The director of business development plays a key role in a company’s long-term success. In this role, you will spearhead the effort to find new products, services, or other activities to increase revenue.
You can use analytics, research, and experience to try to spot new trends or find gaps in existing markets that your company can fill. In some cases, these efforts can be as simple as expanding existing operations into new markets.
To thrive in this role, you need a deep understanding of your industry, the market, and customer needs. You also have to grasp your company’s goals and strengths. Both these factors can help you come up with reasonable and actionable expansion ideas.
Here is a closer look at this unique business specialty and the steps you can take to rise through the ranks to reach a director of business development position.
What Does a Director of Business Development Do?
As a business development director, you will have multiple responsibilities and work on different tasks each day.
Your core responsibilities are researching new business opportunities. This may involve looking at analytics reports or studying markets manually. You might speak with experts or industry insiders and find out more about your company’s internal capabilities from managers in other departments.
Your job will also include building relationships and negotiating with potential partners who can facilitate access to new markets. In some organizations, such as non-profit groups or service-oriented businesses, relationship building and negotiation are the primary job duties.
Business development directors also do a lot of work within the company. You’re responsible for assessing the feasibility of new ideas by communicating with the different departments and specialists who need to be involved. You’ll have to be sure your plans align with company goals and present them to executives or board members for approval.
After approval, you will usually help sales and marketing teams develop plans to take full advantage of an opportunity and increase revenue for the company. This can include reaching out to new customers or engaging existing customers to customize new services to fit their needs.
Business Development Director Salaries
Pay expectations for directors of business development can vary depending on experience, industry, company size, and location.
The U.S. Bureau of Labor Statistics (BLS) does not calculate salary statistics for business development directors. However, it does have data for all management occupations. The average salary for managers and directors is $137,750 per year.
However, the Bureau puts the range for annual pay between $54,550 and $231,620, so salary expectations can vary widely. Larger companies and businesses located in major cities may pay more than small or rural businesses. However, education, experience, and past results can command a higher salary in almost any setting.
How To Become a Director of Business Development
A business career often starts with a degree and an entry-level position. You may earn a degree in business or finance or study a subject related to your employer’s industry.Â
Entry-level jobs could include business development representative, product development specialist, account executive, or sales representative. You might also start a finance career and translate your knowledge of financial operations and planning into a business development role.Â
After gaining experience, you might move up to a mid-level role as a sales manager or business development manager in charge of a team or unit within the company. According to the BLS, this can take one to five years. Success in this mid-level role can lead to opportunities as a director.
As you climb the career ladder, you will develop leadership skills and industry-specific knowledge. You might also hone your analytical and relationship-building skills.
Key Skills Required
Like all senior roles in an organization, you need a diverse skill set to excel as a business development director.
- Leadership is essential. You will likely delegate tasks and guide teams involved in carrying out your plans.
- Communication is another important skill. You need to present ideas to company decision-makers, build relationships with partners and customers, and get departmental managers to buy into your plans.
- Research and analytical skills can bring you the insights you need to come up with development ideas.
- Knowledge of sales and marketing techniques can help you engage with customers and help your company create strategies for advertising and selling the new product or service.
Industry-specific knowledge can be vital in some sectors like IT because you will need to understand the technical aspects of new products or services.
Education Requirements
A strong business foundation is crucial if you have ambitions to work as a business development director. An undergraduate degree in business or finance can provide a solid knowledge base that you can build upon through experience. You can then build on this base through work experience or a specialized master’s degree program.
You can tailor your education for your director of business development career plans. For instance, if you want to work for a multinational company or international organization, consider a global business administration (GBA) master’s program.
Industry-specific certifications can also be useful to increase your skills and pad your CV. For instance, you could pursue one of the accreditations from the Sales Management Association (SMA).
Career Path for a Director of Business Development
The journey from an entry-level job to a mid-level management position doesn’t have to end once you reach the business development director position.
A director position could be a step on the ladder to an executive position. Advancement opportunities can vary by company. Some may have a vice president of business development or a chief business development officer (CBDO). These are typically chief suite (C-suite) positions available to business development directors who produce positive results and can continue honing their skills and expanding their network of professional contacts.
Challenges Faced by Business Development Directors
You’ll encounter challenges as a director of business development. In many industries, you may have to deal with market saturation. With too many players, it can be difficult to expand your market share. In other instances, competitors may have better research and development funding. In both these scenarios, you need to be innovative and think outside the box to come up with solutions to increase market share or expand into new markets.
Internal conflict or misalignment can also impede progress. Certain departments may not buy into your plans or may actively work against them. Analytics reports, clear strategies, and well-thought-out arguments can counteract these roadblocks and get more people to buy into your plans.
The Impact of Technology on Business Development
Business development is a fast-paced specialty. Competitors are often working on the same ideas, creating a race to get products or services to market.
Technology can help you streamline your efforts. For instance, business intelligence (BI) and analytics software can help you find trends and patterns in the market. These programs crunch data quickly, arriving at important insights in minutes rather than after days of manual research.
With the right education and a balance of analytical, technical, and business skills, you can develop the abilities necessary to apply for director of business development positions.