Posted by: broshe on Sep 08, 2011
Strategy is all about sitting above the noise and clutter of the day to day activities of a business. Many business owners particularly those who have a personality included towards control have difficulty with strategy and often find themselves confronted with a business that is failing to profit from the opportunities in the market.
This goes far beyond the simple issue of personality (although personality of the business driver does contribute to both the success and failure of a business). There is a strong tendency for people going into business for the reason to have independence; to create wealth, to have a lifestyle that a job can't give. Often too, there is a belief that because they have a special skill or knowledge that this can be turned into a profitable venture. Some people have very high technical skills and others have accomplished great results in their career. But generally there are qualities beyond the skill set that determine a successful business.
At the early stages of a business the business owner takes on many different activities, some of which are beyond her competence. Few are experienced in strategic planning. More often than not they possess core skills other than strategic thinking.
The inevitable outcome is that technically competent business owners may be self-employed but they are not business owners. Many simple create a job for themselves. But to achieve growth, delegation, systems and a strategic approach to business is required. The self employed will be limited in their capacity to produce a growing and thriving business, replete with employees and disparate locations.
The difference between the self employed skilled technician and the owner lies in strategic thinking and the intention of true business creation rather than self-employment. All the significant long term decisions to do with building a business come from a strategic mindset: will this business be eventually sold? Will this business attract investors who inject capital for growth? Will these investors see a business that can grow beyond the direct ability of the founder owner?
The ultimate goal for most owners is to have a business that can carry on without them. A business with real value. That is the essence of a sustainable and ultimately wealth-creating business. A business that becomes a living organism within the total economy. A business that can be sold or gifted. A business that supports you to live a truly remarkable life.