Building an Effective Business Strategy
Howdy, it’s been a minute but I hope you are holding up well. Hope the year has taken an upward trajectory so far in terms of your goals and plans for the year. If there is one thing the last 12 months has taught us is the power of strategy.
Have you ever wondered why some companies just seem to be as solid as a rock? Whatever tide hits they never seem shaken and if they do shake a little, they never topple. Well, that’s the power of a well-executed, sound and solid business strategy.
Having a killer business idea is great, but the execution is everything. For you to execute well you’ll need to strategize how to achieve your desired goal with what’s currently at hand. Your strategy should include your company's goals and objectives, the type of products/services that you plan to build, the customers who you want to sell to and the markets that you serve to make profits. Your strategy however graduates from just a strategy to a solid strategy when all the assumptions you make at the time of its creation have been validated and tested for accuracy, and the decisions you've made can be backed with clear facts and evidence.
A good business strategy will guide you when it comes to making investment decisions, prioritizing activities within your organization and allocating and optimizing resources to generate above-average returns. So how do you develop a business strategy?
Your strategy should be long-term and realistic. Having in mind the type of product/service you’d like to build, factor in who your customers will be, the markets you would like to serve and the activities you’ll need to do to get your business to the desired future state.
Carefully analyse the possible opportunities for growth as well as diagnose the risks and challenges anticipated. Come up with a mitigation plan to address your anticipated risks. Take your time to gather facts and data you require before finalizing.
Be innovative and ensure your products or service have a unique point of sale and are in alignment with your business’s core objective.
Factor in competition. Your business can offer a solution to a market that is not served or underserved. If you choose to go with an already flooded market, then what you offer must be unique enough to pull the customers your way. While at it, position your company well in the marketplace to make it harder for new entrants.
Economies of scale. Be innovative in the cheapest way possible. Offer unique feature and back them up with excellent customer service.
Periodically review and update your business strategy to ensure it's valid and has factored in new changes.
Once the strategy is finalized, share it with the relevant stakeholders. That way everyone is aware of the direction the organization is taking and the role they need to play to help the company achieve its goals.
Once your strategy is in place, let it guide everything your organization does. Having a remarkable strategy is just the theoretical bit, executing it successfully is the practical bit that matters. Till next time, ciao!
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IMBA
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