In a volatile market, keeping to a strategy, or let’s face it, creating one, can be tough.
The downside of not taking time out for your strategy is that you tend to keep a short-term focus at an operational level to try and pick quick wins to generate financial returns. Sometimes in the process, this short-term focus undermines longer-term value and returns.
Here are our six ‘must dos’:
- Know what your position is.
- Know what data to look for.
- Be prepared to make quick decisions.
- Don’t bank on a single opportunity.
- Understand your end game.
- Document your strategy.
A business health check is an analysis of the current state of your business. It is an analytical review of its operation to provide a broad overview of operating performance and identify potential issues. Understanding your position will reveal your risks and capacity to develop.
Once you know your position, the next question is;
What measures will give you the best insight into your business performance?
In a volatile market, this information will provide you with what you need to make informed decisions at any one point in time.
If you know your position and have the needed data, be prepared to make quick decisions and take the first mover advantage. You have your radar for identifying opportunities and mitigating risk if you have the two elements above.
Most businesses are simply a replication of what they see. While market instability is challenging, we have also seen a wave of innovation as people adapt to find solutions.
If COVID has taught us anything, it is that things change, and we need to adapt and change with the circumstances. While one single opportunity might make all the difference, an overreliance on one product, service, or methodology of delivering those products and services exposes you to risk.
What are you aiming for? Family empire? Fast growth and sale? Sustainable growth and sale as a retirement plan? Public listing? Even if you plan on simply running and growing your business for decades to come, that is a decision. Your end game and your progress towards that end game impacts your structure, focus, and decision-making.
Document your strategy – knowing it in your head is not enough.
This does not have to be an arduous War & Peace approach. It is understanding what you are aiming for and breaking that down into measurable objectives, then measurable outcomes and timeframes (preferably actionable against rolling 90-day plans). This approach also makes management meetings a lot more meaningful.
We are here to help
Now is the time to bed down your strategy and reveal your risks and capacity to develop. We can help you determine your end game and how to get there.
For all of your business strategy needs, including a business health check, contact us today.