Another year is coming to an end, how has the year been for you, do you feel your business isn’t moving in the right dirrection? If not then now may be a good moment to make time to contemplate your business strategy. If your business strategy isn't clearly defined you will find it difficult to develop your company and achieve growth.
What is a Business Strategy?
Put simply a business strategy is a long term business plan, typically covering a period of 3-5 years. It defines the objectives and direction of the business. Do not let long term planning put you off, it is very easy to manage your strategy through short term goals and objectives and your strategy is ever evolving. While your business strategy should stretch your ambitions it should also be realistic and achievable. It is great to aim high and to target being the market leader but is not always an essential element of a successful business, it is as much about understanding the opportunities the market has to offer.
What Should Be Included in a Business Strategy?
Your business strategy is a summary of how your business plans to achieve its goals. Strategy is typically about identifying:
- Where your business is heading in the long term, usually but not always driven by a financial ambition
- What products and services should you be offering
- What market sectors you should be competing in and where from a geographical perspective
- How your business can gain a competitive advantage in those markets
- What resources you require to get where you want to be (e.g. marketing, people etc...)
- What operational issues you will have to resolve to enable growth to occur
- What external factors may affect the business
Your business strategy should be created in a format that works for you and is fit for the purpose it is intended. There are many templates you can use but in my experience simpler is better.
Why is a Business Strategy Important?
A business strategy is critical to your business success. It identifies where you want your company to go and without knowing this then how can you plan? Ultimately if you don't know where you are going then don't expect to reach your destination. It is also extremely important to understand that your strategy defines your objectives and the actions that must be taken to achieve those aims. Without action your strategy will not be achieved. The most important element of a business strategy is the planning not the plan. You are making that conscious effort to drive forward your company and look to future.
Digital Pace Ltd are specialists in helping companies to develop their business strategy, if you would like to discuss further then please contact us.
