Monday, August 19, 2013

How To Go About Coming Up With A Business Strategy?

By Janet Preston


A business strategy is used to set new standards for handling existing clients or for approaching new targets. It comprises of the steps you should take in order to achieve the plans you have set for your firm. You start formulating a plan once you have identified where you are currently and where you want to be after a certain period.

Every company has that ideal customer it seeks to target. You therefore need to develop a profile that will enumerate the expectations you have of such a client. You could modify these features from those already exhibited by your existing customers. The profile could capture things like demographics, industry as well as whether your ideologies are agreeable.

When you are developing a plan, you should remember that it would be very expensive to target new customers from scratch. This is where you go to a completely new market and try to sell your product or service. You will have to incur very many costs such as advertising before you can get good sales. It would be cheaper if you developed your existing contacts so that you can rely on the reputation you create to get new clients.

A business strategy should be based in a few competencies so that it is unique and stands a higher chance of succeeding. One is that it should aim to provide your clients with benefits. Your competitors should also not be able to copy the plan easily. You can reduce the costs by coming up with one plan that can be used in various markets with the same success rates.

Your strengths could lie in the way you relate with other players in the industry as well as how you conduct your activities. For instance, you might have been able to develop a technique that sees you operate at low costs. Another source of strength could be having a workforce that is loyal and hard working.

Having established your competencies you should then proceed to create a plan that capitalizes on them and allocates the various resources to achieving your target. The plan may last several years for your company. You should therefore create detailed plan so that it will still be recognizable even after all this time.

The final part of the plan is to figure out how much financial resources will be allocated. This is always a limited resource and care should be taken so that you ensure you allocate efficiently. You should incorporate the plan into your budget. For many companies, things that are not on the budget do not exist. You should therefore make the plans with the involvement of a member of staff from the finance department.

Following these steps will help you make a better plan which you can use for your business to achieve the success you intend to. It will be a viable plan that can stand the test of time. You can consult business strategy specialists to help you with the process.




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