A business strategy is a documented plan that focuses on how an organization would proceed to achieve its goals. Steven Rindner mentions that a business strategy typically contains a number of major principles that outlines how a company would go about attaining its core objectives and vision. A typical business strategy largely discusses the ways to deal with the competitors, meet the expectations and requirements of the customers, as well as examine the long-term growth and sustainability of the brand. Steven himself has been involved in creating and implementing the business strategy of several companies, which makes him a great candidate to speak on this topic.
Not all companies get their planning and execution right straight away. There are a number of natural weaknesses within all organizations for varying reasons. Steven Rindner points out that a business strategy basically aims at remedying these weaknesses, with the aim of ensuring that business organizations do not trip up and suffer their impact too greatly. Business strategies take future risks of an organization into consideration, and aid in identifying ways in which they can overcome these obstacles.
Here are some of the reasons that make business strategies extremely vital as per Steven Rindner:
- Panning: Having an annual operating plan in place, and tracking the progress of a business as per its accordance, can prove to be a good management tool for any company. In the absence of a clear picture of what an entrepreneur wants their business to look like in the future, the organization shall always stay more reactive than proactive. Such an approach can be detrimental to the progress of a company. However, on the other hand, a well-articulated year-long term view of the company can be used as a guideline for the organization to progress effectively. In many ways, it becomes a stepping stone toward the achievement of long-term goals.
- Strengths and weaknesses: A lot of entrepreneurs consider themselves to be highly well-acquainted with the strengths and weaknesses of their business. While this might be true, there are several instances where the entrepreneurs do not effectively leverage their strengths or work towards closing the capability gaps within their company. Having a proper strategy in place creates a higher degree of awareness, and provides a greater focus on activities that can help in making an organization more successful.
- Skills and knowledge: If the entrepreneur desires to grow their business over the long term, then they must have a good idea about the capabilities they would need to achieve their goal. Business strategy defines and drives decisions in a typical organizational structure. As a result, by pursuing new knowledge and skills proactively, one can prepare their company for its intended future state, as well as increase the odd of success.
Regardless of the size or scale of any company, having a good business strategy can be extremely fruitful for them.