If the answer to that question is “no” then it might be a good idea to invest some time in defining it. Business strategy is crucial because it sets out how an enterprise is going to meet its goals. Without this it can be difficult for many businesses to make progress from where they are now to where they want to be. Sometimes, getting a business strategy right is a case of trial and error – what’s important is that you start working out what kind of strategy is necessary for you.

Why have a business strategy?

  • An opportunity to evaluate how the business is performing, both internally and against the competition and the wider market
  • Establishing a vision for the entire business – this will help to ensure that everyone in the business is working towards the same goals
  • Identifying opportunities. For example, business strategy preparation can include assessing the market, looking at current trends and key market disruption to help tailor the business vision to take advantage of incoming change

Two broad categories

Although every business and approach to strategy is different, generally there are two key categories: the theoretical strategy and the practical strategy. The first of these is where ideas are discussed and formed and perhaps put down on paper. This can be used to identify goals and the direction for the business.

Practical business strategy is focused on how to achieve those goals – the steps that are necessary to achieve real growth and genuine change. Key with both of these approaches is that they need to evolve as the business does. Once a strategy has been identified it should not be set in stone but instead reassessed and reevaluated as time goes on.

Tips for defining business strategy

  • Start with a brainstorming session to identity your theoretical strategy and the potential goals and obstacles that need to be dealt with.
  • Set the goals that you’re looking to achieve with the business within a specific timeframe.
  • Once you’ve established the goals that you’re working towards, outline the key principles that will be involved in enabling the business to reach these goals.
  • Pay close attention to the weaknesses within the business and areas where there are future risks to growth. This is an important part of the process of defining business strategy because it will open up an opportunity to remove obstacles from the path of progress.
  • Stick to a single strategy if you can – the more threads that are involved, the more complex your approach will become and the more the chances of success are reduced.
  • Identify the positive change in the business that you want to see from setting a strategy in this way. This could include increased profits, better cash flow management, an improvement in productivity or a better use of resources.

No two business strategies are ever likely to be the same. However, every business needs to have this kind of focus if the goal is to develop and grow.

Get in touch with Brian Doubleday for more helpful business strategies today.