Importance of strategic planning
A strategic plan is an essential planning tool. It is a guide showing the path and the steps to follow to achieve the company’s strategic objectives. Strategic planning determines priorities and explains how to achieve short and long term goals.
Small and medium-sized businesses that want to succeed have every interest in taking the time to carry out this exercise.
Many business leaders want to take a new step in growth. The key to sustainable growth is setting clear goals.
To succeed, you have to grow, and to grow you have to plan.
Growth strategies
Market penetration
This strategy is to increase the sales of the products and services that you already offer in the current market. For example, you can take on more of your current customer’s portfolio. This should always be your first strategy. It is important to serve existing customers as well as possible before seeking to recruit new customers. You can achieve this by increasing your marketing efforts, or by adjusting your prices. The objective is to increase your market share by seeking other customers. But, you must make sure to exploit the full potential of your products and services with your existing customers.
Repositioning
This strategy allows you to increase profit margins by repositioning products or improving efficiency. In fact, you have to align your profit margins with your business strategy while analyzing your products and services offered. The goal of this strategy is to focus on your featured products and services. The key in adopting this strategy is to focus on the profitability and effectiveness of your offer. This change will affect the structure and processes of the company.
Development of products and services
Thinking about developing new products or services can be a strategy to adopt if your market shares are mature.
These new products or services allow you to maximize sales to existing customers. Also, you will be able to develop related or complementary products to what you already offer while analyzing the needs of your customers. Moreover, the marketing of your new products and services will obviously be more effective and more profitable to your existing customers.
Diversification
Diversifying your offer is a complex and risky strategy. It consists of developing products and services that are different from your current offer. Indeed, you choose to target other sectors of activity. However, marketing your new products and services is more expensive and above all can harm your positioning and your brand.
Strategic partnerships
One of the most common strategies among SMEs is to seek agreements with other companies established in complementary markets.
The objective is to refer and recommend clients or even pool their resources to carry out projects (joint ventures).
Overcoming Growth Challenges
The majority of business leaders want to grow their business To establish and identify the best growth strategy for your business, managers must take a step back and think about defining a strategic plan.
However, it should be understood that there are several growth challenges and it is important to include these points for your strategy to be effective:
Think about your customers and their needs.
Choose the best resources for a successful team.
Be on strategic watch and innovate.
Writing a business plan with us to accompany you and help you grow your business and establish a winning strategy.
