A business strategy is a plan of action for business leaders to follow, identifying business goals and the actions necessary to realise them. A business strategy should be shared throughout the whole organisation to ensure that all stakeholders are on the same page and striving for the same goals. The embedded video highlights the importance of effective communication within any organisation.
For inexperienced entrepreneurs, drafting a business strategy may seem like a daunting process, but it can be broken down into a series of straightforward steps.
Develop a Corporate Vision
A vision statement is essentially a snapshot of the future, identifying the founder’s aspirations of what they want the company to be and articulating what success looks like in clear terms with regard to the business’s customers, markets, volume, etc. If you are interested in exploring why corporate vision is so important from a business owner’s perspective, the embedded infographic explores the issue in more detail.
SWOT Analysis
SWOT analysis requires entrepreneurs to weigh up the strengths, weaknesses, opportunities and threats surrounding their business idea. An essential component of any business strategy, SWOT helps business leaders to identify opportunities and risks.
Define Competitive Advantage
Business development strategy hinges on identifying how the company can deliver unique value to customers. With many commercial arenas already overloaded, new start-ups need to differentiate themselves from the competition. A well crafted business strategy will identify how the company can create space from competition in terms of its service offering, delivery system, price model and more.
Set Realistic Targets
One of the biggest barriers to formulating a strategic business plan is poor targeting. Companies need to have clear target markets to create an integrated sales and marketing approach.
Resources
The resource element of a business strategy covers issues such as allocation of resources, as well as identifying where new resources will be sourced. To be sustainable, businesses need a clear picture of how critical business needs such as people, technology and financial requirements will be met.
Measurement and Analysis
It is crucial for business leaders to periodically review progress towards the main goals of their business, defining deadlines and addressing issues such as budget concerns. Today, data and business intelligence platforms play a crucial role for companies navigating the growth phase.
Professional angel investor Mark Lyttleton has supported more than 30 early-stage businesses. He is the founder of Prana Partners, a company that analyses all kinds of enterprises, from local start-ups to global corporations, helping founders to capture opportunities while avoiding as many of the pitfalls as possible. The attached PDF provides more information about the support offered by Prana Partners.