Business building strategy is more than just identifying your best product or service. It also includes the creation of sustainable competitive advantage and commanding a significant share of market profit pool. Large, successful companies pay millions of dollars in taxes, hire hundreds of thousands of people, and give back to their communities. It is the primary purpose of a business strategy, and CEOs should be aware of the many benefits. Here are four steps that CEOs can take to engage their organizations in the process of creating a business plan.
Engine 1 is your core business and the main cash cow. You can concentrate on Engine 1 as long as it can provide your resources and focus on the unknowns. On the other hand, Engine 2 is a growth business that will not generate cash for years. It is here that you can hone your skills in business building. If you have mastered your art, you can hardwire it into your day-to-day processes. Then, you can board the mother ship, Engine 1.
Developing an entrepreneurial mindset is a critical part of business building. Those who believe that a business should be based on a proven formula will be successful. Despite the high-profile nature of business, it’s crucial to start small. You can develop a solid foundation through trial and error and then scale. Then you’ll be on your way to achieving the next level. With experience, you’ll be able to learn how to improve your company and its products or services.