Today’s blog is a brief discussion on strategy formulation and the key entrepreneurial characteristics of business entrepreneurs.
Strategy formulation varies widely between large and small entrepreneurial companies. This typically relates to the relationship between owners and managers. CEOs of large corporations must balance the needs of the company’s stakeholders, whereas small business owners are affected more by personal and family needs. We find quite often that small businesses rarely do competitor analysis. If they do it most often only looks locally without considering competition in nearby cities or within the state. Quite often the business entrepreneur’s success can be attributed to their strengths and their weaknesses can contribute to its failure. For most ventures there are two key points related to their success. This includes:
1) To differentiate their products and services from their competition in the areas of quality and service delivery and
2) They need to focus on acquiring a dominant share of their market. Sometimes this is a bit counterintuitive to business growth if you see our blue ocean strategies course.
We find key entrepreneurial characteristics that help with business success include:
- Access to the network of outside help to supplement the business owners own skills and knowledge
- An understanding of the keys to success within their specific business industry
- A sense of urgency towards achievement and turning ideas into action
- The continual focus on opportunity in terms of their strategic direction and not focusing on problems but more so focusing on learning from failure.
- Continual research of innovation related to your business.