Developing and implementing a business strategy is a key component to the success of any business. To win the game of business, strategy is essential. Having a strategy will enable your business to have direction, have the outlook of how it is performing with its current capabilities against competitors and to know if these capabilities will enable the business to grow. Many businesses suffer for the lack of a strategy that will enable them to steer their business to success.
The first step to your successful strategy is to know your industry or market landscape. It is important to make data driven business decisions. Every industry and market has its own dynamics and knowing how your industry operates, gives your business the foundation on which to build its strategy. Knowing the industry and the competition will determine how you will be able to position your business to create an advantage.
Below are 3 strategy principles that will make your business stand out from the competition and reap a higher average return than the industry average.
1. Strategy is about Uniqueness
Business strategy is all about uniqueness. There is no need for a business to compete to be the best. Strategy is to be focused on building and maintaining a unique business. It is the uniqueness of the business that will make the business stand out from the competition. Therefore there can be many businesses in the same industry or market and each will be a winner with its own uniqueness. There is no need to be a copy of another business to succeed in the market. Building a strategy on the foundation of uniqueness emphasizes competitive advantage.
2. Strategy is about Profit
Business strategy is all about profit. The underlining principle of any business is to make profits. Strategy is to be profit focused. The goal of every strategy is to increase profitability. It is this ability at every stage of business that will ensure business growth and sustainability, hence market share. Growth is a consequence of profitability and profitability is a consequence of satisfying the wants of customers. It is important that business strategy focuses on finding a need in the market and providing a solution that customers will be willing to pay for at a price that exceeds total cost of production.
3. Strategy is about Choices
Strategy is all about choices. Strategy is about what the business is and is not; what the business will and will not do. The underlining principle here is that a business cannot be all things to everybody. It is important that a business sets clear what it stands for, what it is offering and to whom it is targeting as well as how it is going to serve its target market. With a target market, it is easier for a business to focus on them, satisfy their wants and care for them. Marketing to the targeted segment becomes very effective as compared to marketing to the masses.
These 3 strategy principles will give your business its own meaning and create a distinctive direction for your success. It’s time to steer your business to success.