Strategy defines your start-ups aspirations, where you compete, and how you're going to win. It is your blueprint for success.
Good strategy includes but is more than mission or vision statements and goal setting. Strategy is an integrated set of choices and making these choices is critical to startup success. This article gives you the advice you need to get started.
Congratulations on taking the leap and launching your start-up! You're probably full of excitement, energy, and passion for your new venture. But have you stopped to think about your business strategy? If not, you should! It's critical to the success of your start-up. Let's start by defining what we mean by "business strategy." It is more than a hierarchy of fluffy goals and values. It is an integrated set of choices for how you're going to position your startup on a playing field of your choice so that it achieves your desired business success. It defines your company's aspirations, where you compete, and how you're going to win. It's a blueprint for your business success and it's essential to have one. Now, you might be thinking, "I'm just a small start-up. I don't need a fancy business strategy." But that couldn't be further from the truth! In fact, having a solid strategy is even more critical for start-ups than for established businesses. Here's why:
As a start-up, you're going to face countless distractions and opportunities. Without a clear strategy, you'll be pulled in different directions and end up spinning your wheels. But if you have, tweak and sustain a well-defined strategy, you'll know exactly what your priorities are and can stay focused on achieving your aspirations.
As a start-up, you'll be making lots of decisions every day, from what features to include in your product to how much to spend on marketing. Having a strategy gives you a framework for making those decisions. You can ask yourself, "Does this fit with our overall strategy?" If the answer is no, then it's probably not the right decision for your business.
If you're looking for funding for your start-up, having a solid strategy that communicates what superior value you startup will provide and how it is going to succeed is critical. Investors and top talent recruits want to know that you have a clear plan for how you're going to achieve success. Without a strategy, you'll have a hard time convincing anyone that your business is a winner and worth their money, time and talent.
In today's crowded start-up landscape, it's not enough to have a good idea. You need to have a unique value proposition deployed into a fertile field where you can be set apart from the competition. A well-defined strategy helps you identify what makes you different and how you can use that to your advantage..
So, what should your start-up strategy include? Let's break it down:
What does winning look like for your startup? What are your customer aspirations? What difference do you want to make in the lives of your customers? What benefits do you provide for your stakeholders and employees? Having a clear vision for your start-up's purpose and what winning looks like is essential. It creates the environment of excellence sets the scene for making superior choices in your other strategic choices.
Checkout our Aspirations guide for startup and SME leaders
This includes which industry or industry segment(s), geography, customer segments, customer needs, and jobs to be done (problems your business solves). You need to know who your target customers are and what they need. Understanding your industry, rivals and the opportunities and threats is also crucial, so you can differentiate yourself, find your niche and skate to where the business opportunities are going to be.
Checkout our Where to play guide for startup and SME leaders. From our guide page review the Where to play menu.
This is where you define your unique value proposition, dominant strategy (differentiation or cost leadership), value chain configuration (how you deliver your unique value), capabilities (strengths), resources, customer relationships, channels, type of products or services, and partnerships. This is the nitty-gritty of your strategy, where you define how you're going to attract your target customers, deliver your value and delight and retain your customers.
Checkout our How to succeed guide for startup and SME leaders. From our guide page review the How to succeed menu.
You can define your strategy using the StrategyCAD™ Strategic choices canvas.
Yes, it is kind of like a Business model canvas,
but specifically tailored for representing your
strategic choices.
How are they different?
Business strategy is about how a company creates value,
and wins with its target customers,
while a business model is about how a company
generates revenue and profits.
Blockbuster had a business model but lacked an enduring strategy.
Nonetheless, while the two do have some overlap,
a strategy canvas has additional distinct concepts
that require separate analysis and specification.
With your success blueprint defined, it’s time to assess where you are relative to your blueprint, define your proximate vision and set your objectives and measures to start achieving your blueprint. You can use the StrategyCAD Strategy Implementation canvas to do this.
In conclusion, having a well-defined strategy is critical to the success of your start-up. It helps you stay focused, guides your decision-making, attracts investors, and defines not only what set you apart from the competition, but why and how you will provide superior value to your customers. So, take the time to develop a solid strategy for your start-up. Your customers and stakeholders will be so glad you did!
