Development Strategy

The product development strategy stands out as a beacon for innovation. This strategy is about bringing new products or services to the table in your existing market. It’s akin to a chef creating a new, exquisite dish to wow patrons who already love the menu.

Why it sparkles with potential:  Product development is exhilarating because it taps into your creative resources to meet evolving customer needs or fill gaps in the market. It’s your chance to say, “Look what we can do!” and strengthen your position in the market with fresh offerings.

Examples:  Consider a tech company known for its consumer electronics. They might leverage a product development strategy by introducing smart home devices to their lineup, catering to their tech-savvy customer base’s desire for a more connected living experience.

The practical part:  Successful product development hinges on understanding your customers’ needs and staying ahead of industry trends. It requires a blend of market research, product innovation, and sometimes, a dash of daring. Among business development techniques, this one is particularly challenging because it involves creating something new, yet it’s also immensely rewarding.

Why it wins:  Embarking on product development can reinvigorate your brand and encourage customer loyalty. By continuously evolving your product offerings, you’re showing customers that you’re committed to innovation and addressing their changing needs. It’s a way to keep your audience engaged and interested in what you’ll do next.

In essence, a product development strategy is about breathing new life into your business with innovative offerings that captivate your existing market. It’s a vibrant testament to your commitment to growth and adaptation, positioning you as a forward-thinking leader in your industry.

4. Diversification Strategy

Diversification strategy is all about spreading your wings and flying into new territories with new products or services. It’s like opening a new chapter in your business’s story, venturing into uncharted waters to uncover new opportunities and revenue streams.

What makes it intriguing: Diversification is exciting because it pushes your business beyond its comfort zone. You’re not just expanding; you’re transforming. This could mean developing new products that complement your existing offerings or stepping into a completely different market with something innovative.

Examples: Consider a company that manufactures high-end cameras. They decide to diversify by entering the smartphone market with a device that boasts superior photography features. This move not only taps into the lucrative smartphone market but also leverages the company’s expertise in imaging technology.

How to implement it: Successful diversification requires thorough market research , innovation, and sometimes, a bit of courage. It’s important to assess how your new product or service fits with your brand and whether it addresses a genuine need in the market.

Why it’s a game-changer: Diversification is among the more ambitious business development techniques because it can significantly reduce risk by not putting all your eggs in one basket. Plus, it can rejuvenate your brand, making it relevant to a broader audience.

In summary , a diversification strategy is about boldly expanding your business into new areas with new offerings. It’s a move that requires careful strategic planning and a deep understanding of both your capabilities and the needs of the market. When done right, diversification can be a transformative growth strategy, setting your business on a path to new heights and successes.

5. Strategic Partnerships and Alliances

This strategy is about joining forces with other businesses to achieve common goals, leveraging each other’s strengths to unlock new opportunities.

Why it’s compelling: Strategic partnerships are like having a buddy system in the business world. They allow you to share resources, knowledge, and markets with another organization, making it easier to tackle ambitious projects or enter new markets. It’s about creating a win-win situation where both parties can grow and succeed.

Examples: Imagine a software company offering custom software development services and specializing in educational technology. By forming an alliance with a content creation firm that produces high-quality educational material, they can offer a more comprehensive learning platform. This partnership not only enhances their product offering but also opens up new customer segments.

How it works: Forming a strategic partnership or alliance involves identifying potential partners who share your vision and complementary strengths. The key is to clearly define the terms of the partnership, including roles, responsibilities, and how success will be measured.

Why it’s effective: This approach is one of the more synergistic business development techniques, as it enables companies to combine their efforts for greater impact. Partnerships can help businesses achieve objectives that would be difficult or impossible to achieve alone, such as expanding into new geographical markets or combining technologies to create innovative solutions.

In essence, strategic partnerships and alliances are about collaboration and mutual growth. By carefully selecting the right partners and aligning your goals, businesses can unlock new potentials and navigate the path to success more efficiently.

6. Mergers and Acquisitions

Mergers and acquisitions (M&A) represent a powerful avenue among business development strategies, where companies either merge with or acquire another company to boost growth, access new markets , or enhance capabilities. Think of it as joining forces with others to conquer territories or pooling resources to build an empire. It’s a fast track to expansion that can otherwise take years to achieve organically.

Why it’s impactful: M&A can dramatically change the scale of your business, providing instant access to new customers, technologies, and resources. It’s a strategy that can lead to significant market power and competitive advantages almost overnight.

Examples: A classic example would be a large tech company acquiring a smaller startup that offers innovative technology or services that complement the larger company’s product offerings. This not only eliminates a potential competitor but also integrates new technologies into the company’s portfolio, driving further innovation and growth.

Executing the strategy: Success in M&A requires diligent due diligence, strategic alignment, and effective integration planning. It’s crucial to ensure that the companies’ cultures, values, and business models align to avoid integration challenges post-acquisition.

Why it’s a savvy move: From a business development perspective, mergers and acquisitions can offer a shortcut to growth that organic methods can’t match. It allows companies to diversify their offerings, enter new markets rapidly, and acquire strategic assets or skills they lack.

In essence, M&A is about making bold moves to accelerate your company’s growth trajectory. While it comes with its set of challenges and risks, including cultural integration and financial investment, the potential rewards in terms of market expansion, enhanced capabilities, and increased competitiveness make it a crucial tactic in the arsenal of business development strategies.

7. Customer Retention Strategies

Venturing further into our journey through business development strategies, let’s zero in on customer retention strategies. Unlike the exploratory nature of entering new markets or launching new products, customer retention is all about deepening relationships with the customers you already have.

Why it matters: Retaining customers is often more cost-effective than acquiring new ones. Loyal customers not only continue to buy from you but are also more likely to recommend your products or services to others, acting as brand ambassadors.

Examples: An online streaming service introduces a tiered membership program, offering exclusive content and early access to new releases for premium members. This not only incentivizes longer subscription commitments but also enhances the perceived value of the service.

Key techniques: Effective customer retention strategies can include loyalty programs, exceptional customer service, feedback loops for continual improvement, and personalized marketing efforts. These techniques recognize and reward customer loyalty, creating a more personalized and satisfying experience.

Why it’s a cornerstone strategy: Focusing on customer retention is a crucial component of business development strategies because it builds a stable revenue base and fosters a community of loyal customers. This, in turn, can lead to more predictable sales and a stronger brand.

In essence, customer retention strategies are about showing appreciation for your current customers, ensuring they feel valued and understood. This not only secures their continued business but also transforms them into vocal supporters of your brand, contributing to a virtuous cycle of growth and loyalty.

8. Networking and Relationship Building

Let’s talk about networking and relationship building. Unlike direct sales tactics or digital marketing efforts, networking is about cultivating long-term relationships that can lead to opportunities, referrals, and partnerships down the line.

Why it matters: In the realm of business development, who you know can be just as important as what you know. Building a strong network can open doors to new clients, insights into industry trends, potential partners, and even investors. It’s about creating a web of connections where value is exchanged mutually over time.

Example: Imagine attending industry conferences, not with the primary goal of immediate sales, but with the intention of meeting other professionals in your field, sharing knowledge, and learning about their needs and challenges. Over time, these connections can lead to collaborative projects, referrals, or simply valuable advice.

How to approach it: Effective networking is rooted in genuine interest in others and a willingness to offer help and resources without the immediate expectation of getting something in return. It’s about building trust and rapport by being reliable, knowledgeable, and generous.

Why it’s a strategic move: Networking and relationship building are fundamental business development techniques because they leverage the power of human connections. Relationships built on trust and mutual respect can be the most durable and valuable assets in your business development arsenal.

N etworking and relationship building aim to cultivate meaningful relationships that can evolve into powerful catalysts for business growth.

9. Digital Transformation and Innovation

As we dive deeper into the world of business development strategies, it’s impossible to overlook the immense impact of digital transformation and innovation. This strategy is about leveraging the latest digital technologies to fundamentally change how your business operates and delivers value to customers. Think of it as the process of turning your traditional analog business into a smart, tech-savvy enterprise ready to face the modern digital world head-on.

Why it’s crucial: In today’s fast-paced business environment, technology can be a major differentiator. Digital transformation not only streamlines operations but also enhances customer experiences, opens up new channels for engagement, and fosters innovation. It’s about staying relevant and competitive in a digital-first world.

Examples: Consider a traditional brick-and-mortar retailer that adopts an omnichannel approach, integrating their in-store experience with a seamless online shopping platform. This might include a mobile app that customers can use to scan products in-store, read reviews, check out online, and even receive personalized recommendations based on their shopping history.

How to implement it: Embracing digital transformation requires a clear vision, strong leadership, and a willingness to invest in new technologies. It often involves adopting cloud computing, leveraging big data analytics, automating processes with AI, and enhancing customer interactions through digital channels.

Why it’s a game-changer: Digital transformation and innovation can revolutionize the way you do business, making you more agile, efficient, and customer-centric. It’s a powerful business development technique that not only drives growth but also builds resilience against disruptions in the market.

The journey towards digital transformation and innovation is about reimagining your business for the digital age. It offers a unique opportunity to innovate, differentiate, and deliver exceptional value to your customers.

10. Corporate Social Responsibility (CSR)

CSR is about businesses taking responsibility for their impact on society and the environment. It’s a strategy that aligns a company’s operations with social values and environmental sustainability practices. Think of it as doing well by doing good; when companies invest in CSR, they not only contribute positively to the world but also build trust and loyalty among customers and employees.

Why it’s important: Today’s consumers and workers are increasingly conscious of the ethical practices of the companies they buy from and work for. Implementing CSR initiatives can enhance your brand’s reputation, attract and retain top talent, and open up new business opportunities with like-minded partners and customers.

Examples: Imagine a clothing manufacturer that decides to source materials exclusively from suppliers that adhere to fair labor practices and environmental standards. Additionally, they might launch a recycling program, encouraging customers to return used items for recycling in exchange for a discount on their next purchase.

