Tech Jobs: What is a Business Development Manager (BDM)
Do you know what a business development manager (BDM) is?
No? You came to the right place. In this article you will learn everything you need to know about being a business development manager in SaaS and IT. We are going into what it is, what they do, and the skills you need to land a job as a BDM.
At Wahl+Case, we have helped hundreds of people land business development jobs at some of the hottest companies in AdTech, FinTech, Consumer Tech and Enterprise Tech, so keep reading if you want to learn all about business development positions.
For a comprehensive overview of the different sales positions in tech, check out our Guide to Sales Positions in the Tech Industry 2021.
Definition of a Business Development Manager
So what is a business development manager?
First, I think it will help to define the term business development. BD or business development is the process of bringing in new customers or business lines to help a business grow. Like the name says, you are developing your business.
This could mean you need to reach out to prospects by cold calling or emailing to convert them to leads and then further nurture those leads to make sure they buy your solution.
Or if you are working for a larger company, you could be researching new trends in tech that your company will want to acquire or invest in as a way to bring in additional revenue streams.
All of these responsibilities fall under the umbrella of a business development manager.
2 Types of Business Development
Building up an Existing Business Line
Type 1 of business development is about building up an existing business line by developing leads into customers and maintaining those relationships. This is similar to a BDR, a business development representative but more expansive in scope.
For a business entering a new market, this can be the first hire. They will generate customers that will then be passed on to the second hire which is usually a customer success manager (CSM).
The big difference between being a business development manager (BDM) and a business development representative (BDR), is that you will need to close sales deals and handle negotiations yourself. You will not pass leads on to an Account Executive or another sales function.
Developing New Business Lines
Type 2 of business development is about growing a business by developing new business lines. This is especially common in larger enterprises.
You need to follow current trends in technologies, products and services to find new revenue streams. Then if you find a potential new revenue stream you have to decide if you want to build that new business line in-house or acquire an already existing company or business unit. For more details you can watch our M&A Guide with Fuminori Gunji who is an expert in this field due to his time at Softbank.
Targets and KPI
As a business development manager your general target is to grow the business. This means that your KPIs will be around revenue, deals closed, and client meetings.
Again, these could be more focused on partnerships or new revenue streams if you are working at a bigger company, but the overall goal is the same. Develop the business.
Required Skills in Business Development
Hard skills
Working as a business development manager means connecting with people.
So there are very few essential hard skills. Of course, it always helps to have a knowledge of the tech you are selling and the industry you are working in to be able to talk through any concerns your clients have.
Soft Skills
Your communication skills and listening skills will be honed in a BDM role.
You will be constantly conversing with your clients to really understand the issues that need to be solved with your solution. You will also be handling sales presentations and contract negotiations, so your communication abilities will definitely grow.
For me, when I was working in a sales role, business development was my favorite part.
I really enjoyed meeting with clients, listening to what was happening with their business, and connecting over a shared passion for the industry. There is nothing quite like the feeling of becoming a team to solve a particular problem.
Career Progression
A BDM is an essential function of any sales organization. When you develop this skill set, you can move in almost any direction in sales.
Working as a business development manager can also open doors for you to take on leadership positions. We have seen many people move into country manager or director level roles after spending time as a business development manager.
If your long term goal is to hold a leadership position, working as a BDM is a great step.
I hope this article could help you to get a better understanding of what it means to be a business development manager. Are you interested in business development positions in Tokyo’s tech industry?
Get in touch and we will be happy to share the BDM roles that we are currently working on.
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