Glossary of
Business Development
Terms

The post-sale process of nurturing a client relationship to ensure long-term satisfaction, retention, and identification of new revenue opportunities (upselling/cross-selling).

A corporate transaction where one company purchases another. A key inorganic growth lever in BD.

An iterative project management approach. In BD, used for rapid adaptation in partnership development based on market feedback.

A formal agreement between two or more organisations to cooperate towards a common business objective, sharing risks and rewards.

A strategic tool for analysing and planning growth strategies: Market Penetration, Market Development, Product Development, and Diversification.

A key metric for subscription businesses, representing the value of all subscription revenue normalised to a one-year period.

The first, small, specific market segment targeted when entering a new geography or launching a new product.

A strategy focused on creating a new, uncontested market space rather than competing in an existing, saturated one.

The keenness in understanding and dealing with a business situation to achieve a good outcome. A core behavioural competency in the BDA BoCK™ framework.

A formal justification for a project, outlining its costs, benefits, risks, and financial projections (ROI, NPV).

The strategic, cross-functional discipline for creating long-term value from customers, markets, and relationships. This is the official BDA® definition as established in the BDA BoCK™ 2026.

Funds used to acquire, upgrade, and maintain physical assets.

A team or entity that provides leadership, best practices, and support for a focus area, such as a BD CoE.

A company that partners with a manufacturer to market and sell their products (e.g., distributors, resellers, VARs).

The systematic approach to dealing with the transformation of an organisation's goals, processes, or technologies.

The ethical gathering and analysis of information about the competitive environment.

Selling an additional, different product or service to an existing customer.

The total cost of sales and marketing to acquire a new customer.

A projection of the net profit attributed to the entire future relationship with a customer.

The rate at which a firm receives business proposals or investment offers.

A valuation method based on expected future cash flows, discounted to their present value.

The most ambitious of the four Ansoff strategies. It involves developing new products for new markets — the highest risk, highest reward growth path.

The comprehensive investigation of a potential investment or partner prior to signing a contract.

A network of interconnected organisations involved in the delivery of a specific product or service.

A brief, persuasive speech to spark interest in what your organisation does.

A country with characteristics of a developed market but not yet meeting the full standards, offering high growth and higher risk.

A measure of a company's total value, including debt and cash, used as an alternative to market capitalisation.

A business model where a business (the franchisor) licences its trade name and operating methods to a person or group (the franchisee).

Any aspect of a process that slows down or hinders the customer journey or sales cycle.

An action plan specifying how a company will reach target customers and achieve competitive advantage.

The framework of rules, processes, and structures for managing and controlling a strategic partnership.

A strategy where a company acquires or merges with a competitor in the same industry and at the same stage of production.

Ensuring the motivations and rewards for all parties in a partnership encourage mutually beneficial behaviour.

Sales of a good or service by a third-party, such as a partner or affiliate.

Business growth from mergers and acquisitions, rather than from an increase in the company's own business activity.

Intangible creations of the human intellect (patents, copyrights, trademarks, trade secrets).

A business arrangement where two or more parties pool resources to accomplish a specific task.

A strategic approach to managing and growing an organisation's most important customers to maximise mutual value.

A measurable value that demonstrates how effectively a company is achieving key business objectives.

The marketing process of stimulating and capturing interest in a product or service.

A non-binding document outlining the main points of a proposed deal.

A business arrangement where one company gives another permission to manufacture its product for a specified payment.

The planned method of delivering goods or services to a new target market.

Information gathered and analysed for decision-making in determining market opportunity and penetration strategy.

A strategy focused on increasing sales of existing products in existing markets — the lowest-risk Ansoff strategy.

Dividing a broad market into sub-groups of consumers with shared characteristics.

A non-binding agreement between two or more parties outlining their intentions to work together.

The combining of two separate companies into one new legal entity.

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The process of interacting with others to exchange information and develop professional or social contacts.

A legally binding contract establishing a confidential relationship between parties.

The ongoing costs for running a product, business, or system.

Growth from an increase in the company's own business activity, as opposed to mergers and acquisitions.

The practice of obtaining services or products from an outside supplier rather than an in-house department.

The stages a business partnership goes through: Identification, Evaluation, Negotiation, Execution, and Review.

The process of tracking and managing the stages of a sales or BD opportunity from initial contact to close.

A brief presentation used to provide an overview of a business plan, product, or service to potential investors or partners.

A framework for analysing the competitive forces shaping an industry: Rivalry, Supplier Power, Buyer Power, Threat of Substitutes, and Threat of New Entrants.

The process of creating, reviewing, and submitting a formal offer to a potential client or partner.

The process of identifying potential customers or partners (prospects) for a business.

A cooperative arrangement between a government agency and a private-sector company.

The process of determining whether a prospect has the need, budget, authority, and timeline to become a customer.

The strategy for maintaining ongoing engagement with clients, partners, and stakeholders to maximise long-term value.

A document that solicits proposals from potential suppliers for a specific product or service.

A performance measure used to evaluate the efficiency or profitability of an investment.

The strategy a business uses to generate revenue from its products or services.

The process of identifying, assessing, and controlling threats to an organisation's capital and earnings.

A model representing the journey a prospect takes from awareness to purchase.

The capability of a system, network, or process to handle a growing amount of work by adding resources.

A commitment between a service provider and a client defining the level of service expected.

The process of identifying, analysing, and strategically managing relationships with those who have an interest in a project or organisation.

The degree to which an opportunity, partnership, or acquisition aligns with an organisation's strategy, culture, and capabilities.

A strategic planning technique used to identify Strengths, Weaknesses, Opportunities, and Threats facing an organisation.

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.

A business model that can grow revenue at a faster rate than its costs.

A market sizing framework: TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market).

A non-binding agreement setting forth the basic terms and conditions under which an investment will be made.

The expression of ideas that demonstrate expertise and forward thinking in a specific field.

A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system.

The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition.

Encouraging a customer to purchase a more expensive version of a product or service they are already buying.

A model that describes the full range of activities needed to create a product or service.

A promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value will be delivered, experienced, and acquired.

A strategy where a company expands its business operations into different steps on the same production path.

A negotiation approach where both parties feel they have achieved a satisfactory outcome.

A product or service produced by one company that other companies rebrand to make it appear as if they had made it.

A method of budgeting in which all expenses must be justified for each new period, starting from a "zero base."