How to engage in CSR: Effective CSR goes beyond one-time charitable donations; it involves integrating sustainable and ethical practices into everyday business operations. This might include reducing carbon footprints, enhancing employee welfare programs, engaging in community development projects, or supporting social causes through partnerships with non-profits.

Why it’s a strategic move: CSR is among the most impactful business development techniques because it builds a strong emotional connection with stakeholders. Companies that are seen as socially responsible can differentiate themselves in crowded markets, foster loyalty among customers, and create a positive corporate image that attracts investment and partnership opportunities.

Corporate Social Responsibility is not just a moral obligation; it’s a strategic business development approach that can drive long-term success. By prioritizing CSR, companies not only contribute to a better world but also build a strong, sustainable brand that resonates with today’s ethically minded consumers and employees. It’s a testament to the power of combining profit with purpose to achieve growth and impact.

FAQs on Business Development Strategies

1. What is the purpose of a business development strategy? The primary purpose of a business development strategy is to identify and implement opportunities for growth within and outside a company. This can include increasing revenue, expanding into new markets, developing new products or services, enhancing customer relationships, and forming strategic partnerships or alliances.

2. How do I choose the right business development strategy for my company? Choosing the right business development strategy involves understanding your business’s current position, goals, and the specific challenges and opportunities in your industry. Analyze your target market, competition, internal capabilities, and resources. It’s also essential to align the strategy with your company’s overall vision and mission.

3. Can you give examples of effective business development techniques? Effective business development techniques include networking and relationship building, leveraging social media and digital marketing, attending industry events and trade shows, conducting market research to identify new opportunities, and employing customer feedback to improve products and services.

4. How does market penetration differ from market development? Market penetration focuses on increasing the market share of an existing product within its current market, often through competitive pricing, marketing initiatives, and sales promotions. Market development, on the other hand, aims to enter new markets or target new customer segments with existing products, requiring adaptations to marketing strategies and possibly the product itself to meet different customer needs.

5. What role does innovation play in business development strategies? Innovation is crucial for sustaining growth and staying competitive. It involves developing new or improved products, services, processes, or business models that meet emerging customer needs or create new markets. Innovation can differentiate a company from competitors and drive long-term success.

6. How important are strategic partnerships and alliances in business development? Strategic partnerships and alliances are vital for leveraging complementary strengths, resources, and markets to achieve mutual growth objectives that might be difficult to accomplish independently. These collaborations can provide access to new markets, technologies, expertise, and customer bases.

7. What are some common mistakes in implementing business development strategies? Common mistakes include failing to conduct thorough market research, not aligning the strategy with the company’s core competencies and goals, underestimating the resources required, neglecting existing customers in pursuit of new ones, and not adapting to market feedback or changing conditions.

8. How can a company measure the success of its business development strategies? Success can be measured through various metrics, including revenue growth, market share expansion, customer acquisition and retention rates, profitability improvements, and achievement of strategic goals. Regularly reviewing these metrics and adjusting strategies as necessary is key to sustained growth.

9. Why is customer retention considered a business development strategy? Customer retention is crucial because acquiring new customers can be significantly more expensive than keeping existing ones. Retained customers often make repeat purchases and can become brand advocates. Effective retention strategies can lead to sustained revenue growth and profitability.

10. How does CSR (Corporate Social Responsibility) enhance business development? CSR enhances business development by building a positive brand image, fostering customer loyalty, attracting and retaining talent, and potentially opening up new markets or customer segments. Companies that are viewed as socially responsible can differentiate themselves from competitors and achieve sustainable growth.

Conclusion and Key Takeaways

In conclusion, navigating the complexities of today’s business landscape requires a strategic approach to development that encompasses a broad range of tactics and methodologies.

From diving into the depths of market penetration and development strategies to exploring the innovative horizons of digital transformation, businesses have at their disposal a plethora of paths to achieve growth and sustainability.

The key takeaways from our exploration into business development strategies and techniques underscore the importance of a multifaceted approach tailored to your company’s unique goals and market conditions.

Key Takeaways:

• Strategic Alignment: Ensure that your business development strategies are in harmony with your company’s overall vision, mission, and capabilities. Tailoring strategies to fit your unique strengths and market position can lead to more effective and sustainable growth.
• Customer-Centric Approach: Whether it’s through retention strategies, innovation, or CSR initiatives, keeping the customer at the heart of your business development efforts is crucial. Understanding and addressing their needs can drive loyalty and long-term success.
• Adaptability and Innovation: In a rapidly changing business environment, staying adaptable and open to innovation can set you apart from competitors. Embrace digital transformation and continually seek new ways to improve your offerings and processes.
• The Power of Relationships: Building and maintaining strong relationships through networking, strategic partnerships, and alliances can open up new opportunities and resources critical for growth.
• Measure and Adjust: Regularly measuring the success of your business development strategies with clear metrics is essential. Be prepared to adjust your approach based on performance data and shifting market dynamics.
• Sustainability and Responsibility: Incorporating CSR into your business development strategies not only contributes positively to society but also enhances your brand’s reputation and appeal to modern consumers and employees.

By embracing these key insights, businesses can develop a robust framework for growth that leverages the best practices in business development strategies and techniques.

Remember, the path to success involves not just the pursuit of growth for its own sake but doing so in a manner that is sustainable, responsible, and aligned with your core values.

Here’s to your business’s continued growth and success in navigating the exciting challenges and opportunities that lie ahead.

About The Author

Silvia Valcheva

Silvia Valcheva is a digital marketer with over a decade of experience creating content for the tech industry. She has a strong passion for writing about emerging software and technologies such as big data, AI (Artificial Intelligence), IoT (Internet of Things), process automation, etc.

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A very good and educative article

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Writing A Business Plan:Design And Development Plans

Jan 31, 1997

Generally, there are seven major components that make up abusiness plan. They are:

1. Executive summary

2. Business description

3. Market strategies

4. Competitive analysis

5. Design and development plans

6. Operations and management plans

7. Financial factors

The purpose of the design and development plan section is toprovide investors with a description of the product's design,chart its development within the context of production, marketing,and the company itself, and create a development budget that willenable the company to reach its goals.

There are generally three areas you'll cover in thedevelopment plan section:

*Product development

*Market development

*Organizational development

Each of these elements needs to be examined from the funding ofthe plan to the point where the business begins to experience acontinuous income. Although these elements will differ in natureconcerning their content, each will be based on structure andgoals.

The first step in the development process is setting goals forthe overall development plan. From your analysis of the market andcompetition, most of the product, market and organizationaldevelopment goals will be readily apparent. Each goal you defineshould have certain characteristics. Your goals should bequantifiable in order to set up time lines, directed so they relateto the success of the business, consequential so they have impactupon the company, and feasible so that they aren't beyond thebounds of actual completion.

Goals For ProductDevelopment

Goals for product development should center on the technical as well as the marketing aspects of theproduct so that there is a focused outline from which thedevelopment team can work. For example, a goal for productdevelopment of a microbrewed beer might be "Produce recipe forpremium lager beer" or "Create packaging for premiumlager beer." In terms of market development, a goal might be,"Develop collateral marketing material." Organizationalgoals would center on the acquisition of expertise in order toattain your product and market-development goals. This expertiseusually needs to be present in areas of key assets that provide acompetitive advantage. Without the necessary expertise, the chancesof bringing a product successfully to market diminish.

With your goals set and expertise in place, you need to form aset of procedural tasks or work assignments for each area of thedevelopment plan. Procedures will have to be developed for productdevelopment, market development, and organization development. Insome cases, product and organization can be combined if the list ofprocedures is short enough.

Procedures should include how resources will be allocated, whois in charge of accomplishing each goal, and how everything willinteract. For example, to produce a recipe for a premium lagerbeer, you would need to do the following:

*Gather ingredients.

*Determine optimum malting process.

*Gauge mashing temperature.

*Boil wort and evaluate which hops provide the best flavor.

*Determine yeast amounts and fermentation period.

*Determine aging period.

*Carbonate the beer.

*Decide whether or not to pasteurize the beer.

The development of procedures provides a list of workassignments that need to be accomplished, but one thing itdoesn't provide are the stages of development that coordinatethe work assignments within the overall development plan. To dothis, you first need to amend the work assignments created in theprocedures section so that all the individual work elements areaccounted for in the development plan. The next stage involvessetting deliverable dates for components as well as the finishedproduct for testing purposes. In Terence P. McGarty's book, Business Plans That Win Venture Capital there are primarilythree steps you need to go through before the product is ready forfinal delivery:

1. Preliminary product review. All the product'sfeatures and specifications are checked.

2. Critical product review. All the key elements of theproduct are checked and gauged against the development schedule tomake sure everything is going according to plan.

3. Final product review. All elements of the product arechecked against goals to assure the integrity of the prototype.

In procedures we mentioned scheduling. This is one of the mostimportant elements in the development plan. Scheduling includes allof the key work elements as well as the stages the product mustpass through before customer delivery. It should also be tied tothe development budget so that expenses can be tracked. Butits main purpose is to establish time frames for completion of allwork assignments and juxtapose them within the stages through whichthe product must pass. When producing the schedule, provide acolumn for each procedural task, how long it takes, start date andstop date. If you want to provide a number for each task, include acolumn in the schedule for the task number.

That leads us into a discussion of the development budget. Whenforming your development budget, you need to take into account allthe expenses required to design the product and to take it fromprototype to production.

Costs that should be included in the development budgetinclude:

* Material -- All raw materials used in the development ofthe product.

* Direct Labor -- All labor costs associated with thedevelopment of the product.

* Overhead -- All overhead expenses required to operatethe business during the development phase such as taxes, rent,phone, utilities, office supplies, etc.

* G&A Costs -- The salaries of executive andadministrative personnel along with any other office supportfunctions.

* Marketing & Sales -- The salaries of marketingpersonnel required to develop pre-promotional materials and planthe marketing campaign that should begin prior to delivery of theproduct.

* Professional Services -- Those costs associated with theconsultation of outside experts such as accountants, lawyers, andbusiness consultants.

* Miscellaneous Costs -- Costs that are related to productdevelopment.

