Over the years, I have been losing the charm that words exerted on me, which gives me a feeling of liberation.
Despite the latter, days ago, we exchanged concepts with a colleague (consultant and trainer) on business development. She circumscribed it as something purely commercial. I had my qualms. I feel that when I speak of developing I am referring to, coinciding with Ernesto Sábato, «taking out what is latent«.
Following this line of thought to begin a development process I must discover the latent, otherwise one should speak of commercializing what there is. Taking advantage of the richness of our language, I think we should call things by their name, which has, let us not deny it, the advantage of avoiding future emerging conflicts of misunderstanding.
In addition, calling bread bread and wine wine, allows us to walk with light luggage. What sense is there in masking what we do or will do. Always, in installments or in cash, life takes its toll on us (Serrat).
Development gives me the idea of what there is to discover, the unknown, the new. The commercial is that which allows us to be where we are and even, if we want, to finance the possible discovery. Developing refers me to an adventure, selling to a vital process. In every startup, a company must develop its business, to lead to sales. I feel development as the primary and sale, as the consequence.
Generally when sales decline, for whatever reason, resuscitation actions are required. The businessman decides to increase his turnover and for this he chooses to attract more clients. The latter is simple, keep doing what you do and your offer reaches a greater number of potential customers. If you can capture them, you will increase your turnover.
When you think about developing new businesses, you need to position yourself in a different place. We are not looking for new clients, we are launching into the adventure of seeing what we can do with what we have. This is independent of the chosen market. We go out looking for opportunities, not clients. I imagine the difference between a sales man and a development man. The sales team carries samples of the products, price lists and some prior knowledge of what is happening in the market. The development man has a blank notebook, his hands in his pocket and his eyes and ears very alert. The sales team is prepared for the fight, the development team, for walking, seeing and listening.
The sales man sells what he has to sell. The development one polls the market to detect opportunities that it can access. Development has more to do with a potential bridge between the market and the company. The sale is the concrete bridge between the company and the market.
I will use an example. An Italian SME company that produces diamond blades for cutting marble and granite wanted to expand its market and attract customers in Latin America. The competition was great and the potential clients not so many (the region is not very strong in the exploitation of natural stone). In the midst of a market study, it was found that a few customers were consuming diamond blades for cutting ceramic and porcelain tile. When transmitting it, the company was not interested in this type of business. By my nature, supported by one of the owners, we began to investigate who were the companies that supplied these records and the quantities they sold. Shortly after we discovered that it was only a couple of (Italian) manufacturers that were offering these records to the Latin American market,but also Italian (very important). At the same time, in Italy, the company was competing hand in hand against its competitors. Since it had a good market share, it was a target that everyone was aiming for (as there are so many who attack at the same time, the chances of "stealing" a client are very high). Since the situation had become complicated, the managers agreed to do some tests and make some ceramic discs. The result was excellent. The same machinery and technology were used. Most importantly, they generated a high gross profit margin. Today, they sell a good quantity of ceramic discs in the internal and external market. They have modified their product mix and with it: the high dependence they had on their traditional products. Colloquially stated:they distributed the eggs in different baskets.
If we had tried to sell what there was, the business would have been of little relevance. A new business was started that made it possible to complement the existing one and, at the same time, strengthen the company's position during the attacks of its traditional segment competitors.
Go these lines as a memory of an adventure shared with my friend Fernando Ferrari, who when he started it called it "the bet on hope".
Every development contains the hope of bearing fruit. Once development is achieved, it will be the sales man who will continue with the attention of the started businesses. The man of development will go his way, alone, looking for opportunities. Ultimately, the company is made up of all, integrated in pursuit of a common goal, not to let out what is latent and once this is achieved, not to let what has been lost.
The differences should not be forgotten. If business has started in a new market, the developer must continue his role in a new one, otherwise he will devote himself to selling what there is and the development is finished.
