Creating a strategy for your business doesn't have to be difficult. Often businesses struggle because they either focus too much on the big picture stuff or focus too much on the tools they should be using, analyses, modelling, etc. However strategy creation can be made much more simple by asking yourself some basic questions and developing the answers through a number of steps
Firstly ask yourself the following questions -
What are our broad aspirations for our company and concrete goals against which to measure progress?
In our field, where will we choose to run our course of action?
What will we do, or use, to ensure we show our competitive advantage?
What do we need to do to build and maintain our winning position?
What management systems and operations are necessary to maintain the position we intend to hold?
Define these then use these to clearly define in writing the following steps -
Identify your long term goal
From where you are now to how much you want to expand and a sensible (you hope) time frame for this.
Identify your key markets
Look at your current markets and markets your business should be competing in. Decide how you think your business could address both your current and other markets in ways better than your competition
Identify the resources you will require
Resources don't just include financials but also skills, relationships, technical aids and assistance and business assets
Identify external factors
These are things that will affect the way you can operate your business, eg if you require retail outlets identify areas where you may have difficulty in fulfilling these requirements or areas of higher rent than you may envisage
Identify your key values and expectations
And those of other stakeholders in the business. Ensure you have the same beliefs, values and goals
Build your business strategy
Collate this information, create your plan, develop your systems, ensure your key players are all aware of their roles and make it happen!
And finally another important principle to keep in mind in your strategy is the pareto principle which lets you identify the 20% of inputs, causes or effort that contributes to 80% of the outputs, consequences or results respectively. You can 'achieve more with less' using this concept!
