Thu 2 Oct 2008
How to Develop Your Business Strategy
You can describe what the business is that you want to build, but you must also understand what makes it the right business for you. Determine the skills and experience it takes to make the business successful.
Which of those critical factors are among your greatest talents? Which of those factors are also the tasks you love to do, twenty-four hours a day, seven days a week? The business that is right for you fits your individual expertise and your personal motivators.
Examine your personal values in order to set meaningful goals and objectives for your business.
High-growth, high-reward, high-risk enterprises are not for people who value security, stability, and tranquility.
Acknowledge what is important to you so that you can build your values into your business.
When you understand what your business is and how you fit in, you can set goals. Given the market opportunities and your personal values, how large could your company become? How profitable?
What is the time frame for accomplishing this and how will you and the company's other stakeholders benefit from these accomplishments?
Market issues make the difference between success and disaster. Identify a problem and identify the specific groups of people who have the problem.
How does the market currently solve this problem? Every possible solution--including ignoring the problem--represents your competition.
Your business model does not refer to the wheelbarrow-sized pile of financial projection spreadsheets that your favorite number cruncher produces. Instead, it refers to how your company operates.
Not all business model decisions are made at start-up; however, the issues and possible alternative solutions should be identified.
As part of the planning process, you will need to determine which type of entity best supports the achievement of your goals. Input from your management team, as well as legal and other advisors, will help you in the decision-making process.