Crafting a Founder-Led Business Strategy

Over the past 2 weeks we have laid the foundation with vision, mission, purpose, and company values. Now, it's time to discuss strategy.

There is an amazing article by Dave Bailey on the topic, you will see I have pulled out some of the thinking here in my bite sized take on the subject, however Dave has really nailed it so I would advise reading this too.

Strategy: Your Business's GPS

Think of your strategy as your business's GPS. Without it, you're just driving around aimlessly. Your strategy is your road map to success, but with fewer turns, hopefully.

Founder-led business strategy a short guide…

Here's a simplified breakdown:

1. Know your business(SWOT Analysis) and environment (Porter’s 5 Forces)

Start with a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) and a Porters 5 Forces analysis to take a snap shot of where you and your industry are at the time of setting the strategy. This process should be done at least annually.

Case Study: Take Airbnb, for instance. Their "Air Bed and Breakfast" concept was a game-changer. They identified a market gap and filled it creatively.

2. Define Your Target (Customer Segmentation)

Next, identify your ideal customers. Who are they? What do they need? Where do they hang out? Dive deep and understand them better than their therapists do. Go narrow and deep, targeting ‘everyone’ is not a strategy. There are two further questions to consider here:

• Which needs
• Which price point

Example: Apple's focus on user experience and design made them a cult brand. They know their target market – the cool kids with a penchant for sleek gadgets.

3. Set Clear Goals Objectives

You need goals like a GPS needs coordinates. Specific, measurable, achievable, relevant, and time-bound (SMART).

What value are you bringing to the table ?

This process is difficult and it will help to consider the things you are not, so you can understand what value you bring vs your competitors and therefore what enables you to standout.

Better is not a strategy: "If your goal is to 'be the best,' be prepared to join a competition that involves, well, everyone."

4. Pick Your Battlefields (Strategic Priorities)

Choose the battles you want to fight and avoid spreading yourself too thin. What resources and capabilities will you need and how will you sustain your advantage.

Case Study: Starbucks didn't just sell coffee; they created a "third place" between home and work. They knew where they wanted to dominate.

5. Execution and Flexibility (Adaptability)

Don’t be predictable. Markets change, so be ready to adjust course when necessary.

Example: Blockbuster stuck to its old-school strategy, while Netflix adapted and transformed the entertainment landscape.

Strategy vs. Planning

Planning involves taking a set of choices and mapping them into action. On the whole, planning tends to reduce anxiety. That’s why writing out a to-do list helps when you’re anxious.

Strategy, on the other hand, may increase your anxiety. It’s about making hard choices. It requires you to be different, to clarify what you won’t do, and to make some potential customers hate you. It’s long-term, risky, and uncertain.

Strategy is hard work . . . but if you don’t have a strategy, how do you expect to win?