A 2024 Queensland Small Business Commissioner report found that most businesses focus on day-to-day tasks rather than revisiting their business models. This gap exists because many owners give “strategy” a formal meaning, picturing themselves sitting inside their cabins to create formulas and spending time on spreadsheets and marketing reports that they don’t have.
One of the more interesting stats about business strategies for small businesses is that businesses that do implement strategy grow 30% faster than those without one, and 70% of companies that survive past five years attribute their longevity to having a comprehensive business strategy.
So what is strategy about? Is it about building large reports and creating a technical foundation for the business owner and their team to follow through? No. In reality, strategy is about making small, clear decisions that compound over time to provide the best results. That’s the essence of a business strategy for small business.
What Business Strategy for Small Businesses Actually Looks Like
A marketing strategy for a small business consists of three main parts:
Knowing who you’re for
Understanding the audience is key to making marketing successful. But a business strategy does not focus simply on a demographic list. It may get too complicated. What it focuses on is getting a clear picture of what the customer looks like. It ensures that every decision the small business makes, whether it is pricing or a marketing message, is understandable by those customers.
Knowing what you’re saying no to
Business strategy is as much about choosing what tasks you need to do as it is about what not to focus on. Small businesses in particular have to be selective about what decisions to pursue, as these choices determine whether the enterprise has longevity or could fall into obscurity after a few months.
Having a rhythm to revisit it
A business strategy is a flexible element, changing according to the whims of the market and the business goals of the owner. So it has to be revisited quarterly for adjustments to new goals or new market conditions.
Why Small Businesses Without a Strategy Stall
Reactive decision making is the main reason why small businesses fail.
Businesses without a strategy are reactive. They must always act in survival mode, often bruteforcing their way to maintain their place in the space when the market conditions aren’t conducive. But that “whatever comes” strategy does not always pan out. At best, it can help the business survive, and at worst, it can make the business obsolete. But that approach does not provide any room for growth.
With a business strategy, however, a business can stand strong. It can apply tried-and-trusted decisions to continue to thrive, and could maintain its standing, or even grow when market conditions become contentious.
And if the word “strategy” makes you tense, don’t be. It is not about the paperwork, but about the small decisions that you can make over the next 12 months to make running the business smoother.
A business consultant for small business can give you an unbiased perspective to make such a strategy for you. Giving you a list of understandable moves to make running the business easier.
