Now is the time to reimagine your business
As we enter the ‘next normal’ for business it is important to spend time reviewing your business strategy. Not sure how to reimagine your business? Don’t know where to start? Try to think of it as developing a road map — with it, you’ll determine the direction of your business and what you want it to look like and achieve in the future.
By clearly defining the strategy, you’ll have the guidelines and structure to develop your business or growth plan and achieve your business goals.
Be bold, now is a unique opportunity to reimagine your business. Remember, you cannot be all things to all customers. You do not have to be the market leader to compete successfully, but you do need to focus on your company’s strengths to find a way to differentiate from your competitors.
Defining your business strategy
Here’s my definition:
“A business strategy is a set of guiding principles that, when communicated and adopted in the business, generates a desired pattern of decision making. A strategy is therefore about how people throughout the business should make decisions and allocate resources to accomplish key objectives. A good strategy provides a clear roadmap, consisting of a set of guiding principles or rules. It defines the actions people in the business should take (and not take) and the things they should prioritise (and not prioritise) to achieve desired goals ”.
Although individuals in your company may focus on different priorities to accomplish specific tasks, these priorities should not conflict with the overall strategic direction of the company.
Whilst there have been over 80 models created for helping build a business strategy since Ansoff designed his four-box matrix in 1958, it need not be an academic exercise. Your business strategy can be defined in a couple of paragraphs or be written as a set of strategic statements. In a previous post, I discussed how a simple marketing strategy can be developed.
It is a summary of how the company will achieve its goals, meet the expectations of its customers, and sustain a competitive advantage in the marketplace.
Your business strategy should answer these questions:
- Why is the company in business?
- What is our core strength?
- Which customers should we continue to serve or start serving?
- Which products/services should we stop offering, continue to offer or start offering?
- Why have we decided on these strategic directions?
Answering these questions will help you establish your strategic priorities. You can’t be all things to all customers — nor should you be!
You don’t have to be the market leader to successfully compete. Focus on your firm’s strengths to differentiate your business from the competition. Help customers understand the value you offer.