business resources
How to Develop a Foolproof Business Strategy
22 Nov 2021
Creating a business strategy is the best way to ensure success
When it comes to running a successful business, the key is in the strategy. While this might seem like an obvious path to take, many businesses either don’t invest the time in creating a foolproof strategy or don’t follow the one they have created. But when a plan is designed well, applied correctly, and executed properly, then the business will go from strength to strength. There are many things to consider when starting a new business, but a strong and effective strategy is one of the most important. Look at it as a roadmap for success – stick to the planned route and you can’t fail!
Have a clear vision of the problem you solve
An effective, successful business solves a problem for people, so it is essential to pin down what it is that your business solves. For example, a retail store might sell products, but the key is working out why those products help the customers. A social media company might post online, but they also solve the issue of online marketing and having a social media presence. Spend some time really nailing down exactly what it is that your business solves for people and how that sets your business apart from the rest.
Define your audience
Of course, there is no business without paying customers! So, it is super important to understand not only the problems you solve but exactly who your business is solving problems for. Get to know the demographic of your target market – their age ranges, shopping habits, disposable income. Build up an email list to gauge your audience or check out the insights functions on social media platforms to get an idea of who is following you. These people are your target market, and it is important to ensure that your marketing efforts are tailored for them. Your business is not going to be for everyone and that’s ok! As long as you know who it is for then you can plan your methods accordingly.
Stay ahead of the game by planning for the worst
Make objective fact-based decisions
This might sound like an obvious strategy, but it can be easy to forget when emotions are running high. Urgent decision-making will often come into play when starting a business, and it is super important to remember that these decisions need to be based on facts and objectivity rather than emotions or guesswork. There are a few ways to develop these decision-making skills, such as learning how to discern between opinion and fact, understanding how to interpret data, and playing games like poker or chess. PokerStars Pro Liv Boeree even held a Ted Talk about the influence poker can have on decision making, so it is no surprise that entrepreneurs can learn a thing or two from these games. The objective strategy required to play them helps to train the mind into making better decisions based on the information in front of you, rather than guessing and ending up in a difficult position. In poker, for instance, bets are placed without knowing all the full information, and each new piece of information influences the way you play the game. The same strategy applies to entrepreneurship.
Plan for contingencies
Even with the most foolproof plan, it is always worth planning for potential issues – especially financial ones. When you finally start making a profit, get into a habit of putting away a percentage of it every month for tax and savings so that you don’t have any nasty surprises at the end of the year. A savings account will also ensure that you can deal with any unexpected issue that might come up, this habit might sting a little at the time but will prove invaluable for any unforeseen difficulties you may encounter. Starting a new business is a very exciting time, but it always pays to be savvy and stay ahead of the curve with a strong plan. Just remember that things change over time and your plan will need to adapt to those changes as well.
