Strategic Decisions Create Business Growth  

27th February 2007

Decisions that will have a significant impact on the future of your business – both long term and short term – are strategic.  Those decisions which you make on a regular basis quite easily, even though sometimes there is no clear or immediate answer, are operational decisions.

 

Working with many small and medium sized businesses over the years, it appears that many business owners are somewhat on their own when it comes to making the really strategic decisions for your business.

 

What are some typical decisions you may need to make which will have a strategic impact on the business growth strategy of your business?  Decisions around the following are most common:

• Is it the right time to relocate?
• Should we open a branch office?
• Is company x the right partner for us?
• We have a new business opportunity – should we pursue it?
• Should we export our products?
• How do we take a quantum leap in our business growth strategy?

 

What is a more effective and enduring way to be able to make strategic decisions for your business?

 

Know what the purpose of your business is.  Really know. 

Ask yourself what the real purpose is – what is it about having your business that will give you fulfillment and produce something worthwhile?  Knowing the answer to that will help you make strategic decisions.  For example, if you are in recruitment, and the ultimate purpose of your business is to help your clients build more successful teams, then any opportunities for business growth which meet that purpose, will be easier to assess in that light.

 

Have a vision – know what it is that you are creating. 

If you build a house, you have a vision and a picture in mind, and you design the house according to that vision.  Without the vision, the house you get may not be quite what you want.  Successful companies have visions.  By ‘seeing’ it, you will be able to make decisions like ‘rendered or exposed brick?’ very easily.  Apply that back to your business and compare how clearly you see you business, compared with, for example, your house.  The clearer the picture, the more effective you will be in making strategic decisions.

 

Paint a picture for your team

They need to know exactly where the company is headed and what the big picture is.  That way, they can be part of the decision-making process by understanding and running with decisions more effectively than when the direction is not so clear.

 

When you next spend time working on your business, ask yourself what the real purpose of the business is, and what it is you are creating.  Then share it with your team.  That’s your strategic foundation, and that will act as a clear guideline for your strategic decision-making.