Business strategy is the compass that guides a company toward its goals and objectives. Good businesses are like sharks, always moving forwards to ensure they survive.

Before creating your business strategy, you first need to evaluate the current state of your business. How ‘fit’ is your business? Are you training in the gym or are you just exercising? If you are training, you measure what you are doing and evaluate if it is working or not. If you are simply exercising, then you might just be going through the motions but not monitoring if it is making an impact for the better or worse.

Having a clear strategy is essential for measuring success, as it defines what a business does (and what it doesn’t), who it serves, and how it competes in the marketplace.

What role does a business strategy play?

Business strategy is important as it:

1. Provides focus on the business goals and objectives. By having a clear strategy, businesses can stay focused on what they want to achieve and avoid distractions to their goals.
2. Allocates resources effectively. A good business strategy allows businesses to use their resources (time, money, and people) in tasks focused on their aligned goals.
3. It helps businesses to compete effectively. A strong business strategy allows businesses to differentiate themselves from their competitors and identify unique opportunities in the market.

How do you create an effective business strategy?

There are several steps involved in creating a business strategy:

1. Define where your business is now! Do a SWOT analysis, identify your target market, why do your customers come back to you and who do you want to attract, what is your value proposition?
2. What do you want the business to be in 5-7 years’ time? The answer to this is different for every owner/people within the business. Set clear outlines and expectations now before they become an issue later down the track.
3. Create an action plan on what you should be doing now reach where you want the business to be in 5-7 years’ time. This plan should be made up of specific actions and milestones to help the business stay on track. Share this plan with all to make the business accountable.

Planning for the year ahead

As we head into the new calendar year, having a business strategy in place is essential for measuring success and ensuring your business is swimming ahead of your competitors. It is an indispensable tool that shapes the practical decisions, actions of the business, and keeps everyone accountable. By following the steps outlined above, businesses can create a strong and effective strategy that will help them achieve their goals in 2024 and beyond.

Contact Pilot

If you would like assistance with developing your business strategy and planning for the new year ahead, contact Cameron Woodcroft on cwoodcroft@pilotpartners.com.au or your Pilot advisor on (07) 3023 1300.