Essentials of a Good Business Strategy
A business strategy involves every action that is taken which leads the business towards a larger goal. Emeritus explains that in a business environment that is becoming increasingly competitive, understanding strategy and implementing the appropriate techniques will provide your company with a crucial advantage.
Marino Sussich is a business expert who is well-versed in the concept of strategy. He is experienced in creating innovative solutions to complex problems to undertake significant ventures in business, and has curated expert techniques in his more than 20 years in the industry.
Find out more about strategy in business and the 8 essentials of strategy that assist in driving a successful business.
Business strategy vs. business plan
While both are essential to a successful business, it is important to understand the difference between the two. BDC agrees that a business plan is relevant to the foundations of the company, focusing on its current state as well as any specific projects. A business strategy, however, holds a focus on the future direction of the company and how it should grow or change.
A strategy is generally a 12-month action plan which lists very specific initiatives and goals, as well as who will be responsible for various elements, a set timeline, and any key performance indicators that will be necessary to analyse progress. It answers questions related to the current capabilities of the company, its values and overall goals.
8 steps to good business strategy
Without the correct approach, the process for creating a good strategy plan can sometimes be time-consuming and confusing, potentially resulting in goals that become ignored or that are never achieved.
Undertaking the right steps to compose a reliable, innovative strategy is crucial in ensuring it is followed through and success is achieved. See the 8 critical steps to a good strategy below.
- Identify the current state of the business
First of all, a detailed overview of the current organisation must be created and a holistic view formed. This should include an understanding of past achievements, the current services that are provided or products that are sold, a financial analysis as well as performance and past trends.
This will provide a strong understanding of where the company is currently sitting before determining where it can go from there.
- SWOT analysis
This technique is an excellent framework for business analysis which stands for Strengths, Weaknesses, Opportunities and Threats. In this examination the critical success factors of the company are determined along with what it could be doing better. Then, an eye is cast outwards to the opportunities and threats which may have a positive or negative impact on the company, involving a comprehensive analysis of relevance within the current market and the moves of competitors.
More information about this technique can be found here.
- Future vision
It is in this step that the future direction of the company is determined, and a vision statement or mission statement is included. The core values of the business must be taken into consideration when planning new directions, to ensure future actions are taken with the essence of the business in mind.
- Strategic planning and operational tactics
Once the heart of the strategy is devised, the next step is to devise the method in which the vision will be achieved. In this step, an overview of everything that is necessary to progress towards the future goals will be devised.
A focus should be placed on the priorities, the main projects that matter to the progression of the business, acting as a filter or blinkers to produce attention towards the elements that matter. This should also involve any financial planning and resource allocation, and the determination of who within the company will be responsible for each task.
- Encourage creativity & innovation
During the creation of this strategy, it is very important that creativity and innovation is encouraged. In an increasingly competitive market, it is creativity that provides a point of difference and generates new methods to turn heads, sparking consumer interest.
- Be transparent
As explained by Entrepreneur, the future vision along with any progress along the way should be highly visible and easy for all involved in the business to keep track of. If progress is visible, this will maintain encouragement and momentum, constantly reminding all of the goal ahead and what still remains to be done.
- Allow flexibility
Rigidity is never useful, especially in an ever-changing market with unknown challenges or opportunities arising at any moment. It is critical that the strategy that is developed is adaptable, and can be altered as new information about market conditions surfaces.
- Celebrate
Especially when it comes to long-term visions and strategies that can span years, it is important to take note of when little milestones are achieved and celebrate the smaller successes. This will assist in maintaining energy towards the end goal and ensure that any team members responsible are noticed and made to feel proud of their accomplishments.
Business strategy with consultant Marino Sussich
For any assistance with company strategy or general business guidance, Marino Robert Sussich is an excellent business management consultant that can advance your company towards success. Contact Marino Sussich for more information.
