What Is a Business Development Manager, and What Do They Do

What Is a Business Development Manager, and What Do They Do?

This mid-level career role involves a combination of strategic planning, sales, and relationship management.

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You're already an ace salesperson. But do you love organizing? Resolving conflict? Do you wake up each morning ready to take a big bite out of your day? Then becoming a business development manager (BDM) might be the career move for you.

BDMs identify and pursue new business opportunities and are crucial in the role of driving a company's growth. An effective BDM excels in strategic planning, sales, and relationship management. The day-to-day activities of a BDM primarily involve managing people, mentoring team members, and making personnel decisions - all while maintaining the flexibility to solve problems swiftly.

What you'll learn

• What is a business development manager?
• What does a business development manager do?
• Why are business development managers important in sales?
• How to become a business development manager

What is a business development manager?

A business development manager (BDM) is responsible for finding and pursuing new business opportunities for a company. This mid-level career role involves a combination of strategic planning, sales, and relationship management.

In addition to sales, BDMs collaborate with other teams in the organization, including marketing and operations. They work closely with account executives, where they share intelligence, prioritize outreach, and address any challenges. To be effective, BDMs need to have an open line of communication with different teams within the organization to make sure that everyone is on the same page with strategy and long-term planning.

What does a business development manager do?

The majority of day-to-day activities of a BDM involve people management - things such as one-on-one coaching and mentoring, leading team meetings, training the organization, and personnel decisions. Managing different personalities and smoothing ruffled feathers is one of the most challenging roles of a BDM. Successful BDMs should also be able to think quickly and solve problems on the fly.

Other responsibilities of a BDM include:

• Market research: BDMs regularly analyze the market to discover new business opportunities, strategies, and partnerships. They also study the competition to see what they're doing right - and wrong - with their sales strategies.
• Strategic planning: BDMs create and execute development strategies so that their company can achieve its sales goals. They also identify target markets and potential clients and develop strategies to reach out to those groups.
• Client acquisition: BDMs build and maintain relationships with clients, partners, and stakeholders. In addition, they negotiate contracts to secure business deals.
• Sales: BDMs are the driving force behind efforts to hit a company's sales targets. You'll also find them huddling with the sales team to develop proposals, presentations, and sales pitches.
• Networking: Being a BDM requires travel and socializing - they attend industry events and conferences to promote their company, its products, and its services. Closer to home, they collaborate with internal teams to ensure alignment and support for business development initiatives.
• Performance tracking: BDMs evaluate the effectiveness of business development strategies and initiatives. As part of that, they regularly report on revenue growth, market penetration, and client acquisition.
• Training: BDMs oversee the onboarding and ongoing leadership of business development representatives (BDRs) on a sales team.

What's the difference between a BDM and a BDR?

Very often, business development managers (BDM) rise through the ranks of top-performing business development representatives (BDR). But just like in sports, the greatest players don't always make the greatest coaches. It's not just about the person who's best at playing the game - but the person who also excels at working with other players.

BDMs and BDRs are both crucial to the growth of a company's sales. However, business development managers have a broader and more strategic role within an organization, while business development representatives have a more focused and tactical role. BDMs drive the company's overall strategy, while BDRs ensure a steady flow of new prospects into the sales pipeline.

Business development representatives are in the trenches. They're doing the cold calling, and they're primarily responsible for generating leads and qualifying prospects. BDRs are usually entry-level or mid-level positions. They often work at the top of the sales funnel, reaching out to potential clients to set up meetings.

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Why are BDMs important in sales?

Business development managers are key players in sales for three main reasons. First, the number one job is the ability to manage people. Typically, BDMs are managing a team of BDRs. A good BDM will check in to make sure their people are on track with their prospecting and account planning and are following S.M.A.R.T. sales goals.

Second, BDMs stay on top of what is happening with different teams across the company. They gather intelligence. For example, a BDM will work with the marketing team to find out what campaigns are in play, what leads are developing, what messaging is being used, and what content needs to be leveraged. Then, the BDM will work with the sales team in terms of prioritizing outreach. BDMs also take full advantage of their customer relationship management (CRM) platform - using the technology to surface insights, reveal which leads to prioritize, and see what marketing campaigns are in flight. They also advocate for their BDRs and resolve challenges or problems that crop up.