* Capital equipment -- To determine the capitalrequirements for the development budget, you first have toestablish what type of equipment you will need, whether you willacquire the equipment or use outside contractors, and finally, ifyou decide to acquire the equipment, whether you will lease orpurchase it.

As we mentioned already, the company has to have the properexpertise in key areas to succeed; however, not every company willstart a business with the expertise required in every key area.Therefore, the proper personnel have to be recruited, integratedinto the development process, and managed so that everyone forms ateam focused on the achievement of the development goals.

Before you begin recruiting, however, you should determine whichareas within the development process will require the addition ofpersonnel. This can be done by reviewing the goals of yourdevelopment plan to establish key areas that need attention. Afteryou have an idea of the positions that need to be filled, youshould produce a job description and jobspecification .

Once you've hired the proper personnel, you need tointegrate them into the development process by assigning tasks fromthe work assignments you've developed. Finally, the whole teamneeds to know what their role is within the company and how eachinterrelates with every position within the development team. Inorder to do this, you should develop an organizational chart foryour development team.

Assessing Risks

Finally, the risks involved in developing the product should beassessed and a plan developed to address each one. The risks duringthe development stage will usually center on technical developmentof the product, marketing, personnel requirements, and financialproblems. By identifying and addressing each of the perceived risksduring the development period, you will allay some of your majorfears concerning the project, and those of investors as well.

Part five of seven. Tomorrow, we'll cover operations andmanagement plans. Tips are updated daily at 8:30am PST or 11:30EDT.

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Meet any target: business development plan template

A company’s goals are an integral part of its productivity. When your team understands what targets they need to hit, they have something clear to strive for and feel a sense of pride when they succeed. Setting intentions about where your business is going and how to get there is an important part of the building process.

Gain clarity about what your company’s objectives are with the help of a free business development plan template. We’ll share a fully customizable template with you that you can use on monday.com. But before that, this article looks at the benefits of using such templates and what you should include in a business development plan.

Get the template

What is a business development plan template?

A business development plan template is a customizable document that outlines the objectives of your business and actionable steps to meet them. These can be your company’s long or short-term goals, amounts needed for start-up costs, or specific milestones, such as hitting a specific monthly sales target, or getting your first repeat client. The plan outlines steps to take to get to those goals and assigns specific tasks to individuals to hold them accountable for meeting the deadlines.

A business development plan template is a pre-formatted tool that describes your business objectives and how you’ll achieve them.

Although you can always write these plans down in a regular, static document, many businesses opt to use a customizable pre-built format to get off to a strong start.

Why use a business development plan template?

As a business owner, creating a custom, agile business development plan helps you gain clarity regarding decision-making on areas, such as investments, resources, and budgeting. Unlike with pen and paper, or even a word doc, a template is dynamic. You can move initiatives around, assign ownership, store all relevant information on the template itself, and customize any aspect of the template from labels, template structure and appearance, automations, and more.

Of course, there are a lot of things to consider when it comes to creating a well-thought-out document. Below, we’ll discuss some of the things you may want to consider and include in your business development plan.

What to include in a business development plan

A business development plan comes into play during the growth stage of your business. By specifying your targets and plans of action, the business development plan becomes a roadmap for achieving growth and success. To ensure you have a strong plan, consider including the elements summarized below.

Financial goals

A business’s growth is largely based on its financial success, so it’s critical to assess your current financial position to set targets for the future. Start by:

• Looking to your past and current revenue as a baseline for what your business brings in
• Assessing your overhead costs versus your profits
• Setting goals for bringing in higher profits and revenue in the coming months and years
• Getting specific about your timeline, so you can reassess your financial position when you hit those dates

Funding plan

Meeting your financial goals and achieving financial growth requires funding. Use this section of the business development plan to determine the amount of business capital you currently have and what steps you can take to secure more funding in the future within your target market segment.

Opportunities for growth

Look at your business to identify where you have room to grow. This will vary depending on what industry and business you work in. For some, this might mean developing a new line of products or adding additional services that can attract new clients and boost revenue.

Operational needs

Examine operational needs and take a practical look at what needs to change in the daily function of your business to support expansion and further development. This could mean investing in new equipment or hiring additional personnel to oversee specific departments or projects.

Sales and marketing plans

An important part of business growth is how you promote your company to consumers. Determine a marketing strategy to get customers excited about your new products and services or to inform consumers of investments you’re making in equipment upgrades. Your marketing plans are how you’ll communicate your investments and improvements to drive growth through customer interest.

Understand strengths and weaknesses 

Creating a business development plan requires a firm understanding of your company’s strengths and weaknesses. To identify these, consider performing a SWOT analysis . You can use the resulting information to develop a strategic plan to leverage strengths and improve on weak areas across all aspects of your business.

Building your team

For a business to grow successfully, you must also expand your workforce. This means hiring new team members and learning to delegate tasks with a lower priority or difficulty level, so you can focus on matters of high-level priority. Use this part of your plan to assess what tasks you can assign to someone else and how many people you might need to hire to meet the demands of your growing business.

Having a plan to develop your business is a great foundation. But you also need tools to put that plan into action. Starting with a solution that lets you bring people together, communicate priorities, and manage tasks can increase your chances of success.

monday.com supports business development and planning

Your business development plan template is the starting point for your company’s expansion. As you move toward creating targets and future plans for your business, you can make use of the many other features and templates on monday.com to understand where you’re at with your business and what areas are ready to support growth.

monday.com lets you create workflows to plan and track projects and day-to-day processes. Connect off-platform tools necessary for collaboration and communication with team members from around the world, and leverage no-code automation opportunities to streamline repetitive tasks.

You can start with our Business Development Plan Template, customizing the columns to meet your specific needs.  Take notes, mention team members on tasks to get their feedback, or color-code your business development plan to create a visual that’s easy to digest at a glance.

Once you’re ready to put your business development plan into action, turn to our Template Center for plenty of other tools to help you get started on various tasks.

Related templates 

A business development plan template isn’t the only useful tool for growing your business. Consider some of these other options to help your teams increase efficiency and promote growth.

One-page business plan template

Our easy-to-use One-page Business Plan Template is meant to provide an overview of your objectives and deadlines at a glance. Completing the one-page business plan template creates a reference point for the scope of your business objectives that you can easily return to at any time.

Business executive summary template

Our Business Executive Summary Template is an ideal tool when you’re preparing to pitch your company to investors. It offers a guide for emphasizing the core of your business plan in a way that appeals to the interests of your target audience. You can include sales/marketing plans, staff expenses, and long-term goals to provide prospective stakeholders with a clear picture of where your business stands and where it’s going.

Writing business plans is easier when you start with a template. But knowing what to include and what might be most important can help you make the most of such documents. Check the FAQs below for some more tips.

FAQs about business development plan templates

What are the main parts of a business plan?

A solid business plan should have four key components. The main parts of a business plan include:

• An executive summary
• A marketing plan
• Key management bios
• A financial plan that includes cost and pricing information

What is the most important part of a business plan?

The executive summary is the most important part of any business plan. The executive summary acts as the preface to the overall business plan and the hook that gets readers excited about the possibility of investing in your company. The goal of the executive summary is to entice the investor to read the rest of your plan, so aim for the most polished version possible.

Build your company’s future with a business development plan template from monday.com 

Your business development strategy is critical to growing your company and meeting future goals. Using templates from monday.com can help you build your business development plan to drive success.

Having a business plan creates a 30% higher chance of growth for your business compared to businesses that don’t start with written action plans. A customizable, user-friendly business development plan template provides a starting point to realizing your objectives.

Send this article to someone who’d like it.

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How to Develop a Business Strategy: 6 Steps

• 25 Oct 2022

Business strategy can seem daunting, and for good reason: It can make or break an organization. Yet, developing a strong strategy doesn’t need to be overwhelming.

In the online course Business Strategy , Harvard Business School Professor Felix Oberholzer-Gee posits that strategy is simple. His secret? Focus on your organization’s value creation.

“Strategy often sounds like a lofty concept that only the most senior executives can develop,” Oberholzer-Gee says. “But actually, anyone can think and act strategically. It doesn’t need to be difficult; all you need is a proven framework.”

Here’s a breakdown of why business strategy is important, the basics of value-based strategy, and six steps for developing your own.

Why Do You Need a Business Strategy?

Business strategy is the development, alignment, and integration of an organization’s strategic initiatives to give it a competitive edge in the market. Devising a business strategy can ensure you have a clear plan for reaching organizational goals and continue to survive and thrive.

According to a study by Bridges Business Consultancy , 48 percent of organizations fail to meet half of their strategic targets and 85 percent fail to meet two-thirds, highlighting why dedication to the business strategy process is crucial.

One type of business strategy is called value-based strategy, which simplifies the process by leveraging the value stick framework to focus on the advantage your business creates.

Access your free e-book today.

What Is Value-Based Strategy?

Value-based strategy , also called value-based pricing, is a pricing method in which an organization relies on the perceived value of its goods and services to determine its pricing structure and resource allocation.

The value stick framework can be used to visualize how various factors impact each other and determine which initiatives to pursue to increase value for all parties.

The value stick has four factors:

• Willingness to pay (WTP) : The highest price a customer is willing to pay for your product or service
• Price : The amount customers have to pay for goods or services
• Cost : The amount a company spends on producing goods or services
• Willingness to sell (WTS) : The lowest amount suppliers are willing to accept for the materials required to produce goods or services

To determine how to best create value, you can toggle each factor on the value stick to see how the others are affected. For instance, lowering price increases customer delight.

"As strategists, we really ask three questions,” Oberholzer-Gee says in Business Strategy. “How can my business best create value for customers? How can my business create value for employees? And how can my business create value by collaborating with suppliers? Think of a company's strategy as an answer to these three questions."

Related: 4 Business Strategy Skills Every Business Leader Needs

6 Steps to Develop a Value-Based Business Strategy

1. define your purpose.

When approaching business strategy, defining your organization’s purpose can be a useful starting point.

This is vital in creating customer and employee value, especially if your organization’s purpose is linked to a cause such as environmental protection or alleviating specific social issues.

