Business Strategy: 5 Tips

Business Strategy: 5 Tips

When was the last time you thought about your business strategy? Don’t have one? Haven’t looked at it in a while if you do have one? Why not? Despite the fact that having a business strategy is listed in just about every “how to start a business” article or book, not all businesses have one or use the one that they have.

Your business strategy should be a living, breathing document, like your business. Don't lock it in a drawer somewhere. And don’t be afraid to write one if you haven’t, even if your business is already a few years old. It doesn’t have to be difficult and it doesn’t have to be so broad and conceptual that you A) have no chance of following it (it’s more like a business flight plan) or B) have no real concrete plans that help you progress.

Use these five tips to build a energizing, more intentional business strategy that actually helps you build your business and eliminate any challenges as they arise. 

1.  The business strategy is like a flight plan. Visualize your business strategy as a flight plan rather than an esoteric list of unachievable long-term goals. Instead of your strategy saying something like, “We will analyze competitor marketing tactics and come up with strategies to overcome them,” you may want to spend some time thinking about what kinds of activities you can perform that are different  from your competitors, or brainstorm ways of performing similar activities in your industry in a new different way. This can be quite groundbreaking for elevating your business. 

Your strategy plan will want to include achievable short-term goals for any and all departments, with realistic, measurable milestones. As this Harvard Business Review article states, strategy is not what happens when you want to change directions. Strategy should dictate those changes in directions and have you already prepared for them.

2.  Operational effectiveness (creating efficiencies) does not equal strategy.How “efficient” your business is, or the tactics that you use to make your business more operationally efficient, do not equate to a business strategy. Most front line managers are taught to work better and faster—this should tie into your strategy, not be the whole of it. I personally seen and have worked for many businesses that operate as such. While part of your strategy will be information about how you run your business, it is not the alpha or omega of your business. Relying on operational "processes" alone is not sufficient.   

Make sure that all of your operational strategies are tied to the larger strategic positioning. There needs to be a “why” and a “how” that goes along with each part of your strategy that's intended to improve efficiency. Operational effectiveness is not a bad thing; however, it can be easily emulated by competitors and it does nothing to sustain a competitive advantage (or what is truly distinct about your business), so it shouldn’t be the core of your business. In fact, it's a given in any business strategy. 

3.  Use a strategist to keep your business on-strategy. Whether you are writing your strategy for the first time or you are revamping an ineffective strategy, consider bringing on a strategist. Why? Bringing in a strategist during the writing and implementation phase can help eliminate redundancies and create a much more streamlined and effective strategy, ultimately saving you tons of time. 

A strategist is your secret weapon— he/she knows how to create and implement a strategy that works, working with your unique business to make sure that your strategy is tailored to your business’s needs and your concerns to reach your risk-mitigating milestones. Some of the best strategists also utilize smart technology for business strategy to help their clients make the best decisions at the best times. This helps greatly since one decision can impact more than one area for greater or lesser outcomes (as it relates to company dependencies, resource and capital requirements and more). Your strategy will also want to be flexible and experiential unlike the traditional, militant business strategies of the past. While standard templates like this one from Forbes can be a good place to start, templates rarely show how your business is uniquely qualified to succeed.

4. Have a visual component. Why have a visual component? Because many of us are a visual learners. A lot of us respond to and can process visuals better and faster than they can process a block of text. Because your business strategy is going to be a living document, something that you should engage with on a daily, or at the very least, weekly basis, including a visual component ensures that you can quickly get the information you need from your strategy.

Whether it is a timeline you can use to measure your progress or a picture of a map that is labeled with your milestones, make it visual and you'll become more fun and engaging.  Visual mapping or even a gamification component can help to increase engagement and adoption. These entertaining strategies tend to work into the subconscious mind when presented in unique ways. It can also be quite invigorating for a business!

5. Share the strategy widely in your business to keep it living and evolving.Get the whole business involved. Your strategy should not be a secret within the walls of your own business. This is one of the best ways to create what’s called a “blue ocean” strategy (a strategy that sets you so far apart from your competitors so that you essentially do not have any competitors).

Involving shareholders, executives, department heads, employees, etc. for input can help develop and drive a business strategy that truly sets you apart from the competition. Have strategic conversations, make choices, keep the rhythm and be sure to let team members know it’s o.k. to speak honestly. With this in mind, you’re able to create a living, breathing strategy that has a greater opportunity to spread and thrive throughout the entire organization.

Lastly, don’t be daunted by how BIG the two words of “business strategy” may sound. Use these tips and you'll find yourself in possession of a solid, functional and effective strategy that improves your distinct positioning and helps rid the blurred lines of being all things to all customers.