When I ask young entrepreneurs who their product or service is actually aimed at, they regularly reply, “Everyone!”
Sure, when a business plan like this is being developed, the goal is to attract as many potential customers as possible. So the offering should be as uncontroversial as possible and make a lot of people happy. A clear strategy seems to only get in the way—or rather, people claim that this very breadth is actually the particularly smart strategy.
Really?
In my opinion, a scattergun approach is by no means a strategy. It is absolutely essential to carefully consider exactly who should be able to find which product (or service), at what price, and where.
You also need to know what you want to achieve with it—for yourself personally, for your company, and for society. You need to know what you want.
Admittedly, some of the decisions that need to be made are very difficult. After all, every decision IN FAVOR of something is also always a decision AGAINST something—and usually against a great many other possibilities. That’s not easy. Still, it has to be done.
A strategy isn’t set in stone, but it isn’t arbitrary either. If something changes in your life, in your plan, or in your environment, you might change your strategy as well. But you should do so deliberately.
Half-hearted strategies don’t help anyone—least of all your young company.
Ambiguous positioning is particularly challenging: a mediocre product at a mediocre price with mediocre service—that just doesn’t cut it anymore these days (and, in fact, hasn’t for quite some time).
Be confident and make up your mind: for example, choose something really special or something really affordable.
- Either go for premium—but then accept all the consequences, including the price—with top-notch service, great design, and extra prestige.
- Or for a low price—but stripped down as much as possible.
It won’t amount to anything in between.
When it comes to customers, too, you need to take a firm stance. It’s better to focus on a small group of customers and handle them properly than to spread yourself too thin. After all, whatever you set out to do, you’ll have to actually carry it out first.
So: Be bold, define your strategy, and stick to it. If you know why you want to do something and what your goal is, you’ll figure out how to make it happen. We’re here to support you every step of the way.
Best regards and have a great week
Yours,
Ulrike Hudelmaier
