Successful businesses are not built by accident! A comprehensive strategic business plan is necessary in order to lay the foundation for success. This implies that the various elements, ranging from sales and marketing, to financial analysis, pricing strategies, human-resource planning, to competitor analysis and so forth, are also pivotal components in developing a solid foundation for your growing business.
Many new entrepreneurs may choose to brainstorm opportunities and then plan on how to capitalise on them in the marketplace. This type of approach might be important when it comes to fostering the “entrepreneurial spirit”, but we need to think about much more than that if we want to be successful in the business world. The “key” – as so often said – lies in the detail. For instance, it doesn’t make any sense to develop a strategy that ignores competitors’ reactions, or doesn’t consider the culture and capabilities of your organisation. It would also be wasteful not to fully exploit your company’s strengths – whether they are obvious or subtle!
Now, when it comes to your business plan, it is largely dependent on your corporate “vision”, and the strategies you will adopt to pursue it. Let us therefore take a look at specifically developing a strategy document which can be integrated as the framework of your overall business plan. These strategies essentially need to consider your “target market”, and how to reach them effectively.
Creating a strategy document
Strategy documents need to outline two major components – the objectives of the strategy as well as the goals which are necessary to achieve these objectives. To help the manager evaluate these two components, most strategy documents are formulated based on seven broad sections:
1. Background OR Why is this strategy vital?
2. Objectives OR How does this help our business?
3. Benefits OR What will happen when our goals are achieved?
4. Principles OR How does this fit in with the main ethos of our business?
5. Strategies OR How do we ensure this works?
6. Responsibilities OR Evaluating the quality of our results.
7. Goals OR Measuring where we are, compared to where we’d like to be.
Identifying markets
Developing ways of tapping into your target market is a primary facet of your business strategy, and hence your strategy document too. Target markets help you focus marketing campaign efforts towards the companies and people most likely to buy your products and services. The most important aspect of identifying your target market is to match the benefits of your products and services with a group of people who would best be suited to take advantage of these benefits.
Reaching out to the market
A balanced approach is always best and the best way to reach out to the market is to appeal both “rationally” and “emotionally”. The rational appeal is based on the tangible attributes and benefits that the target market seeks from your offering. The emotional appeal includes emotional elements, such as apathy or a sense of humour for instance, which attract and encourage your target market to willingly conduct business with you. The best way to create an emotional bond is to invest in relationships. Everything from personalised service, to advertising campaigns that appeal to individuals, to corporate gifting solutions to mention a few – matters!
Personal branding is about communicating your message to the right people in the right way, ensuring they think of you first in your business sector. Some people remember you through your actions and accomplishments, in addition to the emotional connections you make. Personal branding requires consistent behaviour so that other people know what to repeatedly expect from you in terms of quality and service. Essentially, you need to build relationships in order to establish a solid brand!
So in concluding, along your quest for greater success, remember to focus on your strategic plan as aligned to your company vision. This should be well documented and developed around accurate and diligent market research into identifying and understanding your primary target market. Your strategies can then be fully developed and implemented based on reaching the precise markets you are aiming for. This is the foundation of your brand identity built on rational and emotional appeal.
It is these strategic components that can ultimately be merged into your comprehensive business plan, which becomes your measuring rod of success as you forge forward. Planning and preparing business strategies at the formative stage of your business will help you to create the strong competitive advantages you need as a small business – early!