Devising Business Strategies- Taking The First Steps

The market keeps testing entrepreneurs for their level of commitment. And the best conversions, increment in earnings per share and net operating cash flow are reserved for those who demonstrate a never-ending commitment to act until they achieve. The level of constant and consistent resolution in your business strategies can move mountains.

In business, we cannot walk blindly. We need to look into the future, understand the opportunity, anticipate and eliminate the risk, then carefully take the steps forward. 

Remember the time, when at first you failed to convince your client but in another attempt after doing a little twist and tweak in your way of convincing, you succeeded. Unknowingly what you did was strategy making. 

A business strategy can be defined as the combination of all the decisions taken and actions performed by the business to accomplish its goals and to secure a competitive position in the market. It is the backbone of the business as it is the roadmap that leads to the desired goals. Any fault in this roadmap can result in the business getting lost in the crowd of overwhelming competitors.

“With the level of uncertainty we see today, more people are asking, how can you develop a strategy in a world that keeps changing so fast? They are afraid that a set of rigid principles will hinder their ability to react quickly. I argue that it is precisely at such times that you need a strategy.”

Orit Gadiesh

Below Are Some Point Which Will Help You Formulate A Winning Strategy For Your Every Business Task –

1. Understand Your Objective: 

“Objectives can be compared to a compass bearing by which a ship navigates. A compass bearing is firm, but in actual navigation, a ship may veer off its course for many miles. Without a compass bearing, a ship would neither find its port nor be able to estimate the time required to get there.”

Peter Drucker

Understanding clearly the ultimate result or objective we want to achieve, is the biggest challenge for many.  People often fail to determine the objective or to properly explain their vision to the core execution team, which leads to much confusion and results in taking the wrong route which leads you nowhere.

2. Analyze And Mark Your Standpoint: 

Before you start your journey, it is very important for you to understand at what level you are standing today and how much distance you need to cover to reach your destination. This step will help you to gather the resources you will need in order to achieve your objective. 

For example – If your company generates 10 cr revenue in the current year and in the next year your target is to achieve 30cr revenue, by your current position you can estimate, how many products you need to sell at what cost – to achieve the targeted revenue, how much you need to spend on marketing and other expenses, etc.

3. Customer Segmentation

All your customers may not have the same taste, the same requirement, or everyone may not have the same experience after using your product, but you need to sell the product to everyone, how will you cater to different types of customers out there, by selling the same product? 

In this situation, you need to change the way you sell the products to different types of customers. You need to do the customer segmentation and according to the type of your customers make your marketing strategy. 

Customer segmentation is basically a process of dividing customers into groups based on common taste and characteristics so companies can market each group effectively and appropriately. 

For example, if you are selling a mobile phone, you can capture the market of senior citizens by showing how easy and convenient it is to handle this handset, to young crowd you can play on the looks and how effective the front and back cameras are, office going people can be attracted by the storage, etc. 

4. Research, Research, And Research:

Many businesses underestimate the power of research, Mostly in startups not doing research has become the primary reason for the failure. No matter how good your idea is if you haven’t understood in what form the market wants it, it is useless. The research will help you to identify the opportunity and threats in the marketplace. It helps you to identify and minimize the risk. 

5. Do SWOT  Analysis:

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis identifies strengths and weaknesses within a company, and opportunities and threats in the market. 

Identify the strength of your company and take a good advantage out of it, Identify the weaknesses, work on them and try to convert them into the strength. But the real challenges are in outside opportunity and threat. Grabbing the opportunity at the right time is very important, you need to be proactive rather than reactive when it comes to outside opportunity. Be ready and keep on exploring opportunities all the time.

The most important parts of a SWOT analysis specify the actions that correspond to the elements you identify. By using the results of the analysis to improve the situation of your company, you can reduce the likelihood of developments that negatively affect the business while improving performance.

6. Finally, Execution:

All your above efforts are waste if your execution is not strong enough, Majority people fail at this level. Once you are done with your strategy, considering all the above points, bring all the findings at the one place, do the proper sequencing, divide the whole big plan into small steps, define the timeline and start executing it, without having a second thought and procrastination. 

A strategy for a business is what wheels are to a vehicle. Devising a strategy is the first step, its implementation will determine what the outcome will be. Throughout the process, you have to evaluate every outcome and improve the strategy.

“Designing a winning strategy is the art of asking questions, experimenting and then constantly renewing the thinking process by questioning the answers.  No matter how good today’s strategy is, you must always keep reinventing it.”

Constantinos Markides