Creating a business strategy is a daunting task, especially for new business owners. Where should you start? What should you focus on? When doubts like this pile up, many businesses choose avoidance instead and start improvising.
This can prevent their growth or even cause serious issues down the road.
Meanwhile, creating a business strategy isn’t as hard as it seems. Today, we’re coming to you with a simple process you can follow to get started.
And if you still need help – here’s how we can get new customers for your business.
With that said, let’s dive in.
Why Is It Important to Have a Business Strategy?
Business strategy clarifies the essence of your business. Without it, you act without a plan or purpose. Your actions might become chaotic and inconsistent.
This can affect you in two ways. First, the lack of consistent vision for your business will show on the outside. Your customers and partners will surely notice it. And it might affect the way they perceive you.
But there’s something even more dangerous than that. Running a business without a strategy is like operating a complex machine without a manual. You press buttons and pull levers at random and sometimes you succeed. But sometimes, the machine doesn’t work. And in the worst case, you lose a finger among the cogs.
Business strategy will help you define your core values and the basics of how you operate. It’s not just some mission statement – it’s a roadmap that will let you stay consistent and focused.
Creating a Business Strategy in a Few Simple Steps
We won’t fool you – creating a business strategy isn’t the easiest task out there. But at the same time, it’s also not as complex as people think it is.
You need to get started somewhere. With that purpose in mind, we’ve rounded up these practical tips to simplify the process.
Identify the Core of Your business
To outline your business strategy, you need to understand its very essence. You might have a few ideas already, but many business owners skip a point or two.
We recommend you think about the following:
- What are your company values and what is important to your customers & you?
- What is your mission in the world as a company?
- Why do you do what you do (work from the circle’s inside out)
- What company culture do you want to build?
Think about the ideal image of your business – inside and outside. This will help you build a business strategy for your internal and external operations.
Identify Your Ideal Customer
Identifying your ideal customer is key – both for your business strategy and marketing plan. Without it, you can’t get new customers effectively.
Your strategy will only be successful when it serves a very particular persona. It should include the customer’s needs, wants and pains, as well as their preferred means of communication.
Define How You Stand Out and How to Sell It
How can you sell your product or service if you don’t know its strengths?
And no, “we’re better” or “we’re cheaper” aren’t true sale points.
Define your unique value proposition (USP). Clarify it in a sentence that will drive your marketing and sales efforts. Only with this in mind, will you be able to define the best way of selling your idea.
Don’t guess your strengths and advantages. Be sure what you do best and talk loudly about it.
Understand What You’re Lacking
Understanding your weaknesses is as important as being aware of your strengths. You can’t execute a business strategy if you lack its basic components.
Think about what is stopping you from executing your dream business strategy. Is it some kind of resource (financial, human or other)? Do you lack some skills or competencies?
Be aware of what you’re lacking. Then, make a point to acquire those things.
Business strategies can be short-term as well. But it’s important that you plan way ahead and think about the distant future.
This is important for proper planning. If you know where you want to be in two or three years, you can plan the next steps better.
Your first business strategy won’t be your last one. As your business grows, you learn and discover new things. It’s unavoidable that they will lead to certain adjustments. And that’s okay.
External factors can affect your business strategy as well. Stay flexible and be ready to adjust to shifts in the market, new demands or trends.
Test and Measure
Your business strategy and results need to be actively tested and measured. Only this way can you determine what works and what fails.
Choose different criteria for analysis. Observe how different tactics work and when they prove successful. Equipped with that knowledge, improve and polish your approach.
Hire People Who Know Better Than You
It’s always beneficial to learn from those who know better than you. When it comes to business strategy, it doesn’t ever hurt to hire someone more experienced. Their knowledge can guide your future efforts – from getting new customers to fixing mistakes.
Work With Facts, Not Guesses
Many business owners work with educated guesses rather than data. This often stems from a lack of such data. But sometimes it comes from ignorance.
Guesses are what they are – guesses. Don’t base your business strategy on something unproven and uncertain. Instead, work with data and numbers that tell the indisputable truth.
Only then can you predict the outcome of your actions.
Over to You: Creating Your Own Business Strategy
Creating a business strategy isn’t a task done overnight. It requires knowing your business inside out and takes an extended process of consideration and planning.
But you can do it – even if you’re new to it. And if it doesn’t work from the start, remember that it rarely does. Be sure to analyze the mistakes, then go back to our tips. Add changes and polish it up.
Business strategy is never stagnant – but now you’ll know how to draft its very first form.
Creating a business strategy isn’t as complicated as you think. Click here to discover a simple & and actionable process that every beginner can start with.