What is a Business Strategy?

A business strategy is the “how” behind a company’s success—it is the game plan that explains how the business will win in its market, overcome challenges, and achieve its goals over time. It specifies where the business wants to go and how it plans to get there, focusing on achieving a competitive advantage.

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Definition: A business strategy is a high-level approach to define WHERE you want to take your business, WHY and HOW you are going to get there.

Purpose:     A business strategy is the roadmap to align all efforts in the same direction to achieve the overall vision.

Characteristics:

 
• Visionary and directional
 
• Sets long-term goals
 
• Ties all efforts together
 

Imagine you’re planning a holiday, your strategy is deciding what kind of trip you want: a relaxing beach getaway, an adventurous mountain trek, or a whirlwind city tour. It’s about defining your destination, whether you’ll go by plane, boat or on foot and the type of experience you’re aiming for, not the details of how to get there.

What is a Plan?

If a strategy is the "WHERE”, “WHY” and “HOW”," a plan is the "WHAT", "WHO" and “WHEN”.

Think of a plan as a to-do list with a bit of flair. It’s practical, detailed, and focused on execution.

• Definition:     A plan is a structured series of steps to achieve a specific goal or     objective.
• Purpose:     It’s about actioning the "HOW." How will we get there? What     resources do we need? Who’s responsible for what?
• Characteristics:
   
  • Detailed  and tactical
   
  • Short to Medium term (up to one-year)
   
  • Time-bound
   
  • Concrete and action-oriented

Returning to the holiday analogy, a plan is where you detail the itinerary, book your flights and accommodation, and decide where to eat (while checking the reviews). It might even include daily activities, a check-list to ensure everything runs smoothly and who’s responsible for what.

What They Are Not

• A  plan is not a strategy: A plan doesn’t dictate why you’re doing what you’re doing or what your endgame is. It’s the execution phase of a larger idea.
• A  strategy is not a plan: A strategy doesn’t dive into the nitty-gritty. It’s about setting direction and priorities, not micromanaging every step.

Why You Need Both

Here’s the kicker: it’s a lot harder to succeed with just one. A business strategy without a plan is like having a dream vacation in mind but never booking the tickets. A plan without a strategy? That’s like setting off on a journey with no idea where you’re going. Both are critical for success, but they serve different purposes and work best in tandem.

How to Do it in Practice

1. Start with Strategy:
    
   • Define your vision. What do you want your business to look like in 3 years, 5 years, 10 years?
    
   • Identify your competitive advantage. What makes you stand out?
    
   • Map out how you will grow your business to achieve your vision: will you stay local, expand in other territories, open new branches, use contractors, buy competitors?
    
   • Set up milestones to reach along the way (with KPIs to measure results)
 
2. Move to Planning:
   
    
   • Define your one-year goals (being step one into the overall strategy)
    
   • Break the strategy into actionable steps to achieve your one-year goals
    
   • Assign responsibilities and timelines.
    
   • Monitor progress and adjust as needed. 

If strategy and planning were people, strategy would be the visionary friend who dreams of opening a beach side café. Planning would be the organised mate who reminds them they’ll need permits, a menu, some coffee beans and perhaps a few cocktails.

Final Thoughts

In the business world, plans and strategies are partners, not rivals. Strategy gives you direction; planning gets you there. Together,they’re the dynamic duo your business needs to achieve greatness.

So, the next time someone asks, “What’s the plan?” take a moment to check if they really mean, “What’s the strategy?”. Knowing the difference could be the first step toward your next big success.

If you need help defining your strategy or turning it into a plan to see tangible results, reach out to Strategico, we excel at both!

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