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There’s an unwritten rule out there that says that every new, established company requires a well-developed business strategy. A business strategy will help you e.g. define and achieve your desired goals and explain how you should deal with your competitors, but also ultimately help you get a clear picture of how your business is doing, what your weaknesses are, and what to do to remove them. Naturally, developing a strategy that works isn’t easy and not all businesses will get it right on the first try—and that’s completely okay. We’ve put together a couple of frameworks and marketing tools that you should include in your business strategy, if you’re planning to develop one any time soon.
A business plan is basically a document in which you’ll write what you want to do and how you want to do it (concerning your business)—jot down everything from dates and resources, to abilities. A business plan usually includes an executive summary (at the beginning of your plan), a description, your market strategies (based on detailed market analysis), competitive analysis (so that you know what your competitors are like), a design and development plan (this is for your investors), a management plan (for organization), and, of course, financial data.
Business Model Canvas
If you’re unfamiliar with the Business Model Canvas, then make sure to become familiar with it as quickly as possible. This is a chart that maps the most important things a business needs to do to be successful and helps you develop new or document your current business models. Over the years, the BMC has become the go-to tool for startups whenever they want to test out a business idea, and it’s important to note that the BMC works together with the Value Proposition Canvas and a number of other management tools and processes.
Value Proposition Canvas
In contrast with the Business Model Canvas, the Value Proposition Canvas is a chart that maps the most important things about your product and why people shop for it. The VPC presents a way for you to understand your customers’ needs, how you work together with them, and how to design products and services that they find interesting and that they want. There is a wide variety of value proposition canvases out there, from proprietary to open-source, so you can pick the one that’s the best for you.
SWOT is short for strengths, weaknesses, opportunities and threats. This is actually a model or a representation of your business that determines the possible results. SWOT decides whether your business is going to be successful or it comes with a risk of failure. In order to implement SWOT you’re going to need to analyze what your business can do and list all of its strengths, weaknesses, opportunities and threats. With SWOT, you will be able to develop your business furthermore.
PEST is an acronym for the political, economic, social, and technological factors which can influence your company’s performance. You can implement PEST either separately or with other tools (SWOT or Porter’s Five Forces)—depends on your project’s requirements. A PEST analysis will determine exactly how the factors mentioned above will affect the performance and activities of your business in the long run. PEST is here to help you understand the macroeconomic business environment.
Porter’s 5 Forces Analysis
If you want to learn about the industry you’ll do business in and evaluate it accordingly, you’re going to need to use a tool that’s called Porter’s 5 Forces model. What it does is identify five forces that have an impact on every company. These forces are: the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitute products, and competitive rivalry. Porter’s 5 Forces is a framework that analyzes the level of competition you’ll encounter in your industry and development of your business strategy.
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