We’re quickly approaching the end of 2022, so now is a great time to start thinking about your small business strategy for the new year. To support you, I’ll be sharing a three-part series to help you develop a solid small business strategy so you can grow your business in 2023.
Maybe you’re thinking about launching your business in the new year. If so, this series will help you get off to the right start as you plan out the essential elements you need to be successful. Or maybe you have an existing business already. Well, in that case, these articles will help you determine what is going well and what aspects of your business need some fine-tuning.
As I mentioned, this will be a three-part series about developing a 2023 small business strategy. In Part 2, I will cover six steps to creating your strategy. In Part 3, I will discuss why a business strategy may fail. But today, I kick it off with the main benefits of developing a business strategy. In other words, why do you need one in the first place?
7 Reasons Why You Need a Small Business Strategy
Creating a small business strategy may not be on your priority list. After all, you’re probably wrapped up in many details about planning or running your small business. Do you have extra time to work on strategy? Probably not. But in this article, I’ll make a case for why you should pause the other things you’re doing to focus on developing your strategy first.
Having a small business strategy will help you…
1. Minimize Risk
A primary benefit of developing a small business strategy is that it will reduce risk. By taking the time to envision your company’s future in the next 3-5 years and analyzing your current strengths, weaknesses, competitors, and business environment, you’ll be equipped to make strategic decisions about your direction forward. Informed, strategic planning will help you minimize risk and maximize your business’s potential.
2. Save Money
Identifying your long-term goals will help you save money because you’ll be laser-focused on what you should do throughout 2023. You won’t waste money on marketing that doesn’t mesh with your goals, and you won’t waste time on opportunities that are not a good fit with your strategy. Focusing on your goals and your niche target customer will help you keep costs down and maximize your profit.
3. Stay Focused
Your business strategy will give you a clear vision of what you want to achieve in the new year. Without it, everything might seem like a good idea, and you might run chaotically here and there but never achieve anything significant. When you are clear about your customers, mission, and financial goals, you can make good decisions that bring you closer to those goals. Not only that but having a plan will also help you better use your limited time as a small business owner.
4. Achieve Business Goals
As we’ve mentioned in the last couple of points, the result of minimizing risk, saving money, and being focused is that you are more likely to achieve the business goals you set for your business in 2023. You’ll be targeted and specific in your business efforts and devote your time, money, and resources to things that will get you closer to your goals.
5. Improve Company Morale
At the time I’m writing this, it has become increasingly difficult to find and retain good workers. The labor shortage has affected transportation, health care, the food sector, and others, and chances are you’ve also felt the impact in your small business. By having a small business strategy, you’ll look more attractive to potential workers because they’ll understand your business’s goals and their role in helping achieve them. If you’re struggling to find workers, you can check out my hiring tips too, but the point here is that if you have a small business strategy, you will be strategic and effective in hiring too.
6. Find Your Unique Selling Proposition (USP)
Often what replaces small business strategy is studying the competition and then attempting to duplicate it. Strategy offers you a different approach because you spend time thinking about what sets you apart from the competition, not how you can copy them. Your strategy should reinforce your USP and help you maximize it. For guidance on defining your USP, check out this article.
7. Create Longevity
Do you want to have a ‘here today, gone tomorrow’ small business? I didn’t think so, which is another reason why developing a small business strategy is so important. The world is changing father than ever, and you can’t survive purely on luck. Small businesses with a solid foundation and an understanding of current trends and future projections are more likely to survive. Your business strategy gives you direction and focus so that you can stand the test of time.
Small Business Strategy Tips Next!
I think I’ve stated a pretty solid case for why you should focus on developing a small business strategy despite how busy you are in other aspects of planning or running your business. Now that I have you 100% on board, I’d love to share my tips for developing your strategy. Stay tuned for next time when I’ll share my six-step process!