In this article, we will be explaining the most important factors when making a business strategy.
Pay close attention because the information we will be sharing can help you avoid mistakes most businesses make when starting out.
A business strategy is a plan/list of goals that a business makes in order to know what to focus on, what to expect, and where to invest.
DON'T set your expectations too high!
A lot of businesses make this mistake, thinking that after a few months or a year, they will be rich, drinking cocktails and tanning on a beach... and when they realize that's not how it works, they lose interest and give up...
So, setting realistic, and obtainable goals is crucial when making a business strategy.
Now, let's begin:
Step 1: Marketing
The goal of marketing is considering the resources available and using those resources in the most profitable way possible.
Lower the cost of the operation!
There are 2 main ways to increase income:
1 - Lowering the cost of the operation, and
2 - Getting more work (clients)
By properly lowering the cost of the operation, you are allowing your business to keep producing high-quality products, but use fewer resources in order to do so.
For example: If you pay 0.2$ worth of material, and 0.3$ worth of labor to make a pen that costs 0.8$, then your focus should be to reduce the cost of the material & labor (while also focusing to maintain product quality) to make more profit per pen sold.
How smart business may do that can vary from finding cheaper material providers, automating the production, or maybe even removing the unnecessary parts of the pen that doesn't provide much value to the consumers, but will lower the cost of the production.
Besides lowering the cost of the operation, unique brand identification is crucial for marketing. In order to stand out among the competition, and establish a unique look, you need to have a high-quality logo.
For that, we suggest checking out Andrea P. She is an Expert Brand designer with many years of experience in logo design, and she can level up your brand identity with a perfectly fitted logo today!
Another way to market your business can be through:
- Email marketing
- Website development
- Online purchases
- Social Media
and much more...
We go in-depth about marketing in this article: "Crucial things you need to know about Marketing".
Step 2: Offer more
Every business should have a goal to increase its service quality every day.
By doing so, your business will establish a strong reputation, which leads to more customers and more money.
Customers will invest in what they think will grow
The best way to grow and expand is through research and development, training, motivating, learning, etc.
Make a plan that indicates how much time and money should be invested in learning and leveling up your services, and how much should be going towards other expenses.
Step 3: Monitor the progress
The best way to do this is by having some sort of documented/recorded history of completed tasks and goals to better help you monitor the progress you've made in the past, and better understand what works the best for your business.
To do that, we suggest checking out some of the productivity tools we listed on the site.
Monitoring the progress can also help you notice what part of your business strategy is wasting your time and slowing down your potential income, which is crucial if you want to grow your business effectively.
Step 4: Think long-term
Thinking long-term is a huge factor when building a company, and setting it up for success.
Avoiding to think, and planning long-term can result in unexpected problems and setbacks that could've otherwise been avoided through planning ahead, and running the scenario of possible outcomes.
You need to find a balance between overthinking and not thinking long-term!
Finding a balance between those two can be a real challenge for most people, and can result in many headaches when making a proper business strategy, but, the sooner you manage to find that balance, and focus on what really matters, the sooner you'll be able to effectively adapt and switch your business focus/strategy to avoid those road bumps that might be heading your way.
It's very important to be realistic and try not to set your expectations too high because that can lead to disappointment, which can result in a huge business failure or collapse.
Focus on offering more to your consumers, and let the value that you provide drive them to support you and choose your products.
Keep track of your progress, and focus on eliminating the things that tend to hold you back
And finally, Think long-term.
Thinking long-term will most benefit your business in the long run, so focus on getting good, realistic goals and putting in the effort to make it happen.
If you found this article helpful, please share it with your friends and stay tuned for more amazing guides to help your business grow!