I am Joshua Paul, your trusted business strategist consultant.
Today, we learn the key things about creating an efficient business strategy.
They say that a business strategy is like a roadmap to success.
So it should be created thoughtfully. Right?
Not creating it seriously and giving it a poor implementation can cost your business. Poor business strategy is often cited as one of the key reasons behind business failures in the US every year.
Here I would like to share my experience with a tech firm that I joined as a business consultant.
The company was on the verge of collapse. After analyzing the things and listening to their plan and process, I concluded that the company has skipped one important thing in their strategies—to know their target audience better.
They have set their service cost too high to be afforded by their prospective buyers, letting their competitors eat up their market share.
Even today, I got an opportunity to work with businesses that are not aware of the right strategies.
Some of them have an idea of their strategy, but they lacked the clarity and direction to put it into action. In other cases, the absence of a solid implementation plan proved to be a major roadblock.
As an experienced entrepreneur and a business consultant, my advice is to take the time to develop a comprehensive, well-researched strategy that aligns with your long-term goals.
Avoid the allure of quick fixes and templates, and instead, focus on a thoughtful approach that considers market dynamics and industry complexities.
With the right strategy in place, you’ll be well-positioned to achieve lasting success and navigate the challenges of the business world with confidence.
Here’s how you can create a winning business strategy.
Develop Your Vision:
Vision is a word that can mean different things to different people. But when we talk about it for businesses, it’s like having a clear picture of what they want to achieve in the future. Imagine it as a snapshot of their dreams.
When companies have a vision, it’s like saying, “This is the kind of company we want to be one day.” It’s different from a mission statement, which usually explains what they’re doing right now. Instead, a vision talks about what success would look like for them in the future. This includes things like the number of customers they want, the markets they want to reach, and how much they want to sell.
Let’s take some examples to understand better. Amazon is a successful company because everything they do is connected to their vision. They want to be the most customer-centric company in the world, meaning they care about making their customers happy. That’s why shopping on Amazon is so easy and smooth.
For Google, their vision is to give users the best internet experience ever. You know them for their famous Google Search, which helps people find information on the internet quickly. So, all the products and services they create are aimed at making that vision come true.
Microsoft, in the early days, had a vision that said, “We want a computer on every desk and in every home.” They wanted their computers to be used by everyone, everywhere.
So, just like having dreams and goals for yourself, companies have visions to guide them and be successful in the future.
Define Competitive Advantage:
In the business world, many companies are similar and offer similar things, so having a competitive advantage helps a company stand out and be successful.
When a business is planning its strategy, it’s like figuring out how to be different and better than its competition. They want to show their customers that what they offer is better or more valuable compared to what other companies have.
For example, a business can have a competitive advantage by offering a product at a lower price than its competitors. People might choose to buy from them because it’s a good deal.
Or, if their product costs a bit more, but has special features that customers like and are willing to pay extra for, which can also be a competitive advantage.
So, competitive advantage is like having that “special something” that makes customers want to choose one business over another. It’s about being unique and offering something that others don’t have, making the business successful in a sea of similar companies.
Understanding Your Customers:
One of the important things for a successful business is to know its customers really well. If they don’t understand who their customers are, it can cause problems in their business plan.
Sometimes, companies get confused because they try to appeal to everyone, and their messages become unclear. This can lead to their sales and marketing efforts not working together properly.
To fix this, businesses need to be specific about who they want to sell to. They can identify smaller groups of customers who have similar interests or needs, and that’s called “target markets.” Some businesses prefer to serve a specific group of customers really well, while others might serve a broader range of customers.
When a company knows its target market, it can make its sales and marketing strategies work together better. This might be complicated stage for some businesses, requiring them to hire a good business strategist consultant.
Finding the Sweet Spot of Competitive Positioning:
When you have a product or service, it might not be perfect for everyone. So, it’s essential to figure out which group of people would benefit the most from what you offer. These are the customers you want to focus on. An efficient business strategist consultant can help you with that.
When you find customers who really need and want what you have, they tend to stick with you for a long time. They won’t easily leave for another option. This is good because it means they keep coming back, and it costs less to get new customers.
So, the key to beating the competition is to find the right customers who love your product or service and keep coming back for more. When you have those loyal customers, you’re in a great position to succeed and stay ahead of others in the market.
