Owners often use these two titles like they mean the same thing. They don't. Hiring the wrong one is one of the most common reasons a new sales hire doesn't work out.
What a BDM does
A business development manager finds & wins new business. They prospect, open doors, book meetings & close deals. Their week is spent with potential clients.
A good BDM is comfortable with rejection. They love the chase.
What a sales manager does
A sales manager builds the sales function & the team, then leads the people who sell. They set targets, run the pipeline meeting, coach the team & help on complex deals.
Think of them as a professional goalkeeper, obsessed with clearing anything out of the team's way that stops them doing the thing they need to do. Close deals! They are a forever sounding board whether they like it or not, & yes, they report the numbers to you.
Their week is spent with the team & the numbers. A good sales manager is still revenue generating, just indirectly. They're out there networking with important clients, supply chain partners & vendors. They're building brand awareness in your community & doing lots of things that translate to success for their team.
Their success is their team's success!
The mistake I see most
An owner needs more new business, so they hire a "sales manager". There's no team to manage. The new hire ends up doing BDM work they weren't hired for, or they wait for leads that never come.
The other version is just as common. An owner promotes their best BDM to sales manager. They lose their top seller & gain a manager who'd rather be out selling.
Which one do you need?
You probably need a BDM if:
It's mostly you selling right now
You need more new clients coming in
No one is out finding new business
You probably need a sales manager if you have 2 or more people selling & you have growth plans or need someone keeping the ship on course. (If your team keeps missing target, start with my checklist.)
Sales managers build too
A good sales manager doesn't just run a team. They can build the whole sales function for you: the process, the targets, the CRM, the hiring plan & the weekly rhythm.
One can't work without the other
Hiring a BDM or account manager first? Be ready to be their sales manager. Someone has to set their targets, check their pipeline & help them close. If that's you, block out the time.
Hiring a sales manager first to build the function? Make sure they're ready to handle deals while they build the team. Early on, they'll be selling & building at the same time.
The awkward growth stage
A lot of owners are right in the middle. You need both roles, but you can't fund both yet.
That's OK. Just don't hire one & think you've solved it.
Be really clear on roles & responsibilities. Who finds the new business? Who leads the team? Who owns the numbers? Write it down.
Someone has to lead the ship.
The third option
What if you need a sales manager but you're not ready for a full-time senior salary?
That's where a fractional sales leader comes in. I do the sales manager job for part of the week. I set the targets, build the process & lead the team. Often I help you hire the right BDM too, then get them up to speed.
Not sure which one your business needs? Call me on 0434 522 983 or send an enquiry. We'll work it out together.