How important is business strategy?

How important is my business strategy?

Business strategy is all about doing the right things to make sure you achieve your business objectives.  Running a business is complicated.  Doing the right things is not always enough.  You also have to do them well.  As the diagram below shows, the wrong strategy, or implementing it in the wrong way, can have dire consequences for your business.

What strategies should I be thinking about?

As a business owner it is important for you to think first and foremost about what you want from your business.  Once you know this you can identify the key objectives you need to achieve.  The strategies you adopt should ensure you meet your objectives.  Business strategies operate at three levels.  The following considerations will help you identify the right strategies.

Corporate Strategy

  • What is the purpose and scope of my business?
  • What Return on Investment (ROI) do I want?
  • What vision do you have for your business and how will you operate?

Business Strategy

  • How will you manage the business?
  • What services or products will you provide?
  • How will you market your business in order to generate the right business leads?
  • Once you have generated the leads, how will you convert them to sale?
  • How will you differentiate yourself from your competitors?
  • How will you identify new opportunities?
  • How will you meet your customer needs profitably?
  • What budget will you require to achieve this?
  • How will you deliver all of this and maintain a positive cash flow?

Operational Strategy

  • How will each part of the business operate?
  • How will your capacity meet your needs and what processes will you adopt?
  • What resources (skills, assets, finances, etc) will you need?
  • How will you build an effective team to support you?

Getting your strategy right and implementing it in the right way isn’t always as easy as it seems… look at Gerald Ratner, a highly successful businessman who managed to put himself out of business by making a few wrong moves.  Hoover also made a big marketing blunder and cost themselves very dearly.  And there are many more examples.

To help you get your strategies right, securing the services of a business specialist can be a very worthwhile investment.  They can provide you with a fresh pair of eyes that can help you see more clearly, act as a sounding board to test your ideas and they can help drive you forward so you achieve the results you want.  Let me know if you would like to find one :)

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