BUSINESS STRATEGY

AND WHY ARE THEY IMPORTANT?

A business strategy identifies all of the steps necessary to achieve the larger vision of a business. Knowing how to formulate and execute a business strategy helps business owners to become market leaders in their domain.

In essence, a business strategy serves as the backbone of a business, plotting a course to help founders accomplish their goals.

As business environments become increasingly competitive, business strategies have become more and more important. In a start-up’s initial phases, careful planning is crucial, clarifying goals and identifying the steps necessary to enable the company to reach its vision.

Creating a business strategy helps leaders to identify their business’s strengths and weaknesses, cap- italise on aspects they already know they are good at and improve other, weaker areas. Devising a business strategy ensures that every aspect of a business is planned for, improving efficiency and ensuing that all team members are aware of what they need to do, with capital allocated properly. A business strategy also enables business leaders to exercise control over operational processes, as well as enabling the business to gain a competitive advantage by differentiating itself from its market rivals.