Choosing a Market:
Try to pick a market where there are not many other companies offering the same thing. You want to find a place where customers don’t have many options or maybe no options at all. This is called an “underserved” or “not served” market.
Here’s an example to help you understand better.
Imagine you want to start a cookie business. You see that there are already many big companies selling chocolate chip cookies, but there are very few or no companies selling special gluten-free cookies.
So, you decide to focus on making delicious gluten-free cookies since there’s little or no competition in that area. When you do this, you become the first one in that market, and people who need or want gluten-free cookies will come to you because there are not many other choices. You can capture a big part of that market and become well-known for your gluten-free cookies.
By being the first in this underserved market, you build a strong reputation for your brand, and it becomes tough for other new companies to enter and compete with you. You can also reach out to an efficient business strategist consultant for more help at this stage.
Creating Value for Customers:
Happy customers mean happy business. That’s a simple equation.
Providing value to your customers can play an important role in the success of any business.
While lowering the price can be an attractive option, it might not always be possible.
So, another way is to think about how we can make the product even better and more valuable to customers. When the product is worth a lot to them, they’ll be willing to pay more.
Here are some ways to create value for customers:
- Making the product better in terms of quality and how long it lasts.
- Offering excellent customer service and a smooth shopping experience.
- Building a community of users where customers can connect and interact (if it makes sense for the product).
- Supporting a cause that customers care about, like helping the environment or contributing to a social cause, and showing it in the product’s packaging and branding.
For example, you have a favorite video game that you love to play. If the company that makes it lowers the price, you might be more willing to buy it, right? But if they also make the game even better with awesome graphics, fun challenges, and lots of cool features, you might think it’s worth even more and happily pay a bit more for it. That’s how creating value works!
Check If Your Plans are Working Well:
When you’re running a business, it’s essential to check if your plans are working well and still fit your goals and what customers want. Here’s how you can do that:
Periodically Review and Update:
Take some time regularly to look at your strategies and make sure they’re still good for your business. Things can change, so it’s essential to keep them up-to-date.
Test in Small Steps:
Instead of making big changes all at once, try out your new ideas in small phases. It’s like trying a little bit first to see if it works well.
Fail Fast and Learn:
If something doesn’t work as you hoped, don’t worry! It happens. It’s better to find out quickly because it’s less costly to fix small mistakes than big ones. Learn from those mistakes and use that knowledge to improve.
Ensuring Employee Satisfaction:
Making sure employees are happy and satisfied is crucial for a successful business. When employees are happy, they can do better work and make customers happier too!
There are different ways to make your employees feel valued and content:
Pay and Benefits:
Offer competitive salaries and bonuses to show that their hard work is appreciated. Also, provide benefits like enough paid vacation and sick days, generous parental leave, and wellness budgets to take care of their well-being.
Flexible Work Options:
Let your employees choose where they work, whether from home or in the office. This flexibility can make their lives easier and improve their job satisfaction.
Help your employees grow by supporting their learning and skill development. This way, they can improve and feel more confident in their roles.
Diversity and Supportive Culture:
Create a workplace where people from different backgrounds and experiences feel welcomed and supported. This diversity can bring fresh ideas and perspectives.
Now, let’s look at an example. Imagine a call center for a diagnostics company. The employees were earning minimum wage, but they believed their work was more analytical and deserved higher pay. They also faced challenges with complicated tasks and work conditions.
To make them happier, the company raised their salaries and improved how things were done to make their jobs smoother.
At first, this increased the cost for the company, but something amazing happened! The employees became more productive, and their better mood positively affected the way they interacted with customers on the phone.
Because customers felt better served, they became happier with the service and were even willing to pay more for it. So, in the end, the company’s decision to improve employee satisfaction led to happier customers and a more successful business!
Over to You….
Congratulations! You now have some key winning business strategies in your hands. Building a successful business is all about comprehending your market, understanding your customers, and keeping an eye on your competition. Or you can work with me or any other business strategist consultant/coach to get help with your business strategy. Or you can tap into the expertise of Joshua Paul—that’s meJJJ. I as your business strategy consultant will work with you and create tailored plan to help you succeed.
So, never stop learning and honing your strategies to ensure your business not only achieves its goals but flourishes!
This is Joshua Paul, signing off!