A recent survey conducted by clean energy company Swytch found that nearly 75 percent of millennials would take a decrease in salary if it meant working for an environmentally responsible company. Nearly 40 percent selected one job over another because of an organization’s sustainability practices.

Additionally, research in the Harvard Business Review shows that consumers’ motivation to buy from sustainable brands is on the rise. Sales of products marked as sustainable grew more than five times faster than those that weren’t.

By starting with purpose, your organization can create more value down the line.

2. Assess Market Opportunity

Next, understand your market’s competitive landscape. Which companies own shares of the market? What differentiates your competitors’ products from yours? Are there any unmet needs your organization could take advantage of?

Conducting this research before planning a strategy is critical in identifying how your organization provides unique customer value and opportunities to create even more.

3. Create Value for Customers

With an understanding of the market and your company’s purpose, you can determine how your organization provides unique or greater value and strategize ways to improve.

On the value stick, the value captured by customers is called “customer delight.” It can be increased by raising their willingness to pay and decreasing the product’s price. If lowering the price isn’t an option, brainstorm how you could make the product more valuable to customers, thus increasing their willingness to pay.

Some ways to create customer value include:

• Lowering the product’s price
• Increasing the product’s physical quality and longevity
• Providing quick, high-quality customer service and a smooth shopping experience
• Leveraging network effects , if applicable, to create a community of users
• Incorporating an environmental or social cause into processes, packaging, and branding

4. Create Value for Suppliers

In addition to creating value for customers, you also need to provide value for suppliers. Suppliers can include any company that provides raw materials, labor, and transportation to help your organization produce goods or deliver services.

Supplier surplus, also called supplier delight, is created when the cost of materials increases or their willingness to sell decreases. The relationship between a firm and its suppliers can be contentious, given that both want to increase their margins. Yet, there are ways to create value for both parties.

Some ways to create value for suppliers include:

• Agreeing to pay more for higher quality materials : While this increases the supplier surplus, it may also increase customer delight by raising willingness to pay, or increase the firm’s margin by allowing you to raise prices.
• Working with the supplier to increase efficiency : This strategy can increase supplier surplus by lowering the overall cost of the supplier’s labor and their willingness to sell.

5. Create Value for Employees

Creating value for employees is a critical part of an effective business strategy and can be assessed using the value stick. Think of your employees as the “supplier” of labor and the supplier margin as employee satisfaction.

Employee satisfaction can be increased by raising wages or lowering the minimum salary they’re willing to receive by delivering value in other ways. Satisfied employees may provide a better customer experience, resulting in increased customer delight.

The value you provide employees ensures they’re motivated to do their best work, develop their skills, and stay with your company long-term.

Some examples of ways to create value for your employees include:

• Offering competitive salaries and bonuses
• Offering benefits like ample paid vacation and sick days, generous parental leave, and wellness budgets
• Providing flexibility of work location, whether your team is fully remote or hybrid
• Aiding in professional development
• Creating a workplace rich with a diversity of experiences, identities, and ideas
• Fostering a supportive organizational culture

One example from Business Strategy is that of a call center for a diagnostics company. The employees were being paid minimum wage and expressed that the analytical nature of their phone calls with customers warranted higher pay. They also expressed pain points about cumbersome tasks and work conditions.

When a pay increase was implemented for all employees, along with operational changes to make processes smoother, employee productivity increased to the point that it balanced out the higher cost of salaries.

Because the employees’ satisfaction increased, they also began providing better experiences on the phone with customers. This increased the customers’ willingness to pay, directly impacting customer delight.

6. Map Strategy to Actionable Tasks and KPIs

Amidst creating value for each of the three groups, don’t forget the fourth party that needs value: your company. By creating value for employees, suppliers, and customers, you’re creating value for your firm, too.

To ensure you’re tracking to goals, determine your key performance indicators, what metrics constitute success, and how you’ll report results over time. Then, break each of the above value-creation goals into action items. For instance, what steps can you take to increase your employees’ compensation? Who will be responsible for each task?

Having actionable assignments and clear metrics for success will allow for a smooth transition from strategy formulation to execution.

Building Your Strategic Skill Set

By leveraging the value stick, you can create a business strategy that provides value to employees, customers, suppliers, and your firm.

To develop your strategies further and dig deeper into how to navigate value creation, consider taking an online course like Business Strategy . Professor Oberholzer-Gee walks through real-world examples of business challenges, prompts you to consider how you’d create value, and then reveals what those business leaders did and how you can apply the lessons to your organization.

Want to learn more about how to craft a successful strategy for your organization? Explore Business Strategy , one of our online strategy courses , to learn how to create organizational value. Not sure which course is the right fit? Download our free flowchart .

About the Author

7 Stages Of Business Development Life Cycle

Muhammad Zeeshan

March 1, 2023

Table of Contents

The business development life cycle is a model that describes the various stages that a mobile app development company goes through over time. There are seven stages in this model, each with its own challenges, opportunities, and priorities. Understanding these stages can help entrepreneurs and business owners navigate the ups and downs of running a business, plan for the future, and make strategic decisions.

The seven stages of the business development life cycle are concept and research, startup, growth, maturity, expansion, decline, and exit. For example, in full cycle app development, the startup stage focuses on establishing the business, while the growth stage focuses on expanding and scaling up operations. In the decline stage, the focus may be on restructuring or downsizing, while in the exit stage, the focus is on exiting the business in a way that maximizes value.

Crafting Your Ideal Mobile App/Experience Starts Here!

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The seven stages of the business development life cycle

Concept and research.

The first stage of the business development life cycle is the concept and research stage. This stage involves the initial development of a business idea and conducting market research to assess the feasibility of the idea.

During this stage, entrepreneurs typically identify a market need or opportunity and develop a concept for a product or service that can meet that need or take advantage of the opportunity. They then conduct research to validate the concept and assess the potential market size, competition, and profitability of the idea.

The research phase can involve gathering data on consumer behavior, industry trends, and market conditions. Entrepreneurs may also conduct surveys, focus groups, or other forms of market research to gain insights into customer preferences and needs. 

The startup stage is the second stage of the business development life cycle, and it is characterized by the launch and establishment of the business. In this stage, the entrepreneur takes the idea developed in the concept and research stage and turns it into a real business by securing funding, setting up operations, and launching the product or service.

During the startup stage, the focus is on establishing the business and building a foundation for future growth. This can involve tasks such as developing a brand identity, hiring staff, acquiring resources, and developing a marketing plan to promote the business to potential customers.

The startup stage can be challenging as the business is still in its early stages and there may be many unknowns. The entrepreneur must be adaptable and willing to make changes to the business plan as needed based on market feedback and other factors.

Also Read: Mobile App Architecture

The growth stage is the third stage of the business development life cycle, and it is characterized by the expansion and scaling of the business. In this stage, the focus is on increasing revenue, building the customer base, and expanding the operations of the business.

During the growth stage, the entrepreneur may need to secure additional funding to support the expansion of the business. This can involve seeking investments from venture capitalists, banks, or other sources of financing. The business may also need to hire more staff, acquire additional resources, and invest in marketing and advertising to attract new customers.

As the business expands, the entrepreneur may need to establish new systems and processes to manage the increased workload and ensure that the business is operating efficiently. This can involve developing standard operating procedures, implementing new technology systems, and hiring specialized staff to manage various aspects of the business.

The maturity stage is the fourth stage of the business development life cycle, and it is characterized by the stability and continued success of the business. In this stage, the focus is on maintaining the market position, profitability, and operations of the business.

During the maturity stage, the business has already achieved a significant level of success and stability, and may have a loyal customer base and established brand identity. The entrepreneur may need to focus on optimizing operations and streamlining processes to maintain profitability and competitive advantage. This can involve developing new products or services, improving customer service, and exploring new market opportunities.

The maturity stage can also be a time of innovation and creativity. The business may need to stay ahead of competitors by investing in research and development, improving existing products, or creating new products or services that meet evolving customer needs.

However, the maturity stage can also present new challenges for the business. For example, the business may face increased competition from new entrants in the market, changing customer preferences, or technological advancements that disrupt the industry.

Also Read: WooCommerce vs Shopify

The expansion stage is the fifth stage of the business development life cycle, and it is characterized by a significant increase in the scale of operations and expansion into new markets or geographies. In this stage, the focus is on achieving greater market share, revenue growth, and profitability by expanding the business.

During the expansion stage, the entrepreneur may need to secure additional financing to support the growth of the business. This could involve taking on debt, issuing equity, or seeking out other sources of funding. The business may also need to develop new partnerships, acquire other companies, or expand into new markets or geographies.

Expanding the business can involve significant risks and challenges, such as increased competition, regulatory hurdles, and operational complexities. The entrepreneur must be prepared to make strategic decisions and take calculated risks to achieve the desired growth.

The decline stage is the sixth stage of the business development life cycle, and it is characterized by a decrease in revenue, market share, and profitability. In this stage, the business faces significant challenges and may struggle to maintain its position in the market.

During the decline stage, the entrepreneur must focus on identifying the root causes of the decline and developing strategies to address them. This can involve a range of actions, such as reducing costs, improving operational efficiency, diversifying into new markets, or developing new products or services to meet changing customer needs.

However, in some cases, the decline stage may be irreversible, and the entrepreneur may need to consider an exit strategy, such as selling the business or winding it down.

The decline stage can be a difficult and emotional time for the entrepreneur, who may have invested significant time, energy, and resources into the business. However, it is important to approach this stage with a clear head and a willingness to make tough decisions to ensure the best possible outcome for all stakeholders.

The exit stage is the final stage of the business development life cycle, and it involves the termination of the business. During this stage, the entrepreneur must make strategic decisions about how to wind down the operations of the business and distribute any remaining assets to stakeholders.

There are several ways that a business can exit, including selling the business to a third party, merging with another company, or liquidating the business and distributing the proceeds to stakeholders.

Selling the business to a third party can be a good option if the business has significant assets or intellectual property that are valuable to other companies. This can involve finding a buyer who is willing to purchase the business at a fair price and negotiate the terms of the sale.

