Streamline your b2b sales development in loan agreements with airSlate SignNow

How to create outlook signature

business development versus sales in this video we're gonna talk about the difference between the two how each of them work and which one you should focus on in your business what's going on everybody my name is Patrick dang and welcome to my channel where we're gonna talk about modern sales strategies to turn total strangers into pain customers now the first thing we got to do is we got to define sales and business development so let's go ahead and start with sales first now for this particular video I'm gonna be talking about b2b sales business-to-business sales and the definition we're gonna use for b2b sales is it's basically a sales model where a business sells their product or service to another business and this typically happens either over the phone in person or over email some important things to note about business-to-business sales is that it's usually more transactional versus short ejek and we'll talk more about that in this video and when you're doing b2b sales usually the product or service that you're selling doesn't really change you have what you have and somebody will buy it and to generate more money with b2b sales you either have to sell more of the same thing renew a customer or sell related products similar to the first thing that you sold now that you understand a general definition of business business sales I'm gonna give you a concrete example to help solidify your understanding now one of my first sales roles that I ever had was actually a sales internship at a street where sales agency so basically there would be these big brands that would come to this agency and say hey agency can you help get my products in stores retail stores across America right so I was part of the sales agency as an intern and so we worked with brands like encase g-shock Marshall super Footwear so all these different street wear brands at the time so basically this is how it generally works right you have sales people that work at this agency so let's say you get one sales person so they might be in charge of one brand or they might have multiple brands depending on the situation but let's say you they have one brand right so one person might be a salesperson for the brand G shy the G Shock watches and what they're gonna do in their assigned territory right it could be something like the west coast or certain states in America they're in charge of finding out who would be the best fit to buy these products so they might say ok let me reach out to all the surf shops in California and see if they want to carry our watches let's hit up all the malls or all the skate shops right so basically this salesperson is doing anything they can to get in contact with all these different stores from large retail chains to mom-and-pop shops and what they're gonna do as a salesperson is you know cold call sending cold emails meet these people at trade shows and meet with him in person and try to sell the product there and this is very straight forward sales example right you have a certain product whether it's like a watch or clothing or any time a product or even service in a matter of fact and then you go out to all these potential customers and you see whether or not they want to buy your product or service the product or service doesn't change you have what you have and if people buy they'll buy if they don't want to buy it it's okay and if they want to buy more over time you'd either just renew the customer and that's pretty much how that works and from a sales example if you want to generate more sales typically what's gonna happen is you're gonna have to hire more sales people right because if you're a sales person you can only talk to so many people in a day and if you want to start expanding you're gonna need more people to do the same type of sales activity and just start dominating your territory so that's a b2b sales we're gonna put that into one bucket and now we're going to talk about business development now the definition a business development is essentially the process of developing growth opportunities and relationships with other organizations how it's different from sales is that it's a lot more strategic versus transactional and I'll talk more about that and you're essentially developing opportunities for growth it's not as if you're just selling something in as many as possible it's really more about building a partnership and long term relationship that benefits both sides so let's go ahead and take a modern example right so recently there's been some news that easy the brand by Kanye West is doing a collaboration multi-year deal with Gap right and for those of you who may not be familiar gap is a very large clothing manufacturer and they have stores all over the US and I believe all of the world so how does business development come into play as these two different entities come together well pretty much what's going on is that gap if you haven't noticed the stock price of gap has been declining and gaps brand and relevancy has been on the down now ez has been on the rise so what's gonna happen is gap is a large company right if they're doing a lot of numbers in terms of revenue but then they're declining in popularity so they need this juice they need to partner up with somebody that will cosign them to make them cool or relevant again right and easy why they would do a partnership with Gap right even if Gap is not the coolest company gap is like a legacy brand that can be turned around right so brands like let's say champion at one point weren't cool and then they turn that thing around now everybody's wearing champion so gap is trying to do something similar by partnering up with easy because easy has the brand recognition it has the cool factor and has good design right so once you apply these non-tangible things into the infrastructure that is gap then you have a powerful combination because you're gonna have the best designs and you're gonna have this coolness and relevancy and you're gonna have gaps infrastructure and their ability to produce clothing at scale at affordable cost now to make this deal happen right it sounds like a miracle deal but to make it all happen it's not as if Kanye West is just going to meet the big gap CEO and then saying like hey we should do a partnership it doesn't really work like that how it typically happens is that gap is gonna have a whole team of people dedicated to making this work and easy is gonna have a whole team of people as well also dedicated to trying to make this work right so when it comes to the business development side you gotta think about like you know which side is reaching out to who first right who's that first initial contact who's sending that first email how are you getting the first introduction to even start this conversation that's all business development and once you have your first couple of meetings then it comes to how are you gonna negotiate the deal what are the terms and how are each side going to work together to create the best quality product for the customer right and these conversations can literally take months or even years before even one product is released to the public so as you see it's very different from the regular b2b sales I talked about in the first example because in b2b sales is kind of like you have a product already you just going to all the stores and you're saying like hey you want to buy it cool how much but then when it comes to business development like in the second example I'm talking about with gap being easy it's not as if you know it easy and Kanye are just coming in and saying like hey we got a bunch of shirts can you put them in the Gap store it doesn't work like that right that that's not that's very transactional that's a sale but we're talking about business development that's when two entities work together to create a growth opportunity that's a win-win situation for both sides and obviously it's gonna take a lot longer however when you have two entities working together you create something more special and supposedly it will be better for the customer now once this product is created in whatever clothing that they turn out you know is out and ready for the public then once they start selling it in the stores and things like that then that's a regular sales but to make that all even happen that's all business development so when you thinking about your business and whether you should focus on b2b sales or business development you got to think well what exactly is your product or service and how do you bring value to other people if you already have a product or service that's kind of like a commodity it doesn't really change that much and you just trying to get it into as many stores as possible then obviously b2b sales is the way to go but if you have a product or service where you're really deeply integrated in another person's company and you work together to create something new then that's gonna be Business Development and why business develop my be advantageous is that if you don't have a big sales team and you can just have a small group of people or maybe you're just working by yourself when you do business development you can work with another company who has leverage right maybe they already have an audience so if you work with them and you create a product or service they can sell that product or service to all their audience so you only need maybe one or a team of people to build that connection to reach a wider audience whereas for b2b sales it's more like a numbers game where you have to just reach out to as many people as possible whereas Business Development it's reaching out to the right people that can really move the needle in your business now depending on what you're selling and what you want to do both strategies work you can build huge companies using either strategy but the more important part is understanding which one is gonna fit best for you and your customers that you're trying to serve so that said that's gonna be the difference between business development and sales if you enjoy this video make sure to give it a like subscribe and turn on notifications let me know in the comments what's your number one challenge when it comes to either sales or business development so I can make a video for you guys and help you out now if you're interested in learning more about business development I actually have another video where I go even more in-depth on the business development topic make sure you click the link somewhere on the screen to get access to that now so with that said my name is Patrick dang thank you for watching I appreciate all of you guys and I'm gonna see you guys in the next one