Mark Lyttleton outline the steps involved in developing a solid business strategy, exploring the purpose of strategic planning and its key elements.
A well-written strategic plan covers the following elements:
- Analysis of internal drivers based on SWOT (strengths, weaknesses, opportunities and threats) analysis
- Analysis of external drivers, taking into account factors such as market structure, cost pressures and demand levels
- A vision statement outlining business goals for the next five to ten years
- Top-level objectives that need to be achieved for the business vision to be realised; this aspect may include developing new products and services, attracting a different type of customer or securing new sources of funding
- Implementation, delineating key actions that need to be completed to pave the way for achieving top-level objectives
- Resourcing, summarising the implications the business strategy will have on resources and reflecting on financing arrangements, as well as factors such as premises, equipment and staffing levels
Many businesses take the additional step of developing an executive summary, which can be a useful resource for prospective investors and other external stakeholders.
A business strategy essentially serves as a blueprint that establishes key business goals, identifying the actions and steps necessary to achieve these objectives. These guiding principles should be shared throughout every level of the organisation to ensure everyone is pulling in the right direction to help the business achieve its objectives.
Developing a business strategy not only provides a clear plan of action but also helps founders to identify strengths and weaknesses. It also helps leadership to glean insights on how the business is performing, both internally and when compared with market rivals.
In addition to providing a vision and direction for the whole organisation, a business strategy also helps founders to identify trends and future market opportunities. Businesses that invest in creating a business strategy ultimately create a competitive advantage, better placing themselves to measure their progress and achieve important long-term goals.
About Prana Partners
Prana Partners leverages its wealth of business experience across multiple industry sectors to help the businesses it partners with capture opportunities, while avoiding as many pitfalls as possible.
Recognising that different companies have different missions, Prana Partners works closely with clients to understand their vision, helping them map out a strategic path to business success.
