What is business strategy and why is it important?
Business strategy is my passion and helping women in business have a crystal-clear vision for their business is the key to sustainable business growth. So what is business strategy and why is it important?
I was a speaker at an event a few months ago with 300 women in the room and it struck me how many small business owners prioritise tactics, flashy digital tools, and shiny objects, overlooking the fact that the missing link is actually the strategy led by none other than THEM (YOU), the CEO.
With over 15 years of experience as a strategy consultant and business doula across various business sizes, I can confidently say that we ALWAYS begin with a well-crafted strategy before handing it off to the marketing, product, financial, and operations teams.
This applies even if you're a solopreneur or have a small team. I am wholeheartedly convinced of this truth! So let’s explore this more because after receiving comments like the below, I realised this is very important to know!
Do you have a documented business strategy?
Do you have a clear and documented business strategy for your business?
I know it is a confronting question.
Let’s say STOP to pseudo business experts, the business gurus as I love to call them, out there telling you what you should have in business to succeed - an online course, a large catalogue of products, an e-com store, dancing on a reel, a large email list, a podcast, you name it!
And now you are overwhelmed with what to do next and you just follow the advice of the last person you spoke with.
Below I am going to debunk common myths about business strategy and explain its significance for business owners.
You know my passion for business strategy and the crucial nature of having a crystal-clear vision for your business.
The four business strategy myths
Let’s start with some myths busting based on the questions I received from thousands of entrepreneurs I’ve been meeting or supporting directly via my community around what a strategy is and what it is not:
Myth 1: Business Strategy is Only for Big Corporations
The belief that strategic planning is reserved solely for the giants of industry is not correct. Businesses of all sizes, including small and medium enterprises, can reap the rewards of strategic planning.
Let's look at the success stories of businesses just like yours…
Myth 2: Strategy is Just a Fancy Term for Planning
Our next myth to bust: the misconception that strategy is merely a fancier word for planning. Think of operational planning as your day-to-day itinerary and strategic planning as your GPS for the long haul.
Strategic planning goes beyond task lists; it involves setting long-term goals, analysing market trends, and positioning your business for success in a rapidly changing world.
Myth 3: Business Strategy is Static
The belief that a business strategy is set in stone. Let's be clear, the business environment is anything but static. It's more like a river, ever-shifting and evolving.
Successful businesses understand this.
They continuously refine their strategies to remain adaptable in the face of emerging trends, new technologies, and unexpected challenges.
Myth 4: Strategy is All About Beating the Competition
Let's address the myth that strategy is solely about outsmarting competitors. While competition is a factor, true strategic thinking extends far beyond rivalry.
What is a business strategy?
Now that we've dispelled those myths, let's delve into the essence of business strategy. At its core, a business strategy is a meticulously crafted plan designed to steer your business towards a defined set of goals.
The Components of a Solid Business Strategy
Picture a puzzle, where every piece represents a critical component of your business strategy:
Mission and Vision Statements: These define the soul and direction of your business.
Target Market and Customer Needs: Know your audience's pain points and desires inside out.
Competitive Analysis and Differentiation: Uncover your unique value proposition and stand out from the crowd.
Goals: Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for both the short and long term.
Resource Allocation: Efficiently manage your time, budget, and manpower.
Growth and Innovation Strategies: Plan for continuous evolution, whether through innovation or expansion.
Everything I put into what I call the “six foundations in business”. You can read more about it when you download my free guide!
The Importance of Business Strategy for Business Owners
There are three core reasons
1.Long-Term Direction
It provides the North Star that guides your business's journey through the cosmos of commerce.
Take Mickael and PropHerp, for instance. With a crystal-clear strategy, they have consistently made decisions aligned with their overarching vision, propelling them towards sustainable growth.
2. Resource Allocation
Now, let's talk about resource allocation – the fine art of making the most of what you have. A strategic approach ensures your resources are invested wisely, minimising waste and maximising impact.
3. Adaptation to Change
The business world is a dynamic stage where things can change in an instant. A well-crafted strategy equips you with the agility to pivot and seize emerging opportunities.
Consider Jade Warne and her photography business, she transformed her business model in response to the changing nature in business.
Read more about her story here.
Final thoughts
Let's reflect on the journey we've taken together. We've peeled back the layers of myth surrounding business strategy and discovered its true essence.
Remember, strategy isn't a lofty concept reserved for corporate boardrooms. It's the heartbeat of your business, the roadmap to your dreams, and the key to unlocking your full potential.
So, go ahead and put your strategic hats on, my fellow business owners. Craft your unique roadmap to success, and let strategic thinking to illuminate your path.
Download my free guide for business foundations if you are ready to take the next step to building your business strategy.