How to Develop Strategy in the Right Way?

Much has been said and written about strategic planning. However, the problem remains the same – there are still many managers and business owners who have the wrong concept of company strategy and strategic planning in general. It often happens that the developed strategy either doesn’t work or it has nothing to do with reality. Sometimes, strategies remain on paper, being favorite toys of top managers. In such a case, however, strategies have nothing to do with what is going on in the company, on lower managerial and production levels. Sure thing, strategic planning is not only about design of strategy maps and making presentations for shareholders and top managers. It is easy to set unrealistic goals and say: “We are going to be the best!”

Recent survey has shown that only 20% of top managers and midlevel managers directly participate in strategic planning. However, very few of them have the right concept of company strategy. If a top manager understands strategy in his own way he will interpret it in the wrong way to lower level managers. Thus, employees are the lowest level will have no idea of what the company’s driving at. It’s an interesting question what is worse: to be ignorant on company strategy or to participate in strategic planning but have the wrong concept of the strategy? Still, there is no definite answer. However, it is possible to say that The Best Option is to get the entire personnel involved in discussion and adoption of a strategy.

How to develop strategy in the right way? Most believe that development of a strategy is only about setting strategic goals. This is not so. Company owners, shareholders and top managers should answer some questions “Where will we be in several years?” “What are our values?” “Who are our customers?” “What do our customers need?” There are even more important questions like “How can we implement strategic goals?”

One of the most common mistakes in developing and implementing strategies is designing of unrealistic strategic goals. Of course, a strategy should be ambitious but at the same time realistic. It is impossible to win a 50% market share in one year is at the moment the company has only 3 or 5 percents. So, it is very important to make you a realistic strategy and goals that can be achieved. The same time top management of a company should always look to the future and set new goals otherwise the company will not develop.

Strategy is also often confused with short-term goals. Some managers want to get immediate profits and instead of developing a comprehensive strategy the design short-term goals to get immediate cash. This is also a very common mistake with regards to strategy development. Most experts recommend using services of external advisors. At the same time, one needs to be cautious because somebody else’s experience is still somebody else’s experience. Something that is perfect for one company can be devastating for another. The best way is to involve top managers, company shareholders, business owners, external advisors and ordinary personnel in discussion and development of a strategy.

What is Business Development Strategy?

Having a business means thinking about how you can further develop it in order to serve your customers well and maintain long-term stability. We all know that business is a world of competition, and without a good business development strategy, you might just find yourself out of the race for survival in the world of economy. A starting venture or even large scale venture must have a very good business development strategy in order to stay on top of the competition. There are a lot of things needed to be learned and done once you are in the business world.

A business man developing a good strategy is like an athlete that makes preparations before the competition, and thinks about what to do during the competition. The athlete makes sure that his or her mind and body are in great shape and in top form before the competition begins. The same should be true for a good business.

A good business development strategy keeps a your company updated with everything. It helps the management think of ways to be financially stable. Of course, most business is all about financial matters. And having financial stability is a must for a business. How can you come up with a new product or strategy if you are not financially stable? There might be some ways wherein you will be able to solve the problem, but chances are, it will take you a lot of time, and, in a competition, every second counts. Being financially secure can assure the business of stability, good performance, and innovations. It is also necessary for making renovations and new product creations or services. This is the reason why business firms look for the best accountant available that would take care of the accounting tasks.

A good business development strategy helps businesses to learn about the latest trend and helps to keep business within the latest trends through constant market research and marketing analysis. It also helps a business rise above the competition. A good business development strategy helps a business come up with important ideas that are needed for business productivity and proper business management. Without a business development strategy, business firms or companies will not be able to find ways in order to survive the competition that they are in, leading to improper business management and.

Trade Finance As A Business Development Strategy

Without trade finance, there wouldn’t be Indian spices, clothes, or jewelry in the United States. Or Apple’s iPhones in China, much less any other international product at any respectable distance from its origin.

In fact, according to Investopedia, the World Trade Organization (WTO) estimates that international world trade has expanded 80%-90% thanks to trade finance.

For this to continue, companies need to include trade finance in their business development strategies.

How do you do that? Learn how you can incorporate trade finance into your business development strategy.

Incorporate Inland Trade Finance in Market Penetration and Market Development

Market penetration and market development are key parts of a business development strategy. Market development involves selling more of your service or product to repeat customers.

While market penetration is about expanding your product or service to other cities and provinces, it can involve inland trade finance. As you may have to renegotiate local and provincial trade deals.

For instance, let’s say you sell jewelry. A business from a neighboring city may purchase your jewelry and sell it to its customers.

You have a long history with this client. And know that your product is selling quickly in your customers’ shop. In which case, you could propose selling the client more jewelry for a bulk price.

After negotiating, the client agrees. However, despite the long, positive history you’ve had with the client, the client may not feel comfortable paying you before you export the jewelry.

This is where a trade financier or banking institution comes in, providing a letter of credit promising that you will export the jewelry upon payment.

Consider the Internet and Brick-and-Mortar Stores

If you’re already selling more of your product or service to clients, perhaps it’s time to branch out to another channel such as the Internet?

If you run a successful e-commerce store, maybe it’s time to start a brick-and-mortar store as well?

That way, your customers have more options where to buy your products.

Especially when it comes to brick-and-mortar stores, trade finance can help you secure new import and export trade deals-especially when there are multiple currencies involved.

Creating a New Product or Service for Repeat and New Customers

With repeat customers, you’re doubling the number of products the repeat client is importing.

And, with new clients, your new product or service will expand your client base. It’s important that you first create new products for your repeat customers before jumping to new customers, as it involves more risk.

Again, trade finance can help cultivate more trust during this period of growth. Since trade financiers or banking institutions can create letters of credit, laying out the terms the importer and exporters must follow.

Final Thoughts About Your Business Development Strategy

Know that growth doesn’t happen in a day; it’s harder for businesses to jump from market penetration to supplying new products to new clients.

This is why we recommend that you approach growth slowly. However, know that trade finance may help increase the number of clients you trade with, no matter where they are.

What’s your take on trade finance? How has it helped your business? Share your thoughts, comments and responses with us.