Key Roles of Business Developers in Early-Stage Startups
Learn how business developers drive growth in early-stage startups by identifying markets, building partnerships, and validating product-market fit.
This article was originally published in 2014, and has been updated in 2025.
The past few months have been a whirlwind, filled with exciting ventures like my South Africa reboot trip, a brief dive into brick-and-mortar retail, and the development of my upcoming software platform, ReplyWire. While I’ll share more on these soon, today I want to focus on a critical topic: the role of business development (BizDev) in early-stage startups.
During a reflective walk earlier today, I found myself wrestling with one of the most pressing challenges for ReplyWire: identifying who will buy my product and how much they’ll pay. These questions are foundational yet often neglected until it’s too late. Reflecting on past conversations with founders and mentors, I realized this procrastination is all too common.
Misconceptions About Business Development Timing
Statements like “We’ll start BizDev after the beta is ready” or “We can’t sell until we have something tangible to show” are pervasive in startup culture. I’ve been guilty of this mindset myself. However, the reality is starkly different: business development begins before the first line of code is written.
For instance, before starting ReplyWire, I secured two potential users. While that was a decent start, it wasn’t enough to validate the sustainability of the platform. In hindsight, someone—ideally me—should have been actively engaging with potential customers throughout the development process.
The Strategic Role of Business Development in Startups
Business development in early-stage startups is not just about sales; it’s about creating long-term value and laying the groundwork for sustainable growth. According to research from Harvard Business Review and other industry thought leaders, startups often fail because they don’t adequately validate demand or align their products with customer needs.
A business developer’s role is to prevent this by:
Identifying Target Markets: This involves hypothesizing who your customers are and testing those assumptions through direct engagement. For example, when developing ReplyWire, I’ve started reaching out to other platform providers to understand their pain points and assess whether my solution aligns with their needs.
Building Strategic Partnerships: Partnerships can amplify your reach and credibility. For instance, Groupon’s collaboration with Etsy for flash sales exemplifies how mutually beneficial partnerships can drive growth.
Validating Product-Market Fit: This requires constant iteration based on customer feedback. As Pieter Levels emphasizes in his startup insights, sharing your idea early allows you to refine it based on real-world input.
Why Founders Must Lead Business Development
In the earliest stages, founders themselves should take charge of BizDev. As Jonathan Chizick notes, founders are uniquely positioned to craft a vision for their business and identify strategic opportunities. Delegating this responsibility too early can dilute focus and lead to missed opportunities.
For example, while building ReplyWire, I’ve realized that wearing multiple hats—product development, customer outreach, and strategic planning—is exhausting but necessary. Each conversation with potential users not only validates my assumptions but also sharpens my understanding of their needs.
Practical Advice for Early-Stage Founders
Start BizDev Early: Engage potential customers even before building your MVP (Minimum Viable Product). This ensures you’re solving real problems rather than imagined ones.
Iterate Based on Feedback: Treat every interaction as an opportunity to refine your product and strategy.
Focus on Value Creation: Whether through partnerships or direct sales, prioritize activities that deliver measurable value to your startup.
Don’t Wait for Perfection: As Pieter Levels argues, execution trumps secrecy. Share your ideas openly to gather insights and build momentum.
Real-World Example: A Lesson from Failure
A friend once launched a promising SaaS platform but delayed customer outreach until after launch. By then, they discovered that their core feature didn’t resonate with their target audience—a costly mistake that required months of retooling. This underscores why early validation is crucial. As I pivot more toward a BizDev role for ReplyWire, I’m reminded that startups thrive on proactive engagement with their markets. Waiting until launch to address these questions risks running out of resources or discovering fundamental flaws too late. For any founder embarking on this journey: make business development a priority from day one—it’s not just about selling; it’s about ensuring your product has a future.
"When you have nothing to lose, you have everything to gain"