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Business strategy development

So what is business strategy?
Knowing where you are going, but also knowing how to get there
(and how long it might take, and how much it will cost)

Surely anyone who goes into business must already have a strategy in their mind, right?
Well yes for the most part however many people have a strong idea about what they want to achieve but not necessarily how to actually do it. We speak to inventors and creators who have great ideas but absolutely no clue how to turn that idea into reality.

ideasmatrix can help to bring your ideas to life, initially it is important that a formal business plan is written and understood. ideasmatrix can write your business plan, or we can help you write yours.

There is no point starting in a business if you don't know in which direction you are heading, the following criteria should be considered when formulating a business plan.

A good business plan will provide the blueprint for your business and should be constantly monitored and updated as your business develops. We can help you decide on your strategy, write your business plan and provide access to all of the services you will require to move your business idea forward.

 

Jump to key sections on this page:

• Understand your proposition
• Gap analysis
• SWOT analys
• Market research
• Short/Medium and long term business goals
• Business controls and management
• Development strategy
• Marketing strategy
• Routes to market
• Mission statement

 

Understand your proposition

What are you selling and what will make other people buy it from you?.
Do you have a unique product?, what is your USP(unique selling proposition)?, are you selling based on price (either higher or lower than your competitors) or perhaps the specialist product or service that you offer?. Some basic fact finding about your proposition will be required, for instance is it a product or service which people would actually want? and if so how much would they pay for it?

Some of these questions will be tough in the early days because as a business owner or inventor you would not want to hear any information which might undermine your dream, however it is necessary to gain a clear and true perspective of the market conditions which will affect you product or service.

More in depth analysis may be required;


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Gap analysis

May be used to identify the usable market GAP which may exist, this is a result of the market potential less the existing usage. Accurate and reliable market data and forecasting will be required to use this type of data in your business plan.


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SWOT analysis

SWOT image used under license

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.





• Strengths: attributes of the organization that are helpful to achieving the objective.
• Weaknesses: attributes of the organization that are harmful to achieving the objective.
• Opportunities: external conditions that are helpful to achieving the objective.
• Threats: external conditions which could do damage to the business's performance.


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Market research

Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. It is a good way to gain valuable information and insight into your proposed product or business. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.

This type of research can provide information on:
• Market information: Who are the customers and what do they buy?
• Market segmentation: What demographics buy your product or service?
• Market trends: Gives data on competitors and market activities

For a new business market research can be a very cost effective way of gathering plausible data which can be used in your business plan. Some care has to be taken when choosing your research audience, obviously close family and friends may give you the answers you want to hear just because they do not wish to hurt your feelings, however a well constructed and impartial market research study can provide you with a lot of useful data.


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Short/Medium and long term business objectives

You must have a clear idea about what your objectives are.

This may sound obvious, however from a very early position as the business owner or product developer you will need to have a firm understanding about the fundamentals of what you want to achieve. This will ultimately determine the direction of the proposition and will influence some of the decisions you will have to take.

Some questions which will need consideration are: • Do you want to run the business for many years and maybe pass it on?
• Do you have an exit plan the business, if yes when and in what capacity?
• Do you want to sell the whole business as a going concern or split the company and sell off its assets?
• Do you have a personal financial goal which the business should provide?, if yes when and what?
• Why are you doing this?

When establishing your business your longer term aspirations will need to be known so that professional advice can be given to you by your accountant and solicitor.


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Business controls and management

Any business must have good management and controls in place, even a small business must get it house in order as early as possible.

Controls will show any potential business partners, bankers or investors that the management of the business is in control and has a firm grasp on where the business is going.

Financial controls are of upmost importance. It is good practice to get your business using a known accountancy package as soon as possible, software such as Sage, Quickbooks or Xero.com are good options. Employing a part time book keeper to keep your data up to date is important, and having access to a financial controller who can publish management accounts is prudent. A financial controller does not necessarily have to be a full time appointment; there are a number of good freelance financial controllers available.

You business should consider a number of controls to ensure its viability, these could be:

• Budget planning
• Monthly management accounts (budgets versus actual)
• Weekly cash flow (or daily if necessary)
• Purchase order system
• Cost control documents



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Routes to market

You will have no business unless you make sales; it is the lifeblood of any business. So it's quite important to know where to, and who to sell to.

Is your business going to sell to other businesses? (B2B), or are you going to sell to consumer (B2C)?, maybe you are going to do a combination of both?

There are many options of where to sell your products; these will depend on the nature of your product and the costing structure you have deployed. Some ideas are listed below:

• Importers
• Distributors
• Independent retailers
• National retailers
• e-commerce re sellers
• Catalogue companies
• Direct sales organizations


The directors and management of ideasmatrix have many years between them in the product supply chain to national retail accounts in the UK.

We are able to utilize this contact base to get product represented to the biggest retailers in the UK and abroad.

We are also able to access representation to other sectors other than just national retail, having many contacts in different levels of distribution.

Why not talk to us to see if we can help get your product to market?


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Mission statement

A mission statement in not critical for the success of your business, however there aren't many successful companies which do not have one.

A mission statement is a brief statement of the purpose of a company, or organization. Companies sometimes use their mission statement as an advertising slogan, but the intention of a mission statement is to keep members and users aware of the organization's purpose.

It is often good to involve the staff members or stakeholders of a company to create the mission statement as it focuses their minds on what the company's intentions are.


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