Business Strategy for SME's
1. Where do we want our business to be?
2. Where are we now?
3. How do we get to where we want to be?
One thing that is certain in every business is CHANGE. This can be the result of technology, environment, competition, working practices, legislation etc. It is therefore imperative that business owners find the time to review their business and put in place the controls, measures and processes required to constantly evaluate current performance and determine business strategy.
There are two exercises that are the starting point to determining business strategy. On the face of it they seem quite simple, but will stimulate great discussion, strong ideas, differences of opinion but ultimately greater success:
1. Your Vision: an meaningful statement of what the organisation intends to become.
What will the organisation look like five years from now?
What will our customers be saying about us?
What can we achieve if we are the best at what we do?
What will our position be in our market (share, reputation etc)
Developing a vision for the business is not an exercise in vanity. It will provide the organisation with the direction that is clearly missing in most businesses. Without the vision, the business meanders and will rarely achieve it's potential.
2. Your Mission Statement: a short statement defining your business, who you exist for and why.
What is your purpose?
What do you want to achieve?
How are you going to do it? (The answer to this question becomes your strategy)
A good mission statement is short and instantly communicates what is different about your business, and how your customers will benefit.
The Mission Statement should not simply be a nicety. It needs to reflect the values of the business and should be a “live”document that the organization lives by.