Merging with another company can be a good option if the business is struggling and needs to combine resources with another company to remain viable. This can involve finding a partner who is willing to merge with the business and create a new entity that can continue to operate.

In conclusion, the 7 Stages of Business Development Life Cycle provide a comprehensive framework for understanding the evolution of a business from its inception to maturity. Each stage presents unique challenges and opportunities that require careful navigation and strategic decision-making. From the initial concept and feasibility assessment to growth, expansion, and eventual maturity, businesses must adapt, innovate, and optimize their operations to remain competitive in today’s dynamic market landscape.

For a mobile app development company in Dallas , these stages hold particular relevance as they embark on their journey to success. Starting with the ideation of innovative app solutions, the company must then assess their feasibility, carefully plan the development process, and execute with precision. As the app gains traction and the company’s reputation grows, they’ll face the challenges of scaling up operations while maintaining the quality of their services. Adapting to market trends and technological advancements becomes crucial in the growth phase.

Muhammad Zeeshan, a seasoned SEO content writer with 5 years of expertise, excels in software, mobile app, and digital marketing. His meticulous approach and passion for engaging content have elevated client search rankings and online presence.

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Before you can launch a business venture, you first need an idea. The better your idea is, of course, the more successful your business can be, but having a good idea isn't enough. Even the best ideas need grooming before they are ready to take center stage. A simple six-step process can help you develop a raw idea into a success.

Business Idea Development Process

Developing a good business idea begins with finding one. From there, you need to roll up your sleeves and get to work at refining it to turn that initial, raw idea into something marketable.

1. Generate some ideas: Write down any ideas that occur to you. Think big and don't hold back. Sit down for an hour and fill a page with ideas or take a week to jot down every idea as it comes to you.

2. Select the best idea: Review your list and choose the best one. Don't delete your list, though. You may want to come back to it if your first choice doesn't pan out.

3. Research your idea: Find out everything you can about your idea: what's currently being used in the market, who the top competitors are, and what you'll need to do to turn your idea into a reality.

4. Refine your idea: Based on your research, modify your concept as needed. If the idea won't work or if it fails the last two steps, pick another one and try, try, try again.

5. Test your idea: Do some preliminary market research to see if there is a need or interest in your idea and to identify potential competitors. Start developing a prototype if your idea is a physical product.

6. Identify your market: If your idea is viable, it's now time to determine whether people will pay for it – and how much they might pay. This requires in-depth market research to determine who is seriously interested.

Generating Business Ideas

When you're brainstorming a list of ideas, don't worry if the idea seems stupid or if you think it may have already been done. Quite often, the best ideas are generated from one that wouldn't work.

John Shepherd-Barron was literally in the bathtub when he had a eureka moment. As CNBC describes the story, he was thinking about how difficult it was to get cash when he needed it and came up with the idea of a vending machine that, instead of chocolate bars, gave you cash. The result was the first ATM.

If you're stuck for generating ideas, do some research on markets or industries that interest you or that you have some experience with. Industries for entrepreneurs can range from software and apps to landscaping and metalwork.

Key Concepts of Selecting a Business Idea

When you have generated a list, begin with the ideas in your area of expertise and interests. A trained mechanic will likely have better success opening a garage than a flower shop – unless he particularly loves flower arrangements. Don't worry if the idea doesn't seem original. It's more important that your idea can generate income.

After you select an idea, research is your most important activity. As Entrepreneur points out, market research is the key to determining whether an idea will work or not. Continue to make notes so you know as soon as possible if you should modify your idea or choose another.

That's why market research is a part of two steps, not just one. Your initial research, which may only be talking to people in the industry, helps you determine if there is a need for your idea; identifying your market tells you exactly who your customers are going to be. After you have selected and refined your concept, you're ready to move on to the next phase of building a business venture: writing a business plan.

• CNBC: Five Fun Facts About the ATM
• Entrepreneur: How to Research Your Business Idea

A published author and professional speaker, David Weedmark has advised businesses on technology, media and marketing for more than 20 years. He has taught computer science at Algonquin College, has started three successful businesses, and has written hundreds of articles for newspapers and magazines and online publications including About.com, Re/Max and American Express.

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What is Innovation Strategy? Stages, Types & Examples

Picture this — you have a new startup or large business operating in a highly competitive market. A constant shift in trends makes it hard to keep up with your competitors and offer products people want. How will your organization keep up with those changes, thrive in the market, and set the pace for the industry with what you offer?

In the business world, the answer usually lies in your innovation strategy . It isn’t only about generating great ideas — it’s also about creating a strategy to put your ideas into place to drive growth and attract customers.

In this guide, we’ll walk through creating an innovation strategy. We’ll go through the process — from idea generation to executing your plan . We’ll also cover the types of innovation you can invest in and a few examples of companies innovating in competitive markets.

What is innovation strategy?

What are the stages of innovation strategy, what are the types of innovation strategy, what are some examples of successful innovation strategies, imd’s driving strategic innovation program — empowering businesses for innovation success.

An innovation strategy is a detailed roadmap with a series of strips that helps your organization reach its future goals. This roadmap isn’t just a guide for business success — it’s a guide that helps you keep up in your industry by thinking of new and innovative ways to tackle problems.

These innovations can be creating new products to solve future problems, optimizing business processes to be more efficient, or thinking of entirely new ways to disrupt your industry.

Ultimately, your innovation strategy will help you align your business with your customer’s needs and create products and services to give your company a competitive advantage.

The innovation process doesn’t happen in a vacuum — it requires a clear process that takes a new idea and brings it to market.

1. Idea generation and ideation

Idea generation is the foundation of an innovation system. It’s the process that helps companies develop ideas to compete in the market and explore new opportunities without taking too much risk.

Many companies innovate by taking advantage of new technologies for insights — learning from data to see what problems customers have that you can solve. Innovators can use this information to explore new ideas and brainstorm ways to bring those ideas to life.

The vital part of this process is customer feedback. A great idea needs a customer base available to see success — and not every idea will have people around willing to pay money to access it. New ideas need customer validation to determine if they are viable.

2. Idea evaluation and selection

Idea evaluation and selection is assessing new ideas to see if they are feasible. During this process, you’ll look at costs, time to market, potential profit, and other business metrics to see if it’s worth pursuing an idea.

If it looks like a product you’re considering has a chance to succeed, then the next step is to compare it with what’s currently on the market. Is your new product something new that doesn’t exist yet, or does it improve on existing products? Will this help your company stand out?Use this information to find the unique value proposition and determine if the idea is worth pursuing.

3. Implementation and execution

The implementation and execution phase is where you take your new idea and turn it into a concrete plan to make it a reality. But this stage is more than building a product — it’s also about creating a successful business strategy and finding help to create your idea.

The first step is product development. Which vendors can supply the materials for your product or help you manufacture it? Which members of your team will be the best fit for development?

Once you find the right people, implementation becomes a matter of executing a plan. It involves project management, resource management, process management, and continuous improvement. 

4. Monitoring and evaluation

You’re breaking new ground when innovating in an industry, so you may not get everything right. Monitoring and evaluation will help you handle those problems and adapt your innovation efforts.

Your goal when monitoring a new project is to assess your performance. Is what you’re doing helping you achieve your goals and keeping you on track for release?

A key part of doing this is metrics. These numbers will tell you how well you are doing. Track your time to release, product progress, defects, and eventual return on investment. Reassess your strategy and make changes if your metrics show you aren’t meeting your goals.

There isn’t one type of innovation in business. Let’s look at four of the main ways you can create new and innovative ideas.

• Product innovation : Product innovation is the process of building new products or upgrading existing ones to meet customer needs in a new way. It helps companies offer better products and stay competitive in evolving markets. This process happens when you pay attention to product markets. You see the problems customers have and their issues with the current offerings. Use that information to develop novel ways to solve those problems and offer a better customer experience.
• Process innovation : Process innovation is changing how you do things inside an organization. You aim to apply new initiatives and technology to optimize efficiency and your ability to compete in the market. Take the inclusion of a new IT system, for instance. New technological innovation can improve your employees’ ability to collaborate and get more done — allowing them to serve customers better in your core business.
• Business model innovation : Business model innovation is about making big changes to how a business runs. It isn’t just a few changes in business processes or a new product. Your goal is to create new business models to capture value in the market. One of the common ways this happens is finding new sources of revenue. An excellent example of this is service businesses adding subscriptions to their revenue. Take an HVAC company. Instead of relying on incoming calls to get business, HVAC companies offer customers a maintenance plan — allowing companies to get a new source of predictable revenue.
• Disruptive innovation : Disruptive innovation is about shaking things up. You aren’t launching products that are a minor upgrade of what exists — you’re making game-changing innovation initiatives that disrupt existing business models. Radical innovation often comes from startups, such as rideshare companies taking on the taxi industry. You’re rewriting some of the rules to take on the established industries to provide a better service and give people more options.

Now that you’ve seen what types of innovations there are, let’s look at a few innovation strategy examples.

Amazon was one of the first companies to use the internet to sell products. It started as an online bookstore, but as time passed, it changed its focus to become a one-stop marketplace for every product you can imagine.

Since then, Amazon has continued to use technology to innovate in the online market. It now offers subscription services to offer more customer value, video streaming, audiobooks, eBooks, and countless other value-added services for its customers.

Apple’s innovation projects are a blend of user-centric design and quality. Apple doesn’t often create brand-new product categories. Instead, it waits to see how technology trends play out and creates innovative approaches to those products.

One of the best examples of this is the iPhone. Apple didn’t create the first smartphone. Blackberry was one of the first to market and was popular for a while.

But smartphones didn’t start making their way into most homes until Apple unveiled the iPhone — their easy-to-use smartphone offering that every consumer can use.

Startups and entrepreneurs

Innovation is at the heart of the startup and entrepreneurship ecosystem. Let’s look at how a few companies changed the game with their new innovations.

