Business Success Needs Strategy
I have the opportunity to connect with many women who lead businesses or own their own business. I love to gain insight on how they built the foundation of their business with a mission and vision. I also enjoy hearing how they are building a strategy for the future of their business.
But, I have to be honest and say, many times I am dumb-founded to hear many leaders do not know the mission of the business they lead or have never developed a mission for the business they own. I am also surprised to find they do not have a strategy to move their business forward.
Raise your hand if you know the mission of your organization.
Can you say it word for word right now?
If you answered yes, I am jumping up and down.Raise your hand if the mission inspires action and is the why of the organization.
If you answered yes, I am clapping and cheering you on.
Recently, I asked this question to a group of business owners who attended a Chamber of Commerce meeting. I had one hand up in the whole room.
I am just going to be frank and ask:
How do you clearly define your organization to your employees and customers if you do not know your mission?
How do you stand out from your competition if you do not have a clear mission?
I will answer for you.
A business mission lays a powerful foundation by which you build your company. It is necessary to create a high achieving organization.
So, why don’t you have one?
I think we get excited to start our company because we are focused on the goods and services we provide. That is great.
But, let me ask, “How many other companies offer the goods or services you offer?”
I would say, the competition is pretty high. Again, I will answer for you. Alot.
So, “Why should I do business with you over the competitor down the street?”
If you cannot answer this, you will not compete.
Or, if you had an answer like these, you will not compete for long:
We are nicer than our competitor.
We have lower prices.
We are faster.
We are not-for-profit.
To compete, you must be clear to your employees and customers about who you are and why you do what you do in a unique manner.
If you are in the healthcare industry as a senior care provider, are a neighborhood coffee shop, a boutique, a printing company, a dental provider, a law firm, or architectural firm, you must have a clear mission. The mission is the “why” to your organization and the reason you stand out.
The business strategy then is the tool by which you reach your business goals.
The mission and strategy work in tandem to guide your organizational decisions like starting a new product line, partnering with a vendor, hiring employees, and generating business.
In this article, we will discuss what a business strategy is and why it’s important, the components of a business strategy and 10 examples of business strategies to help you generate ideas for your own company.
A business strategy refers to the actions a company takes to reach its business goals and be competitive in its industry. It defines what the business needs to do to reach its goals, which can help guide the decision-making process for the tool and resource allocation. A business strategy helps different departments work together, ensuring departmental decisions support the overall direction of the company.
There are six key components of a business strategy.
The business strategy is intended to help you reach the vision of your organization. With a vision, you can create clear instructions in the business strategy for what the organization wants to accomplish.
The business strategy guides top-level executives as well as departments about how they should act with the focus of values at the center of the decisions.
Most organizations use the SWOT analysis, in which stands for strengths, weaknesses, opportunities and threats. This analysis or a similar analysis needs to be done within every business strategy. It allows the company to rely on strengths, and identify opportunities.
Many business strategies articulate the operational focuses for how the work should be done in order to maximize opportunities. Focuses of the organization must be defined. Most choose focuses such as employee development, customer growth, product innovation, and financial stability.
A business strategy includes goals you will work toward to achieve in each of the focus areas. What do you need to do? Where will you find the resources? How will you complete the plan? Who is responsible for achieving the goal? How will you measure success?
The business strategy begins with taking action. The organization needs a launching strategy to achieve success. Determine the first actions in which the company needs to jump from the platform. Quick wins creates success and momentum.
In the Hubspot blog, they recognize 10 different companies who brilliantly differentiate themselves from their competition.
Organizations like Airstream and Whole Foods define their why to the employee and customer and clearly create a strategy to fulfill it.
Airstream creates retro style campers that connect with their customers. They are not seeking to be like their competition, but dare to be different with their sleek silver exterior and modern interior.
Whole Foods provides a healthy, diverse, and “wholesome” selection of food. The company goes beyond the get-in-and-get-out shopping of so many grocery stores today to giving an experience in shopping.
A mission supported with a strong strategy that is measured and evaluated at least quarterly creates:
- A clear path to high performance for your company.
- A sense of focus for the leaders..
- Improves brand awareness for the customer.
- Gives defined goals and feedback to the employees.
Regardless of whether your business is a small start-up or one of the biggest players in your industry, a mission gives a foundation for the organization to stand on. The business strategy is how the business will achieve success throughout the year.
If you are interested in securing a spot in my upcoming FREE Training on Creating a Mission and Strategy, sign up HERE today! Only 10 spots available.
If you would like to listen to this message and learn more about creating a strategy for your business, go to the Become More Podcast!
Get a FREE Resource! The Create Your Why Workbook. CLICK HERE!