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 ‘must dos’:
Know what your position is.
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.
Know what to look for.
Once you know your position, the next question is, what measures will give you the best insight into business performance? In a volatile market, this information will provide you with what you need to make informed decisions at any point.
Be prepared to make quick decisions.
If you know your position and have the needed data, be prepared to make quick decisions and take the first mover advantage. If you have the two elements above, you have your radar for identifying opportunities and mitigating risk. Most businesses are simply a replication of what they see. While the pandemic and market instability is complex, we have also seen a wave of innovation as people adapt to find solutions.
Don’t bank on a single opportunity.
If COVID has taught us anything, things change, and we must adapt and change with the circumstances. While one opportunity might make all the difference, an overreliance on one product, service, or methodology of delivering those products and services exposes you to risk.
Understand your end game.
What are you aiming for? Family empire? Fast growth and sales? 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 progress towards that end game impact your structure, focus, and decision-making.
Document your strategy.
Document your strategy – knowing it in your head is not enough. This does not have to be an arduous War & Peace approach. It understands what you are aiming for and breaks that down into measurable objectives, outcomes, and timeframes (preferably actionable against rolling 90-day plans). This approach also makes management meetings a lot more meaningful.
Find out how EPOCH can help with your 2023 business strategy: contact us or make an appointment today.