Business strategy is the major element that defines whether your company will succeed or not.
Crafting the right strategy is very important to the overall being of your company as every other company in your industry have and will formulate a strategy they believe they can exploit.
Business strategy is the road map to help you achieve your business objective. In this article, you’ll learn the exact steps you must take to create the right strategy that’ll put you above every other company in your industry.
Without further ado, let’s get started.
1. What is your WHY?
WHY did your company exist in the first place? What moves you to start building your own company?
When you clearly articulate your WHY then you’re already halfway done in crafting the right strategy for your company.
Your WHY sets you apart from other companies in the world and for companies who don’t have a WHY it’ll be tricky to suddenly articulate one for their business.
If you want to know how to discover your WHY, I detailed how you can become a successful entrepreneur article and in there you’ll find out how to discover your WHY.
Once you have a clear written purpose for the existence of your company, it’s time to move on to the next step.
2. Define a clear competitive advantage
If you don’t have a competitive advantage, don’t compete.Jack Welch
This quote is true for every endeavour in your life and of course – your business.
For companies that start with WHY, their competitive advantage is super clear. For example, right from its inception, Apple’s WHY has always being to challenge the status quo by thinking differently.
And this automatically becomes their competitive advantage and also what drives them to their current success and status in every industry they touch.
For your business strategy to drive you to your business objectives, you must have a clear and superior competitive advantage.
As in the case of Apple, your competitive advantage shouldn’t be low price and a little bit of added feature to your product – like almost every other business think.
What do you think about having superior community?
Large network of suppliers?
or having highest control in regard to product creation?
When you use low pricing or more features on your product and service as a competitive advantage then you’re merely manipulating your customers and potential customers.
Low price? A competitor or even startup can replicate your price or even set a lower price. To keep up with this, you’ve to continue to lower your price or worse, lower your product quality.
More features? Existing competitors can simply add the same features you add to yours or worse develop more features that you.
The cost of keeping up with this is also too much.
But what about challenging the status quo?
Well, you already know the answer and no competitor can easily replicate it.
Think deeply about your competitive advantage before jumping to a conclusion.
3. Identify business objectives
The next step in crafting a winning business strategy is to write clear objectives which will determine whether your company is a success or not.
A passionate belief in your personal and business objectives can make all the difference between success and failure. If you aren’t proud of what you’re doing, why should anybody else be?Richard Branson
According to Richard Branson, you must passionately believe in your the objectives you set for your business. Without this important element, your business strategy will fail.
At this stage, you develop a set of high-level objectives for every department in your company. The end result of all these objectives combine must lead to your WHY.
Your objective must be specific, measurable, attainable and time-related. Ensure you incorporate all this element into your objectives.
4. Focus on long-term
When setting a business objective, make sure you set your mind in the long term.
In my article, Entrepreneurial mindset – Founder of Amazon, Jeff Bezos highlighted that his company focuses on the long term and put the customer at the centre of their universe.
You must ensure that your business objectives embody thinking long term because success is in thinking long term rather than short-term.
Of course, there is pressure on companies especially public companies and investors-backed startup to focus on short term performance which makes business owners not to think long-term.
In this article, Can companies be persuaded to think long term? Kate Rodriguez argues that long term thinking has more benefit than short term thinking.
Make sure to check it out.
5. Lead with trust
If there is no business without customers then there is no company without a trusted and loyal employee.
You need competent people whom you trust in your company to carry out the details in your business strategy.
At this stage, you need to assign trusted personnel to lead and carry out your business objectives.
Once you’re done assigning, it’s time to move on to the next step.
6. Add Tactical Plans
This is the stage where you put your business strategy into actions. The faster you implement the tactical plans you’ll develop at this step, the faster you’ll reach your business objectives.
Tactical plans are a series of short term plans that leads to your business objectives. What you think about at this stage is short term.
Remember, long term business objective define what success is for your company but they’re too far out and can’t be achieved with one or two actions.
On the other hand, the tactical plan is all about the short steps, actions, and strategies you must implement to reach your business objectives.
This plan will contain all departments and suppliers. It’s what you’ll communicate to your investors and stakeholders.
7. Execute and Measure
Now that your business strategy is in place, it is time to start executing your plans and monitor both business objectives and tactical plans.
Make sure to monitor performance, task, event and everything related to the short term plans but don’t lose sight of the long term.
It is easy to get lost in today’s competitive world, tactical battles and stakeholders pressure that you lose sight of the bigger picture.
But if you have a clear and resounding WHY, you won’t easily lose sight of the long term and even build your company’s culture around your WHY.
Now, you’ve what it takes to craft a winning business strategy and grow your business to the desired height.
What is the most intriguing step in this article? Let me know in the comment section.