We know that business strategy plays an important role in the success and growth of your business. Whether you are starting a business or buying one, you need it to go in the right direction.
Since the year is about to end, you should revisit your existing business strategy and perhaps draft a new one in preparation for the new year.
How do you create an effective business strategy or update your current one? How do you create a new strategy that is more applicable to changes in the industry?
Developing or updating your business strategy does not need to be hard.
You can start by outlining your ideas and plans. You can then polish it afterwards. You don't need to write everything just to make your business strategy look smart and comprehensive. You just have to make it clear, brief and very specific.
But if you are still unsure how to draft your business strategy here are some tips to help you get started:
Why is the company in business?
You should clearly state your business purpose. Answering this question will help you write the mission, vision and the objectives of your business. Break down the information into pieces and organise your thoughts.
Also, think about how you want the future to look. List down all the possible ideas that you can think of. It only needs to be a draft at this stage - you can polish it afterwards.
If you are revisiting your existing business strategy, review if your mission, vision and objectives have been met for the past year or years. Also, consider any market changes and trends you need to address to make it more applicable to succeeding years.
What is your business best at doing?
This refers to your strengths. What are you capable of? What are your best products and services? How can these differentiate you from your competitors?
When creating a business strategy always focus on maximizing your strengths.
To help you do this, try the SWOT (Strengths, Weaknesses, Opportunities, Threats) technique.
SWOT analysis is a tool that most business advisors and marketers use when developing a business or marketing strategy.
You should revisit this yearly to find out if you are making progress and to confirm if your strengths are still your strengths considering the changes in the market.
Which customers should your business continue to target?
Who is your target market? What is their age, gender, economic status, preference, buying behavior, etc.
You should spend time creating your customer market persona. This will help you when introducing your products and services to your target market.
Invest time knowing who your market is. Research as much as you can to help identify your ideal customer.
Once you have created your customer market persona, listen to their feedback. Listen to what they are saying and use that as a guide when improving your product or when trying to create a new business strategy.
Which products/services should we stop offering, continue to offer, or start offering?
Analyse your products and services. Know the status of your products and services in the market. Research and understand these things. It will help you to develop a product that really sells.
These are just some of the components that need to guide you when developing your business strategy. If you need help, ask a business advisor in Auckland to help you get started.
Often business advisors are also chartered and tax accountants who can help you not only with business planning but also with setting-up and preparing tax returns, GST, annual accounts, and all your small business accounting requirements.
It is good to hire an accounting firm in Auckland to help you with everything, including using the best accounting software in NZ to give you an accurate and fast result.
At Paul Martin Chartered Accountant Limited, we provide a complimentary review to help our clients develop, improve and grow their business.
In our complimentary business review, we stimulate strategic discussion and identify issues and opportunities.
We sit down with our clients and talk to them about their goals and how they plan to achieve them. We also help them tie their lifestyle to their business goals together and further help them achieve these goals. The most important part of this review is talking about growth, profitability, cash flow, asset protection and even an exit strategy for the business.
This is just a 60-minute meeting, but can produce a lot of benefits like gaining access to new information and wisdom, identifying business issues and how to address them, understanding your business better and more.
If you want to know more about our complimentary business review, call us on (09) 576 4166 or request an online appointment today.