Business strategy can be considered to be the outline of all the decisions taken and actions performed by a business, with the aim of accomplishing their business goal and to secure a competitive position in the market. Steven Rindner mentions that a good strategy tends to be the backbone of a business, as it acts as a roadmap that allows the company to move forward to its desired goals. Any fault or error in this roadmap, however, can result in the business getting lost in the crowd of overwhelming competitors.
Operating a business without a strategy is no less than a gamble. Without having a proper direction, one cannot be assured that their business is actually progressing or is stuck at one place. Steven Rindner further mentions that with the increase in market competition, the importance of business strategy becomes all the more apparent. A good strategy would help a company to keep pace with their competitors, as well as prevent them from getting lost amidst unknown or unaccounted variables.
No matter whether an entrepreneur is looking forward to setting new business priorities, outlining plans for growth, planning their investment decisions or determining a product map, they would need a strategy to competently handle all these business functions.
To make sure that a business strategy is adequately comprehensive, an entrepreneur must go through a few important steps, which are:
- Gather all the facts: To understand where a business is heading, knowing the current position of the company is important. Hence, before people start to look ahead, they must try to review the past performance, or the current situation of the company. Each area of the business must be given a special focus, to gain better insight on what works the best for it. There are several techniques and tools that can be used for this process, the SWOT (Strength, Weakness, Opportunities and Threats) analysis being one of the most common ones.
- Develop the vision and mission statement: The vision statement basically describes the future direction of the business, as well as its goal term aims. It also involves describing the values and purposes of an organization. The vision statement, on the other hand, also outlines the primary objectives of a company, in addition to its purpose. It puts emphasis on the short term tasks that have to complete to reach the long term vision.
- Identify strategic objectives: The aim of this step is to develop a set of high-level objectives for all areas of business, while highlighting its important priorities. People can incorporate any identified strengths and weaknesses into their objectives, while making sure that they are SMART or specific, measurable, achievable, realistic and time-related. The business objectives must also include factors such as KPI’s, resource allocation and budget requirements.
Steven Rindner points out that the steps mentioned above are important to creating a robust business strategy that fetches the needed outcomes.