• Uber: Took on the taxi industry by allowing regular people to use their cars to offer rideshare services to customers using mobile apps.
• Airbnb: Competed against the established hotel industry to give people more lodging options and allow homeowners to rent parts of their homes.
• Netflix: Used a subscription model and on-demand streaming approach instead of a monthly fee for live TV.
• Stripe: Changed the payment industry by allowing companies to integrate payment processing into their websites easily.

Innovation strategy is an essential part of creating a roadmap for long-term success. It helps you define new product ideas, validate them in the market, and execute the process of bringing them to life. Without the right strategy, you take more risk of building products that don’t work or won’t meet your customers’ needs. IMD offers business school programs for entrepreneurs and professionals who want to learn how to drive innovation in their businesses.

Learn more about what we offer and how our program for driving strategic innovation can help you accomplish more in business and build something great.

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Are you curious how certain new businesses can completely reshape industries and leave established companies struggling to keep up? In the ever-changing business world, staying ahead of the competition requires constant innovation. While there have been many ideas and strategies over time, few have been as impactful and enduring as disruptive innovation. This article will […]

Picture this — you have a new startup or large business operating in a highly competitive market. A constant shift in trends makes it hard to keep up with your competitors and offer products people want. How will your organization keep up with those changes, thrive in the market, and set the pace for the […]

For companies willing to embrace innovation during uncertain times, the rewards can be transformative, both during a crisis and in its aftermath. In this article, we demystify the concept of business innovation, offering actionable steps and tangible examples to help ignite a culture of innovation within your organization. We delve into the many benefits of […]

How To Start A Business In 11 Steps (2024 Guide)

Updated: Apr 7, 2024, 1:44pm

Table of Contents

Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).

Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business .

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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

Consistency Is Key

New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.

Take the Next Step

Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.

If you don’t have a firm idea of what your business will entail, ask yourself the following questions:

• What do you love to do?
• What do you hate to do?
• Can you think of something that would make those things easier?
• What are you good at?
• What do others come to you for advice about?
• If you were given ten minutes to give a five-minute speech on any topic, what would it be?
• What’s something you’ve always wanted to do, but lacked resources for?

These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.

Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.

What Kind of Business Should You Start?

Before you choose the type of business to start, there are some key things to consider:

• What type of funding do you have?
• How much time do you have to invest in your business?
• Do you prefer to work from home or at an office or workshop?
• What interests and passions do you have?
• Can you sell information (such as a course), rather than a product?
• What skills or expertise do you have?
• How fast do you need to scale your business?
• What kind of support do you have to start your business?
• Are you partnering with someone else?
• Does the franchise model make more sense to you?

Consider Popular Business Ideas

Not sure what business to start? Consider one of these popular business ideas:

• Start a Franchise
• Start a Blog
• Start an Online Store
• Start a Dropshipping Business
• Start a Cleaning Business
• Start a Bookkeeping Business
• Start a Clothing Business
• Start a Landscaping Business
• Start a Consulting Business
• Start a Photography Business
• Start a Vending Machine Business

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.

Primary Research

The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.

Secondary Research

Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.

Conduct a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.

Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

• Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
• Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
• Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
• Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
• Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
• Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
• Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
• Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
• Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.

Learn more: Download our free simple business plan template .

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.

The most common exit strategies are:

• Selling the business to another party
• Passing the business down to family members
• Liquidating the business assets
• Closing the doors and walking away

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.

Some common scalable business models are:

• Subscription-based businesses
• Businesses that sell digital products
• Franchise businesses
• Network marketing businesses

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.

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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.

• LLCs offer liability protection for the owners
• They’re one of the easiest business entities to set up
• You can have a single-member LLC
• You may be required to file additional paperwork with your state on a regular basis
• LLCs can’t issue stock
• You’ll need to pay annual filing fees to your state

Limited Liability Partnership (LLP)

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

• Partners have limited liability for the debts and actions of the LLP
• LLPs are easy to form and don’t require much paperwork
• There’s no limit to the number of partners in an LLP
• Partners are required to actively take part in the business
• LLPs can’t issue stock
• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

• Sole proprietorships are easy to form
• There’s no need to file additional paperwork with your state
• You’re in complete control of the business
• You’re personally liable for all business debts
• It can be difficult to raise money for a sole proprietorship
• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

• Corporations offer liability protection for the owners
• The life span of a corporation is not limited
• A corporation can have an unlimited number of shareholders
• Corporations are subject to double taxation
• They’re more expensive and complicated to set up than other business structures
• The shareholders may have limited liability

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Helpful Resources

• How To Set Up an LLC in 7 Steps
• How To Start a Sole Proprietorship
• How To Start a Corporation
• How To Start a Nonprofit
• How To Start a 501(c)(3)

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

Choose Your Business Name

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Business Name vs. DBA

There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.

You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:

• It can help you open a business bank account under your business name
• A DBA can be used as a “trade name” to brand your products or services
• A DBA can be used to get a business license

Register Your Business and Obtain an EIN

You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.

Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

• Best LLC Services
• How To Register a Business Name
• How To Register a DBA
• How To Get an EIN for an LLC
• How To Get a Business License

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Open a Business Bank Account

Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.

Hire a Bookkeeper or Get Accounting Software

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Determine Your Break-Even Point

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.

In contrast, the contribution margin = total sales revenue – cost to make product

For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.

Let’s write these out so it’s easy to follow:

This means that you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

• The Best Business Checking Accounts
• The Best Accounting Software for Small Business
• How To Open a Bank Account

There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external.

Internal funding includes:

• Personal savings
• Credit cards
• Funds from friends and family

If you finance the business with your own funds or with credit cards, you have to pay the debt on the credit cards and you’ve lost a chunk of your wealth if the business fails. By allowing your family members or friends to invest in your business, you are risking hard feelings and strained relationships if the company goes under. Business owners who want to minimize these risks may consider external funding.

External funding includes:

• Small business loans
• Small business grants
• Angel investors
• Venture capital
• Crowdfunding

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.

Funding ideas include:

• Invoice factoring: With invoice factoring , you can sell your unpaid invoices to a third party at a discount.
• Business lines of credit: Apply for a business line of credit , which is similar to a personal line of credit. The credit limit and interest rate will be based on your business’s revenue, credit score and financial history.
• Equipment financing: If you need to purchase expensive equipment for your business, you can finance it with a loan or lease.
• Small Business Administration (SBA) microloans: Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies and machinery or equipment.
• Grants: The federal government offers grants for businesses that promote innovation, export growth or are located in historically disadvantaged areas. You can also find grants through local and regional organizations.
• Crowdfunding: With crowdfunding , you can raise money from a large group of people by soliciting donations or selling equity in your company.

Choose the right funding source for your business by considering the amount of money you need, the time frame for repayment and your tolerance for risk.

• Best Small Business Loans
• Best Startup Business Loans
• Best Business Loans for Bad Credit
• Business Loan Calculator
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You need to have insurance for your business , even if it’s a home-based business or you don’t have any employees. The type of insurance you need depends on your business model and what risks you face. You might need more than one type of policy, and you might need additional coverage as your business grows. In most states, workers’ compensation insurance is required by law if you have employees.

Work With an Agent To Get Insured

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

• Liability insurance protects your business against third-party claims of bodily injury, property damage and personal injury such as defamation or false advertising.
• Property insurance covers the physical assets of your business, including your office space, equipment and inventory.
• Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event such as a natural disaster.
• Product liability insurance protects against claims that your products caused bodily injury or property damage.
• Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment or other wrongful termination.
• Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.
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Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.

Consider the following tools in your arsenal:

• Accounting software : Track your business income and expenses, prepare financial statements and file taxes. Examples include QuickBooks and FreshBooks.
• Customer relationship management (CRM) software : This will help you manage your customer relationships, track sales and marketing data and automate tasks like customer service and follow-ups. Examples include Zoho CRM and monday.com.
• Project management software : Plan, execute and track projects. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
• Credit card processor : This will allow you to accept credit card payments from customers. Examples include Stripe and PayPal.
• Point of sale (POS) : A system that allows you to process customer payments. Some accounting software and CRM software have POS features built-in. Examples include Clover and Lightspeed.
• Virtual private network (VPN) : Provides a secure, private connection between your computer and the internet. This is important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
• Merchant services : When customers make a purchase, the money is deposited into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
• Email hosting : This allows you to create a professional email address with your own domain name. Examples include G Suite and Microsoft Office 365.

Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.

Create a Website

Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.

Optimize Your Site for SEO

After getting a website or e-commerce store, focus on optimizing it for search engines (SEO). This way, when a potential customer searches for specific keywords for your products, the search engine can point them to your site. SEO is a long-term strategy, so don’t expect a ton of traffic from search engines initially—even if you’re using all the right keywords.

Create Relevant Content

Provide quality digital content on your site that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include videos, customer testimonials, blog posts and demos. Consider content marketing one of the most critical tasks on your daily to-do list. This is used in conjunction with posting on social media.

Get Listed in Online Directories

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Develop a Social Media Strategy

Your potential customers are using social media every day—you need to be there too. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website where customers can learn more about what you do and buy your products or services.

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.

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To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

When scaling your business, it’s important to keep an eye on your finances and make sure you’re still profitable. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers.

Resources for building a team include:

• Hiring platforms: To find the right candidates, hiring platforms, such as Indeed and Glassdoor, can help you post job descriptions, screen résumés and conduct video interviews.
• Job boards: Job boards such as Craigslist and Indeed allow you to post open positions for free.
• Social media: You can also use social media platforms such as LinkedIn and Facebook to find potential employees.
• Freelance platforms: Using Upwork, Freelancer and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing or bookkeeping.

You might also consider partnering with other businesses in your industry. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company or venue. This way, you can offer your customers a one-stop shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center. This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster.

To find potential partnerships, search for businesses in your industry that complement what you do. For example, if you’re a web designer, you could partner with a digital marketing agency.

You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon.

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To rank the best states to start a business in 2024, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report .

Starting a small business takes time, effort and perseverance. But if you’re willing to put in the work, it can be a great way to achieve your dreams and goals. Be sure to do your research, create a solid business plan and pivot along the way. Once you’re operational, don’t forget to stay focused and organized so you can continue to grow your business.

