Sales and marketing plans are executed more effectively when targets are tight.
Defining niches and specialties allows companies to focus resources (of course, some companies are generalists by design).Ĭlear target markets give a company the ability to create an integrated sales and marketing approach, where marketing enables sales productivity. Absent of very specific targets, companies suffer from unclear messaging and thus misalignment between sales and marketing. One of the most significant barriers to growth is poor targeting. See: 21 Ways to Differentiate Any Brand and The Silicon Valley Playbook 3. A well-thought-out business strategy should consider how a company can create space from competition in its service offering, pricing model, delivery system and more. In many sectors of the economy, companies are stuck in a sea of sameness. Define competitive advantage.Īt the essence of strategy is identifying how a company can deliver unique value to its customers. It should include aspirations of what type of company you want to be, and, unlike a mission statement, articulates what success looks like in clear terms (customers, markets, volume, etc.). Classically, a vision or vision statement is a snapshot into the future. Vision is an abstract word that means different things to different people.
Here are 10 steps you can take to build the best business strategies and execute them with precision: 1. Developing a business strategy in 10 steps When their ill-conceived tactics fail, they blame the strategy. Participants show up for an all-day meeting and end up with a list of opportunities including imprecise strategies, such as “expand internationally.” Their list is void of any market analysis, research and business intelligence. Often, strategic planning is associated with completing a SWOT analysis. Strategic planning, and even visioning, cannot be casually ideated in a few hours. Hiring the wrong people or implementing an ERP based on faulty assumptions can be costly. Vistage members are focusing more and more on execution, as well they should. The result is often something closer to a short-term operational plan than a true strategy. However, downloading a template tends to promote short-sighted thinking and poorly-executed strategies. In a world where CEOs are overcaffeinated, stressed and time-starved, many have been romanced by easy-to-use strategic templates that yield a quick-and-dirty business strategy. Our appetite for simplicity should not override our need to be thorough, especially when the future of a company is at stake. Void of research and planning, many companies make hasty and ill-advised decisions that adversely impact their enterprise value. In this particular case, strategic thinking, market research and depth triumphed over simplicity. Based on instincts alone, most of the sales team thought the strategy should focus on expansion into new geographic markets.Īfter collaborating with the CFO to create a financial model, we illustrated that the company was far better off investing in its existing markets, albeit with a slightly different offering and message. I have had the honor of helping over 60 Vistage members craft their best business strategies.Ī couple years ago, I worked with the management team of a member who was contemplating the company’s growth plan.
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