So...what exactly is strategy? How crucial is it to start ups?
Well. It is a pity that I had to learn this the hard way. I also wonder why I did not learn or understand this at LBS. Maybe they taught it but because I was inexperienced then, I could not relate to and hence, not retain it.
Strategy is like the ring on your finger. It needs to be a perfect fit. You need to be clear about what finger you would wear it on. You need to be clearer about what finger it is not for. To be of use, it needs to have a hole!
What defines a ring is the hole. What defines your company's strategy is what you are NOT going to be. First make a list of the most important customer needs you wish to address. Not more than three, I would say. Then, ask yourself - what are the trade offs I would make in order to excel at the things that the customer needs the most. These tradeoffs are what are going to be your USPs. They will guard you against competition. If you are a start-up, never ever do the mistake of assuming that you can do everything equally well.
For instance, if you are about to set up a coffee shop, since there are already tons of them, you might want to choose 'stellar service' over 'price', 'value added services' over 'just food' and 'do what you like ambiance' over 'only the best interiors'. That distinction is important. You got to choose where you will under perform in order to perform well on parameters that really matter. If you do not, Coffee Day or the most celebrated local bakery will surely eat you alive!
This was one mistake that I consistently did at Habits and then at, Ludus. I wanted to provide a great variety and huge choice, at optimal prices and good service. I also wanted to provide stellar ambiance and an option to play into the night. I was keen to attract corporate employees on Thursday and Friday, college students from Mon to Wed, and Families on Sat and Sun.
Too many aspects to concentrate, I would now say. It would not have been wrong if I had deputed a champion and funds to focus on each aspect individually.
Well. It is a pity that I had to learn this the hard way. I also wonder why I did not learn or understand this at LBS. Maybe they taught it but because I was inexperienced then, I could not relate to and hence, not retain it.
Strategy is like the ring on your finger. It needs to be a perfect fit. You need to be clear about what finger you would wear it on. You need to be clearer about what finger it is not for. To be of use, it needs to have a hole!
What defines a ring is the hole. What defines your company's strategy is what you are NOT going to be. First make a list of the most important customer needs you wish to address. Not more than three, I would say. Then, ask yourself - what are the trade offs I would make in order to excel at the things that the customer needs the most. These tradeoffs are what are going to be your USPs. They will guard you against competition. If you are a start-up, never ever do the mistake of assuming that you can do everything equally well.
For instance, if you are about to set up a coffee shop, since there are already tons of them, you might want to choose 'stellar service' over 'price', 'value added services' over 'just food' and 'do what you like ambiance' over 'only the best interiors'. That distinction is important. You got to choose where you will under perform in order to perform well on parameters that really matter. If you do not, Coffee Day or the most celebrated local bakery will surely eat you alive!
This was one mistake that I consistently did at Habits and then at, Ludus. I wanted to provide a great variety and huge choice, at optimal prices and good service. I also wanted to provide stellar ambiance and an option to play into the night. I was keen to attract corporate employees on Thursday and Friday, college students from Mon to Wed, and Families on Sat and Sun.
Too many aspects to concentrate, I would now say. It would not have been wrong if I had deputed a champion and funds to focus on each aspect individually.
I was also too keen to provide everything - food, outdoor activities for youngsters, leisure activities for parents and grand parents and edutainment for children! In food again, without sticking to a bistro kind of menu, we expanded into multi-cuisine!
ReplyDeleteToo wide an array to cater to - without champions and fund allocations for each target segment.