One of the most important characteristics of those entrepreneurs who start, advance and sustain themselves over time is perseverance. However, having the will and determination to achieve something is not the only thing that allows an entrepreneur to stand out with her idea or project. Since, for this to become a company, it is necessary to work in a business strategy with practices and goals that are successful.
Before getting into the matter, it is important that you know that today, and according to the Ministry of Economy, 72% of jobs come from what is called and SMEs (micro, small and medium enterprises). These, They are the backbone of our country. But, how did they come to represent and impact the Mexican economy in such a way?
In this article we are going to share with you everything that revolves around a business strategy, since this It is the key to position yourself in a highly competitive market.
What is a business strategy?
This is one of the most common questions because it is the starting point for many people who want to start a business. If this is also your case, congratulations! Now, let’s start by answering the initial question, what is a business strategy.
It is known as business strategy. to all the planning that exists globally for the achievement of objectives. However, to get started, it is necessary to consider some questions that will determine your starting point to position yourself in your sector, begin to obtain economic benefits and, above all, achieve local, national or even, why not, global expansion.
What need will your business solve?
Saying: “It’s a good idea” does not guarantee that it will work. On the contrary, it is necessary that it satisfies a specific need within your market niche. Note that it is not essential that it be something new or innovativealthough this often makes things easier.
How will my business meet this need?
Once you have defined the what, it is time to define the how. In this point It is necessary that you define the way in which your idea is going to reach your and how you are going to strengthen the relationship with your consumers to precisely provide them with a solution to their initial need.
What makes you different from your competitors?
When starting to develop your business strategy you will realize the importance of discovering what really differentiates you from your competition. Why? Because only then will you be able to achieve each and every one of the objectives that you set as part of your strategy.
While searching for differentiators, you should pay close attention to the weaknesses of your competitors, which are nothing more than the areas of opportunity that you identify in them and that you can apply to your business. If you do this analysis, you will be able to stand out among the brands in your market niche more easily.
Who makes up your business?
At this point it is no longer about your potential clients, but about your work team. Who make it up? is it just you And, if more are involved, what experience do they have? What is their knowledge of the industry? Remember that For a strategy to work, all members must be in constant communication.. This, in order to work towards the same goal.
Do you know the market you are about to enter?
It’s easy to say, “I love this industry.” But do you really know the details of it? so that the business strategy of a company effective enough, you must know its size, value, potential and possible territorial expansion.
Is your budget going to make your business profitable?
There is no business without strategy and there is no strategy without . Therefore, it is extremely important that you are clear about how much it will cost to operate your business, if you need investors, request a loan or use your savings. And, on the other hand, you also need to make sure that you are clear about how you are going to make your business, through its strategy, profitable. And no, for this point the most common answer, or obvious of all, is not enough: selling more. Since, and unfortunately, it is not that simple.
And last but not least…
How are you going to measure the success of your business?
In my last installment I told you about the relevance of performance indicators in your company. These serve precisely to measure success taking into consideration different factors; productivity, efficiency, customer satisfaction, etc.
Brand strategy and business strategy, are they the same?
The quick answer in two letters is: no, but we we want to delve together with you in the longest version and, at the same time, clearer. The reality is that the business strategy, focused on goals, helps you work for monetary benefits. While the brand strategy allows you to identify those things that constitute your company. That is, your reason for existing and the essence that characterizes you.
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In the same way, and unlike the questions that make up a business strategy, questions around a brand strategy revolve around intangible aspectssuch as the ones we share below.
Why should my company be important to someone else?
Take into account that a person always buys from emotion. Which means that for your potential client it is also important to connect with your values, and the culture that exists behind your business.
In what way are we different?
Although we have already delved into the importance behind differentiating yourself from your competition, here what you should take into account are the personality traits that make up your business and that help you connect with people.
What tone of voice will you use to communicate?
Yes, the voice can move you away or bring you closer to your market niche. Is, It should always make sense with the type of product or service you are going to offer.
How to define a business strategy for your online store?
We are glad to know that you want to enter the digital world! The reality is that this modality has grown exponentially since 2020. However, there are a series of important steps that you must follow to get your . For this we share those guidelines that you must integrate for your business strategy.
- Define your goals;
- Point out the plans;
- Do a SWOT analysis;
- Adapt your strategy to changes.
Define your goals
As part of the design of strategies we find the objectives, which are nothing more and nothing less than the purposes; expand your business, achieve financial strength, increase revenue, improve profitability, lead the industry, or grow steadily. At this point, and something that will help you a lot, is , by its acronym in English, through which you make your goals specific, measurable, achievable, realistic and related to time.
Specify the plans
And here do not limit yourself, think in the short, medium and long term. Think big! But without forgetting the role that each party must play, including your suppliers. Now, remember two crucial things: specify what and when the actors come into action and, more importantly, work to make your plans measurable. You can read our articles on to delve into this topic.
Do a SWOT analysis
Also known as SWOT analysis, this being a methodology through which the current situation of a business is analyzed in order to identify both its internal characteristics; weaknesses and strengths, such as its situation facing abroad; threats and opportunities. Integrating this analysis in the design of strategies is extremely important as it allows you to understand the projection of your business and its position in the market.
Adapt your strategy to changes
It is important that you are alert to both signs of change and new opportunities. An example business strategy must be prepared to face a crisisbut also to find out about those changes that can lead to profitable growth.
Tips for a successful business strategy
With all the information that we have shared throughout this installment, there is little to add. However, we want to share some additional tips to ensure that the strategy design that you develop over the years is always a success.
- Make data-driven decisions
- Use effective communication at all levels
- Assign responsible for each task
Make data-driven decisions
What is not measured cannot be improved, so You should always set goals, plans and objectives that can be measured in one way or another. Remember that today the specific data, and in real time, will help you to better face any scenario that arises in your business.
Use effective communication at all levels
One of the big mistakes behind entrepreneurship is the lack of communication and the assume that everyone is heading in the same direction and under the same interests. And, although there is no magic formula, ; communication and analysis, which will increase the success of your business.
Assign responsible for each task
It is very attractive to have clear objectives, but, What happens to the objectives if there are not enough people responsible to carry them out? Yes, it is true that delegating is an extremely complicated part of entrepreneurship, but what is also true is that you must grow your team according to the needs and budgetas well as learning to trust the different work styles that each member of your team brings to the table.
✨ We recommend you read our article about this 2022 according to your personality.
Summary
Although undertaking is a long road, it is worth doing it when you prepare yourself with the right tools, such as a business strategy. This will help you directly not only to define your objectives, but also to take the necessary actions, delegate activities for the benefit of growth and, above all, to obtain an economic benefit.
Learn more…
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What is a business strategy?
It is known as business strategy all the planning that exists globally to achieve objectives.
Brand strategy and business strategy, are they the same?
The reality is that goal-focused business strategy helps you work for monetary benefits. While the brand strategy allows you to identify those things that constitute your company. That is, your reason for existing and the essence that characterizes you.
How to define a business strategy for your online store?
- Define your goals
- Specify your plans
- Do a SWOT analysis
- Adopt your strategies to change
Tips for a successful business strategy
- Make data-driven decisions
- Use effective communication at all levels
- Assign responsible for each area
Still don’t know where to launch your online store? can be a great…
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