What even is Strategy anyway!?
Strategy is a word that gets used a lot in business (and by me!) but what actually is it?!
Straight to it…
The definition of Strategy is ‘a plan that is intended to achieve a particular purpose’ (reference: Oxford Advanced Learner's Dictionary).
So in a business context, Strategy is a tangible plan (it could be a document or a presentation) that shares the vision and goals of a business (it’s purpose) and demonstrates the steps the business will take to achieve it’s vision.
The challenge
The challenge (or problem) that I see in business, is that when we get started, we so often dive straight in. Sometimes we may write a business plan, but typically this is only mandatory if you are applying for funding or starting a franchise business. It is much more likely that we have a skill in the industry we are starting a business in, and we just get started. We sort of start ‘winging it’. We spend a lot of time absorbed by all the day to day runnings of the business, and then we aren’t able to find the time to step back and think about the bigger picture.
This is one of the reasons I was so passionate about focusing my business around Strategy. My mission is to help smaller businesses bring the discipline of Strategy to their business, so that they can make an impact on the world.
So maybe now you are asking ‘Why is Strategy so important and why should I bother with it?’ - Let me try to answer that for you now.
Strategy Elements
Before I go through the benefits of Strategy, I need to tell you what the elements of strategy are. This can be quite fluid, and depending on the business and their situation, the Strategy may include various different elements. However, a good strategy has a number of key elements to it:
Your vision and mission
Your goals and objectives
Your milestone plan
Your action plans in terms of people, marketing, sales strategy, etc.
Your financial forecast and targets
The benefits of Strategy
So now that you know what a Strategy includes, let me share with you why you should bother with Strategy. Having developed Strategic Plans for a range of businesses from corporates to small businesses to solo entrepreneurs, here are the key benefits that I see:
It clarifies your Vision. By writing down your vision, it will clarify it for you, and it will help you be clear on the direction your business is going in. Having a clear vision will help you make business decisions more quickly, and in a way that is aligned to you and your business values.
It gives your business a sense of Purpose. By having a Strategy in place, you have a sense of purpose for your business. It is good practice to see your business as a separate entity to you as an individual. And therefore it should have it’s own purpose and identity. Having a strong sense of purpose for your business is a great way for you to be clear on what you are doing and why you are doing it. It also makes it easier for you to talk to others about your business and share your story clearly.
It brings you Motivation. By having a clear strategy, you have something tangible to motivate you to achieve your goals. For example, by having a clear milestone plan you can keep up your energy and focus towards delivering the steps to grow your business.
It makes you Accountable. When you are clear on your financial forecasts and targets, you can hold yourself (or your team) to account. It may be hard to do this at the very start, but once you’ve got a year under your belt, it’s possible to do a year on year comparison and monitor your financial performance. Having targets, e.g. in terms of number of customers, social media targets, or quality targets, makes sure you aware of the day to day performance indicators and is another great source of accountability in business.
It helps you identify Challenges and Opportunities. Through your strategic planning process, you can take the time to consider your challenges and opportunities. In doing this, it provides your business with the chance of implementing new ideas for the future, and putting in plans to mitigate any risks or challenges.
So what next?
For me, the first step is always to develop a Strategic Plan with my clients. But the next step is helping them set up their Strategy Reviews and Strategic Planning Process. If you’d like to read more about this then take a read of my ‘Do it like they do it in Corporate’ blog here.
If you are intrigued and want to find out more about how Strategy could help you in your business, get in touch here or send me an email jennie@jenlister.com and I’d be happy to have a chat.
The Jen Lister Podcast is where I share my entrepreneurial top tips, and have guests who are incredible experts in their area of business - click the link below to listen…
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