Does a small business need a small business strategy?  I would say “yes” in most situations, unless a business owner is happy with the day-to-day and there is no threat of competition.  But there is always the threat of competition or the possibility that a business becomes obsolete.  If there is any desire to grow or improve the business or the owner’s situation, a growth strategy is certainly needed for the business to reach its greatest potential and doesn’t have to mean more work for the owner.

 Many small business owners operate without a strategy at all other than to wake up in the morning, handle whatever is thrown at them through the day, and make the day’s deposits at the end of the day hoping it is enough to cover the next expense.  Some business owners have loose pieces of strategy locked inside their heads, but the strategies may change on a whim or as a reaction to some event and there isn’t the drive to turn the strategy to reality.

 Often, the business owner is the business and the business can’t operate without him or her.  Many people build a business with the hope that they will have more time outside of their business to enjoy life.  Without a strategy, it is difficult for the owner to extract him- or herself from the business.  A strategy can help the business owner grow the business in a way that it can operate on its own so that the business owner can work “on” the business and not “in” the business.  The business owner should be focused on the vision and the most valuable uses of his/her time. 

 It is possible to take a small business that has been around for years without much success and build and execute a strategy that turns it into raging success.  It’s a simple process of creating a vision that serves a need and creating a plan on how deliver value to customers in order to achieve that vision.

Small Business Strategy

It is important to start with a vision.  The vision is the destination, or where the owner would like to see the business at some determined time in the future. The strategy is the roadmap on how to achieve the vision.  The strategy for a small business does not need to be as complex or as detailed as that of a multimillion-dollar business.  It can be as simple as a few key bullet points that keep the business focused on what is important and guides business activities and decisions.  Without a strategy, a vision is nothing more than a dream that is unlikely to be achieved.  The better the strategy and its execution, the more likely the business will be successful and achieve the vision. 

The strategy takes into account the vision, customers and customer needs and desires, the market, competition, trends, and the strengths and weaknesses of the business.  A strategy that uniquely positions the business with a valuable portfolio of products and services and is aligned with the vision will result in progress toward the vision.

What are the benefits to the small business having a strategy?

Having a strategy is important, but it is more important to execute the strategy.  There are many benefits when executing a sound business strategy, some of which include:

• Efficient progress toward the company vision
• Better understanding of the business, the market, and the business’s position in the market
• Improved decision making
• Efficient use of resources (money, people, physical assets, etc.)
• Better hiring decisions
• Improved teamwork

More details on the benefits of a sound small business strategy can be found here.  More information on the key elements of a winning small business strategy can be found here.

To explore how Jumpbeat Strategy can grow your business, contact us for a free consultation.