Many small businesses believe strategy is something only large corporations need. This belief is what keeps many businesses stuck. We all know businesses that have looked exactly the same for years. They work hard, they serve customers every day, yet they never truly grow.
Growth doesn’t just happen, it requires planning and action.
So, What is strategy? In the book ‘Playing to Win’, strategy is described very simply: Strategy is choice.
It is the answer to five interrelated questions that guide how a business grows and competes.
- What is your winning aspiration?
- Where will you play?
- How will you win?
- What capabilities must you be good at?
- What management systems must support this?
These questions move a business from vague ideas to create an actionable and sustainable strategy.
Answering the 5 strategic questions – A simple example
Consider a neighbourhood tuckshop. Without a strategy, it tries to serve everyone and sells everything.
With a clear strategy, it begins by defining the winning aspiration, what winning looks like for the tuckshop. For example, it could aim to become the go-to neighbourhood spot for fresh, affordable meals. This vision sets the direction for all the strategic decisions that follow.
It then chooses where to play. This involves making clear choices about which customer needs to serve, which groups to target and what products or services to offer. For example, the tuckshop might focus on workers, learners and commuters who need quick, reliable food.
Once the playing field is clear, the next step is to determine how to win. This means defining a strong value proposition, such as offering fresh meals, fast service and great value. To deliver on this promise, the tuckshop must build the right capabilities in food quality, customer service and speed.
Finally, the tuckshop needs management systems to support this strategy. This means measuring what matters, e.g. daily sales, cash flow, inventory and turnaround time to ensure the business stays on course and improves over time.
From intention to action
By working through these five questions, the result is a clear strategic direction: Well-defined objectives, focused goals, a practical strategy (where to play and how to win) and measurable performance indicators.
When a business has direction, growth becomes intentional rather than accidental.
Every business, no matter its size, needs a strategy.
By following this simple process, you can begin building one for your own business today.
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