It is crucial to think about your business strategy when you are starting a business or growing it. The business strategy is your map. It will help you decide the direction and the future direction of your company.
You will have the structure and guidelines to help you develop your business, or grow your business plan, and reach your business goals.
You cannot be everything to all customers. To be successful in the marketplace, first you should have to make a strong business strategy . However, it is important to recognize your company’s strengths and find ways to distinguish yourself from others.
Defining your business strategy
Your business strategy is a set of priorities that will guide the company and the management team. It also helps to attract and retain talented employees.
While different individuals may have different priorities for completing specific tasks, they should not be in conflict with the overall strategic direction.
You can either write a series of strategic statements or a few paragraphs to define your business strategy. It is a summation of the company’s goals and customer expectations, as well as how it will maintain a competitive advantage in the market.
These are the questions your business strategy should address:
- Why is the company still in business?
- What is our core strength?
- Which customers should we serve, or which ones should we stop serving?
- What products/services do we need to stop offering, offer, or begin offering?
- These strategic directions are important.
These questions will help you determine your strategic priorities. You can’t be everything to all customers, and neither should you!
To be successful in the marketplace, you don’t need to be the market leader. However, you must focus on your strengths to distinguish your business from others and help customers see the value you provide, including the features and benefits.
Let’s look at two examples of a business plan in action. They not only show how it works but also demonstrate the difference between business goals and a business strategic plan. As the “business strategy is a map”, goals are the journey. In other words, they will guide you to a destination. It’s easier to first develop your strategy and then outline the goals that will lead you to that strategy.
Pinnacle performance group
Pinnacle Performance Group provides mid-sized businesses with performance improvement strategies, assessments, and training programs.
Pinnacle has worked successfully with many service businesses to develop a client retention strategy. These services have received positive feedback from accountants and financial planners.
Pinnacle’s revenues are tied to how many hours consultants can work. Most of its clients live in four states.
The Pinnacle team is determined to grow the company. They created the following strategy and goals after conducting a SWOT analysis.
Make strong strategy;
Pinnacle Performance Group offers performance improvement strategies, assessments and training programs to assist mid-sized businesses in building sustainable futures, increasing productivity, loyalty and staff development.
Pinnacle will continue its regional consulting services and also:
- Pinnacle’s success in client retention was the basis for developing a software program.
- A turnkey training program can be created to help potential clients reap the maximum benefits of the client retention software.
- Broaden Pinnacle’s distribution efforts to promote the new client retention program and training program to mid-sized financial planning firms nationwide.
- Pinnacle is the leader in client retention for financial planners and accountants.
- Increase the value of Pinnacle Performance Group.
- Create a revenue stream that is independent of consulting time and will generate 50% of Pinnacle’s sales revenue in three years.
- Pinnacle’s assets should be increased so that they can be sold to another business or person in five years.
O-Foods sells a variety of organic foods, including soups and cereals as well as cheese and chicken. The products can be purchased at three O-Foods stores. Products that are easy to ship are also available through the O-Foods site. They also sell other organic products in addition to O-Foods products.
The company stores are located in towns with major universities. Students and working adults who want to live a healthy lifestyle will find them appealing. O-Foods has a highly skilled staff that offers product information and high-quality service to customers, creating a competitive advantage.
Based on the SWOT analysis of these individuals and their three-year vision, the following strategy and goals have been developed.
O-Foods is committed to providing its customers with the best organic food. O-Foods ensures that every customer has a great shopping experience through high-quality service and product information. O-Foods will:
- For employees who have been employed for at least one year, create an employee stock ownership program.
- To further improve the customer service and product knowledge of all employees, create an employee training program.
- A uniform look is created for the websites, stores and product packaging.
- Create a marketing plan that will increase the number of customers who are already buying and attract new customers in your target markets.
- Increase operational efficiency
- Increase shipping capabilities so that perishable items can be ordered online and shipped anywhere within the United States.
what should be the goal
- Encourage employee retention by creating incentives that are less than 20% annually for assistant managers and below, and less than 30% for all employees.
- Create the O-Foods brand.
- For the next three years, increase profits by 15% each year
Are you ready to create your own business strategy? Need more guidance? Register for the Kauffman Fast Track to get the insights and resources that you need in order to grow or start your business.