Sustaining any business is crucial for growth; it is bread-and-butter for the next budget growth strategy. If we able to do this, than any additional/new business would be adding cream to bottom line. But how are we planning our sustainability strategy; is it sustainable enough to keep our focus on new business or are you focusing energy and manpower on changing the strategy every year?
Phase One: What do You Need to Make a Sustainable Strategy?
Before preparing a sustainable strategy, we need to know what we want to achieve in the sustaining of the business. When setting up a sustainable strategy, you need to focus on three things:
- A strategic customer we would want to keep
- Keeping the competitive edge in market
- Sustained or improved bottom-line (EBIT).
What makes a business sustainable, usually, is money – which is coming from existing customers, but does the focus on A help to achieve B and C? We end up sustaining the business, in theory, by focusing on A but we didn’t achieve the B and C. Why not? You will have B in the beginning but without C, it leaves a diminishing effect on service and you end up with reduced service level. The worse that could happen is that you have businesses which are only with you because you have lower rates than your competitors.
If you think your business is sustainable due to low cost, this isn’t really a sustainable strategy. Price can be competitive edge for a certain time but it is NOT a Sustainable Strategy.
Phase Two: How to Prepare a Sustainable Strategy?
To begin phase two, you need to consider the following things:
- Value Addition
- Exceed Service Expectation
- Differentiate from competitor
If you are creative, innovative, and a risk taker, these will be no issue for you. Once all these are put in place, you will have a sustainable strategy which is not only focused on keeping the business afloat but on improving the bottom-line.
A customer always understands his needs better than you but he can’t understand how your product/service can fulfill his needs and also give him something extra. Customers are always looking for value addition. Get creative people on your team and start creating value for your customers!
Exceed Service Expectation
Your existing customers always expect a certain level of service from you. To exceed customer expectations, you need an innovative team working around the clock to give customers more than what they are bargaining for by innovating in services. Once again you bring cost-saving to them and increase profit margins for you.
Differentiate from Competitor
We live in an age when most of the consumer markets have already been established. A concept can be adopted from within the existing market, but to make it successful it has to be differentiable from other similar products/services. Make it different, better and more sustainable. To be able to do this, you need risk takers in your team.
Once you have gone through these two stages, you have a sustainable strategy that will help not only help your business grow but also increase brand loyalty amongst the customers. What more does any business want?