How do I start a small business with no money?

There are several funding sources for brand-new businesses and most require a business plan to secure it. These include the SBA , private grants, angel investors, crowdfunding and venture capital.

What is the best business structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

Do I need a business credit card?

You don’t need one, but a business credit card can be helpful for new small businesses. It allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I need a special license or permit to start a small business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state.

How much does it cost to create a business?

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees or purchase inventory. You could potentially get started for free by dropshipping or selling digital goods.

How do I get a loan for a new business?

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva.

Do I need a business degree to start a business?

No, you don’t need a business degree to start a business. However, acquiring a degree in business or a related field can provide you with the understanding and ability to run an effective company. Additionally, you may want to consider taking some business courses if you don’t have a degree to learn more about starting and running a business. You can find these online and at your local Small Business Administration office.

What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

What is the most profitable type of business?

There is no one answer to this question because the most profitable type of business will vary depending on a number of factors, such as your industry, location, target market and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea.

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Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

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To help companies large and small get more out of their business processes, this comprehensive guide to BPM explains what it is, its benefits, the challenges it poses and best practices for using it effectively. You'll also find examples of business process automation and process improvement projects, an overview of the latest BPM tools and insight on what the future of BPM might look like. Throughout the guide, there are hyperlinks to related articles that cover these topics in more depth, so be sure to click on them for additional expert advice. The links also connect readers to detailed definitions of important concepts in BPM, such as business process mapping, Business Process Model and Notation (BPMN) and workflow management.

How to develop a business process in 8 steps, well-designed business processes help organizations achieve their goals faster, but they require planning and effort. follow these steps to develop processes that deliver value..

• Ronald Schmelzer, Cognilytica
• Kathleen Walch, Cognilytica

Business processes are core to organizations. They represent the tasks, activities and overall flow of work that achieves the business's core mission and objectives.

Well-defined and documented business processes help organizations achieve their goals faster, lower costs, reduce errors and free up more time for employees to focus on higher-value tasks. Implementing defined business processes not only helps streamline and optimize an organization's operations but also sets the foundation for continuous process improvement and efficiency.

Developing a business process requires planning

Creating a high-quality, valuable business process takes time and effort to plan, develop and implement. Setting the structured sequences of activities, tasks, actions and steps performed by team members of successful business processes can be challenging.

The steps are generally followed in a specific order to achieve consistent and desired outcomes. Each task in a business process is then broken down into smaller subprocesses and tasks, defined for their operation and flow, and documented.

This article is part of

What is business process management? A guide to BPM

• Which also includes:
• How AI is radically changing business process management
• 10 trends shaping the future of BPM in 2024
• 12 top business process management tools for 2024

Business processes also vary in duration, complexity and number of steps depending on the nature of the task. Fundamentally, a business process is supposed to represent a core operation for the business to accomplish a specific outcome. There are two ways to determine the steps in a business process. You can start from how the process currently works ("as is") or how you want the process to work ("should be"). For an as-is process, the steps focus on identifying how the process works currently as well as the tasks and steps currently employed. For a should-be process, the steps focus on identifying what the tasks need to be in the process and how they will be coordinated to achieve an outcome.

To have an effective business process, organizations need to identify which tasks are the most important for the desired outcome, ensuring accountability, streamlining communication channels and setting standards for how the business performs its activities.

In addition, business processes are never a "set it and forget it" project, so it's important for managers involved in process management to understand that iteration of the process is also very important. Core business processes that add value to the organization require continuous process improvement , documentation, testing and evaluation.

Here are eight basic steps to developing a business process.

1. Review the current business process

It's helpful to start by reviewing what you are currently doing in your business process. Look for redundancies and low-value activities. Bring in stakeholders and other key people running the day to day of the process to evaluate what is working and what can be improved. Make sure to also factor in what work and tasks stakeholders actually enjoy doing and what they would like to see automated, changed or eliminated.

2. Start by defining the goals of the business process

When creating business processes, it's important to do so with the end in mind. Organizations need to figure out what the goals are for a specific business process , and then work their way from the goals to the subprocesses and tasks. It's important to focus on efficiency, ROI, performance improvement and timesaving measures at this stage. Set clear, measurable goals for the process. You'll want to include the specific and time-sensitive goals your stakeholders want to see come out of the process, such as "double sales in two years."

3. List activities and look for inefficiencies and places to automate

The tasks in a process can be performed in a variety of ways: by internal workers; by external, outsourced workers ; by machines; or by a combination of workflow automation and human effort. Organizations that map their processes have an opportunity to identify where and how to automate, optimize and improve current processes.

Start by listing out all current and potential activities of a process. Listing out each activity's tasks will help with future task prioritization of process steps. Consider relationships between activities, causes and effects of activities, and points where each activity fits into the process. Then figure out which activities can be automated, optimized, streamlined or eliminated. Business process automation technologies provide a way to increase efficiency in processes with repetitive tasks.

4. Develop a process map

After figuring out all the required activities in a process, you'll next want to map out your process in a sequential, easy-to-understand manner. Start with the first step needed in your process and plan out how best to arrive at your desired result. Determine where handoffs between departments occur, which processes need to happen sequentially and which can run in parallel. Come up with a timeline, and determine the costs for each task and the process as a whole.

Business process modeling approaches provide a useful method to help stakeholders see the process in a visual manner, which can further help you spot redundancies, bottlenecks and other issues you might have missed when defining the process. Approaches such as using a flow chart or other visual methods can provide an easy way to understand the progression of necessary actions to reach a specific outcome.

5. Assign process tasks and management

Once a process has been defined and mapped, you'll want to assign each team member or department to specific activities and tasks. Some of these assignments will be obvious and easy to do. But other tasks might require more thought to determine the most optimal person or department responsible.

Assign managers for these tasks for supervision and ownership, including supervision over any tasks determined to be automated. Just because it's not being done by a human doesn't mean it can run on its own without any human in the loop. Make sure to clearly state expectations and timelines for tasks, get involvement and input from managers in this process, and continue to track and measure goals.

6. Test and implement the process

Process definition and operation requires an interactive process that needs to be measured constantly. As a result, to ensure continuous success, make sure to test the process before fully implementing the process or subprocesses and tasks. Proper testing will help you spot bugs, identify discrepancies and mistakes, and find any issues or oversights in your process definition.

Testing each step in the process before deploying at scale is critically important to give managers and stakeholders a chance to practice the new process in full. Once you have done thorough quality assurance testing and fixed any issues or problems, you are ready to widely implement your defined business process.

7. Measure business value

A good business process delivers value. Creating and testing the tasks and activities of a process are important. But without creating ways to measure success, you can quickly find yourself involved in inefficient, ineffective, or unnecessary tasks and processes.

Use the process goals you set out in planning and measure how well your new business process is meeting them. The use of process management tools and solutions can help you and your managers track process performance, process mapping and execution progress; assist with future iterations; and determine if your goals are being met.

8. Gather feedback for continuous process improvement

The key to continuously well-performing processes goes beyond simply measuring and testing to getting end-user feedback and finding opportunities for continued improvement. Gather feedback from your stakeholders on how the new process is working for them. Check on those value measures set at the beginning to see if your new process is an improvement and driving success. By continuously monitoring your process performance, you can continually improve, optimize and streamline your process .

Be successful by taking a multistep approach to business processes

Mapping out your business processes from start to finish, with business goals uppermost in mind, and monitoring them after they are implemented takes effort and time. Fortunately, there are well-established methods to identify the key steps to ensure business processes function effectively and return the desired returns. There are also an increasing number of business process management tools, some powered by AI, that can identify and optimize business processes. Using the steps above as a guide can ensure your organization's product or service continues delivering high-quality value to customers and stakeholders.

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The state of AI in 2023: Generative AI’s breakout year

You have reached a page with older survey data. please see our 2024 survey results here ..

The latest annual McKinsey Global Survey  on the current state of AI confirms the explosive growth of generative AI (gen AI) tools . Less than a year after many of these tools debuted, one-third of our survey respondents say their organizations are using gen AI regularly in at least one business function. Amid recent advances, AI has risen from a topic relegated to tech employees to a focus of company leaders: nearly one-quarter of surveyed C-suite executives say they are personally using gen AI tools for work, and more than one-quarter of respondents from companies using AI say gen AI is already on their boards’ agendas. What’s more, 40 percent of respondents say their organizations will increase their investment in AI overall because of advances in gen AI. The findings show that these are still early days for managing gen AI–related risks, with less than half of respondents saying their organizations are mitigating even the risk they consider most relevant: inaccuracy.

The organizations that have already embedded AI capabilities have been the first to explore gen AI’s potential, and those seeing the most value from more traditional AI capabilities—a group we call AI high performers—are already outpacing others in their adoption of gen AI tools. 1 We define AI high performers as organizations that, according to respondents, attribute at least 20 percent of their EBIT to AI adoption.

The expected business disruption from gen AI is significant, and respondents predict meaningful changes to their workforces. They anticipate workforce cuts in certain areas and large reskilling efforts to address shifting talent needs. Yet while the use of gen AI might spur the adoption of other AI tools, we see few meaningful increases in organizations’ adoption of these technologies. The percent of organizations adopting any AI tools has held steady since 2022, and adoption remains concentrated within a small number of business functions.

Table of Contents

• It’s early days still, but use of gen AI is already widespread
• Leading companies are already ahead with gen AI
• AI-related talent needs shift, and AI’s workforce effects are expected to be substantial
• With all eyes on gen AI, AI adoption and impact remain steady

About the research

1. it’s early days still, but use of gen ai is already widespread.

The findings from the survey—which was in the field in mid-April 2023—show that, despite gen AI’s nascent public availability, experimentation with the tools  is already relatively common, and respondents expect the new capabilities to transform their industries. Gen AI has captured interest across the business population: individuals across regions, industries, and seniority levels are using gen AI for work and outside of work. Seventy-nine percent of all respondents say they’ve had at least some exposure to gen AI, either for work or outside of work, and 22 percent say they are regularly using it in their own work. While reported use is quite similar across seniority levels, it is highest among respondents working in the technology sector and those in North America.

