In this post, I’ll discuss what are 5 benefits of creating business strategy. As you must be aware, strategy covers everything in your business to make it better. My suggestion to entrepreneurs and businesses is to start creating your strategy without any further delay.
When it comes to Independent or a small businesses, most of us work in an adhoc manner. Focussing more on day to day sales / service delivery or lack of it.
When we see money earning opportunities, our mind go on hyper-active mode. But this can make us miss out on big picture. And sometimes easily get overwhelmed. In this post I’ll talk about how having a business strategy can help you. Also how it can at last deliver better sales and profits.
If you don’t know “What are advantage of creating business strategy” OR wondering “Why to create business strategy” then this blog post is for you.
Let Us Quickly Answer – What Is Business Strategy?
Every business should have business goal(s). In order to achieve goals, business will take set of decisions and actions. When we take delibrate decisions and actions to achieve target in a step-by-step manner then this is what we call a business strategy.
In the section below, I have tried to answer the question “What are 5 benefits of creating business strategy?”
“Business Strategy will help you focus on long term as well as short terms results for successful business. “
Research and studies carried out while creating a business strategy makes us more aware of our strengths, weakness, happenings around us. Moreover, it will uncover demand in the market. This eventually helps to create multiple options of achieving business goals.
In short, business can cater to customer need in increasing value-price combinations. For example: Package A at Rs 5000, Package B at Rs 10000 so on so forth. This will help to maximise sales per customer.
Well-crafted business strategy will help in achieving better alignment among business functions. This will increase the efficiency of business systems, therefore leading to better outputs.
In other words, syenergy among business functions will help bring down the cost of operations. This will directly have positive impact on business profits.
Firstly, setting and monitoring of KPIs will create awareness about the business system. It will also let you take timely measures to improve performance.
Secondly, in case of variation from strategic plan, there will be high visibility of the factors (like markets / people / functions) responsible for variance. Thus, giving better control over business factors that create growth environment.
With proper planning we can take decisions to keep business future proof.
Market sensing and business forecasting allow us to take decisions proactivley. And help in aligning business targets to market reality.
Further, this will uncover opportunities that would otherwise have been missed.
Pre-planning the year becomes easier. Basis the business goals, we can reverse engineer plan for success.
For example, if you target is Rs 1 Cr for the year, then you can work out how many new customers you need. You can estimate how much money is needed for marketing and other business activities.
This will let us be mindful of short-term and long-term plan.
So these were 5 benefits of having business strategy. In conclusion, business strategy will encompass everything in your business to make it better. My suggestion to all independent businessman and solopreneurs is to start crafting your strategy without any further delay.
If you can recall a benefit that is not covered in this post, please mention in the comments below.