If you come to a fork in the road, take it – Yogi Berra
Welcome to part 4 of the Future Vision Map series, and our topic is…(see title!). Click here if you missed the first three posts in the series.
Strategy. Strategic. Strategize. Big words. People use them a lot in business.
Which strategy should we use?
Let’s be strategic about this market, ok?
Let’s get together to strategize how we can increase market share by 314.76%.
To be honest, the word strategy (or its derivatives) has lost its meaning in the business world. Too many gurus, too many definitions. A few of them I subscribe to, most I don’t.
Let’s cut to the chase. To me, small business strategy can be summed up in one word: focus.
It’s that simple. Strategy means focus. Focus on what your business is, and also what it isn’t.
There are a couple ‘focus’ decisions you likely need to make as a small business.
Focus #1: Better or Cheaper?
A business can only be one of two things: better or cheaper. Premium or no-bells & whistles. If you decide to be better and cheaper than the competition and manage to be profitable, then let me assure you someone with more resources and/or economies of scale will likely come along and undercut you further. So as a young, growing business, please don’t compete on price. It’s not worth it. Instead, focus on being better.
How do I define better?
- A sharp understanding of your customers’ needs and desires, so you can offer extraordinary solutions/products/services like nobody else
- Excellent customer service and a remarkable customer experience
- Cultivating excellent people to deliver your business’ promise to customers
In the business world, mediocrity is the norm. That’s a huge opportunity for your business. Focus on better, and you’ll be one of the best businesses around. People will flock to you. The goodwill you create among your customers will make for a solid competitive advantage.
Focus #2: Who is your customer?
I don’t like violence, but I’ll give you a war analogy. You’re a General tasked with conquering a relatively powerful country. You have a small army, though. What do you do? Do you go all out and attack every single city at once? Or do you focus on attacking small city, amass its resources, build a slightly bigger army, and then attack the next city? Unless you want to get crushed, you’ll go with the latter option.
Small business owners need to pick their battles wisely. Or they will get crushed. You have a relatively small bank balance, so use it prudently by picking and choosing which markets or customers you will serve. If your customers do not or cannot buy what you’re selling, then look elsewhere. Fast.
Small business owners that refuse to focus and think they can be all things to all people have got it completely wrong. Such businesses will not only bleed cash, they will also not create goodwill (or competitive advantage) because in their customers’ eyes, they won’t stand for anything.
So, my point is, focus. And set the stage for winning.
Until next week, then. We’ll talk tactics, or what specifically you can do to win. Comments and thoughts are always welcome 🙂
Faheem Moosa is DemGen’s lead strategist and developer of the Future Vision Map. He can be reached at faheem@demgen.com
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