Business Development vs Sales: Don’t Get Caught in the Trap
There are many jobs posted for business development managers but when you read the job description it’s clear that the employer intends to hire salespeople. We see titles like Life Advisor, Personal Banker, and Global Accounts Manager, but the job descriptions call out objectives for increased insurance policies, loan applications, and revenue. Why does this happen?
1. Management doesn’t distinguish between business development and sales
2. Many great business people don’t want to be labeled as sales professionals
The problem is that whether you’re leading an entrepreneurial venture or an established enterprise, business development and sales are different roles, and you need both done well. Let’s define them.
Business development – With any business you must have an environment in which you can do said business. When launching new products or services, you need business development to create an environment that allows you to sell. Tesla is a good example. While the automotive industry existed, selling luxury electric cars that are as much computer as car, did not. Elon Musk had to create an environment in which this new phenomenon could be sold.
One of the many business development goals was to create an infrastructure such that electric cars could be more than short-range, commuter vehicles. He developed business relationships with utilities to enable home charging. He built a channel of retailers, restaurants, etc., that saw the benefit in funding “destination chargers” for use by their patrons. Now, Tesla owners can easily find charging stations along most major highways in the United States. Musk created the business environment in which he could do business. The Motley Fool – Elon Musk: Tesla Charging Stations Will Be “Virtually Everywhere”
Sales – Once you have the environment in which to do business, you can then identify the right people to whom you must sell. In Tesla’s case, they aren’t called salespeople, but they connect with the people who make decisions to be the most visible, credible, viable, capable, and reliable provider of electric cars. After creating an attractive product, and the necessary infrastructure, they used modern marketing methods to increase visibility thus enabling their people to connect with qualified buyers.
Tesla showrooms and social teams are staffed with highly trained people to demonstrate and educate on Tesla features. They help people see the benefits of being a Tesla owner such that want becomes need, making Tesla a viable option. They are capable of appealing to people’s personal motivations for buying whether its safety, simplicity, rewards, recognition, or revolution. Lastly, their customer support culture emphasizes transparent communication with both existing and prospective customers. USA Today – Why Tesla Has the Most Loyal Customers
Don’t get caught by the business development vs sales trap. Hire great business development people and great salespeople who want to sell. Clearly distinguish your expectations for each and you’ll have focused employees getting great results.
©Rick Wong – The Five Abilities® LLC