The strategy to help your business thrive

There are so many women starting businesses in Australia it blows my mind – we are expanding into entrepreneurship at three times the rate of men – and according to Forbes we are doing it better (not that it’s a competition guys)!

So lets build on our fabulousness – because I recently conducted a survey of business women I know and most do not have a strategy or business plan – we are winging it!

Traditional business plans can be lengthy and inflexible, a strategy provides a broader direction and allows for adaptation to the external environment. Let me introduce Hambrick and Fredrickson's Strategy Diamond, which consists of five elements: arenas, differentiators, dynamic capabilities, vehicles, and economic logic.

These elements help entrepreneurs determine where they want to operate, what sets them apart from competitors, how they will reach their goals, and the underlying economic rationale for their business.

Apply this to any type of business, whether it's a side hustle, a full-time venture, or a managerial role within an organisation. The goal is to create a personal strategy for oneself and a strategy for the business, which can serve as a starting point for defining goals and determining how to achieve them.

So how does it work:

Look at each part of the diamond and answer some simple questions about how your business will be in that situation.

Arenas – Where will you be active?

Vehicles – How will you get there?

Differentiators – How will you win in the marketplace?

Staging – What will your sequence of moves be?

Economic logic – How will you generate revenue and make a profit?

Use this framework as a starting point to create your strategy! The questions may seem really simple – but stick with it as they open your mind to some different possibilities….

A well-defined strategy provides clarity on investment needs and helps entrepreneurs understand how their business will develop over time. It also allows for ongoing evaluation and adjustment, as strategies can be analysed for their effectiveness and modified accordingly. It keeps it real – you can stay close to your strategy, without it being a colour by numbers situation!! Your business is as unique as you are, so go wild, dream big and most of all enjoy the journey!