Do You Need A Strategy For Your Home Business?

Strategy is something for the big corporations. Why all this talk about mission, vision, long term goals? Many companies do not have any strategy or they are just in the head of a few people within the company. So if that is the case, does a Home Business owner really need a strategy? To answer this question let¡¯s first define what strategy is.

When thinking about strategy think about terms like long term plans and goals. A strategy guides you to a certain aspiration. These do not need to be defined in monetary values. Actually, the mission of a company is rather a short and inspiring description of what it should aim for. When a company knows in which direction it is headed for, the goals are formulated and the strategy turns long term measurable goals into short term goals.

A strategy has many functions. It is used as a form of communication and it gives the company a direction. Without it decisions are made ad hoc and without any purpose in mind other than short term goals.

Having defined what a strategy is does a one-man Home Business really need a strategy? Definitely it has no real value to have a thick book describing the whole strategy of the company. But parts of it could help the Home Business owner. Decisions are made on a daily bases, so a strategy could help taking the right decisions and see if the dream the owner has comes true. Without a strategy a company operates ad hoc, from day to day, without knowing what it wants to achieve in the long term.

A succinct strategy would include at least the following:

1) What should your company be in 5 years ¨C give a short description.

2) Translate the description in a few measurable long term goals.

3) Break down those long term goals into a few steps ¨C these short term goals should also be measurable.

4) Decide a time table what to do and when to reach what goal.

Now that you have a summarized version of a strategy you have a good guideline. But always revisit your plans every year and see if you need to update it. When you notice that you are not reaching your goals, examine why and take corrective action.

With the strategy in place you are more on top of your business and are likely to make better decisions and reach the thing you aimed for.