“Anyone can make the simple complicated. Creativity is making the complicated simple.” That quote is credited to Charles Mingus, and I could not agree more. Strategy is about shaping the future, whether it is to launch into new markets, positioning for growth or changing the rules of the game. And in some cases, a simple strategy is all that is required.
Big players like Amazon, Apple, Tesla have the resources and wherewithal to embrace the complicated strategies that produce competitive advantage, but a new start-up or young aspiring entrepreneur cannot afford such luxury. If strategy is the best route to a desirable end with available means here is my advice to you; keep it simple! How simple? As simple as applying a framework like the 7p’s.
Have you got a product or service that is addressing a real need or want. That is a good start. Your product must be able to do what it says it can do. Your product or service should add value to your targeted customer. And that perceived value must be the customers’ not what you think should be value. With the product, find the right balance such that you do not end up short-changing yourself at the expense of unnecessary quality giveaways.
Now what will you charge for this product or service? No matter how fantastic your product or service, it is only worth what customers are willing to pay for it. Set the price of the product relative to the context of your market. If your product or service already exists in the market, make sure your pricing is competitive not necessarily the cheapest. If it is new to the market, you can apply other pricing strategies like premium pricing but as a start-up, resist being greedy.
Imagine having a solid product set at the right place but potential customers cannot get a hold of it. This is where Omnichannel strategy comes in. Customers must be able to locate a place where they can find you be it physical or online. And again, this does not have to be too complicated. You can exploit marketplaces that come with WhatsApp, TikTok and other popular apps to your advantage. As the orders start pouring in, that is the right time to extend your customer touchpoints.
It is no longer news that social media is the new equaliser. People have turned their fortunes around by just taking advantage of being on the right social media platform. Get to know who your audience are, what platforms they are mostly active on, and connect! If it is a physical store, again leverage on both physical and ecommerce. Having a presence online is a non-negotiable if 40% of customers tend to check online first when a need arises.
Lastly, who are your people that will deliver on the promise? Your USP? What processes will you put in place to ensure that you deliver on that promise? What physical evidence can people see about your claims? For instance, if you are into premium leather products, your physical store, store front, merchandise should display luxury leather items. Sometimes, newbie entrepreneurs get so excited about a surge in sales that they overwhelm themselves with orders they cannot fulfil. It is better to let customers know your capability than disappoint them. The latter will not do business with you again.
In conclusion, while you are at it, take note of the role technology will play that may open you up for opportunities, changes in customer preferences and the role government may play that could promote or hinder the growth of your business.
