Successful business strategies are crucial for anyone who wants to make money at what they do. Whether you are a freelance writer, a gardener, or own an ice cream shop, you need to have a well thought out plan that will ensure your success, or a successful business strategy. In business, you are working to optimize two main factors. You want to maximize your revenue while minimizing your expenses. This leads to a higher profit. Where many business owners fail is in their realization of these two parts and how they are interrelated. Many small business owners think expenses are bad. As a result they don’t spend necessary funds on basics like marketing or advertising and simply spreading the word that they exist. You would be surprised at how many business close their doors and don’t know why. They think that the fact that you own a store means you will have customers. Obviously, you have to inform people that you exist and convey to them that you can provide value. As a result those people will be your customers and pay for your products or services resulting in revenue. Again, it sounds simple, but the number of small business owners who overlook this is astounding. This problem known as a unwillingness to spend money should not be confused with the bootstrapping strategy.
Entrepreneurs who bootstrap their companies understand that they must substitute anything that can be bought with their own labour and conserve funds as much as possible; however, they understand that when certain necessary expenses arise they cannot be avoided. Bootstrapping is just one of many successful business strategies that can be highly effective when properly executed. On the other side of the spectrum you have the venture capital financed model. This model usually involves going to market with a great deal of money and many skilled people on your team. This strategy allows the company to go directly for market domination by purchasing large advertising campaigns in print media and online channels. Usually, such firms leverage their financial contacts with venture capitalists to make a big splash. Of course, the number of firms who actually receive venture capital is minuscule and reaching a level that involves venture funding doesn’t usually involve the first time entrepreneur. More often than not, experienced entrepreneurs who have implemented successful business strategies in the past are the ones who end up receiving venture funding. In the end, no matter who you are or what business you are in you need to have a successful business strategy.
Whether you are looking to just own and operate a lifestyle business to support you and your family or if you are aspiring to be a big time tech entrepreneur looking to make it big in silicon valley you need to have a business strategy that you adhere to that has tactics, action items and goals laid out before you go to open your business or seek investors for your venture no matter how big or small.