I guess the first thing you may be thinking is that you don't need fancy strategies in your business, because it's so small, so why should you bother with this article. Surely you just keep working hard and you'll make more money without going through pointless navel-gazing exercises to come up with strategies!? Well, I'd kind of agree with you that you don't need FANCY strategies, but in reality every business has strategies whether it consciously acknowledges them or not. So wouldn't it be better to choose those strategies intentionally than to drift into them?
It's all because the word "strategy" sounds a bit technical, something that generals do in wars when they have to organise lots of soldiers. It has connotations that sound big. But that need not be the case. Really a strategy is just a specified approach to overcome a problem or achieve an aspiration. And each strategy can have a number of activities within it that can be planned specifically.
So if you have a problem you want to overcome or an aspiration you want to achieve, then your approach to doing that will be your strategy. So you see that we all have strategies, even if your strategy to date has been to "wing it"!
One of my philosophies is that if you want to get anywhere with anything you have to be intentional and analytical. Being intentional is my point for now. For example, when I am trying to coach my son in how to get better at playing football I often tell him to be "intentional". In other words, don't just stand around on the pitch waiting for the ball to come your way, and when it does come your way don't just swing your foot at it and hope for the best! You must have a reason for being where you are, to gain an advantage for your team, and when you kick the ball you must know where you want it to go.
It's exactly the same with business strategy. You have to be intentional. And it doesn't have to be fancy and complex. Just have an intention. Because if you have an intention, it means you must have thought about it and have a reason for it.
Hopefully I've persuaded you that even if you have a small business you still need strategies. In the remaining space let's have a look at what you need to develop good strategies.
First, you need a "vision". A vision is simply a statement of where you want the business to get to. What's your dream for the business? How much profit? How much turnover? How big a valuation? Market share? Being number one? Even a one-man business has a dream. I know I do. But if you are going to be intentional you need to be specific about all the things you want the business to achieve.
Second, you need to know what the "strategic issues" are. Strategic issues are the barriers and challenges to be overcome or met in trying to achieve the vision. And to know what these are you have to be analytical. You have to gather facts and be honest about the market, the competition, your customers, your suppliers, the economy, and many other things. I know that small businesses often don't have the time and resources to gather all the information they would like, but mark my words, the more information you have the better equipped you will be.
Third, you need "strategies" to address the strategic issues. And to decide on strategies you may have several options to consider. Being clear about your vision and the strategic issues enables you to weigh up each option on its merits. Does this particular option address the issues completely or partially or not at all? Does it help with more than one strategic issue?
Fourth, each strategy needs a "plan". In order to successfully carry out a strategy you need to plan it, so that you know what needs to be done.
Last point - write it down and make a record of your vision and strategy. I wish I could remember where I heard this, but there was some research done on some graduates and whether they achieved their dreams. A much higher percentage of those who wrote down what they wanted to achieve did achieve their dreams. They had something to go back to and remind them what they were supposed to be focussing on, something to measure their performance against.
If you haven't ever thought of any of these things, why not have a go at jotting something down? Sure, there are coaches that can help you and courses, seminars and workshops that can give you more guidance and depth (and I would definitely recommend these things if you can afford them), but in my opinion you can get a long way by simply being intentional and analytical and ensuring that all your plans link through strategies to your vision.
All the best!
About the Author
Andrew Burrows is owner and director of Charis FD. He is a senior finance professional with 15 years experience working with a variety of businesses, large and small, in a range of industries including telecoms, software, marketing services, maintenance, foreign exchange, banking and retail. He is a qualified chartered accountant and a member of the Institute of Directors. He lives with his wife, Heidi, four pre-teen children and several pets, in North Hampshire, England.
About Charis FD
Charis FD works with owners, investors and CEOs of small and medium-sized businesses in the South of England, that don't yet have the benefit of a senior experienced finance professional on their team. They may be finding it tiring and tedious to manage the finances at the same time as managing the business. Maybe they have a particular problem with cashflow or profitability, management information or control. Or it may just be they feel that they spend too much time getting nowhere on finance matters when they should be maximizing business opportunities. We work with them in a flexible way to generate more cash, improve profitability, implement change and strengthen controls.
