Thursday, 24 December 2020

How to create a business strategy?

 

Having an adequate business strategy is a fundamental factor that can contribute to a business having a long and prosperous life.

 In his book "How Do the Best Leaders Lead?" International consultant Abdul Rimaaz says that to define an effective business strategy, the entrepreneur, the businessperson, or the executives, must work primarily on their ability to achieve goals and objectives.


 This method can be implemented in four steps:

  Clear business goals: it is important to define short, medium and long term goals, that is, one, three and five years respectively. It must be indicated in each case what the company must achieve, with measurable and precise goals with deadlines to achieve them. Goals can be qualitative (achievements that add value in terms of reputation to the company) or quantitative (which can be established in financial or numerical terms). For example, certain billing levels can be set as goals for each designated period.

 Clear objectives: when we talk about objectives, we refer to the partial goals that must be achieved to achieve greater goals. For example, if we intend to achieve the goal of tripling sales in three years, we must establish in that period of time the fulfillment of certain measures that will lead us to that goal. These steps to be taken will be the objectives, and must be clearly established.

 Strategies: are specific methods designed to achieve the established objectives. Different strategies can be developed depending on the goal or objective. It is always recommended to have a plan B in anticipation of more complex scenarios.

 Detailed plans:  there is a rule called 20/80, according to which 20% of the time we spend planning how to achieve our goals and objectives should save us 80% in execution times. This means that having specific plans to execute the strategies can help us make our work much more productive.

 Detailed activities: the activities to be carried out within the company must be specified, all based on what is established in the strategies and plans.

 On the other hand, to get a clearer picture of your business strategy, Brian Tracy recommends asking yourself the following questions about your business:

 What do you want to sell? Remember that we should not only refer to specific goods or services but also to concepts ("At Kodak we sell cameras, photographic paper or film, we sell souvenirs").

  •  Who will it be sold to? Clearly define the target audience and its characteristics.
  • Why would the customer prefer our product or service over our competition?
  • Do we know how to attract our potential clients?
  • What will our sales channels be?
  • Who will be our sellers?
  • How much will we charge for the product or service?
  • What will the profit margin be?
  • Will this profit margin have opportunities to grow?

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