Entrepreneurship: How to develop your business strategy?
The commercial strategy will allow you to generate customers, therefore sales. The business strategy of a company is simply “your response to demand”, it designates all the actions to be taken to ensure the growth, development and sustainability of your company. It is therefore essential to properly identify the demand to best meet the needs of your customers. To know these elements with precision, you must carry out your market research which is one of the essential stages in the journey of the entrepreneur. Once your market research has been carried out, you will be able to devote yourself to developing your commercial strategy! It is supposed to bring out your goals (be it turnover, market share, growth.) It is very important to properly develop your business strategy before embarking a Local Businesses near me. The business strategy is purely and simply an “angle of attack” to “insert” yourself in your market.
What elements to take into account when developing your commercial strategy?
The commercial strategy must be at the heart of your priorities and above all must be precisely defined, with clear objectives.
- It is essential to identify:
- Your product or services (basic, essential, sophisticated, etc.)
- Your price range (high, mid, low range …)
- Your distribution channels (shop, website, sales, network, via business introducers, etc.)
- Your communication policy (flyers, mailing, 4 × 3, web advertising, etc.)
- Business development is a tool that no SME can do without today, for very simple reasons:
- Competition is getting stronger
- With a few exceptions, the market is generally well informed
There are many communication/marketing tools: social networks, calls, SMS, mailings and email.
Consumers are less and less loyal to a brand overall
- Budgets are reduced
- You must, therefore, focus your efforts and your budget on strategies that are monitored and closely monitored. As part of determining a business strategy in the business start-up phase, you will:
- Do not minimize the budget necessary for marketing. In the launch phase, it should be around 20% of your turnover.
- Don’t attack your competitors head-on. Specialization, innovation, differentiation are often more judicious strategies.
Avoid trying to gain customers by lowering prices. Beyond the simple fact that a company in place will very often be able to charge lower prices than you, we must not forget the negative connotation that this strategy can convey. Many customers believe that what is not expensive is not of good quality.
Combine strategies to have a short and long term return to achieve turnover (even low) as quickly as possible.
The stages of building your business strategy.
As mentioned above, to build your business strategy, you must start by setting precise and realistic objectives. These objectives can be quantitative or qualitative (increase turnover, develop a product/service, reach a new customer segment, etc.)
Prioritize priorities: this will allow you to better organize yourself!
Means and actions
For each defined objective, means and actions must be chosen to achieve them. Depending on the objective, you will, therefore, have several levers: means of communication, pricing strategies, etc. We must not forget the human resources that will be necessary: what resources will be mobilized, what costs will result from this.
For each objective, and especially for each action, you must set a deadline. This is what will allow you to ensure the prioritization of your commercial actions, unfortunately often relegated to the background. You must feel committed to this process for it to be effective, so this requires precise and reasonable deadlines.
A careful calculation of the costs of each action must be carried out. This can also be a factor in prioritizing one action over another: depending on the objectives, it may be more relevant to prioritize the action with average results but at low cost and in the short term than an action yielding a lot but in the long run.
Any action, to be effective, must be measurable. This is, of course, the case with your business strategy. You must, therefore, have defined indicators beforehand to measure the return and performance of each action:
- How much did this action cost?
- How much did she make?
- What are the consequences?
- Is it profitable?
- If the objective was not only monetary, is it achieved? (image, new customer segment …)
- Monitoring results will eventually allow you to correct and reassess your business strategy, the means to be implemented or even the objectives.
- Warning! It is not enough to have thought about your business strategy overall. To be effective, it must be detailed and drafted.
Formalizing it will allow you to make it more precise and, since it will evolve over the years and in the development of your business, it will give you traceability and allow you to see what has worked well or not. Writing it down will also give your strategy a structure of the different actions that make it up, a sum of the costs and a clear action plan that can be viewed by everyone. This will also allow other members of your team (current or future) to consult it and therefore quickly know the objectives and actions to be carried out. In a way, it is a guide for your current or future salespeople.
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