To find out more about Charis FD, visit our website: http://www.charisfd.com There you will find out more about our clients, our service and about us. And you can sign up for our bi-weekly newsletter.
Article Source: http://EzineArticles.com/?expert=Andrew_Burrows
It's all because the word "strategy" sounds a bit technical, something that generals do in wars when they have to organise lots of soldiers. It has connotations that sound big. But that need not be the case. Really a strategy is just a specified approach to overcome a problem or achieve an aspiration. And each strategy can have a number of activities within it that can be planned specifically.
So if you have a problem you want to overcome or an aspiration you want to achieve, then your approach to doing that will be your strategy. So you see that we all have strategies, even if your strategy to date has been to "wing it"!
One of my philosophies is that if you want to get anywhere with anything you have to be intentional and analytical. Being intentional is my point for now. For example, when I am trying to coach my son in how to get better at playing football I often tell him to be "intentional". In other words, don't just stand around on the pitch waiting for the ball to come your way, and when it does come your way don't just swing your foot at it and hope for the best! You must have a reason for being where you are, to gain an advantage for your team, and when you kick the ball you must know where you want it to go.
It's exactly the same with business strategy. You have to be intentional. And it doesn't have to be fancy and complex. Just have an intention. Because if you have an intention, it means you must have thought about it and have a reason for it.
Hopefully I've persuaded you that even if you have a small business you still need strategies. In the remaining space let's have a look at what you need to develop good strategies.
First, you need a "vision". A vision is simply a statement of where you want the business to get to. What's your dream for the business? How much profit? How much turnover? How big a valuation? Market share? Being number one? Even a one-man business has a dream. I know I do. But if you are going to be intentional you need to be specific about all the things you want the business to achieve.
Second, you need to know what the "strategic issues" are. Strategic issues are the barriers and challenges to be overcome or met in trying to achieve the vision. And to know what these are you have to be analytical. You have to gather facts and be honest about the market, the competition, your customers, your suppliers, the economy, and many other things. I know that small businesses often don't have the time and resources to gather all the information they would like, but mark my words, the more information you have the better equipped you will be.
Third, you need "strategies" to address the strategic issues. And to decide on strategies you may have several options to consider. Being clear about your vision and the strategic issues enables you to weigh up each option on its merits. Does this particular option address the issues completely or partially or not at all? Does it help with more than one strategic issue?
Fourth, each strategy needs a "plan". In order to successfully carry out a strategy you need to plan it, so that you know what needs to be done.
Last point - write it down and make a record of your vision and strategy. I wish I could remember where I heard this, but there was some research done on some graduates and whether they achieved their dreams. A much higher percentage of those who wrote down what they wanted to achieve did achieve their dreams. They had something to go back to and remind them what they were supposed to be focussing on, something to measure their performance against.
If you haven't ever thought of any of these things, why not have a go at jotting something down? Sure, there are coaches that can help you and courses, seminars and workshops that can give you more guidance and depth (and I would definitely recommend these things if you can afford them), but in my opinion you can get a long way by simply being intentional and analytical and ensuring that all your plans link through strategies to your vision.
All the best!
About the Author
Andrew Burrows is owner and director of Charis FD. He is a senior finance professional with 15 years experience working with a variety of businesses, large and small, in a range of industries including telecoms, software, marketing services, maintenance, foreign exchange, banking and retail. He is a qualified chartered accountant and a member of the Institute of Directors. He lives with his wife, Heidi, four pre-teen children and several pets, in North Hampshire, England.
About Charis FD
Charis FD works with owners, investors and CEOs of small and medium-sized businesses in the South of England, that don't yet have the benefit of a senior experienced finance professional on their team. They may be finding it tiring and tedious to manage the finances at the same time as managing the business. Maybe they have a particular problem with cashflow or profitability, management information or control. Or it may just be they feel that they spend too much time getting nowhere on finance matters when they should be maximizing business opportunities. We work with them in a flexible way to generate more cash, improve profitability, implement change and strengthen controls.
To find out more about Charis FD, visit our website: http://www.charisfd.com There you will find out more about our clients, our service and about us. And you can sign up for our bi-weekly newsletter.
Article Source: http://EzineArticles.com/?expert=Andrew_Burrows
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