The key to company growth is to build upon a well-planned strategy. With a strategy in place, you will have a solid foundation to work towards long-term goals and company growth. It is imperative that you have a business strategy in place, but if your company isn't experiencing growth or you don't seem to be reaching your goals, it might be time to reevaluate your strategy. Today, I want to share with you 10 items I always include in our business strategies that have helped us create an industry leading VoIP wholesale company.
When developing your strategy, remember to keep your beliefs and core values in mind. Beliefs and core values are terms that are often interchangeable, however they do have their differences. Simply put, your beliefs are what you find to be true (Money is the key to happiness, for example is a belief), and will shape your core values.
Establishing a belief system for your company should be the first step when creating a business strategy. The beliefs you define will lay down the ground work for what your employees’ attitudes should be towards your company and brand. From these beliefs, you will create values which will become the basis for finalizing important strategic decisions.
2) Core Values
A company’s core values are what defines their culture and personality. Because your core values have a direct relationship with your company’s identity, they should be used as a guideline when making important decisions.
You core values should stem from your belief system, applying the expectations you have for your company into concepts that you deem important, such as creativity, respect, and honesty.
Straying away from your core values when making a final decision will make your company seem inconsistent with your brand and product, and ultimately you will lose credibility. Make sure your actions align with your core values and that your strategy reflects them.
A company’s purpose is also known as its mission statement – a term that all recent marketing graduates have had drilled into their heads during “Principles of Marketing”. Your purpose, or mission statement, fundamentally describes why your company exists and how your company impacts the customer.
Your purpose informs the public of the intentions of your corporate goals. Similarly to core values, your purpose must be sincere. Purpose statements with too much fluff can be spotted a mile away and companies who enact such statements will lose credibility. Once you have defined your goals and company’s existence, you can fine tune your strategic decisions to reflect your purpose statement.
A Big Hairy Audacious Goal (BHAG) is a long-term goal that is designed to collectively motivate your entire company to push the boundaries and accomplish something monumental. A BHAG is inspiring – your company’s “moon landing” – while being realistic and measurable.
Your BHAG should align with your purpose statement and be achieveable in the next 10 to 25 years. Being your company’s ultimate long-term goal, your decisions should be based on completing the BHAG. Just be sure not to push it artificially or your employees may lose motivation to fight on.
5) Brand Promise
A brand promise should be included in your company’s strategy as a way to build confidence in the buyer to support your products. Keep this in mind when building your strategy and do not allow your promise to go into jeopardy or your reputation will suffer.
If you can keep your brand promise and consistently come through with your word, your promise will become a differentiator and allow your company to stand out in the marketplace. That, along with customer loyalty, are the rewards of implementing a brand promise to your strategy.
6) S.W.O.T. Analysis
S.W.O.T. (Strengh, Weaknesses, Opportunities, and Threats) analysis involves the collection and portrayal of information internally and externally factored in regards to your company. They may have, or may not have an impact on your business.
S.W.O.T. is also considered as a framework that allows you, the manager, to synthesize insights obtained from an internal analysis of your company’s strengths and weaknesses with those from an analysis of external opportunities and threats.
7) Profit/X (Profit per X)
Profit/X comes down to the actual method(s) of how you choose to make money. Your Profit/X could be creating Profit per Region, or Profit per Visit to business. Profit/X should be your end result in strategizing metrics and not operations.
Once you narrow down the ratio that results in your Profit/X; you can then plan ahead on how your organization will spend its money. Remember, the purchasing decisions you make should be guided with the thought of what will maximize your Profit/X.
8) Critical Numbers
At any given time, your business should focus on an operational or financial number (critical number) that represents your weaknesses or vulnerabilities that, if not addressed, could cripple your business.
Ultimately you design your business to win, strategizing with critical numbers that define milestones that will rally your employees around a common goal and direct focus.
9) Company Priorities
Everything strategic must be prioritized, that is holistically addressing what should be accomplished. Priorities must be set clearly and communicated throughout your leadership team. Apply rhythm to your day-to-day priorities to become in sync with what needs to be accomplished.
When it’s all said and done, look at the data. Analyzing your success through your rhythm will make you aware of what’s working, and what to continue prioritizing.
Themes are the main, high level strategies of your organization’s business model. For each agreed strategic theme, envision the ideal state you would like your company to be in, and set specific objectives and targets to measure your outlined performances. These themes should be tracked and monitored as they are what will shape your company and lead you towards growth.
Now that you have fine-tuned your business strategy, it's time to take action and watch your company grow! Be sure to subscribe to our blog as we will be pushing out more content on business strategy throughout the month. Thanks for reading!
Edited by Daniel McFarland