Business Strategy is Your Roadmap to Success

Business strategy is something every business owner needs to think about in their business but do you know what it is?
The Oxford Dictionary defines business as ‘a person’s regular occupation, profession, or trade’ or ‘the practice of making one’s living by engaging in commerce’. Its definition of strategy as ‘a plan of action or policy designed to achieve a major or overall aim’.
For our purposes, business strategy is having a plan of action to achieve an aim related to engaging in trade. Sounds simple but actually involves a lot of thinking and reflecting on your business, and what you want to achieve.
Think of your business strategy as a roadmap – a guide or plan that gets you from where you are now to where you want to be.
Look at Where You Are Now. Honestly, Where Are You Now?
If you’re thinking about where you want to be in the future, you have to have a starting place. That starting place is not where you want to stay (otherwise you wouldn’t be reading this). You need to take an hard look look at where you are now, what is working, what is not working, and where you need to make changes.
Start with discovering where you are in your business now. This is a huge undertaking and should include things like:
- Who your ideal clients are (and who are you working with now)
- How you work with them and help them
- How your clients find you
- What revenue and profits you want/need to achieve (and what your revenues are now)
- What your business is known for (and is this what you want to be known for)
- Who is your team (staff, contractors) and how do they help you
Next you have to look at where you want to be in a year, two years, three year. This means revisiting the questions above but with the future in mind instead of what it looks like now. This your chance to dream BIG.
Once you have your starting point and your future vision, you need to know how to get from where you are now to where you want to be.
That is where your business strategy comes in. It helps you define everything from your marketing strategy, how clients work with you and your business, your financial goals and processes, and who your team is and what they do for and in your business.
It also means defining your short term and long-term goals and creating a step by step plan to reach those goals. This forms the basis of your business strategy and your roadmap.
S.M.A.R.T. Goals Help You Create Goals in Detail
I’m sure you heard of S.M.A.R.T. goals. This acronym looks at goals and breaks goals into a series of steps that are
- Specific – instead of saying “increase revenue” write down “increase revenue from $35,000 a year to $50,000 in 12 months”; in this example you also need to be able to know what products/services is making up that revenue
- Measurable – you have to be able to measure your goals in detail; you need to have a number to attach to the goal
- Attainable – is the goal actually going to be something you can actually do? Saying you want to increase your revenue by $15,000 is fantastic, but if it means you have to work 80 hours a week, that is not attainable by yourself, it will mean bringing on staff or contractors
- Relevant – is this goal meaningful to what you are trying to achieve and is it related to the outcome you are trying to achieve? If your goal is to increase revenue by $15,000 in 12 months, talking about paying your vendors faster isn’t relevant to this goal (but looking at your expenses and removing those that don’t help your business is a fantastic goal, just not related to revenues)
- Time Bound – put a time frame on reaching your goals. If don’t have a definite end time in mind, it’s easy to keep putting off doing the things you need to do to reach that goal
This is a great way to define your goals. But what time frames should you use? I like to create goals for the next month, the next three months, the next year, and even the next three years. I revisit these regularly to make sure they are still valid.
Your goals should be more than just revenue or profit goals. They should relate back to your core values, why you started your business, and what you are wanting to create with your business.
For many, including myself, it’s not just how can I bring in more money for myself (though having financial freedom is important and a valid goal for many), but it’s how can I make the lives of my clients better, how can I make the world a better place, or how can I employ people so their lives are better, and many more reasons. Don’t forget that when looking at your goals.
How do you use Goals in Your Business Strategy?
Every part of your strategy needs to support reaching your goals. How does every part of your business (operations, marketing, accounting, human resources, technology) help, or hinder, you reaching your goals? Where can you improve your business systems? Where do you need help? A deep dive into all of these areas so you have a good understanding of each and how they work together is key.
Your goals are the building blocks of determining what needs to change or adapt in your business to allow you to reach your goals. Your business strategy is the step by step process that you need to take to reach those goals. Your business strategy also helps you determine if your goals are the right goals for your business.
Writing Down Your Goals and Your Plan is Very Important.
It’s true that if you write your goals out, and then the steps you are going to take to reach them, will help you to achieve them. There’s a reason why we are told to write down what we want to do. It creates a connection in our brains and it allows us to see if what we want to achieve is reasonable. And if you have your goals written down, and you don’t forget about them but actually review them, you are one step closer to achieving those goals.
How do I get from here to there?
I know, it may seem like a daunting task. You’re not where you want to be and that future you’ve envisioned seems so far from your current situation. That’s where looking at all areas of your business, combined with your goals, comes into play. Do you have a well laid out marketing plan? Do you have the operations in place to handle your increases sales? Are the right people in place to handle the growth you will have? Can your accounting system handle the reporting you need to make financial decisions? How are you tracking the increased workload?
Once you know your current situation and your future vision, now we can start laying out the steps to go from here to there. Each step will be different for each company, but it all starts with knowing your end goal.
Are You Convinced Yet?
Yes business strategy takes time and focus, but having a strategic direction isn’t just for large businesses. Every business can benefit from having their goals written down and a step-by-step plan to reach those goals. Just like every business needs to have a clear vision of what the future looks like, each business needs a strategy to reach that future.
Business Strategy is Not a One-And-Done.
This is not a business plan for financing that you create and submit to get money for your business. Those tend to sit on the shelf gathering dust, never to be revisited until you want another round of financing. Now there is definitely a need for business plans for financing and a lot of what we discussed here is in those plans, but they are more about inviting people and showing them why they want to invest rather than giving you a roadmap. This is a living breathing process that you will continue to revisit, review, and adjust as needed. It will drive how you look at your business, how you reach out and communicate with your customers, and how you work with your team.
How can Clear Direction Advisors Help
Clear Direction Advisors offers business strategy consultation to existing and new clients. Book a time with us to see how we can help you make your business the best it can be.
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