Topic 6. What do you want from your business
We don’t all have the same passions or motivations as much like we don’t all like the same activities each entrepreneur may have a different reason for setting up their own business. In order to ensure we build the right business plan we first need to understand why we want to build our own business, how can we build a successful business plan if we don’t know the ultimate goal?
Action Opportunity Fund list the top 10 reasons why people start businesses.
For example;
- Do you want to build it to sell it, do you want a life style business, or anything else…
Before you move to the next Topic write down what you want from your business, you need to know this so you can make the right decisions to build it i.e. if you want to build it to sell it, makes sure that you are not an integral part of the company.
Three Levels of Strategy according to Chron
- Focused Momentum defines the corporate strategy vs. business strategy vs. functional strategy distinction. Corporate strategy sets the goals for the company as a whole. Business strategy sets goals for departments or divisions: financial strategy, manufacturing strategy or sales strategy, for example. At small companies, business strategy may be identical to corporate strategy. Functional strategies lay out how the company will meet the goals of the corporate and business strategies.
- According to Tools Hero, functional strategy is the most detailed. If a corporate objective is to “proactively manage risk,” the functional strategy includes the tactics and methods to achieve it. Functional strategies involve departmental goals as well as big-picture corporate and business goals. For example, if the corporate strategy prioritizes innovation, the research and development functional strategy might focus on developing innovative new products.
- For the full article visit https://smallbusiness.chron.com/difference-between-corporate-strategy-functional-strategy-41788.html
Reff: Chron
However having 3 levels of strategy can be confusing and it could be argued that operational strategy is not really strategy at all given the definition of strategy according to the Oxford Dictionary is; a plan of action or policy designed to achieve a major or overall aim.
As such we rewrite the business model as Vision, Strategy and Tactics
Vision: The long term ambition of the business – 10 years +
Strategy: Medium term plans to work towards the vision – Typically 1 year
Tactics: Day to Day, Week to Week actions to meet the strategy – Change daily
As a result the most important part of the model (pictured right) is the two way arrows! It is essential that the tactics are designed to meet the strategic goals and that the strategic goals are built to work towards the companies overall vision. And in reverse the Vision helps set the Strategies of the business and the strategy helps define the required tactics to achieve it.
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Activity
1.Write down what you want from your business and by when
Whatever your answer make sure you refer back to this when building your business plan / when making decisions on your business, does the decision back into your reason for building the business.
2.Identify your current business;
- Vision
- Key Strategies
- Main Short term Tactics
Remember – Vision is Long-term , strategies are Mid-term and goals are Short-term
Ensure that your current company strategy is designed to meet your company
If this is not the case you need to review your business strategies and tactics to ensure they are relevant ?