The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their business plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right business plan?
If your business is based in the United States - click here
If your business is based in the U.K. - click here
Ideas To Action.
Your businesses strategy is the means by which your business sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning.
Two main categories of strategies can be identified:
- Generic (general) strategies, and
- Competitive strategies.
The main types of generic strategies that Businesses can pursue are:
- Growth i.e. the expansion of the business to purchase new assets, including new businesses, and to develop new products.
- Internationalization / globalization i.e. moving operations into more and more countries. Now that the Internet is so dominant it is possible for any business to compete worldwide.
- Retrenchment involves cutting back to focus on your best lines. In other words concentrating on what you do best.
Competitive strategies are also important. Competitive strategies are concerned with doing things better than rivals. To be competitive a firm should not just copy the ideas of rivals. They should seek to out-compete rivals. There are two main ways of a business being competitive.
- By selling goods at lower prices than rivals. This is possible when a business is the market leader and benefits from economies of scale.
- By differentiating your product from those of rivals - which enables your business to charge a higher price if desired.
Developing a good strategy for your business is a thoughtful process. It takes a balanced approach to come up with a strong but flexible business strategy that can absorb change without disintegrating. Just as a good topographical map is indispensable to a hiker outlining explicit geographical hazards, so is a good business strategy to a company. It encompasses information on competitors and technology, suppliers and customers and provides directional guidance.
In the present fast moving world, changes are fast and imminent. Use of the Internet lends a mind-boggling speed to nearly every process in your business. The competitive environment in which a business has to operate is in a constant state of flux. Business strategy, therefore, has to be constantly monitored and modified to suit the circumstances, in order to remain progressive.
A good strategy for your business should address:
- The core purpose and the aspirations of the business
- The path chosen for further growth
- The basis for choosing the path
- The keys for execution
- The ways to constantly sense change and adjust accordingly
Ideas To Action - next
A Great Business did not just happen - It was planned that way.