A Complete Guide to Creating a Robust Business Strategy
A common question most business owners ask is why isn’t their business strategy working. According to statistics, the failure rate of business strategies varies, with one research suggesting that 9 out of 10 strategies fail while another suggests that 7 out of 10 strategies fail. Regardless of which number is correct, both of the statistics are not ideal for business success.
This indicates that most organizations are crumbling under the weight of their business strategies, either because they were wrong from the beginning or because they have not been updated.
The problem lies in the creation and execution of these strategies. While some techniques are not relevant, some are not well-executed. Either way, this is not good news for businesses. A business strategy is a guiding light for businesses defining tactics and methods you need to adopt within your organization.
However, creating a business strategy is easier said than done. With the constantly changing business landscape and innovations on the horizon, you need to create a strategy that will withstand the test of time and work well under changing circumstances. Therefore, if you are in search of guidance to create a robust business strategy, you have come to the right place. I, Makarand Utpat, can help you create a failproof business strategy.
I am an author and business consultant with years of industry experience. I have seen many organizations crumble because their business strategy was not aligned with their vision and mission. This is why this article will serve as a guide to creating a robust business strategy. Keep reading to learn more.
What is a Business Strategy?
In essence, a robust business strategy can be defined as a master plan or roadmap for an organization. It is a plan that is developed by business owners to achieve their goals. It is more of a long-term sketch of how the organization will reach its desired strategic destination. This strategy acts as a central framework that the management uses to make tactical business decisions.
Once this strategy is defined, the entire organization should work together to breathe life into it. It’s fair to say that a business strategy directs all the departments in the same direction to achieve a common goal. Some key components of a business strategy include:
· Vision and objectives
· Core business values
· SWOT analysis
· Tactics and operations
· Resource allocation
· Performance measurement
How to Create a Robust Business Strategy?
Now that you have understood what a business strategy refers to and how important it is, it is time to dive into the steps of creating a robust business strategy.
Step # 1: Define Your Business Vision
For any business strategy to bear fruit, you will first need to clearly define your business vision. Consider your organization’s values and how you want your business to be perceived. This is what I define as your company’s vision. The vision acts as the foundation for your business strategy. While the term vision might mean a lot of different things to different people, in business terms, it acts like a snapshot into the future. For instance, where do you want to see your business in ten years?
All in all, a vision statement defines what kind of organization you aspire to be and what success means to you. Additionally, it will also define the ideal customer base, value proposition, and core market.
Step # 2: Set Business Objectives
The next thing you need to do is establish your business goals. These might be centered on areas like revenue, market growth, and shareholder value. Nevertheless, these are unique for every business. When developing a business strategy, you must set realistic goals.
A business strategy ultimately determines how a business will grow, compete, and eventually prosper.
Step # 3: Analyze the Business Landscape and Marketplace
Once you have defined your vision and established your objectives, the next thing on your list should be to analyze the business landscape and marketplace. You can use different methods like SWOT analysis.
As a business leader, you should know the strengths of your business to leverage them. Likewise, you must know your weaknesses to prevent you from falling short among your competitors. This will help you devise your strategy, allowing you to focus on areas where you can shine or fall short.
Moreover, you should not only reflect on the internal situation of your business. It would be best if you also looked at what the business landscape offers and how you need to safeguard your business against lingering threats.
Step # 4: Outline Competitive Advantage
This part will reflect on how you will compete in your established market and achieve established goals. In other words, you will have to identify your Unique Selling Point (USP) in this part. If you don’t have one, identify one right away.
Moreover, in this step, you will focus more on how you will create demand for your products and services, boost sales, and utilize innovative methods to drive growth.
Step # 5: Create a Framework
Finally, the last piece of this puzzle is where everything falls into place. You need to create a framework upon which your strategy will be built. On the other hand, this can also be defined as compartmentalizing your strategy.
This step considers the needs of every department and aligns them with the overall organizational goals.
For more tips and guidance on how to successfully grow your business, visit Makarand Utpat’s website. Numerous business people have sought my services to succeed and achieve their goals. I can guide you with whatever objectives you may have, including maximizing conversion marketing, achieving profitability, and moving the needle in a way that makes you the go-to expert in your industry.
You can schedule a free 30-minute consultation to get started.
