Updated: Jan 13, 2020
When you are asked “What is a business strategy?” you should know that it is a plan, decision, choice, or even a guide which is used to benefit a company. This benefit is commonly measured in terms of success, profits, popularity, and/or growth. The owner of the business should have a clear idea of what the results should be like, and there should be no doubt as to what they want to accomplish. Similarly, the owner must understand that a strategy that is vague or unclear can cause damage to the business.
All successful businesses employ strategies that are continuously re-evaluated as they grow and evolve with their customer base. While business strategies are as varied as the challenges that they face, they generally fall into one of a couple different categories. You can separate most business strategies into two different categories: practical strategies, and theoretical strategies. Theoretical strategies are ones that you come up with during brainstorming sessions. Theoretical strategies are great for determining the best way to deal with different problems, but they are useless by themselves. Ideally, the strongest of these strategies will be selected for implementation, at which point it would become practical.
In order for a strategy to move from being just a theory to being implemented, a clear vision and an iron will is required. When your entire focus is set upon executing a single strategy, the chances of success are much greater. This is especially true if you have tasked your business with analyzing and evaluating the strategy as it is being implemented, with corrections and changes being made in accordance with the stated goal.
Profits will be maximized, cash flows will be smoother and more robust, resources can be used in a more effective manner, and employee productivity will improve. A welcome side effect of these positive changes is that the customers’ perception of your business will improve. When a business is run effectively, your customers will take notice of that fact!
A business strategy can be anything you want it to be. But remember: there is no one-size-fits-all approach to formulating one. If a previously successful strategy stops working, come up with a new one so that your business will continue to grow and prosper.
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Dr. Dhirendra Gautam, a business doctor and leadership Coach; he empowers people to transform their Life, finance and business and introduce then to the world of financial freedom and fulfillment. For business owners & Cxo’s we offer specialized Business coaching Program Namely; Empower your Business (EYB), Empower your Life (EYL) and Empower your Carrier (EYC). Do visit our website www.dhirendragautam.com to find his wisdom he shares with mankind.