Finally, BDMs focus on internal performance management. Is everybody hitting their goals today? If not, why not, and how do we fix it? If a team member is struggling and missing quota, the BDM figures out how to help.

A good BDM will also be proactive in putting out small fires before they become big ones. That can mean anything from resolving disputes between team members to reviewing activity in the CRM - monitoring customer relationship dashboards, finding issues in the metrics, and then diagnosing and solving those problems.

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How to become a business development manager

A successful BDM is an expert in the sales process. They're tech-savvy and comfortable working with CRMs, outreach platforms, and analytics tools. They also see the big picture and understand what's happening in the greater business world, quickly adapting to market changes.

A typical career path for a BDM is a candidate starting with an entry-level role in sales or marketing. After getting comfortable closing deals, the candidate will move on to mid-level roles such as sales manager, or marketing manager. After demonstrating consistent success in driving business growth, the candidate will graduate to becoming a BDM.

Successful BDMs are proactive. They stay up to date with trends in their industry by attending workshops, seminars, and online courses.

Skills and qualifications needed to be a BDM

Interviewers recruiting BDMs want candidates who understand the company's mission and are knowledgeable about their business. One of the most important skills a business development manager needs is the ability to create consistent playbooks. Often, BDM will supervise BDRs who use repeatable processes. A good BDM will be very data-driven - constantly enforcing, building, and tweaking those playbooks.

Typically, you need to have a bachelor's degree in business administration, marketing, or a related field. It's helpful to have three to five years' experience in sales, marketing, or business development roles. Some companies may even require BDMs to have an advanced degree, like an MBA.

Other key skills and qualifications that BDMs need include:

• Communication: Strong verbal and written communication skills. Ability to build and maintain relationships with clients, partners, and internal teams.
• Negotiation: Proven track record in sales and the ability to close deals. Strong negotiation skills to secure favorable terms and agreements.
• Networking: Joining and participating in professional organizations such as the Association of Business Development Professionals (ABDP).
• Certifications: Secure professional development certifications, such as Certified Business Development Professional (CBDP) or Certified Sales Professional (CSP).
• Project management: Ability to manage multiple projects simultaneously and meet deadlines. Strong organizational skills and attention to detail.
• Breadth of knowledge: Understanding of the industry in which the company operates, including market trends, competitors, and customer needs.
• Adaptability: Ability to adapt to changing market conditions and business needs. Strong problem-solving skills to address challenges and identify opportunities.

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How to prepare for an interview to be a BDM

When interviewing for a BDM role at a company, be prepared to share your personal story. Why will you succeed in the role? Demonstrate specific knowledge about the company, and ask relevant questions.

Enlist a friend to conduct a mock interview with you. Sit down and answer questions that you may typically be asked during a real interview. Record the mock interview and take notes on where you can improve. Practice your answers until you feel confident - but not to the point where you sound over-rehearsed.

Here are a few examples of questions you may be asked in an interview:

• What experience do you have in business development?
• Can you describe a successful business development project you've led?
• How do you identify new business opportunities?
• How do you build and maintain relationships with clients?
• Describe a time when you successfully closed a significant deal.
• How do you handle objections from potential clients?
• What's your approach to negotiation?
• Describe a time when you led a team to achieve a business goal.
• Tell me about a situation where you failed and what you learned from it.

When I interview prospective BDMs, I look for enthusiasm. Are they genuinely excited to be there? I find that the best interviews are when candidates have a strong story about themselves - and they know where they want to go in their careers.

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Business development managers bring big energy

The role of a BDM is crucial for driving a company's growth. That means positive energy. If you don't bring that, it's going to affect the rest of the team. And your team needs excitement and attitude to solve problems and collaborate. That's not just business development - it's team development. And the best teams win by working together.

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John Fernandez is a revenue marketer with twenty-three years of experience driving hundreds of millions of dollars in B2B SaaS pipeline and tens of millions of dollars in ARR globally and across prime industry verticals. John has led organizations through $1.4 billion in equity events between Seed,... Read More Series A, Series B, Series C (2x), Series D, Acquisitions (3x), and IPO. He is a speaker at premier industry events such as Dreamforce (3x), SiriusDecisions Summit, and Content Marketing World. He is also winner of the Gold Stevie (2x) and Bronze Stevie.