Evaluating strategy choices
Small business owners are constantly evaluating strategy options. The first 3 years of a small business are in what I call a “constant evaluation process.” It is a time to discover such things as:
- What is the best way to reach your target market?
- What CRM tool is the most efficient for my purposes?
- Is my internal operational system adequate?
- Should I hire staff or outsource?
These are but a few of the important decisions that have to be made as the company strives to stabilize from a start-up to a more mature business.
In the early years of a new business, strategy choices are made in a hurry, mostly to fill a short term critical need. I believe that the strategy evaluation process should be given its “due time” regardless of the age of the business.
By using the following three-prong approach, it is possible to have a gauge as to the validity of the considered strategy.
- Financial: To fully implement a strategy, the financial considerations form the foundation for a go or no go decision. What are the costs involved: labor, marketing, material and time? What will the return on the investment be?
- Markets: How will the new strategy affect the current market? Will it open the door to additional markets?
- Competitive Advantage: What competitive advantages will be gained by the implementation of the new strategy? Who are the competitors occupying this same space?
There may be more details that need to be examined within these three prongs; but by examining these three issues, you will have a better understanding as to the overall value of the strategy being considered.
Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
Comments are closed