The Importance of Startup Business Strategy and the Key Factors to Ensure a Business Success

 

The Importance of the Business Strategy that will lead to the success of an organization. So, what is a business strategy? It is the tactics that the company management uses to achieve the company's desire goals and objectives. The strategy is normally set to

be a long term goal typically 3 to 5 years. It outlines the company business objectives, the strategy and the methodology to carry out to achieve those objectives. It lays out all aspects of the business operations, financial, marketing team, the expansion within domestic and international, and the goals. So let's take a deeper look into it.

Business Operations - The company leadership team is the one that drives the business operations in the direction that it needs to be, and they implement and evaluate the cross functional decisions to achieve the organizational long term objectives.

Financial - One of the main business strategies is to carry out the business plan based on the budget that was allocated to the team, and the team must operate within that budget, or else it will face with financial hardship. Another reason for the company to operate within the budget is that each operating function was allocated a set of budget to operate with, and if there is additional need for additional budget like expansion to another location, then there is a reserve budget set aside to fill the gap. Therefore, none of the operating functions can go beyond the budget unless there is a business needs, and in return it generates profit for the company.

Marketing Team - It is the one that leads the company to compete with its competitors. The team will conduct a thorough strength, weakness, opportunity, and threat analysis (SWOT analysis) of the company, and sets the procedures and the strategies for the company to compete with its competitors based on the products and services that it has. It tries to differentiate the company's products and services from its competitors, and to tell the potential customers that its products and services are better than its rivals.

Expansion - The business strategy outlines the ways for the company to expand within domestic and international if the market demands more than it currently can provide; and therefore, it must have some sort of back up plan when it is required to expand in order to serve the customers at the higher volumes.

Goals - The overall business strategy is to achieve the company's goals and objectives; therefore, the leaders and management of the company must be able to set a clear strategy where everyone in the organization understands and able to carry out its strategy effectively to reach the goals based on the established time frame.