Here, the journey really is the destination: find your strategy!
Now, we're talking business: In this section of your business plan, you show how you want to achieve your goals. One of these 3 corporate strategies could be yours: cost leadership, differentiation or niche strategy.
The starting point is the customer benefit of your offer and the positioning of your company in the market. For this, you have to provide the answers and point out the way (corporate strategy), which should ultimately lead to the achievement of your goals.
Do you know the market and possible competitors?
First, you should have a look around: The starting point of any successful corporate strategy is a profound market analysis. To represent the market, tackle the question of the desired customers and give an analysis of the competition and the biggest competitor. Determining market growth and market potential is just as important as a comprehensive competitor analysis. There are sooooo many different instruments for this. In any case, start this part of the business plan with a brief description of the market. This especially helps the reader to quickly get an idea of the environment, market and competition of your business idea. After explaining which market is relevant to your business, you really should give a market analysis. Unfortunately, one of the most common reasons for business start-ups to fail is if the market overview is insufficient. So, it's even more important that you can spark people with a full analysis here – investors really value a sound one. It's based on the determination of the current market size. Step by step, you can work through the other chapters of market dynamics and market potential, when creating your analysis:
1. Market size - how big is the market today?
The starting point of the market analysis is the market size. Here, the question of sales and possibly sold units per year is pivotal. The market size data should ideally be from the last quarter or last year. With a current market size, you also know how to easily determine the next relevant point on the subject of market analysis: market growth.
2. Market growth and market dynamics - what is the trend?
A complete market analysis not only includes the current status quo, but also shows the growth rates of the last 3-5 years. Forecasting market dynamics for the next 3-5 years is important for your sales planning and for potential investors. For a complete market analysis, you also need to include market dynamics.
3. Market potential - what is the maximum size of the market?
Yeah, do it: It is definitely advisable to integrate the market potential into the market analysis. When it comes to market potential, you answer the question of when a market is completely saturated - so it's about the long-term growth potential in your target market. This part of the market analysis is especially relevant for strategic planning.
Once you have mastered the three main points of the quantitative market analysis, you should look at other important factors for the market and competition section.
You do this with the help of the competition analysis, which corresponds to the qualitative element of the market analysis. You look at the individual factors that are relevant for a market. This part of the market analysis is not primarily about finding numbers on the market size or calculating the potential, but rather about analyzing and describing the most important characteristics of the market.
If you want to create a sound market analysis and competitive analysis, you will only succeed if you have enough information about your target market. Where and how to find numbers, data and facts for your market analysis and competitive analysis, you'll also find out in my chat.
It's best to ask one of my experts, who can help you with the market and competition analysis. A great way not to lose your mind, believe me! ;-)
💡Get the answers directly from my experts!
With the findings from the expert chat you can determine the competitive advantage and then the positioning. Based on the latter, it is relatively easy to find the appropriate corporate strategy. Here are the 3 most important steps:
a. Basis of the corporate strategy: the customer benefit.
If you do not provide any particular customer value (competitive advantage), it will be very difficult to stay successful in the long term. This benefit can come in a variety of forms (price, quality, service, etc.).
The special customer benefit - also known as USP (Unique Selling Proposition) or Unique Feature - is an integral part of any business strategy and must address critical issues. Here, too, HelloNina Experts can help!
b. Basis of the corporate strategy: the positioning.
Strike a pose like a pro: A clear positioning is essential for a successful start-up. With it, you determine where you want to stand in the price-performance ratio, compared to the competition. The positioning not only helps with the appropriate corporate strategy, but also clearly signals to the customer in which segment he can place your offer. The positioning depends strongly on the particular customer benefit and follows it accordingly in the business plan. Here, too, competent support certainly can not hurt...
c. The <3 of all: the right corporate strategy.
Having worked out the two chapters "customer benefit" and "positioning" in the business plan, it should be quite easy to find the right corporate strategy for your business.
Your business should be fetching - and able to model really well...
Which company strategy you ultimately choose depends, among other things, on your business model.
It is particularly important that you take into account a defined corporate strategy in the other areas of the business plan (in particular "marketing and resources") and then implement them consistently.
The goal is to make it clear in your business plan why you chose your specific strategy. The customer benefit, the special competitive advantage as well as the positioning are important influencing factors for the determination.
Business strategy is the foundation of many parts of your model in the business plan (for example, cost leadership is usually only possible with a lean, efficient organization). It is all the more important that you take care in determining the business strategy, as it means a lot for success or failure.
🔎 Finding the right corporate strategy
In addition to the business strategy "niche" (clearly limited, specialized and usually small market), you can either establish yourself as a "cost leader" or separate yourself clearly from your competitors with the "differentiation strategy".
🔭 Defining the direction of the corporate strategy
Who you target with your corporate strategy largely depends on the marketing strategy - at least, many believe that. However, we are more of the opinion that, conversely, the marketing strategy follows the corporate strategy. You have a product, a price and a target audience, and the marketing strategy is aligned accordingly. Probably all a question of perspective ... ;-)
In any case, the corporate strategy and its orientation also form the basis for the next chapter in the business plan – marketing. So – let's have a look at that, as well! ;-)
Do you need help with this?
With the preceding executive summary you conclude the business plan. Use the knowledge and experience of my experts - a qualified HelloNina expert checks your business plan and supports you in the founding process!