I’ve had the opportunity to help over 60 Vistage members develop solid business strategies for their companies.
A few years ago, I worked with the leadership team of one member who was exploring ways to grow the business. Most of the sales team believed the company should expand into new regions. This opinion was based on instinct rather than data.
After working with the CFO to build a financial model, we found the company would benefit more by investing in its current markets. The key was to slightly change the offer and the message. In this case, careful planning, market research, and thoughtful strategy won over quick assumptions.
While simple solutions can be tempting, they should not take the place of careful thinking, especially when the future of a business is at risk.
Without proper planning and research, many businesses rush into poor decisions that hurt their value. Quick fixes may seem easy, but they often lead to costly mistakes.
In today’s fast-paced world, many CEOs are overwhelmed and short on time. Some are drawn to ready-made strategy templates that seem easy to use. However, these tools often result in short-term plans that lack depth and direction. The result is more of an operational task list than a real strategy.
Vistage members are putting more focus on execution, and that is important. Making the wrong hires or launching a system based on incorrect information can be expensive.
True strategy and vision take time and serious thought. Often, people believe doing a SWOT analysis in a full-day meeting is enough. They leave with a list of goals like “expand internationally” but lack the research and insight to support those ideas. When these efforts fail, they blame the strategy, not the lack of planning.
What is a business strategy?
A business strategy is a plan that defines your goals and the steps to reach them. It gives your team direction and helps everyone work toward the same goals. This plan should be shared across the company so every department is working in sync.
Developing a business strategy in 10 steps
You don’t have to settle for rushed or incomplete strategies. Here are 10 steps to help you build a clear, strong business strategy and carry it out effectively:
Understanding Business-Level Strategies
To build a strong strategy, it helps to understand business-level strategies. These define how your company competes in the market and meets customer needs. They help guide decisions to beat competitors and reach your goals. Common approaches include:
- Differentiation: Offer something unique that customers find valuable.
- Cost Leadership: Use resources wisely to offer good prices without lowering quality.
- Market Focus: Target a specific group of customers better than the competition.
These strategies form the foundation for long-term success and help keep your business aligned with its overall goals.
1. Develop a clear vision.
A vision describes what your company wants to become in the future. Unlike a mission statement, which explains what you do, a vision outlines your long-term goals in concrete terms—like your ideal customers, markets, or size.
To make your vision useful, you should turn it into SMART goals—Specific, Measurable, Assignable, Realistic, and Time-bound. These give your company direction and help every team understand their role.
For example, instead of just saying, “expand internationally,” a SMART goal would be, “enter two new markets in Q3 and reach $1M in revenue by year-end.” Clear goals like this make it easier to measure success and keep everyone focused.
2. Define your competitive advantage.
Your strategy should highlight how you offer unique value to customers. Many companies look and feel the same in their market. A good strategy shows how you stand out—through your services, pricing, delivery method, or something else that makes you different.
3. Define your target market.
Many strategies fail because they are not clear on who they are targeting. Without specific targets, messaging becomes vague, and sales and marketing fall out of sync. By identifying niches or specialties, you can use your resources more effectively. While some businesses are generalists, knowing your core market allows for more focused and successful sales and marketing plans.
4. Focus on steady growth.
One of our clients said, “A successful company is a growing company.” Growth gives you the means to invest in better tools, talent, and technology. Your strategy should outline where and how much you plan to grow, ensuring your product mix supports a healthy profit margin.
This information will help you plan your budget for things like equipment, salaries, and other costs.
5. Make decisions based on facts.
Strategy only works if it’s based on good information. Business leaders often say they lack data, but in most cases, there is useful information available.
For instance, we worked with a client trying to understand the value of different customer groups. By reviewing local port records, we found data on shipment volumes that helped shape their strategy.
6. Plan for the long term.
Even though things change fast, only focusing on the next quarter is a mistake. Top-performing companies treat strategy as an ongoing process. They review and update their plans every year to stay ahead.
7. Stay flexible.
Good strategies look ahead but also leave room for change. For example, analyzing external forces like industry trends or economic shifts helps you adjust when needed. Companies should meet regularly—every quarter, for example—to review and, if needed, adjust their plans.
8. Include the right people in planning.
Today, businesses are involving more people in strategy discussions, including younger team members. While not every business owner wants to share all financial details, more companies are encouraging open communication.
It’s important to include people who are both trustworthy and capable of thinking strategically.
9. Do your homework before planning.
If you want managers to take strategy seriously, ask them to do research and prepare relevant information before coming to strategy meetings.
10. Track progress and execute well.
Good strategies turn into action. The best companies:
- Have a plan that is reviewed and updated often—usually every month.
- Make sure all departments understand and support the plan.
- Use key performance indicators (KPIs) that are directly tied to the strategy.
- Set clear goals for every department, so employees know how their work supports the company’s goals.
- Plan meetings and reviews that support continuous improvement.
- Repeat this process every year to stay on track.
Key Things to Know About Building Business Strategy
A strong strategy helps you lead your market. Here are a few basic steps to guide you:
How to write a business strategy:
Start by building your plan around these three main areas: your goals, your target audience, and how you manage strategy. Use these six steps:
- Review your company’s mission and vision.
- Identify your core values.
- Complete a SWOT analysis (strengths, weaknesses, opportunities, threats).
- Outline steps to reach your goals.
- Plan how to use your resources to meet your goals.
- Review the results and adjust as needed.
Writing and executing a good strategy takes focus and effort. Senior leaders must lead the way by setting a process that helps everyone stay committed to the company’s big-picture goals.
