Evaluating a Small Business Strategy

Countless people set personal goals in life, but in many cases, small business owners don’t do themselves the same favor. Without setting aside a little time each week to consider, plan and implement a solid successful strategy for any business, explains Nathan Jurczyk, success can be often hindered or compromised.

In these tough economic times, owners are struggling to make their business grow, but strangely enough, there is great opportunity for companies to make leaps and bounds while the market is down.The day-to-day running of your business can alter your perception of how effectively it is run. Nathan Jurczyk suggests taking the time to look at every facet of your business to gain a thorough perspective.

What kind of relationships do you have with suppliers? Is there any way you can leverage the associations you have with them to gain better pricing or additional extras (like longer trading terms to increase cash flow) that they don’t usually provide?

Do employees see their position as a job or a career? One of the most difficult tasks an employer can face is motivating their staff so that they are more productive. Try to introduce creative, cost effective ideas to improve staff morale, which will ultimately allow your business to be more successful in so many different ways including: higher customer satisfaction, increased work output, fewer mistakes and an improved corporate business culture.

What are your sales margins? Taking a realistic look at how much you are making on your products and services is crucial to allowing your business to grow. A 3% increase may not seem like much in isolation, but calculated over a year, this additional profit will make quite a difference to your bottom line. In many cases, customers will often expect to see increases in prices every few years, purely because of inflation. If you do apply increases, be transparent to your valued clientele – it will only reaffirm why they should continue to spend their money with you.

What are your competitors doing? If they are blazing trails in your area or industry, find out why and how, says Nathan Jurczyk. Start to follow their lead and see where you can even improve on their practices. But another, far more powerful way to knock down competition is to find out what they are doing badly. By being exceptionally great at what your competitors do badly, it will soon put you miles in front.

Planning – What to Consider

After all the research has been done, it’s important to spend some time planning how you will turn your findings into meaningful actions and develop a business strategy. There is a fine balance between continuing to maintain a high service level in your business and being able to implement new processes, procedures and projects. Figure out what elements can be immediately implemented into your business and what will take more time and resources. Once you’ve determined this, you can then allocate timelines to these more lengthy projects so as not to interrupt the flow of your business. Many strategies tend to stretch over several years, so make sure you build some level of flexibility in to allow for changes in your business, the economy and the marketplace.

Implementation – Getting Your Hands Dirty

It’s all well and good to research and plan business strategy, but the hardest part lies in effective implementation of the plan that you develop, notes Nathan Jurczyk. The best way to avoid being overwhelmed with implementing the strategy is to break up each task and set key goals and milestones. Once you have completed the task or project successfully, make sure you take the time to look back on what you have done and be constructively critical. If you have an upcoming project of a similar nature, it will allow you to become more efficient in implementing your business strategy.

All in all, business strategies give you the chance to recognize opportunities and shortcomings that may not have been realized otherwise. While each business can be very different, the foundations of a solid business strategy are ultimately the same and can be applied to any company, regardless of its service offering or industry.

2 Responses to “Evaluating a Small Business Strategy”

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    When to Define a Business Strategy | Nathan Jurczyk Blog Says:

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    Nathan Jurczyk News » Blog Archive » Business Strategy: The Difference between Failure and Success Says:

    [...] Evaluating a Small Business Strategy [...]

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