Differentiation and innovation are the key words in Blue Ocean Strategy. In other words, don’t just tweak what already exists, but create a new uncontested market place. (Please read the book to learn the rest of the story)
Blue Ocean Strategy is an awesome book as attested by its millions of readers. There is, however, an internal issue that has to be addressed before this or any other strategy is implemented in a company. I am referring to the company structure and management mindset.
Many small businesses start their rapid growth process, in most cases, after a slow and painful start-up period. Not quite sure what caused this sudden growth spurt, owners may have a tendency to adopt any new idea that is presented. The owner remains the sole decision maker, and the more people that share ideas with him the more new directions the company takes. Efficiency is lost, new staff is hired without an ability and value examination, and most important, there is no cohesive focus.
The business foundation that was created during its initial growth is discarded. As I discussed in previous blogs, all businesses have to go through several growth stages, each with a different set of rules to which the founder must adhere. That requires letting go of some of the management and decision making responsibilities. In most cases this is a new experience for which the business owner is not prepared. If big companies can fail (over 40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010), then chances are good that an unprepared owner will experience the same fate.
My solution to solving growth problems that occur in a business is to step back and take an internal look at your business. It starts off with a review of what got you to this point in time, followed by Building Block Business Plan development (I blogged on this topic several weeks ago). This includes a staff review (possible restructure of an organizational chart) as well as analyses of each of the building blocks that make up a successful business plan.
This will allow the firm to define its current objectives, develop a plan, and then successfully implement and manage the plan.
A hundred advisors with a hundred different suggestions cannot help you find your path to success; it comes only when you can focus on your passion and make plans to achieve it.
Nick J. Petra CFP Business plan development is an ever-evolving process. Let us help bring you up to date in building and maintaining this critical foundation necessary for successful growth.