The Business Bulletin

Strategy can be a scary word for small business owners, so I thought it would be worthwhile exploring and I'd be interested to know your thoughts.

Also my thoughts on the word "entrepreneur" which you may find controversial.

Plus the usual top tips and tools!

Strategy: Is It Important for Small Business Owners?

For small business owners, every day is rife with challenges — from managing day-to-day operations and handling financial matters to keeping employees engaged and serving customers effectively. Amidst this hustle, the concept of "strategy" might seem like a luxury reserved for big corporations with ample resources. But is it?

Why Should Small Business Owners Consider a Strategy?

Business strategy, at its core, is about setting clear goals and charting a course to achieve them. Regardless of size, every business exists to fulfill a purpose or a set of objectives. Whether it’s maximizing profits, expanding the customer base, or launching new products, having a strategy ensures a guided approach towards these goals. It isn’t just about the end goal, but also about leveraging resources effectively, understanding market dynamics, and setting priorities right.

What Might Deter Small Business Owners?

1. Perceived Complexity: Many believe that formulating a strategy is complex and requires expertise. The jargon, frameworks, and the plethora of tools might seem overwhelming.
2. Short-term Focus: Small businesses often face pressing challenges that require immediate attention. With fires to put out every now and then, long-term planning might appear less urgent.
3. Complacency: If the business is doing reasonably well, owners might question the need for a strategy. The 'If it ain't broke, don’t fix it' mentality can be a barrier.

Benefits of Having a Strategy

1. Clear Direction: Strategy provides a roadmap. Business owners can define where they want their business to be in the next 5 or 10 years and plot a course to get there. It eliminates the guesswork and ensures everyone is on the same page.
2. Resource Optimisation: With a clear strategy, resources can be allocated more effectively. Business owners can prioritise investments based on what aligns with their strategic objectives.
3. Anticipating Challenges: A well-thought-out strategy involves assessing potential risks. This proactive approach means that small businesses can anticipate challenges and devise measures to mitigate them.
4. Competitive Advantage: Understanding market dynamics and carving a niche is essential. A strategy can help small businesses identify their unique selling proposition (USP) and leverage it to stand out in the crowded marketplace.
5. Increased Agility: Contrary to the belief that a strategy is rigid, a good strategy actually provides a framework within which businesses can be agile. When external factors change (e.g. market trends, new regulations), businesses with a strategy can adapt quickly, ensuring they remain on track to achieve their objectives.

In conclusion, strategy isn’t just a buzzword for the corporate giants; it's an essential tool for businesses of all sizes. For small business owners, a solid strategy is not about adding another task to an already long to-do list, but about ensuring that all efforts are directed towards a clear, common goal. After all, as the old adage goes, "Failing to plan is planning to fail."

Call to Action: Do you think having a strategy in place is important? Have you got a plan for your business? Share your thoughts in the comments below.

To be or not to be an entrepreneur…

The definition of entrepreneur is “a person who sets up a business or businesses, taking on financial risks in the hope of profit”. So, in essence, any small business owner who takes that brave step to set up their own business is an “entrepreneur”.

However, I tend to disagree with that and think any small business owner is entrepreneurial but there is more to whether they can be labelled as an entrepreneur.

For me, there has to be more substance to the term being applied to someone who has set up their own business – there needs to be elements of success and a proven track record in establishing the business (or multiple businesses). Don’t get me wrong, failure is likely to be part of the process, as not every venture will be successful (as the stats indicate). There will be numerous “war stories” for those people that have gone down this path and eventually reached the level of success where being described as an entrepreneur is appropriate.

The word “entrepreneur” has become commoditised and is used far too frequently that you could argue it no longer has the kudos associated with it that it may have done historically.

I believe that the “honour” of being deemed an entrepreneur is something that should be bestowed on you, not self-claimed. That peers looking from the outside can assess your success and in so doing, give you that label.

Call to Action: Do you consider yourself to be an entrepreneur? Is so, what would you say warrants that title?

Top Tips

Implementing a strategy can seem daunting, but by following a systematic approach, even small business owners can benefit from strategic planning. Here are some top tips for small business owners looking to put a strategy in place:

Start with a Clear Vision and Mission:

• Vision: Where do you see your business in the next 5, 10, or even 20 years? This gives direction to your efforts.
• Mission: Why does your business exist? What's its core purpose? How are you going to deliver your strategy

Prioritize Your Efforts:

• Not all tasks are of equal importance. Rank your strategic initiatives based on their impact and feasibility. Allocate resources accordingly.

Monitor Performance:

• Implement Key Performance Indicators (KPIs) to measure the progress of your strategic goals. Regularly review these metrics and adjust tactics as necessary.

Document Your Strategy:

• Write down your strategy, even if it's just a few pages long. This helps in ensuring clarity, alignment among team members, and serves as a reference for future planning sessions.

If you need help with putting a strategy together, book a free strategy review here: https://go.oncehub.com/paulgreen

Tools & Resources

If you're looking at implementing a strategy for your business, here are some things that may help:

1. Business Model Canvas: This is a one-page visual chart that presents an organisation's value proposition, infrastructure, customers, and finances. It's a great tool for brainstorming and viewing your business model at a glance. (NB Canva has some great templates for this).
2. Porter's Five Forces : This tool helps in analysing the competitive forces within your industry, which affect profitability and competition.
3. Key Performance Indicator (KPI) Dashboards: Tools like Klipfolio or Tableau can assist in visualizing and tracking your business metrics.

If you have found this useful, feel free to share this newsletter to your connections or maybe tag some of your connections.

Until next time...