If you are thinking of organizing and running a business, you must have noticed tons of articles and guidelines written on this topic, as well as creating a business strategy.
SummaryDetermine where you are nowDefine your goals and objectivesAlign your budget with strategyInvolve as many people as possibleAdapt your strategy to the different interests of those involvedWhat is the purpose of reading another one?
The thing is, you almost never find anything less stable than the business world. Here, changes occur at the speed of light or perhaps even faster. And, as a result, those strategies and methods that were progressive and effective a few years ago now seem hopelessly outdated.
Therefore, the first and most important piece of advice for those of you considering running a business is to devote enough time to thorough analysis. Study all the existing strategies and recommendations to make sure they can help you.
Although this is a difficult process, it will help you identify any obstacles you may be facing. It will also help you gain insight into your competitors' strengths and weaknesses and better understand the market you are going to enter.
To make this task and the overall strategy development process easier, here are some essentials for creating an effective business strategy that will lead you towards your goals.
So, let's take it point by point:
It's much more complicated than it seems. All because the vast majority of people confuse their current state with the one they would like to be. This kind of image also prevails in all companies, especially among small ones.
To avoid going down this path and have a clear understanding of where your business stands, perform external and internal audits. This will help you assess the state of your industry, key competitors, and your company's skills.
Let me say it again – your real skills, not imaginary ones!.
Let's look through a brief definition of the difference between these two.
Goals give an indication of where your business is going and when it should get there. Having clear, well-defined goals increases the chances that you will do the right things and achieve what you set out to accomplish. But, only SMART Goals (the acronym stands for specific, measurable, assignable, relevant, time-based) will encourage the changes needed within your business.
Goals are the concrete actions you need to take to achieve your goals. They define what needs to be done, by whom and when. If you devote more time to this task, your employees will be clear about their contribution. They will be more able to do this.
When starting a business, chances are you'll get stuck in a daily routine and forget to create a budget. What a big mistake!
The rapidly growing environment requires companies to manage their financial resources and monitor them regularly to successfully deal with unforeseen issues.
Such an approach will allow you to improve profits, reduce costs and increase returns on investment. You should also set a business budget to make sure you spend your hard-earned money wisely.
So where to start?
Let's see:
You could easily spend your whole life reading articles like this or even a series of multi-volume books on topics related to strategic planning. But that is meaningless without a large number of committed individuals capable of bringing your ideas and projects to life.
How to interest your employees in contributing to a common goal?
First, clearly state the business destination and describe what victory looks like for your business and for everyone involved. It is a starting point that motivates your employees to complete the race.
In our company we deal with this by using Roadmap Planner. It is a software that helps to build high-level plans that illustrate the goals of a business and outline the main steps to achieve them.
Second, keep in mind that some things have as much of an influence on employee engagement as regular feedback and face recognition. It is vital for your business to discuss the progress of each team member and reveal any complexities, obstacles or lack of resources to complete the task.
Your strategy will be accessible to a diverse group of people focused on a different area of responsibility. Let's say bankers will care about balance sheets and cash flow statements. Investors will seek cutting-edge technologies for rapid growth and commercialization. PMs, on the other hand, will use it to carry out a project at the next level, etc.
With that in mind, make sure each of them will find what they need. Ideally, think about how to present your document to particular groups. Don't overload them with extra information that doesn't relate to their job.
As your business grows, your priorities will certainly change. New opportunities and problems will arise as a result. That's why our final piece of advice reads:Your strategy is a living document, not a one-time event.
It's never over. Make it a rule to systematically review, update and adjust your strategic plan as needed. With this, you can be sure that everything goes according to plan.
See also:Why Strategy Matters in Business
