How to have a business strategy in 2023?

The current market in Australia, with rising inflation and interest rates is a tough market to navigate for any business. Creating a business strategy and keeping to one can be tough. Not having a business strategy in place can be worse though. Not taking the time to build a strategy for your business can lead to a short-term focus in your business operations, where picking quick wins in order to generate financial returns becomes common place. Sometimes though, this short-term focus can undermine long term strategies, value and financial returns.

Here at MB Accounting and Business Services, we provide expert advice to our clients, like a virtual CFO service, to help create a strategy that our clients can stick to – even in a volatile market. We’ve highlighted our key tips for creating a business strategy below.

Know the position of your business

Undergo an analysis of your business in order to form a strategy that works. A business health check is an analytical review of the current state of your business. It looks at your business operations, seeking to provide a broad view of operating performance. In doing so, a business health check identifies any potential issues. Understanding the position that your business is in will reveal any risks and opportunities/capacity for development.

Know what you are looking for

After undergoing a business health check you will know the position that your business is currently in. After this you need to establish the measures that will give you the best insight into your business’s performance. In a volatile market like we are currently experiencing in Australia, this data will give you the information that you need to make informed decisions at any point in time – be it long term strategy or short-term reactions to market changes.

Can your business make quick decisions?

Is your business adaptable? By now you know the position of your business and the data that you need to make informed decisions, but can you make decisions quickly? Having the data that you need and knowing where your business sits allows you to identify opportunities and mitigate risk. Businesses that can take advantage of opportunities can thrive in market instability, innovating to find solutions to unforeseen difficulties.

Don’t rely on one opportunity

Markets, circumstances and technology are constantly changing. Businesses need to be able to adapt and change to suit current circumstances. One opportunity might make all the difference, but lack of diversification/overreliance on one service, product or delivery methodology exposes a business to unnecessary risk.

What does your business want long term?

It is important for all businesses to understand their end game. What is your business aiming for? Fast growth to sell? Building a family empire? Sustainable growth and sale for retirement? Going public? Your long-term business goals drive your business strategy, structure, decision making and focus. Knowing where you want to be can help your progress towards your end game.

Document your strategy

Knowing what your strategy is in your head is not enough – it needs to be documented. Writing down what you are aiming for and breaking this down into measurable objectives that lead to measurable outcomes and timeframes helps your business to stay on track and on strategy. Writing it down also mitigates key man risk and makes strategy a lot more meaningful.

Using these tips – have a go at putting together your business strategy. If you’d like a little help or need general business advice, get in touch with us.