Tuesday, 24 March 2020

Garth Naar - How to Develop Your Business Strategy


Business strategy is focus

At the real-world level (my favorite), strategy is like driving and sex: we all think we’re pretty good at it. But simplifying, doing today what will seem obvious tomorrow, is genius.
Garth Naar say the best strategies seem obvious as soon as you understand them. Furthermore, it seems to me that if they don’t seem obvious after the fact, they didn’t work.

Strategy has to be easy to define. I like the simple Live Plan method, which I explain here. But aside from that one, I’ve also worked in depth, during my consulting years, with several competing strategy frameworks, and every one of them works well if it’s applied correctly and executed. And furthermore, I say you can also define strategy with a simple summary, story, or a small collection of stories, which I’ll also explain here.



1. The Live Plan simple strategy method

Think of it as the heart of the business, like the heart of the artichoke. It’s a group of core concepts that can’t be separated: problem, solution, market, and identity. Don’t pull them apart. It’s the interrelationship between them that drives your business. Each affects the other three.
Consider a bicycle retail store. Maybe it solves the simple problem of where to buy children’s and family bicycles, service, and accessories, which is one problem. But maybe it solves the problems of the mountain bikers and racers who want a lot of expertise, specialized bicycles, equipment, and know-how, which is a different problem.
You also need to understand what business you’re in. The bicycle store might be helping families with kids bicycles as they grow, or it might be offering real expertise to the serious bikers. Those are different businesses. 

2. The solution: Your product or service

Your solution to that problem is your product or service. Focus on the true desired end result for your customers—the holes too, not just the drill.
Take the bicycle store for example. One solution is a bike store catering to families with children and casual bikers. GarthNaar says Another very different solution is a bike store catering to bicycle enthusiasts, such as serious mountain bikers and racers. It’s not just a bike shop; it’s a general bike shop, or one for families and hobbyists, or one that caters to serious cyclists.

3 The market: Who buys your solution

Your identity influences your choice of target market.
The bike racing shop focuses on attracting enthusiasts, offering expensive high-end bicycles and equipment. The family-focused shop focuses on attracting parents with kids, concentrating on medium-level bikes, trailers, and family-friendly accessories.
Keep your business focused on specific target markets. That bike racer shop owner has to know his products are too expensive for the families, and the families bother the high-end enthusiasts in the shop. Likewise, the family bike shop shouldn’t scare away its target market with very expensive racing bikes.



4. Your business identity (why us)

Every business has its core identity. How are you different from others? What are your strengths and weaknesses? What is your core competence?  What are your goals? What makes you different?
We have the examples above of the varieties of problems, solutions, and markets related to a bicycle store. To understand identity as a part of strategy, think about the difference between a bicycle retail store owned and operated by a former professional bike racer, and another one owned and operated by a couple with children who like cycling as a family activity.
The first one will gravitate toward stocking and selling expensive, sophisticated bicycles for the racing enthusiast and extreme long-distance or mountain biking hobbyist. The second will probably emphasize bicycles for children, bike trailers, carriers, and accessories for families.

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