A business strategy, in simple terms, is a documented plan on how an organisation is setting out to achieve their goals. It contains the key elements on how business can execute their long term aims and performances. It is important to create one as it provides a strategic plan on how to develop as a company.
The aim of every business is to be sustainable and to stand out from the crowd and attract customers. A coherent business strategy will help you understand the performance of a company, what drives that performance, how it can be increased, as well as protecting the company against future risks.
All business is risky and no business plan can truly determine exactly what will happen in the future. Your market may seem safe now, but what about in five years? How will your business cope if competitors dramatically lower their prices? Or valuable employees lose morale therefore lower performance?
Every business needs a safety net of protocol to help them make those tough decisions. What a documented strategy can do is give your business the extra support and guidance it needs if put to test.
Here are some of the key elements for a good business plan:
- Creating the key objectives and goals of your business for the short and long term and creating a message employees and colleagues can stand behind.
- Reflecting critically on the real weakness of your business internally and externally.
- Evaluating the possible risks your business may encounter .i.e weakness in product/service performance compared to the competition.
- Evaluating future market changes that will or may effect your customer and anticipating those changes.
- Describing your financial features and requirements. For example, displaying your costs, ROI, and profits and losses, and what future investment may be needed.
Once you have created your business strategy it is important to then monitor its success. (tweet this) You can make sure your business strategy is on schedule and progress is always on track by using this planning document as a bench mark.