How to make a good business strategy?
- The first step to take when creating a business strategy is to identify what success looks like for the business, for the business owner and for individuals involved in the business. It is important to think of this over a reasonable time frame, we advise five years.
- It is important to then set out a road map to achieve this which includes key milestones and clear projects that require delivery in order to achieve success.
- Involve as many relevant people as possible in the strategy development process including managers, accountants and stakeholders. This is important for the following reasons:
Not everyone can see the same potential or problems within the business.
Accountants can provide a broader insight from other industries they have knowledge and experience in.
By giving all stakeholders part in the strategy development at an early stage any objections or obvious mistakes can be more easily discovered and challenged. This increases the likelihood of a more effective strategy being developed. - Once the strategy has been created make sure to capture them in a formal document. It is too easy once these sessions are complete to congratulate each other on the success of the day and then to go back and do the same thing as before. Without this formal document, the strategy remains intangible and nebulous. With it, the strategy becomes a defining part of the business for it to be measured against over time.
5. Once the document has been completed the key stakeholders in the business need to meet every six months to review and measure the success of the strategy. Over that time the dynamics of the business or its markets may or may not have changed but in any event, it is important that the progress of the actions plans developed is measured in an objective way against previous expectations and if necessary the overall strategy revised.