Strategy development is all about developing an accurate picture of the context in which your business operates, and determining the most efficient, effective and profitable way forward. The best business decision you can make for your small business is an informed decision. Let’s take a look at how you prepare to do this.

‘Informed decisions’ implies a decision based on relevant, timely and accurate information. So your first task in the development of your business strategy involves collecting and collating all the information you need to undertake the business assessment and analysis, on which your strategy rests.

The information you need to collect

1. Current and Forecast Global Economic Data

For any business that imports or exports, it is important to understand the global environment in which you operate and to assess the implications for your business. Even if your small business is not involved in export or import, you need an appreciations for the economic context in which your business operates and is likely to be operating in the near future.

2. Current and Forecast National Economic Data

You need to understand the national economic environment, including business and consumer confidence indicators, is and what the experts are forecasting.

3. Current and Forecast State/Regional Economic Data

National economic indicators are the helicopter view of the economy, while the state and regional economic reports pinpoint the local economic conditions. For local businesses, this information is vital. Regional reports detail issues confronting local business and industry. This could include information about regional business closures or planned openings, staffing and transport issues.

4. Current and Forecast Socio-Demographic Data

It is import to keep track of the changing social and demographic fabric of society. Any population growth or decrease both nationally and regionally could have an impact on your business. So too, could the changing life-stages of various generational groups. For example, the Baby Boomer generation is due to start retiring in the next few years. You should be asking yourself, are there any impacts or opportunities arising from these changes.

5. Current and Forecast Social Trends

The mores of society are constantly changing and are continually being re-shaped. You need to take time out, to step back and view these social changes in light of your current business operations and product offerings. For example, the uptake of social networking sites, has a possible impact on almost every small business. It opens up opportunities, and some challenges, for small business marketing.

6. Industry & Market Reports

Industry and market reports are fantastic for finding in-depth information about the industry your business is in. Unlike the above information, which is usually available for free on government websites, or by request at their offices, market reports are usually only available to industry association members or by purchasing them from professional market research organisations, such as IBISWorld.

These reports tend to be on the expensive side, but in my experience, well worth the investment.

7. Competitor Intelligence

Industry and Market Research papers are always a good place to start collating intelligence about your larger competitors and are often a valuable source of benchmarking information, so you can compare your performance to the industry average. But it pays to undertake primary research into your competitors.

This includes examining your competitors in regards to their strategy, customer profiles, product offerings, suppliers, etc. By looking at your competitors, you can gain some insight about how to compete effectively against them.

8. Business Intelligence

Business intelligence is the insight you gather about your own business. This in includes performance in relation to key performance indicators, your strategy, your customer profiles, product offerings, efficiency and effectiveness, capabilities and capacities. It should also include a SWOT assessment addressing your strengths, weaknesses, opportunities and threats.

9. Customer Intelligence

In my experience, businesses who respond and adapt to changing customer mores and demands and continually strive to satisfy their clients with value-rich product propositions, are usually more successful than those who don’t.

Make sure your business has the customer at the core of your small business strategy, by undertaking primary (direct) research with your clients. Knowing exactly what your customers are demanding, and identifying what they wish for, and getting their assessment about how you are performing in relation to their wishes and demands, will provide a solid basis for a sound strategy.

10. Supplier Intelligence and Market Reports

It always pays to investigate the market of your key suppliers. This helps to look at some of the issues facing your suppliers, which may eventually have an impact on your small business.

Take the time out to fully prepare for your strategy session to collect and collate the information you need to make informed choices about where you should be taking your small business, and the path you should be taking to get there.

By: Karen L. Paiyo

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