This week we are talking about business strategy. Businesses everywhere are going through a difficult time right now. People are looking at their business strategies and trying to decide what to do. In this video, I want to give you a different approach to business strategy that you may not have thought about before, but might be exactly what your business needs right now. WATCH NOW
When people typically approach business strategy, they write out a business plan and map out their goals for the organization. Given what is going on in the world today, this typical business planning approach is more difficult than usual. The world right now is in chaos. There are all sorts of market disruptions going on. Prices in financial markets are highly volatile. Realistically, we do not know what is going to happen over the next twelve months. What you would normally do, is look at the environment around, identify the opportunities, and then make your strategy to go after those opportunities. But when you look at your environment today, who knows what is going on? And that makes it very hard to plan.
I can just imagine business leaders everywhere are stressing out right now. It is your job to come up with a strategy and that is stressful. You are supposed to be the person to write this brilliant document to make sure your business is doing the right things during this crazy time. I am going to give you an option that might take some of the stress off. This is a simple idea for an easy business strategy.
You have to remember that business strategy is really about focus. What is your business going to focus on? If we dissect the idea of focus, it is made up of two different parts:
- What are you going to do?
- What are you NOT going to do?
I bring this up, because most business plans focus on the first question, and people do not spend a lot of time thinking about what they are going to say no to.
Instead of your normal strategic planning process, I would suggest to try this: Take a look at your business and identify one area in your business that you can stop doing. Maybe this is a product line that has become obsolete, sales targets that are not profitable, or software that is not working. Any department has legacy procedures that have been around for a long time. I know you have all seen this before. Sometimes people keep doing procedures just because they have always done things that way. And those procedures may no longer be providing value. If you can identify those areas, and cut them out, you can reallocate that money, staff, and time to other parts of your business that are generating value. You are eliminating time wasters, and at the same time ramping up the areas in your business that allow you to make even more money.
From a strategic perspective, this exercise of finding things to say no to, is just as valuable as coming up with a brilliant strategic plan. You are finding ways to focus, your business will be better off, and you will be generating more money for your investors.
I call this strategy “Trim the fat.” How many of you eat steak? If you eat steak, you know that part of the process of preparing a good steak is cutting the fat off the edges. This takes away the unnecessary parts and leaves you with the good meat of the steak. That is what you are doing with your business. You are finding an area that is unnecessary and removing it so you can focus on the more profitable areas of the business.
So if you are writing a strategic planning document, I will write it for you. You just need one piece of paper, and you can write on it “Trim the fat.” Boom. You are done.
The point I am making is that business strategy does not have to be complicated for it to be successful. We happen to be in a very uncertain period, where writing a standard planning document is going to be difficult, and whatever you write you will probably have to throw in the trash in twelve months. So for the next twelve months, why not instead implement something simple that can be just as effective.
You can use this for your personal life as well. People who are successful tend to be really good at being able to say no to things. This is a great skill to develop and do on a regular basis. Take a look at your life and cut out the things that are not helpful so you can focus on areas that are more fulfilling.
Leave a comment down below letting me know what you think!
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Neither Zach De Gregorio or Wolves and Finance shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.