Business strategy, what it has to do for growing your
business?
According to recent statistics, a proper well-planned business strategy is
mostly enhanced by large firms only.
The reason behind this is lack of understanding and
investment of time in formulating the action plan to kickstart the business.
Most of the business don’t have experience or give little
importance to prepare their own unique business strategy.
As a result, they are skeptical and feel that is irrelevant
to their business or simply leaving it by seeing the complications it offers.
To prepare Business strategy action plan, it requires a lot
of rigorous analysis and time to consider various factors related to the
particular business.
So, what if we tell you that your business strategy
blueprint can be drafted out in next one hour?
Yes, it’s true.
Your business just simply have to follow the four
parameters of checklist and get started to derive some substantial results.
So, what actually a business strategy action plan is in
simple terms?
Business strategy in general is
defined as the firm’s high level working plan for reaching their ultimate
business goals.
Strategic plans are viable to
accomplish when they lead to business growth, putting the business in a strong
financial position.
Business needs to make the
necessary changes in their approach of conducting business ways as the wrong
advancement can lead to failures.
Business strategic goals are
based and differs on what industry or market it operates.
If your business is related to
fast growing industries and technical services like IT or computers, then
choosing objectives that matches your growth along with goals is the key.
Or if your business is slow
growing industry, like manufacturing food products, focusing on managing assets
and expenses is vital.
Think about what objectives
your business is trying to achieve as business strategies reflect strengths,
vulnerabilities, resources, market and opportunities.
It is very surprising to know
that different business strategies can be executed, for businesses selling
similar products or services.
For Instance, different
airlines companies with similar services employ the business strategy of
providing low-cost transportation.
Formulating business strategy
begins with aim of growing, earning, sustaining profits.
Let say there are three
restaurants A, B and C in the town operating their business in fast food
category by selling burgers.
Due to the other two
restaurants, the profits of restaurant A was falling down and there was
significant downfall in the revenue.
So, Restaurant A formulated
and devised their business strategy by adding complimentary free delivery
services by taking orders online.
They also improved the recipe
of making burgers by adding new sauces according to customers taste and
preferences.
The Analytics showed that
results for restaurant A were very remarkable.
This was a perfect business
strategy example which was successful by making somes changes in their business strategy.
This is what called to go with
different approaches formulating business strategies as per the market needs.
So, how can you formulate best
strategy and action plan for your business?
With the help of just little
work, the following four actions points can help to create a business strategy
for your business.
Step – 1. Start with the
vision
Successful strategies are
built on the business vision as it visualizes the essential nature of business:
what it does and what it look likes.
Three things to be kept in
mind are what the business is offering, the market in which it operates and the
customers.
Let’s talk about here a
company that sells laptops, to make them successful in their market, they
started with the unique value proposition.
It explains why customers
should buy from your business rather than other similar business in the market,
assembles laptop when customer orders.
Their strategy also included
of assembling laptops exactly the customer wants and delivering it a very
competitive price.
Step- 2 – How the top level
objectives are fulfilled
The sole aim to formulate
business strategy is to devise how the top level objectives are fulfilled.
For instance, A business
selling baby care lotion emphasizes on their top level objectives that need to
be fulfilled.
Their three objectives are
like to provide solution for parents looking for taking care of their baby
hygiene.
Another objective is like of
taking responsibility of keeping community safe and secure by following proper
standards in making the product.
And so on…
These objectives are included
in the business strategy to differentiate from the other similar businesses in
the market.
Step- 3. Choosing the specific
market
This step in making strategy
includes questions like how the business will be different form other similar
business, create customer demand for their products / services, increase
profits.
To differentiate from other
similar business, factors like creating new products or services, adding unique
features to existing products, making superior design , improving quality and
much more.
Step -4 Does the business
strategy is realistic?
The business strategy will be
ready to execute only after it validates with a quantitative business model.
The model serves as reality
check for the business strategy .
The
resulting model shows whether or not a proposed strategy can bring desirable
sales revenues, margins, and profits.
The quantitative model with profits develops naturally
when the business makes these estimates:
§ Firstly, target
product / services revenues.
§ Secondly, expenses
necessary to earn target revenues in these expense areas:
o
Cost of Goods / services.
o
Selling expenses.
o
Administrative and general expenses.
So, this was the business strategy
example process which can be used for quick implementation, especially for
small business.
To understand more, we shall consider a
business strategy example where these steps for business strategy can be
implemented.
Let’s say if you are manufacturing or
selling mobiles, the business strategy or a general approach is going with
broad differentiation.
First step is to consider is the unique
value proposition of the business along with the vision of your business.
Explain out the what is different in
your mobiles with other similar ones in the market.
Let the mobiles you sell be water
proof, so this will the unique selling point of your business
Another thing is to list out these three
important things: Products the business is offering, Market in which it
operates and the ideal customers.
Second step is to figure out how your
top level objectives with your business values is fulfilled.
Show your customers how your top level
objectives like user friendliness, recyclable batteries and environment friendly
objectives is achieved.
Third step is about choosing your
market.
- Is your product is for teenagers, youngsters, old aged people?
- What demographics are considered?
- To which class of people the product is ideal to buy?
And so on..
The final step is to make a realistic
test of your business strategy action plan by estimating out total expenses
occurring and total revenue it can generate.
This type of generic business strategy
example helps to focus on key features that differentiate the business and the
product from it’s similar business.
This broad differentiation of the
product emphasis on elegant design, providing user friendliness to the
customers.
This type of implementation of business
strategy will set apart from the similar business not only by the price but by
the other important beneficial features to the customers.
So this was the ultimate blueprint of
the business strategy example action plan which can be developed in matter of
hours.
Thank you.
