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6 Strategies To Grow New Business
Launching a new business is not a piece of cake. An entrepreneur needs to chart out a broad framework or a business strategy detailing the scope of business operations and activities to ensure proper and smooth functioning of the business operations. A business strategy specifies the mission and vision statement of a business, outlines the areas in which the business intends to operate, and details the ways adopted by a business to survive competition and achieve its goals and objectives.
Formulation of business strategy is an integral part of planning and is usually carried out by the top management, with contributions from the middle management. A business strategy without the inputs from middle and lower management has lesser chances of being successful. Business strategy lays down a proper framework for execution of policies and plans. Without a strong and competitive business strategy, the chances of survival of a business are feeble. Below are some business strategies that can be adopted by new businesses in order to achieve growth and success.
Before the launch of a business, there are several tasks which need to be completed. A Pre-Launch planning that details the tasks which are necessary to carry out before the formal launch is a part and parcel of a successful business strategy. Make a list of all the tasks that are a part of the readiness planning, like renting a premise, registering a company, enabling processes and technology, etc. This planning acts as your list of things on the ‘to-do’ list which must be executed for the successful launch of a business. Indulge in thorough brainstorming to ensure that none of the pre-launch task is missed and the readiness plan is carried out effectively.
Having an Operational Strategy
A business plan which cannot be put to practical use by implementation is a waste. Once you have conceived a business plan for your business, you need to have a tactical or operational strategy which acts as a framework for the execution and thereby implementation of plans formulated during the initial process of incorporating a business. Neither a corporate house nor a small business can survive without an operational strategy.
While implementing the plans to accomplish the goals and objectives specified at the corporate level, various strategies need to be adopted like acting on impulse to take advantage of a mushrooming opportunity, using trial and error method to judge the effectiveness of a plan, dealing with competition and securing a place for the business in the market, etc.
A panel consisting of the board members of an organization can be formed and a brainstorming session can be organized to formulate the operational strategy. An insight into the tactics adopted by the competitors is another good source for devising an operational strategy. Nonetheless, an operational strategy should be revised from time-to-time to accommodate the changes in the dynamic business environment or else it will become obsolete with time.
Having a Measurement Mechanism
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Once the plans have been laid down, the next step is to frame a mechanism for the measurement of performance. This strategy of measuring current performance against the established standards helps a business to analyze the extent of deviations, if any and assess the ability of the business to meet the laid objectives effectively. If deviations from the established course of action are found, remedial actions can be taken to rectify the problems and preventive measures can also be adopted to check the possibility of deviations in future.
Hiring Competent People
Certain areas of a business require the expertise and experience of competent personnel. For instance, a qualified and experienced marketing manager can act as a source of competitive advantage for an organization by laying down marketing plans that boost the sales and thereby revenue of an organization. The strategy of hiring experts in the fields of marketing or finance, etc. can lend an edge to the organization over its competitors.
As a business strategy, hiring competent personnel aims at exploiting the talent and knowledge of experienced personnel and using it for the best advantage of the firm and at the same time, retaining the competent personnel by satisfying their needs.
Using Social Networking
In todays’ scenario, the importance of social networking cannot be disregarded. Social networking can be used as a medium for creating awareness about a brand, product or service and popularizing it among the masses. Social networking sites like facebook, orkut, etc. are excellent platforms for promotion of products and services and creating demand for them.
A business strategy that aims at persistent and consistent implementation of promotional and advertising plans can prove quite beneficial for a brand. However an organization needs to plan a budget specifying the amount which it is willing to incur over advertising. Losing track of finances employed in advertising purpose can be disastrous for a company.
A business strategy intended to reduce inefficiency and eliminate duplicity helps a business in minimizing wastage of resources, be it manpower or finance, and focuses on channelizing resources towards aims that yield maximum benefit. For instance, an initiative intended to enhance quality of products delivered and services offered to a customer not just reaps the benefit of reduced costs and wastages but at the same time, leads to increased customer satisfaction which benefits by enabling increased customer loyalty. Duplicity of task can lead to high degree of wastages. It is highly important to eradicate duplication of tasks and achieve efficiency.
In order to ensure the smooth functioning of the activities in an organization and to achieve success in business, business strategies play a crucial role. They enhance the strengths of the organization, reduce its weaknesses and take advantage of the opportunities prevailing in the environment while minimizing the effect of the threats on current business operations. Business strategies are essential for any new business to grow and flourish. Effective business strategies formulated during the initial stages of planning a business can go a long way in paving the path to success for a business and ensuring that it survives competition.