top of page

You started a business. So what? What's your strategy?

#Strategy #NewBusiness #Entrepreneur #ArtisanPreneur #Entrepreneurship


What's in this blog?


Congratulations! You started a business. That’s awesome, and I bet you’re feeling pretty proud of yourself right now. But here’s the hard truth: starting a business is just half the battle. To accomplish anything truly meaningful in your business, you need to have an effective strategy that will help you stay focused, guide larger decisions, and power your growth over time. Business without strategy is like driving with no destination; sure, it can be exciting for a while but eventually, you'll get lost and find yourself stuck in nowhere-Ville wishing there was more than just aimless wandering to show for all your efforts. So buckle up, friends—in this blog post, we explore why having an actionable strategy is key for small businesses that want to thrive!


What is a business strategy?

A business strategy is a plan of action designed to achieve an organization's long-term goals and objectives. It outlines the steps that need to be taken for the company to reach its desired outcome and includes tactics such as market analysis, competitive positioning, pricing strategies, product/service offerings, marketing initiatives, sales channels, customer service protocols, and more.


A well-thought-out business strategy can help you stay organized and focused on your goals while adapting to changing conditions in the marketplace. Ultimately, it will clarify decision-making processes and ensure everyone in your organization works together towards a common goal.


Why Having an Effective Strategy is Essential

Your strategy can be used as a tool to measure progress over time and ensure that everyone in your organization is working towards the same goal. It also keeps operations running smoothly by helping you identify problems before they occur, adjust plans accordingly when things don’t go according to plan, and maximize opportunities where possible. In short, having an effective strategy is key for small businesses that want to thrive.


How a Business Strategy, Business Plan, and Business Model Work Together

A business strategy, business plan, and business model work together to help an organization reach its desired goals and objectives. A business strategy is a plan of action designed to achieve an organization's long-term goals and objectives. It outlines the steps that need to be taken for the company to reach its desired outcome and includes tactics such as market analysis, competitive positioning, pricing strategies, product/service offerings, marketing initiatives, sales channels, customer service protocols, and more. The strategy provides the overarching direction for what needs to be done and outlines the steps that need to be taken to achieve the company's long-term objectives.


A business plan is a written document describing how a business will operate over time. It covers topics such as financial projections, management structures and processes, operation plans and practices, marketing efforts, and sales strategies. This plan takes the steps in a business strategy further by providing detailed plans of action on how each component should be executed.


Finally, a business model is the underlying structure of an organization that defines how it creates value for its customers while generating revenue itself. It consists of the core activities that a business must perform to succeed, such as product/service design, pricing and promotion, customer segmentation, distribution channels, operational processes, and more.


By working together in tandem, these three core elements of your business can help you stay organized and focused while achieving your desired results.


Different Parts of a Business Strategy

The different parts of a business strategy include vision and objectives, core values, SWOT Analysis, tactics, and operational delivery, resources and resource allocation, and measurement and analysis.


The vision and objectives provide clarity on the direction of an enterprise. They should include a mission statement, goals, and objectives that define success and core values that guide decision-making processes.


A SWOT Analysis helps you identify your Strengths, Weaknesses, Opportunities, and Threats to make informed decisions about how to move forward.


Tactics are the specific strategies that will be employed to achieve your vision and objectives. This includes market analysis, competitive positioning, pricing strategies, product/service offerings, marketing initiatives, sales channels, customer service protocols, etc.


Operational delivery is the process by which these tactics are successfully implemented. It involves assigning tasks to staff members or departments, assigning resources to ensure the timely completion of tasks, and setting milestones to track progress.


Resource allocation ensures that your organization has the financial, human, and physical resources to accomplish its objectives.


Finally, measurement and analysis is the practice of tracking performance metrics over time to assess overall success levels. This will help you identify areas for improvement and make informed decisions on where to invest additional resources. By understanding the different parts of a business strategy and how they are used together, entrepreneurs can create a plan for success.


Different Types of Business Strategies

The different types of business strategies include competition, market expansion, diversification, functional, and operational.


A competitive business strategy focuses on achieving a competitive advantage over competitors by differentiating products or services in the market. It involves analyzing the competition and making strategic decisions to meet customer needs better and differentiate from competitors. Examples of this type of strategy include offering lower prices, expanding product or service offerings, or providing superior customer service.


A market expansion business strategy is designed to increase sales and market share by targeting new markets, customers, or channels for existing products or services. This can involve launching products in new countries, entering new distribution channels, or targeting new demographics with tailored marketing messages.


A diversification business strategy involves introducing new products or services to an existing customer base. This type of strategy can be used to enter new markets, increase sales, and mitigate risk in case of a downturn in the current market.


A functional business strategy focuses on improving operational efficiency by streamlining processes, systems, and procedures. Examples of this type of strategy include automating processes, creating standard operating procedures for tasks, or investing in technology to enable greater productivity.


An operational business strategy is designed to lower costs by optimizing production processes and resource allocation. Examples of this type of strategy include reducing raw material costs through bulk purchasing, consolidating suppliers to get better pricing, increasing automation levels to reduce labor costs, or moving manufacturing operations abroad where labor costs are lower.


By understanding the different types of business strategies, entrepreneurs can make informed decisions on which type is best suited for their organization's goals and objectives.


How to Build a Functional Business Strategy

A functional business strategy is designed to improve the operational efficiency of an organization. It involves streamlining processes, systems, and procedures to reduce costs and maximize productivity.