Organizations, too, are now commonly using gen AI. One-third of all respondents say their organizations are already regularly using generative AI in at least one function—meaning that 60 percent of organizations with reported AI adoption are using gen AI. What’s more, 40 percent of those reporting AI adoption at their organizations say their companies expect to invest more in AI overall thanks to generative AI, and 28 percent say generative AI use is already on their board’s agenda. The most commonly reported business functions using these newer tools are the same as those in which AI use is most common overall: marketing and sales, product and service development, and service operations, such as customer care and back-office support. This suggests that organizations are pursuing these new tools where the most value is. In our previous research , these three areas, along with software engineering, showed the potential to deliver about 75 percent of the total annual value from generative AI use cases.

In these early days, expectations for gen AI’s impact are high : three-quarters of all respondents expect gen AI to cause significant or disruptive change in the nature of their industry’s competition in the next three years. Survey respondents working in the technology and financial-services industries are the most likely to expect disruptive change from gen AI. Our previous research shows  that, while all industries are indeed likely to see some degree of disruption, the level of impact is likely to vary. 2 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. Industries relying most heavily on knowledge work are likely to see more disruption—and potentially reap more value. While our estimates suggest that tech companies, unsurprisingly, are poised to see the highest impact from gen AI—adding value equivalent to as much as 9 percent of global industry revenue—knowledge-based industries such as banking (up to 5 percent), pharmaceuticals and medical products (also up to 5 percent), and education (up to 4 percent) could experience significant effects as well. By contrast, manufacturing-based industries, such as aerospace, automotives, and advanced electronics, could experience less disruptive effects. This stands in contrast to the impact of previous technology waves that affected manufacturing the most and is due to gen AI’s strengths in language-based activities, as opposed to those requiring physical labor.

Responses show many organizations not yet addressing potential risks from gen AI

According to the survey, few companies seem fully prepared for the widespread use of gen AI—or the business risks these tools may bring. Just 21 percent of respondents reporting AI adoption say their organizations have established policies governing employees’ use of gen AI technologies in their work. And when we asked specifically about the risks of adopting gen AI, few respondents say their companies are mitigating the most commonly cited risk with gen AI: inaccuracy. Respondents cite inaccuracy more frequently than both cybersecurity and regulatory compliance, which were the most common risks from AI overall in previous surveys. Just 32 percent say they’re mitigating inaccuracy, a smaller percentage than the 38 percent who say they mitigate cybersecurity risks. Interestingly, this figure is significantly lower than the percentage of respondents who reported mitigating AI-related cybersecurity last year (51 percent). Overall, much as we’ve seen in previous years, most respondents say their organizations are not addressing AI-related risks.

2. Leading companies are already ahead with gen AI

The survey results show that AI high performers—that is, organizations where respondents say at least 20 percent of EBIT in 2022 was attributable to AI use—are going all in on artificial intelligence, both with gen AI and more traditional AI capabilities. These organizations that achieve significant value from AI are already using gen AI in more business functions than other organizations do, especially in product and service development and risk and supply chain management. When looking at all AI capabilities—including more traditional machine learning capabilities, robotic process automation, and chatbots—AI high performers also are much more likely than others to use AI in product and service development, for uses such as product-development-cycle optimization, adding new features to existing products, and creating new AI-based products. These organizations also are using AI more often than other organizations in risk modeling and for uses within HR such as performance management and organization design and workforce deployment optimization.

AI high performers are much more likely than others to use AI in product and service development.

Another difference from their peers: high performers’ gen AI efforts are less oriented toward cost reduction, which is a top priority at other organizations. Respondents from AI high performers are twice as likely as others to say their organizations’ top objective for gen AI is to create entirely new businesses or sources of revenue—and they’re most likely to cite the increase in the value of existing offerings through new AI-based features.

As we’ve seen in previous years , these high-performing organizations invest much more than others in AI: respondents from AI high performers are more than five times more likely than others to say they spend more than 20 percent of their digital budgets on AI. They also use AI capabilities more broadly throughout the organization. Respondents from high performers are much more likely than others to say that their organizations have adopted AI in four or more business functions and that they have embedded a higher number of AI capabilities. For example, respondents from high performers more often report embedding knowledge graphs in at least one product or business function process, in addition to gen AI and related natural-language capabilities.

While AI high performers are not immune to the challenges of capturing value from AI, the results suggest that the difficulties they face reflect their relative AI maturity, while others struggle with the more foundational, strategic elements of AI adoption. Respondents at AI high performers most often point to models and tools, such as monitoring model performance in production and retraining models as needed over time, as their top challenge. By comparison, other respondents cite strategy issues, such as setting a clearly defined AI vision that is linked with business value or finding sufficient resources.

The findings offer further evidence that even high performers haven’t mastered best practices regarding AI adoption, such as machine-learning-operations (MLOps) approaches, though they are much more likely than others to do so. For example, just 35 percent of respondents at AI high performers report that where possible, their organizations assemble existing components, rather than reinvent them, but that’s a much larger share than the 19 percent of respondents from other organizations who report that practice.

Many specialized MLOps technologies and practices  may be needed to adopt some of the more transformative uses cases that gen AI applications can deliver—and do so as safely as possible. Live-model operations is one such area, where monitoring systems and setting up instant alerts to enable rapid issue resolution can keep gen AI systems in check. High performers stand out in this respect but have room to grow: one-quarter of respondents from these organizations say their entire system is monitored and equipped with instant alerts, compared with just 12 percent of other respondents.

3. AI-related talent needs shift, and AI’s workforce effects are expected to be substantial

Our latest survey results show changes in the roles that organizations are filling to support their AI ambitions. In the past year, organizations using AI most often hired data engineers, machine learning engineers, and Al data scientists—all roles that respondents commonly reported hiring in the previous survey. But a much smaller share of respondents report hiring AI-related-software engineers—the most-hired role last year—than in the previous survey (28 percent in the latest survey, down from 39 percent). Roles in prompt engineering have recently emerged, as the need for that skill set rises alongside gen AI adoption, with 7 percent of respondents whose organizations have adopted AI reporting those hires in the past year.

The findings suggest that hiring for AI-related roles remains a challenge but has become somewhat easier over the past year, which could reflect the spate of layoffs at technology companies from late 2022 through the first half of 2023. Smaller shares of respondents than in the previous survey report difficulty hiring for roles such as AI data scientists, data engineers, and data-visualization specialists, though responses suggest that hiring machine learning engineers and AI product owners remains as much of a challenge as in the previous year.

Looking ahead to the next three years, respondents predict that the adoption of AI will reshape many roles in the workforce. Generally, they expect more employees to be reskilled than to be separated. Nearly four in ten respondents reporting AI adoption expect more than 20 percent of their companies’ workforces will be reskilled, whereas 8 percent of respondents say the size of their workforces will decrease by more than 20 percent.

Looking specifically at gen AI’s predicted impact, service operations is the only function in which most respondents expect to see a decrease in workforce size at their organizations. This finding generally aligns with what our recent research  suggests: while the emergence of gen AI increased our estimate of the percentage of worker activities that could be automated (60 to 70 percent, up from 50 percent), this doesn’t necessarily translate into the automation of an entire role.

AI high performers are expected to conduct much higher levels of reskilling than other companies are. Respondents at these organizations are over three times more likely than others to say their organizations will reskill more than 30 percent of their workforces over the next three years as a result of AI adoption.

4. With all eyes on gen AI, AI adoption and impact remain steady

While the use of gen AI tools is spreading rapidly, the survey data doesn’t show that these newer tools are propelling organizations’ overall AI adoption. The share of organizations that have adopted AI overall remains steady, at least for the moment, with 55 percent of respondents reporting that their organizations have adopted AI. Less than a third of respondents continue to say that their organizations have adopted AI in more than one business function, suggesting that AI use remains limited in scope. Product and service development and service operations continue to be the two business functions in which respondents most often report AI adoption, as was true in the previous four surveys. And overall, just 23 percent of respondents say at least 5 percent of their organizations’ EBIT last year was attributable to their use of AI—essentially flat with the previous survey—suggesting there is much more room to capture value.

Organizations continue to see returns in the business areas in which they are using AI, and they plan to increase investment in the years ahead. We see a majority of respondents reporting AI-related revenue increases within each business function using AI. And looking ahead, more than two-thirds expect their organizations to increase their AI investment over the next three years.

The online survey was in the field April 11 to 21, 2023, and garnered responses from 1,684 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 913 said their organizations had adopted AI in at least one function and were asked questions about their organizations’ AI use. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

The survey content and analysis were developed by Michael Chui , a partner at the McKinsey Global Institute and a partner in McKinsey’s Bay Area office, where Lareina Yee is a senior partner; Bryce Hall , an associate partner in the Washington, DC, office; and senior partners Alex Singla and Alexander Sukharevsky , global leaders of QuantumBlack, AI by McKinsey, based in the Chicago and London offices, respectively.

They wish to thank Shivani Gupta, Abhisek Jena, Begum Ortaoglu, Barr Seitz, and Li Zhang for their contributions to this work.

This article was edited by Heather Hanselman, an editor in the Atlanta office.

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Research: How Remote Work Impacts Women at Different Stages of Their Careers

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• Emma Harrington,
• Amanda Pallais

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While much has been said about the potential benefits of remote work for women, recent research examines how working from home affects the professional development of female software engineers at a Fortune 500 company, revealing that its impact varies by career stage. Junior women engineers benefit significantly from in-person mentorship, receiving 40% more feedback when sitting near colleagues, while senior women face reduced productivity due to increased mentoring duties. Male engineers also benefit from proximity, but less so. The authors suggest that recognizing and rewarding mentorship efforts could mitigate these disparities, ensuring junior women receive adequate support remotely and senior women are properly compensated for their mentoring contributions.

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• NE Natalia Emanuel serves as a research economist at the New York Fed.
• EH Emma Harrington is a professor at the University of Virginia.
• AP Amanda Pallais is a professor at Harvard University.

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