Even though you might have the best business ideas, for you to have a strong foundation for your business you need a great business strategy. Developing a business strategy doesn’t have to be a long and tiresome process that ends up as a big dusty file on the shelf. You can create an effective business strategy by following simple and standard process.
Have a clear vision
Once you have decided to start a business, have a clear vision of exactly where you would like to be at the long run. It includes the aspirations you have for your business in the future. It shows your understanding of success as a business person, in clear terms. It could be the desired number of loyal customers over the set time. For example, be among the top whole sale shops in town after three years.
A goal , unlike a vision, is a more specific desire. It gives one the way forward on the actions one needs to take in order to achieve the set goal. An example is ; ” to increase customer satisfaction in the area”. Once this is set, one can think up of ways to get to that point. As much as we are encouraged to think big, the goals have to be realistic and practical. For instance, a small business owner setting to have a mall in one year could end up with depression!
Analyse The Current Situation
The situation analysis when Developing Business Strategy will involve collection of data. This ensures that decisions are made based on real facts and data. You will have to get internal and external information. Internal information might include, what position you are in financially ,etc. The external may be ;the competitors, the economic situation at that time etc. As they say , information is power, so go get it!
An objective is an element of the strategy that can actually be measured. It states exactly what you plan to achieve so that when success is gotten , you can point it out. This is different from the goal, which gives only a broad direction, because the objective is very detailed . Again, just like the goal, an objective has to be practical and realistic. For example, an objective related to ” increase customer satisfaction” could be ” ; ” set up a suggestion box by the end of the month to receive feedback on the services”.
Know Your Competitive Advantage
What makes your business unique and worth it? What do you have to offer that is different from the others? Get the catch ! Remember the point on situation analysis, go and get information on the weaknesses of other similar businesses. It could be the delivery system, the personnel’s attitude , the pricing model. Once you have this, you have the upper hand since you can give people exactly what it is they are missing. This unique value will earn you a lot if loyal customers.
Focus On The Systematic Growth Of Your Business.
It is through the growth of the business that you can be able to invest in other things like more workers. The plan should state in which specific areas of the business you would like to improve and in what proportion. Once more, I would like to emphasize on practicality. For example ,an owner of a small hotel cannot plan to employ fifty workers just two weeks after opening the business. He may fail to sustain them.
When such information is included in the strategy, you get to know how much you can afford . This prevents unwanted expenses that might render your business profit-less or even at a loss.
Make Decisions That Would Be Relevant Over Time ( Long Term)
Sometimes it is hard to picture things in the long term, but it is really worth it. That is why it is advisable to create a strategy that is an annual cycle, and not only a onetime thing. This means that you could renew the strategy or improve it annually. This will prevent one getting ” trapped” by time. For example, right now there is a pandemic so masks are a very necessary commodity. Say you start a company that only makes masks. It could probably work and make you money for some time, but over time people will not need masks anymore. That would lead to a loss and a downfall of the business.
Understand The Strengths And Weaknesses
Get to learn your strengths and weaknesses. It could be your ability to communicate. You are probably better at online networking than one on one interaction. This could give you the advantage of growing your business through online marketing and advertisements. These could also be the opportunities and threats you may get in the business. Learning this gives you the way forward on how to deal with them and improve the situation.
Lay Out The Strategies And Tactics To Be Applied.
These state exactly what you will do in order to achieve the desired goals and objectives. The strategy is the general guidance. For example, ” get more active in social media”. The tactic is the specific task to be carried out. For example , “get more friends on Facebook”. This ensures that you are always on the path to the ultimate goal.
Follow these guidelines before you start up your business for you to get successful as a business person at the end.