Business development (BD)
In short
Business development (BD) is the practice of creating long-term growth for a company by finding new partners, markets, channels, and strategic deals. It focuses on opportunities that open future revenue, not on closing a single order this quarter.
The term is used loosely. In some companies a "BD rep" is simply an outbound prospector. In others, BD means partnerships and corporate deals. This page covers the broader strategic meaning and notes where it overlaps with sales.
What business development covers
- Partnerships: Integrations, resellers, referral and co-marketing deals that give you access to another company's customers.
- New markets: Testing a new region, industry, or customer segment before the sales team scales it.
- Strategic deals: Large, custom agreements that shape product or distribution, such as a licensing or distribution agreement.
- Market research: Mapping who the right partners and buyers are and why they would say yes.
Business development vs. sales
Sales converts defined demand into closed deals with a repeatable process and a quota. Business development creates the conditions for demand, often through relationships that take months to pay off.
Sales development is a related but narrower role: it qualifies leads and books meetings for account executives. Business development is wider and more strategic.
- Time horizon: Sales is measured per quarter. BD is measured over longer cycles.
- Deal shape: Sales deals follow a standard process. BD deals are often one-off and negotiated.
- Counterparty: Sales sells to customers. BD often works with partners, who may also be competitors or channels.
How to run business development
1. Pick a clear goal
Decide whether BD exists to open a new segment, add a distribution channel, or build an integration ecosystem. Without one goal, BD turns into a list of coffee chats.
2. Build a target partner list
Define the partner profile the same way you would an ideal customer profile: who serves your buyers, with what product, at what stage. Then rank and research the list.
3. Make the value two-sided
Lead with what the partner gains, such as new revenue, a stronger product, or access to your customers. State a specific first step, such as a pilot or a joint webinar.
4. Track outcomes
Track partner-sourced pipeline, partner-influenced revenue, and time to first deal. Review stalled relationships monthly and drop them.
Example
Say a data tool wants to reach agencies. A BD lead lists twenty agency networks, pitches three on a co-branded offer, and runs a pilot with one. If the pilot produces qualified meetings, sales takes over the repeatable motion and BD moves to the next opportunity.
Common mistakes
- No owner after signing: A partnership with no one running it produces a logo slide and nothing else.
- Chasing big names: A large partner may not prioritize you. A smaller, motivated one often delivers more.
- Vague asks: "Let's explore synergies" does not move forward. Propose a concrete test.
Business development FAQs
What is business development (BD) in sales?
Business development is the work of creating new growth opportunities such as partnerships, new markets, and strategic deals. It differs from sales, which focuses on closing defined demand into revenue, and usually runs on a longer time horizon.
What is the difference between business development and sales?
Sales closes deals from existing demand using a repeatable process and a quota. Business development builds future opportunities through partners, new segments, and custom agreements. BD results often take months to appear, while sales is measured quarterly.
What does a business development manager do?
A business development manager identifies potential partners and markets, starts and negotiates relationships, coordinates with product and sales, and tracks the revenue those relationships create. In some companies the title simply means an outbound sales role.
Is business development the same as sales development?
No. Sales development reps qualify inbound and outbound leads and book meetings for account executives. Business development is broader and more strategic, covering partnerships, expansion into new markets, and larger deals that shape distribution.
