Posts Tagged ‘business plan’
Saturday, August 1st, 2009
Identify your competition. This may seem obvious, but it’s not necessarily a simple task. For example, if you decide to start a magazine for the local business community, who are your competitors? If your answer is there are no other business magazines around, then you don’t understand the question. Maybe the local newspaper has a regular section devoted to business. That’s competition for coverage. Do you intend to sell ads? If so, you’re competing for advertising money with newspapers, radio, TV, and billboards. Do you intend to sell subscriptions? If so, then you’re competing for customer money, time, and loyalty with national business publications, and to a great extent, with any subscription publication. This example should show that identifying your competition can be far from simple.
Pick out the two or three major advantages your company has that set it apart from your competitors. An accounting firm, for example, might have experience with not-for-profit businesses. Such a market advantage becomes a cornerstone of the firm’s business strategy.
Some people call that particular segment of a specific economy a “niche.” It’s the slice of the dollar pie your business hopes to claim; that piece of the public consciousness you want to capture and hold. You need to understand what chunk of turf you want to stake out, or success in doing so will be primarily a matter of luck.
Tags: business philosophy, business plan, competition, strategy
Posted in business goals, business publications, companies, developers, financial principles, funds | Comments Off
Saturday, August 1st, 2009
Here are some steps that should help you develop your business strategy:
Know your business. This seems basic, but it’s the most often forgotten step along the road to business success. Were railroads in the business of being railroads or part of the transportation industry? There’s a distinct difference between the two and a distinct difference in the psychology and strategy that awareness will bring to the business. It’s important, as we noted earlier, when you’re defining your philosophy, identifying your competition, and finding your niche. But it’s just as important when you’re determining how you’re going to achieve your goals.
Identify the philosophy behind your company’s way of doing business. If it’s a service business, articulate how important that service is to the overall goal. If the company makes products, define the purpose and goal each product line has for the company.
Is there a level of quality or production time important to success? If so, that must be part of the strategy.
Tags: business philosophy, business plan, interests, strategy
Posted in business goals, business patterns, business strategy, cash demand, financial principles | Comments Off
Saturday, August 1st, 2009
Developing a strategy and, subsequently, building a business plan based on that strategy are critical to developing the sound financial strategies.
Companies that take the time at the start to define a strategy and then build their business plan around it improve their chances for greater financial success. And department managers have an obligation to help build that success by understanding the strategy and their part in making it work—through the strategy each defines for his or her department.
Although you may not actually be involved (yet!) in forming your company’s strategy, the following discussion will put you there among the movers and shakers who determine that strategy. Then you’ll better understand the principles behind a business strategy.
Tags: business plan, cutting costs, interests, strategy
Posted in business patterns, business strategy, cash demand, financial principles | Comments Off
Friday, July 31st, 2009
Most enterprises have something called a strategy. Invading armies have one. Football teams have one. In most cases, just having a strategy may mean the difference between success and failure.
More than any other enterprise, a business needs a strategy. Why? Well, just consider what you’re trying to do and what you’re up against. You’re trying to get a share of the dollars out there. You’re competing with businesses that provide similar goods or services, yes, but also with any business at all, because the amount of dollars is limited. You’re risking economic changes as well—not only downturns that could threaten your financial stability and growth, but also upturns that could favor competitors ready and able to capitalize on them, especially if you’re not prepared. Then there are the other dangers, such as the potential loss of vital financial support, a key manager, or a valuable employee. Then, toss in the reaction of customers, which might mean a lawsuit that could sap your resources and damage your public image.
So, every company is facing tough challenges. That’s why every company needs a strategy. That’s often the key to a company’s financial success. Without an overall strategy, you’re less likely to meet your financial goals.
Even if you’re not responsible for running your company, you must first grasp the overall concept behind what the top managers are doing, just to be able to properly manage any part of that company. If you don’t understand the strategy behind the company, how much can you help it succeed?
Tags: business plan, cutting costs, interests, preserving cash
Posted in business patterns, business strategy, companies, funds, negotiationg | Comments Off