Business Development: Strategy and Growth Guide (2026)

Business development is the process of finding new opportunities to grow your business, whether through new customers, new partnerships, or new ways to make money. 

And even though it’s usually associated with big corporate companies, it’s also crucialfor small businesses and early-stage founders who want to build momentum and feel like they have a concrete plan for growth. It gives you direction, helps you make smarter decisions, and keeps you moving toward the kind of business you actually want to run.

In this guide, you’ll learn what business development includes and how to build a strategy that moves your business forward.

What is business development?

Business development is the process of identifying and pursuing opportunities that align with your long-term goals. That might mean researching new markets or audience segments (like a skin care brand exploring the male grooming market), experimenting with new products or services (like a bakery adding corporate catering or subscription boxes), or forming strategic partnerships (like a wellness startup teaming up with a local gym for a co-branded event). 

It includes any activity that intentionally pushes your business forward rather than just keeping it running.

The goal of business development is simple: create long-term value. While near-term opportunities can bring in quick wins, business development asks you to zoom out and decide what you want your business to look like in the future. 

Branch is a great example of business development in action. Instead of just trying to sell more furniture, they stepped back, took a critical look at their business, and fixed the systems holding their growth back. 

As the team expanded into both direct to consumer and B2B, their marketing and business operations were bottlenecked by technical dependencies. Basically, every discount, checkout tweak, or pricing update required a developer. So they made a strategic move and adopted Shopify Extensions to give non-technical teams control over complex promotions and checkout experiences. 

Business development vs. sales vs. marketing

There’s a big difference between business development and marketing and sales. People often mix these three terms up because they all support growth, but they play very different roles. Marketing gets people interested. Sales gets people to buy. Business development looks for the bigger opportunities that move the whole company forward.

Here’s how they differ at a glance: 

Marketing

• Creates awareness and gets the right people paying attention.
• Uses content, campaigns, social, ads, email, etc.
• Focuses on attracting and educating potential customers.

Sales

• Works directly with prospects to close deals.
• Handles demos, objections, negotiation, follow-ups.
• Focuses on converting interest into revenue right now.

Business development (BD)

• Identifies long-term opportunities and strategic growth paths.
• Looks at new markets, partnerships, product opportunities, and revenue streams.

Here’s how the three functions played out for Our Place.

• Marketing meant building brand awareness through storytelling and movement. Their mission (“bring people together through home cooking”) plus influencer and social campaigns helped the brand go viral with their signature product, the Always Pan.
• Sales, meanwhile, converted that interest into actual purchases, whether through their DTC Shopify store or via retail-partners. Their streamlined checkout experience, unified online and in-store commerce, and international launch across multiple continents show how the operational side of getting people from “interested” to “owning the product” mattered.
• Business development meant identifying new markets (they expanded into Australia, Canada, the UK) and building strategic partnerships (retailers, distribution, platform integration). 

Essential business development skills

You don’t need to be an expert in deal-making to do business development well. But it doeshelp to master a handful of practical, high-impact business development skills that help you spot opportunities, build relationships, and guide you toward long-term growth. 

So, what skills do you need for business development? 

Data analysis

Business development often means looking for patterns, signals, and growth opportunities, so an analytical mindset can be helpful. In fact, seven out of 10 companies consider analytical thinking a top skill.

As a business owner, you’ll likely have tons of data at your fingertips. Analyzing this data will help you spot what’s working (and what isn’t) so you can make smarter moves. 

To do this, pull together data from market reports, your CRM, website analytics or partner trends. Then, ask questions like: 

• Where is the gap? 
• What segment is underserved? 
• What campaign delivered the best return on investment (ROI) this quarter?

You can use these insights to shape new opportunities or tweak your approach.

Market research

Growth doesn’t happen in a vacuum. You need to understand your market, your competitors, your potential partners, and your customer segments. 

There are many ways you can better understand your market, including: 

• Reading industry reports
• Surveying potential customers (or existing customers)
• Exploring adjacent verticals
• Mapping competitor moves 

Once you’ve uncovered what your market wants and needs, you can use it to fuel decisions about which products to test and which partnerships to pursue. 

Building relationships

A large part of business development is opening new doors—and most doors open through trust, connection, and shared goals. According to a recent guide, relationship-building is a key soft skill for business development managers. 

This goes beyond exchanging business cards. Building relationships is a healthy mix of nurturing conversations, understanding pain points, following up after meetings, and finding a way to align your business’s goals with distribution partners, suppliers, collaborators, and more. 

