K♦️ Keep it simple: The key to business strategy 

Business strategy. Something almost all of us business leaders think about. How are we going to be successful as a business going forward? How are we successful, as a business now? What is our strategy? In today's complex business landscape, it's easy to get caught up in trying to do everything at once. The most successful businesses often focus on doing one thing exceptionally well.

Problem or challenge: 

Many startup business leaders are entrepreneurial and opportunistic deal makers that love to take opportunities. It’s often what drives success as a startup.  The challenge comes as the business grows when theystruggle to define a clear and focused strategy. They often  tackle too many initiatives at once, communicating a lack of direction and continually changing resource allocation.

Complexities: 

Developing a simple and effective strategy can be challenging because there may be pressure to diversify or expand into new markets, markets can change and competitive pressures make it difficult to maintain focus whilst some organisations may have a culture of complexity and over-engineering.

Solution: 

A successful business strategy often involves a simple, focused approach. By concentrating on one core product or service for a specific market niche, you increase your chances of success.

Consider Google's early days. They focused solely on providing superior search results, outperforming competitors with a cleaner interface and a dedicated focus on their core competency. This simplicity and focus allowed them to rapidly gain market share and become a dominant force in the industry.

While Google has since expanded into various areas, many of its business units still maintain a focused approach, emphasising specific tasks like email, spreadsheets, documents, search, or advertising. This simplicity and clarity contribute to their ongoing success.

1. Identify your core competency: Determine what you do best and focus on that.

2. Define your target market: Clearly define the specific group of customers you want to serve.

3. Develop a value proposition: Articulate the unique value you offer to your target market.

4. Prioritise initiatives: Focus on a limited number of key initiatives that align with your strategy.

5. Measure progress: Regularly track and evaluate your progress towards your goals.

Benefits: 

By adopting a simpler, more focused strategy, you can:

• Improve efficiency: Reduce complexity and waste resources.

• Enhance focus: Avoid distractions and stay committed to your goals.

• Increase competitiveness: Gain a competitive advantage by excelling in your chosen area.

• Improve decision-making: Make more informed and aligned decisions.

Why it works: 

A simple and focused strategy is easier to communicate, implement, and measure. It allows you to allocate resources effectively and avoid wasting time and money on non-essential activities.

Measurement: 

To measure the effectiveness of your strategy, track key metrics such as:

• Market share: Your share of your target market.

• Customer satisfaction: Feedback from your customers.

• Financial performance: Revenue, profitability, and return on investment.

• Employee engagement: The morale and productivity of your team.

My story:

For twenty years I ran my own business called MD2MD. A membership organisation for operational business leaders with 20-500 staff. And many many times I was tempted by deals suggesting I could sell those members lots of other things. And also by suggestions I could sell to a much wider audience. I resisted both.

As a result I succeeded in growing the business without investment. By staying focused and special. Something I’ve had reinforced since I sold the majority of the business and moved on. I’ve had members explain to me they valued me not wasting their time trying to cross sell anything and everything to them. And they valued being part of a tightly defined audience and feeling special as a result.

By simplifying your business strategy and focusing on doing one thing exceptionally well, you can improve your chances of long-term success. Start by evaluating your current strategy and identifying areas where you can simplify and focus.