If you’re building a business, there is a lot to think about. But, one of the most important methods to help a business grow and thrive in its sector is to create a thorough business strategy.
A business strategy is a very powerful and essential tool for any organization. It is in place to help you envision your objectives and reach different goals.
A good business strategy defines tactics and methods that will need to be used to take the company further.
From hiring new employees to making office supply decisions, a business strategy can guide you each step of the way.
To make a business strategy that is in line with everything you envision for your company is not an easy task. It takes time and a great deal of development.
To help you build a business plan to suit you and your business, we will discuss why making one is so important, but most importantly, we will take you through 10 simple steps so you can write your own strategy today.
So, let’s start making ideas to get your business off the ground and/or take it to the next level.
Business Strategy: Overview And Why it’s Important
A business strategy outlines the actions and decisions a business intends to take. The plan highlights the objectives and goals that a company wants to achieve in either the shorter term or long term.
A good business plan identifies aspects of how a company may be able to improve certain areas. It pinpoints what a business needs to do in order to reach its targets.
By revisiting a business plan, you can find a guide to different decisions that need to be made, whether that be in terms of hiring new staff or as a resource for other avenues of a company.
One issue many businesses face is confusion amongst different departments. However, a business plan can help these departments work together in unison, leading to a smoother decision-making process for the whole company.
As you can see, a business plan is critically important. Some of the main reasons this type of strategy is vital are:
- Helps to identify strengths and weaknesses - A business plan allows you to work on existing strengths within an organization and eliminate possible weaknesses.
- Acts as a plan - Helps you plan important steps to reach certain business ambitions.
Gives you greater control - You can achieve more control of various aspects of your business, and, in turn, this will help you reach your goals sooner. - Allows you to be more efficient - A business plan allocates different resources for business activities, making the company run more efficiently. Therefore, you can plan ahead for certain scenarios and deadlines and stay on top of goals.
- Gives you an advantage over other businesses - With a clear plan, you can identify your business goals easily and focus on reaching each objective. This will give your company an advantage over others.
10 Steps To Writing A Business Strategy
Not all business strategies will look the same. However, all share important ingredients and structures to help businesses develop and benefit from them.
Let’s take a look at some important steps to building an effective business strategy below.
Step One - Make An Executive Summary
Firstly, your business plan requires an executive summary. This is essentially an elevator pitch of your business but in written form.
Keep this summary brief (as the name suggests), but also ensure it holds all the important essentials regarding your business and what it is.
The executive summary needs to include your goals, a detailed, yet concise description of the services or products your company offers, how the structure of your business is formed, and a summary of your overall business strategy.
Step Two - Create A Business Description
Here, you will need to write down details about your business, such as its name, address, important details from its history, and essential personnel within the company.
You can elaborate more on your company, its goals, the target audience, where you feel there are shortcomings in the business, and how you believe the company stands tall from any other competitors.
Step Three - Analyze The Market
An essential part of a business plan involves market analysis. This allows you to better understand your business’ industry, how to stand out from your competitors, and what your target audience should be.
You need to perform in-depth market research to understand the trends and opportunities associated with this niche.
From consumer behaviors to demographics, analyzing the market will make it simpler to pinpoint who your potential customers will be and what products you could offer them.
This is also a good opportunity to do some research into your business’ competition to understand their strengths and weaknesses.
Study how other companies are developing and what changes they may be making. And, if you notice any areas your competitors are struggling in, you can jump ahead and take advantage of this.
Step Four - Layout Your Business Structure
You’ll need to outline the structure of your business. Make a chart listing the leadership personnel in the business, other key roles, and their responsibilities.
Step Five - Specify Products And Services
Here, you should go into detail about the services and products your business offers. Include information about how the company produces goods, the resources needed, the cost of production, and other important details.
Step Six - Create A Sales And Marketing Strategy
You must market your business to help it develop. Make a marketing plan to try and answer who your target audience should be and the ways you intend to target such customers.
Think about the marketing strategies and platform you will use to reach your audience and the budget for this marketing.
Write down an overview of the business’ sales plan with details regarding the sales goals, sales process, and the steps required to reach those targets.
Step Seven - Include Business Financial Information
You need to write down certain financials associated with your business, such as income statements, cash flow statements, profit & loss statements, business costs (labor, manufacturing, production, etc.), and balance sheets.
You can produce these in the form of spreadsheets and with accounting software.
Step Eight - Identify Your Projected Finances
This section should outline your business’ past and present financial performances. You can also include a map to project your company’s finances at this point, too. This is essential if you are hoping for funding from investors.
Step Nine - Outline Funding Requests
If you’re seeking funding from investors, you will need to outline all funding requests and needs. Here, include details on the reason you’re requesting funding and what you will use this funding for.
Step Ten - The Appendix
Finally, you will need to create an appendix (a table is easiest to understand), including any supporting documents and further information that is not included in the business strategy.
You should include - bank statements, contracts, business credit history, legal documents, leases, licenses, letters of reference, receipts, patents, permits, and resumes.
In Summary
A business strategy is essential to help any business, whether it is starting up or you’re looking to develop it and take the company to a new level.
Once you make a plan, you can revisit it and review how your business is performing each year.
The more organized your business plan is, the smoother and more efficient your business will run.