How proper Business Strategy Analysis can you give you more money and more free time

By: Shane Blazer, Founder: Mentrabi

Are you a go getter and like ticking as many things off your list as you can?

Do you enjoy working in quiet on projects?

Do you enjoy creating things?

Do you enjoy working with numbers?

Is it joyful for you to train others?

In this article we’ll focus on how to find time to work on your business and still maintain a free lifestyle and work in the areas of your business that you enjoy.

When I’m trying to figure out what I can give to the world I learned a few things about myself:

  • To this point I’ve lived a selfish life
  • To this point I’ve mastered tactics and ignored strategy
  • To this point I’ve mastered work and ignored leadership
  • To this point I’ve found comfort on solitude and anxiety in performing for / with people
  • I’ve learned that I’m an introvert, I’m innovative in problem solving, I expect nothing but the best, prestige, and I’m a planner and visionary thinker.
  • I’m specific; I expect details not empty jargon

Not exactly a compelling story to tell my grand kids:

“Grandpa, what’d you accomplish in life?” said the innocent child

“Well I was a selfish prick. “ I snorted back

It’s time to use the tools I was given and help other people. That help is going to come via business strategy analysis.

Before you leave or allow your eyes to glaze over, let me explain for a moment. Business strategy analysis isn’t required in business but it’s sure helpful for getting you further than you’ve ever thought.

It helps first to be able to define what type of person you are.

All of the questions asked at the beginning of the article are essential functions in any business; key phrase “in any business.”

When you’re running a business, you better not be working in your business.

“But I like doing what I do for my business”

Yeah and I suppose you also enjoy running a mediocre business. OK before you go up in arms and really leave this time, let me keep going, trust me on this.

There are three main big picture functions in a business: Marketing, Product, and Management

Each function needs people and systems to execute the various tasks within each to solve problems for the customer.

You’re job as the leader and / or owner of the business is to stay out of their way and do the following:

  • To oversee all of the functions to make sure they work in harmony.
  • To drive the ship towards prosperity and not beach it on shore.

 

Doing any beaching with your ship, (business, stay with me here) results in immediate mediocrity and certain death (of the business).

Therefore it is essential that if you want to run your business

  • You must act as a leader and the owner
  • Steer the ship while systems and processes function without hitch in the 3 main areas of your business
  • Execute the resolution of problems for the world.

You are providing a solution to a problem for the world right? RIGHT? We’ll touch on this later.

What’s great about the world we live in today is that any one of us has the ability to quickly create a set of systems and processes that together can add up to a solution for people. The problem is that most of us would rather execute on the tactics we’re good at and not drive the ship.

Driving the ship and keeping the system safe is a ton of responsibility and for most people it takes away from the fun part of whatever tactic it is you like to work through.

How can you steer your ship and still find time to enjoy what you do and have a life?

Enter: Business Strategy Analysis

I’m going to break it all down for you quickly and simply. There are 3 main components of any business strategy:

  1. Economic Factors
  2. External Factors
  3. Internal Factors

Within each of these components you’ll set up 3 key blocks of data:

  1. State of the “thing”
  2. SWOT of the “thing”
  3. The direction you’ll take

So far, here’s what our business strategy analysis looks like:

  1. Economic Factors
    1. State of the Economy
    2. SWOT of the Economy
    3. Where we fit in the Economy
  2. External Factors
    1. State of our Competitors / Industry
    2. SWOT of our Competitors / Industry
    3. Where we fit within the Competitors / Industry
  3. Internal Factors
    1. State of our Management / Product / Marketing
    2. SWOT of our Management / Product / Marketing
    3. The medicine our systems and processes need

Let me make it clear that all of this can easily be done through some research and phone calls and emails. It’s far more than you have time or patience to do, so hopefully you have the systems in place to take on the task to build out this information.

I also want to be sure that if you’re looking to start a new business; whether or not you do the Business Strategy Analysis is dependent on what business you’re trying to start.

  • If you’re inventing a brand new product, the above matters less, focus more on validating your product
  • If you’re entering an already existing market, the above is ESSENTIAL to complete

I’m sure you have a lot of grandiose potential and ideas around starting your own business within a market place, but you need to know first and foremost where you can fit in within your industry of choice so you don’t follow the rest of the fish and become just another business doing X.

Forget entrepreneurship for a second, what if you’re in charge of someone else’s business?

Maybe you’re a manager or leader executing for another owner?

Oh my gosh you’ve got a golden egg here because if the above is something you don’t have in place, get it in place and impress the crap out of your owners!

What should you expect to get out of the long boring exercise?

You’re going to get a clear map to use when steering your ship. Having a map in place reduces the stress caused from uncertainty and allows you to focus on the execution of your systems and processes while you keep your clients happy.

One area we’re always looking for when we put the Business Strategy Analysis together is where are firms competing and where are they not? The whole idea is to create a competitive advantage for our clients so they don’t have to worry about competing, because they have an advantage!

Competitive Advantage, what a novel idea, right?

If you’re competing, you’re doing it wrong.

You should be winning and focused on winning. Winning comes through your clients being happy and having no problems, you and your team being happy and spending more time on the boat, and winning comes from wallets full of cash (or growing balance sheets).

Winning doesn’t come from competing with others, you should position your company so that others are competing with you.

Conducting a thorough business strategy analysis will allow you to find those opportunities in your industry so you can position your business appropriately and then and only then will you be able to enjoy what you do and hopefully some more stress free relaxation.