30 June 2015 category: strategy & business planning
Tags: business strategy
Business strategies really matter. If you look all around you, or at the companies that you buy from, you will begin to notice that they are all following a strategy.
The simple facts are that strategy is what separates successful businesses from the “also-rans”. If you have a good strategy it will certainly make the difference between getting-by and having a venture that is profitable, sustainable and fun to work in.
Creating a strategy requires some vision and a straightforward, systematic approach. The 3 most important things you need to know about business strategies are:
- You must have a strategy
It is not enough to “just go and do it”. Few businesses (perhaps as few as 3%) know precisely where they are going and how to get there.
Most businesses make things up as they go along and this is not the way to succeed and it shows in their accounts and balance sheet!
- Your strategy must be in writing
The first people to influence with your strategy are you and your management team. This is why you must have things in writing so that you are all on the same page.
You must also influence the people that work with you; employees and suppliers. There will be no misunderstanding if you have a written strategy.
- You must test your strategy from time-to-time
The majority of business strategies have a limited “shelf-life” because everything changes around us all the time, from customer habits to the economy. (Think about what has happened to technology over the past five years and the winners and losers this has created in this sector.)
The best way to maintain your success is to look at your strategy from time to time and make sure it is still relevant.
If you think you should be adopting a different strategy, set about changing it as soon as possible.