In today’s competitive, interconnected business world, organizations must develop mutually beneficial relationships with both customers and other businesses to thrive. That’s precisely where the business development field comes into the picture. Business development is a unique niche of sales and marketing. It focuses on devising strategies for achieving long-term growth. Business development managers have the hefty task of generating new business opportunities that will help the company outpace its competitors. It’s a senior-level position. Business development managers strive to increase the sales margins and maximize revenue for the entire organization. Whether working in the public or private sector, business development managers must locate, develop, define, and negotiate business relationships that are profitable. The following is a detailed job profile to showcase what you can expect from focusing your career in business development.
Salary
According to the giant salary database Payscale.com, the average annual base salary for business development managers employed across the United States is $72,422. This equates to a mean hourly wage of $37.21. Like other sales professionals, business development managers typically are eligible for:
- bonuses
- commissions
- profit sharing
- other benefits
These can bring total yearly compensation across the six-figure mark to $101,801.
Beginning Salary
When just starting out in the business development field, individuals can expect to land in the bottom tenth percentile of earnings with a yearly salary around $42,636. While this may seem low, it’s important to remember that business development managers and directors with several years of leadership experience often make upwards of $135,328 annually later in their career.
Key Responsibilities
Business development managers have the main responsibility of facilitating the financial growth of their company. They do this by creating the pipeline through which new business can be generated. On a typical day, business development managers may be involved in:
- writing proposals
- conducting competitive analysis
- contacting new clients
- designing new marketing campaigns
- collaborating with the sales team
- developing plans to capture new opportunities
- setting objectives with top executives
Business development managers often will devise training programs or workshops for motivating employees to perform at the most profitable level possible. Business development managers also work to continually enhance their organization’s reputation in the marketplace and spur increased sales revenue.
Necessary Skills
To be successful in the fast-paced world of business development, you’ll need to have highly effective communication skills for:
- networking with other departments
- pitching strategies to executives
- discussing the company with other businesses
Leadership skills are essential. Business development managers need to evaluate how the company’s sales staff is performing and find areas for improvement. Having a detail-oriented mind with analytical abilities is another must. Business development managers must interpret complex data on how the company is performing. It’s also important for professionals in business development to be creative in developing strategic plans and possess solid project management skills.
Degree and Education Requirements
For entry into the business development field, candidates typically need to have at least a four-year bachelor’s degree from a regionally accredited institution. Most aspiring business development managers choose to earn their undergraduate major in one of these:
- business administration
- management
- finance
- accounting
- marketing
- statistics
- communications
Also helpful is taking elective coursework directly related to:
- sales
- market research
- economics
- international business
- business development
- client pipeline management
- strategic planning
It’s often preferred that business development managers have attended graduate school to fine-tune their skills. Earning a Master of Business Administration (MBA), Master of Science in Finance (MSF), or Master of Science in Management (MSM) will be very beneficial.
Pros and Cons of the Position
As with any other business career, choosing to become a business development manager will come with its fair share of advantages and disadvantages. On the plus side, working in business development offers professionals a chance to use their creativity in a way that promotes fiscal growth in their organization. Business development managers have the emotional reward of making a real impact on the success of the company. There’s also a great deal of money involved with a decent salary and the potential to land lucrative commissions.
On the other hand, business development is a stressful field. Managers are challenged to create effective plans or cause the company to sink. A business development manager needs to be a “people person,” which makes it a bad path for the introverted. Business development also requires long hours that extend beyond the traditional 40-hour week to evenings and weekends.
Getting Started
Many organizations prefer hiring business development managers who have at least three to five years of work experience in sales and/or marketing. That means you should get a head start by building your resume with:
- internships
- part-time work
- volunteer service learning experiences
Do these while earning your bachelor’s degree. Before being promoted to the management level, you may need to get your start as a:
- sales representative
- purchasing agent
- advertising associate
- financial analyst
- public relations specialist
Earning a graduate degree online or part-time is a great option because you won’t need to put your career on hold. You should also consider bolstering your professional credentials for advancement by becoming a Certified Business Development Expert (CBDE). This will involve:
- having a master’s degree
- completing a training program
- passing a certification examination
Future Outlook
According to the Bureau of Labor Statistics, employment growth in business and financial occupations is projected to be slightly better than average at 12.5 percent in general. It’s expected that the job openings in business development will grow even faster thanks to the increased need for companies to develop:
- alliances
- partnerships
- customer connections
All these are needed to compete in the global marketplace. At the same time, job seekers in business development often find themselves in a tight market bursting with more business graduates than openings. For the best chances of success, business development managers should earn a master’s degree and build years of experience. Jobs will be easier to find in rapidly expanding industries, such as:
- healthcare
- pharmaceuticals
- biotechnology
- computer systems design
Overall, business development offers an exciting career path for professionals seeking to blend their passion for marketing and sales with strategic financial analysis. Business development managers are continually seeking to identify new sources of revenue by:
- creating partnerships
- devising product or service offerings
- finding ways to reach other markets
If you make the decision to work in business development, you’ll have the unique opportunity to play a prominent role in keeping a company performing at its most profitable level.
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