Problem-solving

The unwritten rule of business is that markets shift and unexpected obstacles arise (supply chain, tech, regulation, budgets, you name it). Business development isn’t so much about selling more products, but figuring out how to increase sales in the face of challenges like price increases or higher ROI demands. 

You might notice your current product isn’t hitting the mark in a given market.

Instead of giving up, you can ask: 

• What tweaks can we make? 
• What partner can we bring in? 
• Could we bundle differently? 
• Could a new channel work better? 

Strategic planning

Business development is mostly concerned with unlocking long-term opportunities, and that means aligning growth with your long-term vision and goals. 

When carrying out business development activities, you’ll need to know where you want to be in 12, 24, or 36 months, be able to define key business milestones, and decide which markets or channels to prioritize as well as allocate resources accordingly. All of this requires a strategic mindset and the ability to plan ahead in detail.

Essential business development activities

• Market research and analysis
• Product development
• Partnership strategy
• Financial planning
• Industry research
• Customer relationship management
• Brand management
• International business development

Although it often targets business expansion, business development can pursue cost reduction, talent acquisition, customer satisfaction, or other initiatives to improve your business’s competitive advantage.

Strategic business development often involves multiple areas of operation. Here are eight common business development activities:

Market research and analysis

Business development teams use market research to track market trends and identify any unmet needs. They can also explore new markets and use market analysis to evaluate profit potential.

Mokobara started with a strong business idea (stylish, functional luggage) but quickly realized that the real growth wasn’t going to come from simply launching another bag. It dug into its data and market feedback to find that its customer experience needed improvement, conversion rates were stagnant, loyalty was an untapped asset, and it wasn’t making the most of international markets.

The brand used these insights to pivot its strategy. It built a loyalty program (because loyal members delivered three times higher sales than non-members) and expanded into new markets with dedicated stores and B2B offerings for wholesale.

Product development

Product development teams use customer feedback to tweak products while simultaneously scanning the horizon for what’s next. Today, that often means paying attention to emerging tech and figuring out how they can genuinely improve the customer experience rather than just adding new, shiny features. 

That could look like using AI to streamline a clunky user flow, adding smart integrations to make tools talk to each other, or experimenting with new materials, automations, or sustainability tech to create something that meets today’s customer expectations. 

“We invented so many things that people use today in the outerwear world that they don’t even know came from us,” says Eran Elfassy, Founder of Mackage. “It’s because we dared to test stuff to make mistakes at the same time. Some things worked well, some things didn’t work, but when something worked, we just made it even better. And when it didn’t work, then we moved on to the next thing.”

Partnership strategy

Strategic partnerships help businesses reach new audiences and do things they couldn’t realistically do alone. And partnerships come in all shapes and sizes:

• Distribution partnerships (where someone helps you get your product into new regions, retailers, or platforms)
• Co-marketing partnerships (think content swaps, joint campaigns, or bundled offers that help you reach each other’s audience)
• Technology partnerships (integrations, plug-ins, add-ons, or product collaborations that make your solution more valuable)
• Referral partnerships (where partners send warm leads your way in exchange for commission or reciprocal value)
• Service partnerships (teams that complement your offer and create a more complete experience for customers)

Your business development reps should be out in the world spotting these opportunities. They’re attending conferences, networking with industry peers, joining panel events, reaching out to potential partners, and generally building relationships with interesting people in your business field. 

But not every partnership is worth your time, so it’s important to evaluate them properly. A good partnership should meet most if not all of these criteria:

• Audience alignment. Do they reach the people you want to reach?
• Value exchange. Is there a clear win-win, or is one side doing all the heavy lifting?
• Strategic fit. Does it support your long-term direction?
• Operational feasibility. Do you have the capacity to execute this?
• Cultural compatibility. Do they work in a way that feels aligned with your values and how you do business?
• Clear metrics. Can you measure success (e.g., leads, sales, reach, retention, or engagement)?

Financial planning

Business development can also involve acquiring and managing the financial resources needed to reach a goal. Development activities involve pursuing investment capital, applying for grants, and long-term financial planning.

Industry research

Business development professionals monitor industry developments and adjust strategies to protect market position as needed. They can also anticipate the impacts of emerging technologies or major global events and look for opportunities to strengthen your position.

