Business strategy for growth

Devising A Strategy for Growth

Mission, Vision, Values

Brian O’Connell

www.thebitterbusiness.com

Think!!

Can you out think your competitors?


• A business needs strategic thinking before any strategic planning.

• “If today was the last day of your life, would you do what you are about to do today” Steve Jobs

Take Time to Think


• The purpose of the business

• Strength of the Business

• Strength of the team

• Current effectiveness

• Financial resources of the company

• Target market trends

• Current market position.

Ask and Answer


• Real planning and growth strategies are founded on “Business Purpose”

• Vision: where the business is going in the long-term • Mission: the business purpose and reason WHY for existing• Values: Who and what the business stands for

Know Why


• Think about the Business Mission

• The business mission concentrates on the here and now. A mission statement defines the fundamental purpose of any business. It identifies who the company is, what it does, and who it serves.

Business Mission


Why Plan?

Die Quickly, Die slowly, Survive or Thrive


Business Planning

Ineffectively Effectively

DIE QUICKLY

“A poor plan executed well”

THRIVE

“ A great plan well executed”

DIE SLOWLY

“ A poor plan executed poorly”

SURVIVE

“ A great plan executed poorly”

Strategy for Growth – Doing the Right thingsTactics - D

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1. Start with goals – what do I want out of this business?

2. Create a vision of what the business needs to look like in order to accomplish your goals.

3. Create a business mission to guide you along the way.

4. Develop strategies to get you from where you are now to where you want to be in the future. Strategies require investments – which means budgets, resources and timelines.

Take the Thrive Option


• Strategic planning is the process of determining the primary business purpose (the “WHY”), putting in place goals and tactics, then adopting courses of action and allocating resources to achieve the selected goals and tactics.

Strategic Planning


Steps in the Strategic Planning Process


Building Blocks for a Successful Business

• The Team

• The Product or Service

• The Market.

• Each factor or a combination will most likely determine the success or failure of any individual business with a particular focus on the product to market fit.


What causes business success?

• Has history shown us that the No.1 business killer is lack of market?

• When a great business team meets a stagnant market, market wins. When an average business team meets a great market, market wins. But when a great great business teambusiness team meets a great marketgreat market, then something really special happens.


Ideal Growth Plan

• Differentiated Business Strategy• Desirable products or Services• Big enough market• An economical way to target and serve it.• A Strategy borne out of your greatest

strengths• Note: Product quality will not create market size;

Steve Jobs learned that lesson with his NeXT business.


How do you Differentiate from your competitors?

BUSINESS STRATEGY OPTIONS


Business Strategy Selection


• Market Penetration Market Penetration – selling more of the same things to more of the same customers

• Market Development Market Development – selling more of the same things to different customers

• Product Development Product Development – selling new products or services to the same customers

• DiversificationDiversification – selling new products or services to different customers

Strategy Drives the Plan


• Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.

Market penetration


• A market penetration strategy is about focusing on markets and products you know well

• Maintain or increase the market share • Secure dominance of market• Driving or buy out competitors• Increase Customer Usage• Cash Cow – Lower Risk - Smaller Growth

Market penetration


• Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.

Market development


• New geographical markets• Product variations • New distribution channels • Different pricing to attract different

customers or create new market segments

• Investment – Higher Risk - Bigger Market

Market development


• Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets

• Product to Market Fit!!

Product development


• Research & development and innovation• Detailed insights into customer needs• Being first to market with new product

• Investment – New Competentices – Big Enough Market

Product development


• Diversification is the name given to the growth strategy where a business markets new products in new markets.

• Product to Market Fit!!

Diversification


• Research & development and innovation• Market research and customer acquisition • Team execution • Skill upgrading

• Bigger Investment – Time - Highest Risk – Biggest Rewards

Diversification


1. Money• To fund cash flow, product, materials and resources

2. Information • Market and product research, market trends, market

size, customer profiling, customer acquisition

3. People • The team needed to facilitate the growth plan, to

execute the plan, to manage the costs

All Plans need Resources


Growth-Share Matrix


The Planning Process

Thinking DoneKnow Why

Business MissionBusiness Strategy


• 5 Step Planning Process• Imagine – what products or services• Dissect – data and customer feedback• Expand – market research and tasks• Analyse – results, information, investment • Sell – customer acquisition, marketing, sales

IDEAS


• Develop a "strategic hypothesis" and test it out making very small bets. Try to sell the idea to a customer before it’s built, look for a supplier, ask a mentor or advisor who has some expertise in the new area.

Test the Plan


• Strengths to Leverage: Three to five key strengths you will need to use to achieve the plan.

• Strengths to Develop: Three to five strengths you will need to develop to achieve the plan.

Strategy Planning Tactics


• Business Priorities: List out the priorities you will focus on to ThriveThrive

• Tactical Priorities: Three to five monthly priorities that support the business priorities.

• SMART Objectives: Projects and/or tasks that are required to accomplish the monthly priorities.

Strategy Planning Tactics


Life is a series of investments…this is about you deciding where to spend your time, money and energy.

Schedule a steady rhythm of productive meetings— quarterly, monthly, weekly and daily. Evaluate the plan, what’s working and what needs to be adjusted.

Establish A Rhythm for Success


• Grounded in your Business Purpose, Mission and Core Values, a solid business strategy will help you develop a plan of action and maximise your likelihood of success in achieving your vision.

• Best Wishes to you in 2015 and beyond.

People don’t plan to fail, they just fail to plan
