Business Strategy is a fancy name for deciding where you want your business to be in a year’s time and how you going to get there.
Developing a strategic vision for your business and committing to it in writing is paramount to the success of your business, irrespective of its size.
They say that many roads lead to Rome, but some roads would take you through rough and rocky terrain, so why travel there. Business Strategy planning process considers a number of possible roads, but focuses on one that ensures a minimal risk of failure and the best return on your investment.
During a strategic planning process you need to evaluate your business ideas in terms of your available resources (time, money, people, technology etc), internal and external forces (market trends, competition, legislation, economy) and figure out your most effective course of action for your business.
Elements of Business Strategy
Business Strategy usually involves describing various components of your business model :
- A description of business vision and its mission (in other words the reason for business existence)
- A definition of strategic objectives.
- A description of products or service being offered and explanation how they fit with your objectives.
- Value proposition of your product or service. This section will describe the benefits of your product or service and explain how your product or service will create value for the clients and/or solve a specific problem.
- Your target market broken down by market segments (a list the businesses or people who may be interested in buying your product or service and rational quantification of how many units they may buy is a specific period of time (usually a year)
- Intended distribution channels. This section should specify whether the product will be sold directly by you (directly or via the internet), or whether it will be sold through a distributor or a retailer. For a service business, this section should detail how the service will be delivered and sold.
- Revenue Streams. This section should provide information about your intended pricing for your products and services and your potential revenue streams.
- Preliminary Cost Structure – this section should include a preliminary estimation of costs needed to bring the product/service into the market.
Defining a Business Strategy is usually a part of Business Planning process. Several possible business strategies are usually defined and evaluated from the cost/benefit/risk point of view. A winning strategy or strategies are then further broken down into specific tactics and a detail business plan.
Do you need assistance with defining your business strategy?
If you are unsure of how to approach defining a business strategy or what types of business strategy are right for your business, contact us.
We can facilitate your strategy meetings, help you evaluate your market and your competition, brain storm with you possible ways forward and put to paper your agreed action plan with deadlines, responsibilities and target milestones.
To help you with implementation of your business strategy we also offer 3 months of follow up coaching to staff responsible for implementing the plan and a mid-year strategy review session.