This is exactly what Liah Yoo, founder of KraveBeauty did. “A lot of the brands are selling 10 products to one person, whereas I think the beauty companies should focus more on how we sell one product to 10 people,” she says on an episode of Shopify Masters. “And that mentality kind of dictated our entire way of operating of how we launch products or how little we launch products or how slow we launch products or even how we communicate to our customers.”

Customer relationship management

Customer experience teams build strong relationships with clients, improving your competitive position and growth potential. They’re also responsible for gathering customer feedback, which can support other business development efforts like product development or audience research.

Brand management

Your business development team can work closely with marketing to protect your company’s reputation and shape long-term brand value. Business development reps are usually out in the market talking to partners, prospects, and industry peers—learning what people love, what they’re confused about, and where your competitors might be edging ahead. 

Marketing can use those insights to adjust messaging, build trust, or double down on what’s resonating.

For example, let’s say your business development rep attends a retail industry conference and keeps hearing the same feedback that potential partners love your product, but they think your onboarding process is complicated. 

They bring that intel back to the marketing team, who then create a new onboarding success campaign with case studies, walkthrough videos, clearer website copy, and social proof targeted at retailers. Meanwhile, business uses that content in partnership conversations to reassure prospects and close bigger, longer-term deals.

International business development

International business development takes what already works in your home market and thoughtfully expands it into new countries while being mindful of regulations, cultural norms, or logistics. 

There are a few things to bear in mind when you’re thinking of expanding business internationally: 

• Product regulations. Different countries have different standards for safety, labeling, ingredients, materials, data handling. That means you might need new certifications, region-specific compliance checks, or changes to packaging before you can sell.
• Documentation. Customs forms, VAT or GST registration, local tax IDs, import licenses, product testing reports … the list varies widely depending on the market.
• Market entry strategy. Are you going direct to consumer? Partnering with a distributor? Opening local retail? Licensing? Joining a marketplace? Business development teams usually own that analysis by evaluating demand, competitive landscape, local buying habits, and which routes give you the quickest, most sustainable path to traction.
• Cultural considerations. What resonates in one country might fall completely flat in another. Colors, messaging, delivery expectations, payment preferences, and customer service norms shift from market to market. Business development teams often lean on local partners, on-the-ground research, or cultural consultants to make sure the business feels native. 

How to plan and implement a business development strategy

• Define your value
• Calculate TAM, SAM, and SOM
• Conduct market research
• Perform a SWOT analysis
• Determine budget and goals
• Create your plan
• Implement strategies
• Measure and adjust

An effective business development process starts with taking a clear look at where you are today and follows a series of intentional business development steps that guide you toward your long-term goals. 

Here’s how to create a business development plan that helps you meet them:

1. Define your value

Revisit your business’s value proposition and market positioning. Your value proposition is a statement that articulates the unique benefits you provide to customers. Market positioning is how your value proposition differentiates you from competitors. The most effective propositions are brief, specific, and authentically reflect your company’s core strengths.

If you don’t have a value proposition, create one. If you do, confirm it accurately reflects your unique value. Then evaluate your market position, taking note of which type of positioning strategy your company uses and how effectively it differentiates you from competitors in your market.

2. Calculate TAM, SAM, and SOM

Effective business development requires a high-level understanding of your market and industry.

Start by calculating the following:

• Total addressable market (TAM): Your total revenue if every potential customer bought your product or service.
• Service addressable market (SAM): The portion of TAM that you can realistically target and serve.
• Service obtainable market (SOM): The portion of SAM you expect to capture.

Comparing these figures to each other and to your actual revenue can help you identify market opportunities. Consider the relationship between SAM and SOM, for example. If SAM is significantly larger, there’s room for your company to grow: You aren’t serving every customer as you theoretically could.

If SAM and SOM are equal, you’re already serving every customer you can under your current business model. You might therefore develop new products or expand geographically to claim a larger percentage of TAM.

3. Conduct market research

You can’t plan for the future without a solid, detailed understanding of your current market and where it might be heading. Market research helps you map that future.

Use primary and secondary research tactics to gather data about the customers and companies in your target market. Primary research includes focus groups, surveys, customer observation, and interviews. Secondary research relies on sources like trade journals, government reports, and industry analyses. You can also conduct a competitive analysis to gain insight into the competitive landscape.

Here are some of the questions you’re trying to answer:

• What customer groups make up my target market? What are their primary needs, pain points, and decision drivers?
• Who are the major players in my market? What value do they offer, and how does it differ from the value my company offers?
• Are there any unmet needs in my market?
• How do customers perceive my company and product?
• How is my market changing? What external factors influence market dynamics? What will my market look like next year, or in five or 10 years?

