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 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.
- 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?
- 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?
- 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?