A Winning Business Strategy for Your Small Business
Do you have a game plan for your business? To succeed in competitive markets, it is prudent to have a long-term business strategy. What is a Business Strategy? It is a deliberate plan that helps a business to achieve a long-term vision and mission. On this week’s episode of #MoneyMovesJa with Kalilah Reynolds and EXIM Bank’s Business Advisory Service, Dennis Chung, CEO of Supreme Ventures Services, told us how business owners can create winning strategies.
According to Chung, your business strategy will tell you how to get to your business’s destination. He used the analogy of a trip to Liguanea. What do you need to get there? What mode of transportation are you taking? How long will the trip take? Similarly, the business strategy will outline how you will use it to get your business to its destination. He referred to the strategy as the plan along the way. This plan, however, is one that you should document since the strategy will set benchmarks for you on the way to achieving your business mission.
Chung stated that while there are various templates to use to develop your business strategy, the one that he finds most useful is the Business Canvas. A Business Canvas is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model and is sometimes used as a modern alternative to a business plan.
In developing your business, Chung said you should ask, “How am I gonna deal with my competitors or with markets?” He suggested that business owners look at various options and come up with a strategy with the highest probability of success. He further emphasized the importance of having a flexible business strategy. For example, he noted that “value at risk” models calculate the maximum loss expected (or worst case scenario) on an investment, over a period. This also specifies a degree of confidence. According to Chung, this will help to prepare the business for circumstances that may affect their businesses, such as COVID-19.
“What does the market want?” asked Chung. He said this is a question you should ask when developing your business strategy. When you answer this question you can then define your product and base your strategy around the product. He also suggested that you have someone look at your strategy objectively, since as the business owner you may be emotionally attached to your products and services. As a small business owner, consider creating and executing a sound business strategy that is tightly tied to your vision. This will help with the long term success of your business.