4. Perform a SWOT analysis

A SWOT analysis (short for strengths, weaknesses, opportunities, and threats) is a strategic planning tool that helps businesses minimize risk and identify growth opportunities. It helps you understand where you stand now and where you could go next. 

The process involves answering questions like, “What advantages do we have over our competitors?” and, “What external factors could harm us?” Multiple perspectives maximize the benefit, so larger businesses often involve department leadership in the conversation. Smaller businesses can invite input from industry peers or hire a consultant with business-development and market-specific expertise.

Let’s say you’re running a DTC brand and you’re considering expanding your product line into a “premium sustainable” sub-brand. You might use this SWOT table:

• Strengths: You already have a loyal customer base, strong brand positioning, and excellent online store conversion rates.
• Weaknesses: Your supply chain for premium sustainable materials is untested, you haven’t yet marketed to high-end buyers, and you lack experience in premium pricing.
• Opportunities: Rising consumer demand for sustainable goods (especially premium eco-friendly options), competitor brands are slow to offer this premium tier, and you could partner with eco-certification bodies or influencers.
• Threats: Premium pricing might limit volume, sustainable suppliers may raise costs, and economic downturn could reduce willingness to pay more.

From here, you see that one of your weaknesses (untested supply chain and a lack of premium buyer experience) can be turned into an opportunity if you partner with a certified eco-supplier (turns weakness into opportunity) and pilot a limited edition launch to your most engaged customers (minimizes threat of pricing failure). 

5. Determine budget and goals

Set clear primary goals for your business development strategy using the SMART goal framework, to define specific, measurable, attainable, relevant, and time-bound objectives with specific key performance indicators (KPIs). Then work backward to identify subgoals, or targets you need to meet along the way. For example, if your primary goal is doubling revenue in three years, you might aim for an increase of 20% in the first year and 55% in the second.

Intermediary targets help you stay organized and evaluate your progress. Avoid choosing a strategy for now, but incorporate concrete, measurable sub-goals that provide direction, like “Open two new markets in year one.”

Once you know what you’re trying to accomplish—and in what timeframe—set a budget for your business development activities. Consider available resources, urgency, and expected return on investment (ROI). Successful strategies can take time to pay off, so think of business development as a long-term investment, and reserve plenty of capital to keep your company running in the meantime.

6. Create your plan

Create a business development plan, factoring in your budget, SWOT findings, and market research. The complexity of this step depends on your goals. You might create a one-page document outlining how you’ll reduce overhead expenses. Or you might write a 10-year strategic plan charting your path from small made-to-order cookie business to major consumer packaged goods (CPG) retailer.

Here are six tips for creating your business development plan:

Keep it simple

You can break any planning process down into two activities: brainstorming and analysis. First, think of every possible way to reach your goals, then use cost-benefit analyses to weigh the options.

Move large to small

Start with your end goal and work backward, adding broader goals before more specific ones. The aspiring CPG company might start with intermediate revenue targets and then add general goals. These might be “Scale up manufacturing” and “Ship products nationally,” sequencing and spacing them over the 10-year time frame. It can create a more detailed plan for the near term (e.g., the first six months or year.)

Assign responsibilities

Determine who is responsible for implementing strategies. If your business development team includes employees from other departments, you can also nominate a team lead or project manager to monitor workflows.

Write it down

Record your decisions, including goals and subgoals, dates, metrics, tactics, channels, and responsibilities.

Plan to regroup

Schedule your next meeting at a strategic interval. It should be distant enough to allow substantial progress, but soon enough that team members won’t have to make strategic decisions alone.

Bring in help

The bigger your goal, the more complex the planning process—so if you’re shooting for the moon, consider hiring business development professionals to help.

7. Implement strategies

Put your plan in motion. Business development is a long game, so strike a balance between losing track of your strategy and clogging your day-to-day operations with business development tasks.

Small businesses might block off one to two hours a week for business development activities. You could reserve the same amount of time for business development team members and ask them to schedule development-related conversations during that period.

8. Measure and adjust

Use your KPIs and intermediary goals to monitor your progress. If you fall short, identify the reason and adjust your strategy.

If you repeatedly struggle with a certain metric, ask yourself whether you can meet your long-range goals given current performance. If so, adjust your plan to reflect your new expectations for that metric. If not, revisit the planning stage and identify a path that doesn’t rely on the area that’s holding you back.