Chart Your Course to Success with a Startup Roadmap
Time to put that theory into practice.
Parts of a Business Strategy
strategy / ˈstratɪdʒi /
(noun) a plan of action designed to achieve a long-term or overall aim.
However, this definition simplifies the three key elements. You will need to dig deep to:
- plan on the basis of the current state,
- aim for the future you envisage, and
- act(ion).
Along with an 4. executive summary, these three elements form your four-part business strategy.
But, as Leonardo da Vinci noted:
“The greatest deception men suffer is from their own opinions”.
In other words, don’t believe everything you think! This is no time for gut instincts, but rather the time for you to use a collection of established analysis tools* so that your business strategy is as accurate as possible.
At the same time, be vigilant about falling into the trap of analysis paralysis!
*Each of the tools mentioned is available as a downloadable resource – just follow the 🔗links.
Business Strategy Step-by-Step
| 1. Present Provide an in-depth understanding of your business’s current position in this section. “Where are you now?”
| i. Sketch an overview of your business as it stands – your existing products or services and any historical trends or milestones. ii. Describe your 🔗target market – who buys from you? ii. Review the internal capabilities – note strengths, areas for improvement, and challenges using: 🔗VRIO Analysis to highlight what internal elements contribute to your competitiveness. iii. Analyse the external environment using tools like: 🔗Porter’s Five Forces Model to assess the viability of your industry. 🔗BCG Matrix to decide where to focus resources and capital to get the best returns, and where to cut your losses. 🔗SWOT Analysis to ascertain strengths, weaknesses, opportunities, and threats. |
| 2. Future Use this section to outline your ambitions for the company and the route to achieving them. “Where do you want to be?” “What big things do you need “What do you need to do | Describe the desired future state of the business and include: i. Your vision statement summarises the company’s aspirations for the future. ✅ ii. Your mission statement and business values statement reveal your purpose. ✅ iii. Deconstruct these ambitious goals into manageable steps and prioritise the high-impact projects as your 🔗strategic objectives. |
| 3. Action Plan Describe how you will implement your strategic objectives. “How are you going | i. List the main projects you have decided to prioritise. (Depending on your capabilities, narrow it down to three to five that support your goals in a sustainable and profitable way.) ii. Specify the budget and resources required to achieve your objectives. iii. 🔗Map out what you need to do to achieve your goals. Include details about each action, who is responsible for the results, a timeline for its completion, and performance metrics to measure progress. |
| 4. Executive Summary Create a snapshot of the entire strategic planning process and its outcomes. “Is this quick and | Try a free AI app to create an executive summary from the plan you have created. |
✍️ Test Your Knowledge
Answer the questions to mark this lesson as complete.
➡️ Next
Module 3: Business Operations