How To Create A Bangin' Business Strategy

Over the next month, I’m going to be doing a series called Business Basics, which is designed to show you a step by step process for creating your very own business. Hint: it's going to knock your socks off!

Alert: So, I did a recent survey of my audience (like you!) and almost 70% of people who responded said that they would love to learn how to start a profitable business. Awesome, right?

Well…kind of.

Of the people who responded, only about 12% said that they had actually started a business that is now profitable. The other 58% said they had no idea where to start and not sure what they're passionate about.

So, what gives? What’s with all the people who desire to do it compared to the small number of people who are actually making it happen?

For one, if you want to start a profitable business, you need to have a solid and strategic game plan in place. This is where today’s blog will come into place to help. I'm going to show you how to make a business strategy, which will help you identify if your business idea or model is worth pursuing.

So I want you to put aside the "Follow Your Passion," mantra and try this strategic business planning instead.

Before we get started, I want to share a few words from Elizabeth Gilbert (author of Eat, Pray, Love and Big Magic), she said, “You spend a lot of your life having people tell you to follow your passion. It’s nice advice, it’s heart-warming advice, it’s great advice — if you happen to have one that is very clear and obvious.”

“We are constantly being told to pursue our passions in life, but there are times when passion is a TALL ORDER, and really hard to reach. In seasons of confusion, of loss, of boredom, of insecurity, of distraction, the idea of "passion" can feel completely inaccessible and impossible. In such times, you are lucky to be able to get your laundry done.”

“Sometimes it feels cruel and all it does is make you feel even worse and more left out because you’re like, ‘I would if I knew what it was!’ If you’re in that position right now… forget about passion.”

When you don’t know what your passion is or where to start on your entrepreneurial journey, hearing that 'following your passion' is the key to fulfillment and all that’s good in life can be debilitating. 

WHAT TO DO INSTEAD:

Although strategies are considered "high-level" concepts, the success always lies in the details of measurable actions and monitoring the metrics. Business owners should put their energy toward understanding the market and the business opportunity so they can develop clarity about the company direction before moving forward with the idea.

Before starting a new business project, it's important to outline all the details. Creating a business strategy not only forces you to take a good look at all aspects of your business, from financial, to the target market, and more, but also, it becomes the roadmap for your success.

So let's get to it... I'm going to walk you through how to write a business strategy and test out your product or service idea before just jumping out there and following your passion.

STEP 1: EXECUTIVE SUMMARY

The executive summary sounds really debonair, right? The Executive Summary is important since it will help other key constituents, such as employees, advisors, and investors, quickly understand and support your plan.

STEP 2: ELEVATOR PITCH/ BUSINESS DESCRIPTION

This is where you are going to tackle the organization and culture of your business/service. You may not feel like you have a “company culture” just yet, but you are certainly building a brand!

STEP 3: COMPETITOR ANALYSIS

Before launching your business/service, it’s important to research your competitors and similar businesses/services, so that you can try to stay ahead of the game. Now, don't get too caught up in your competitors… I want you to just get a better understanding of what is happening in your industry.

STEP 4: TARGET MARKET

Your success rides on your ability to meet the needs and desires of your customers. You will identify the wants and needs of each of your target customer groups. This is important in focusing your marketing efforts and getting a higher return on investment on your advertising expenditures.

Please keep in mind... “That if you're talking to everybody, you're talking to nobody," said, Marie Forleo.

STEP 5: YOUR SERVICE OR PRODUCT

It’s time to start planning your monetization strategies. Exciting, right? Now’s your chance to decide how you will turn your idea into a biz. Will you launch services? Will you create an e-product? What is your product or service? What do people pay you for?

STEP 6: MARKETING AND SALES STRATEGY

Now, let's talk about your marketing and sales strategy. Once you create your products or services, you actually need to promote them! One of the most important sections of a business plan is Marketing and Sales Strategies which outlines your plan for reaching and selling to your target market.

STEP 7: FINANCIAL PROJECTIONS

The final section of your strategic plan is your financial projections. Your financial projections help in multiple ways. First, you can use a financial model to assess the potential results for each opportunity you consider pursuing.

Take heart: numbers are not magical, mysterious, or menacing. They merely reflect the decisions you’ve made in planning or running your business.

You should develop your complete strategic plan each year, and then update it monthly as actual results come in and you gain more clarity and intelligence. While you will rarely achieve the precise goals established in your strategic plan, scores of research show that you’ll come much closer to them versus if you didn’t plan at all. 

Holy moly. You are such a trooper for making it this far. Who knew outlining a business strategy could be so much work?

But really, you are putting in the effort right now and I am straight up impressed!