Why Every Business Needs a Strategy

Achieving your long-term aims

A business without a strategy is like a ship with no-one steering. Ultimately, you’ll just go in circles or collide into another vessel. Your business strategy outlines how you will achieve its goals and objectives. It is a crucial element in the success of any business, small or large, as it helps to guide decision-making, allocate resources, and measure progress.

In this article, we will discuss the importance of a small business strategy, the key components of a successful one, and how to implement and monitor your strategy for success. 

Why is a small business strategy important? 

A strategy is vital because it provides direction and focus for your business. It helps you to identify opportunities and potential threats in your market and guides your decision-making when it comes to pricing, product development, and marketing. A well-developed strategy also helps you to set clear and measurable goals for your business, which in turn help to motivate your team and keep them focused on achieving those goals.

Another key benefit of a business strategy is that it helps you to allocate resources effectively. You must identify the resources you need to achieve your goals, such as finance, staff, and equipment. This helps you with forward planning and ensures you reach your goal. Many businesses fail as they have no strategy. Without a strategy, you are likely to end up with a number of half-build bridges- i.e. something that has consumed time, money and resources but returns no value as it has not been completed. 

Business Strategy - The key components:

1. Market analysis – A thorough market analysis is the foundation of any successful small business strategy. This includes researching the industry, identifying your target market, and understanding your competition. This information will help you to identify opportunities and potential threats, as well as inform your decision-making when it comes to pricing, product development, and marketing.

2. Clear and measurable goals – SMART (Specific, Measurable, Achievable, Relevant, and Timely) goals are an essential component of a small business strategy. They should align with your overall business objectives and vision. Examples of goals could include increasing turnover, improving customer satisfaction, or expanding your product line. These then need to be converted into SMART goals, for example, increase our turnover by 10% by the 31st December 2023. 

3. Plan of action – Once you have set your goals, you need to develop a plan of action to achieve them. This includes identifying the resources you will need, such as funding, staff, and equipment, and outlining the steps you will take to achieve your goals. It's important to set milestones and deadlines to help you stay on track and measure your progress. For example, the increase in turnover could be achieved by investing in marketing, hiring another salesperson etc. You need to have a plan to achieve the goals in your strategy.

4. Marketing plan –  A marketing plan is an important component of a small business strategy. This should outline how you will reach and engage with your target market, as well as how you will promote your products or services. This can include traditional marketing methods such as print or radio advertising, as well as digital marketing methods such as social media and email marketing.

5. Business management and growth plan – A small business strategy should also include a plan for managing and growing your business. This includes hiring and training staff, managing finances, and developing systems and processes to ensure efficiency and consistency. 

How to implement and monitor your small business strategy

1. Communicate your strategy – Once you have developed your business strategy, you must communicate it to your team. This will ensure that everyone is aware of the goals and objectives of the business and understands their role in achieving them.

2. Assign responsibilities – Assign specific responsibilities for implementing your strategy to members of your team. This will ensure that everyone is clear on their role and is held accountable for their actions.

3. Monitor progress – Regularly monitor your progress and measure the success of your strategy. This can be done by tracking key performance indicators (KPIs) such as turnover, customer satisfaction, and employee engagement.

4. Adjust as needed – Be prepared to make adjustments to your strategy as needed. This could include changing your approach or shifting your focus based on market conditions or other factors. 

Every business needs a strategy to succeed. How can we help you with yours?