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first, strategic management in 19 words

1. consider the current state of affairs
2. consider alternative responses
3. select convergent responses
4. respond
5. solicit feedback
6. return to step 1

strategic planning

• describe vision and goals (why this is a good idea, why we exist)
• describe short-term and long-term objectives, and their congruence with vision and goals - listing likely outcomes and an explanation of these
• describe individual strategies that will be used to achieve the objectives (what's going to be done, how, where, when, who by, and why)
• describe internal environmental conditions (6P's) (why I can be a success)
• describe external environmental conditions (PESTN, market (customers, suppliers, competitors)) (what's out there to deal with)
• describe consequent synergies, challenges, potential problems and opportunities (matrix SWOT)

sample bootstrap strategy

1. define business model and overall strategy
2. build core team - get some attention
3. define business plan - who are we/why are we here/what do we want
4. define marketing plan - what do we sell/what do customers want/who is our target market/where do we find them - this should include a competitive analysis
5. build the essential parts of the business (see "the practicalities" below)
6. build brand (eg. sell some stuff, acquire first customers, see cashflow)
7. revisit strategy
8. use profits to finance tools with which to make additional products - which?
9. polish product offerings with latest tech - how?
10. blitz brand (eg. advertise, and try and sell lots of stuff)

the practicalities

1. create todo list
2. get essentials: expanding file, computer, mobile phone, phone line, internet access, postal address
3. brainstorm business name and domainname
4. register the company (articles of association, share ownership, AGM, year-end documents, secretary, dividends)
5. open a company bank account
6. register domainname (this should be done ASAP, but it should also be paid from the company bank account, if possible)
7. get webhosting
8. set up an email address and mail software (so that when you reply, it comes from your business address)
9. settle on a colour scheme
10. create logo
11. get business cards
12. create a website
13. create an intranet
14. create transaction spreadsheet/get an accounting system
15. create templates (letterhead, invoice, purchase order)
16. create databases (customer, supplier, competitor)
17. get an accountant, and possibly a lawyer
18. get insurance if needed
19. explore possible market entry opportunities (see the first of section of introduction to entrepreneurship, concerning the Problem and the Solution)
20. solicit feedback - revise strategy

the initial approach

1. select the best market entry opportunity
2. finalise the product/offer (target market, confirm suppliers, conditions of sale, sale pricing)
3. advertise (websites, newpapers, target market)
4. solicit feedback - revise strategy

adapting to the results of the initial approach

1. develop website, intranet
2. develop products
3. develop supplier network
4. develop pricelist
5. develop partnering opportunities
6. refine market positioning
7. solicit feedback - revise strategy

typical startup tasks (1-3 years)

• problem formulation
• strategy and planning (the method of execution of the solution)
• financing (raising money, cashflow management)
• marketing and public relations (forecasting, market research, promotion...)
• shop-front construction (premises, vehicles, website)
• back-office management (banking, telecommunications, IT, equipment, tools, stationery, facilities management)
• managing suppliers (procurement)
• manufacturing and production
• sales (incl. winning the initial set of key customers)
• accounting and debtor management
• customer service
• human resources (incl. building teams, and hiring managers/key staff)
• research and development
• insurance, regulatory compliance and taxation

typical mid-term tasks (4-8 years)

• build out policies, procedures and automation
• build out the product line
• develop internal knowledgebases and skillsets
• develop the teams and staff, and foster the development of an organisational culture
• develop relationships (particularly with key customers and suppliers)
• develop performance measures
• form partnerships with complementary businesses, locate distribution channels etc
• overdue account/bad debt management
• build out templates
• build out the competitive intelligence database (trade journals, websites, customer impersonation, web searches, social media feeds)
• developing and occasionally using anti-scammer, anti-fraud and generally anti-criminal business systems and policies
• market strategically
• benchmarking
• formalise business strategy
• revise pricing strategy

typical long-term tasks (9 years+)

• IT system upgrades - to cope with new products and services the business wishes to provide, plus cope with changes needed to better deliver existing products and services, plus cope with changes requested by customers or management, plus cope with changes in the existing IT landscape (eg. smartphones, security issues), plus cope with any changes in the relevant legal/regulatory framework - PLUS fix any bugs or glitches, either new or existing
• tweaks to the 6Ps (product, place, price, promotion, people, processes)
• tweaks to the financing or structure of the business
• customer pruning - systematically allowing the low-yielding customers to disappear, while simultaneously nurturing relationships with good customers
• customer replacement - key customers may disappear, for any number of reasons
• supplier replacement - key suppliers may disappear, for any number of reasons
• staff replacement - key staff may disappear, for any number of reasons
• relocating premises
• bulk, automated, realtime collection, storage, analysis and reporting of business performance statistics
• possible mergers and acquisitions, vertical/horizontal integrations, spinoffs, divestments etc
• coping with scale - certain aspects of the business may prove to be inefficient or unworkable, once customer numbers increase, or sales increase - these will need to be streamlined or re-engineered if the business is to grow further

seek to constantly..

• reduce costs
• improve communications
• respond to competitive forces
• improve decision-making
• improve customer service
• adapt to change

related articles:  business principles and paradigms  introduction to entrepreneurship  introduction to marketing  introduction to accounting  business structures  the strategic approach in a corporate context  quality and technology in the business environment  the adoption process  approaches to quantification  successful attributes and behaviours  change management  change drivers  a case study in job description  pros and cons of self-employment