New businesses need tactical strategies to succeed just as an existing business requires effective strategies to remain in business by consolidating on established positions and expanding on every side.
Since it is a wild world out there, individual businesses are expected to develop their own survival and winning strategies to facilitate business growth and expansions.
What works for one business may not work for another business even though they may be in the same industry. The reason for this is because entrepreneurs do not have the same visions and objectives even though they may be in the same business, and the factors or situations confronting each business are different from the other.
To this extent, individual business strategies must reflect and conform to the aims and objectives of the business – meaning that objectives set out to be achieved by businesses should determine the success strategies to be set.
Objectives are not only about making money or setting up various outlets for sales; it could be to satisfy the needs of a growing customer base and to become the number one company of note within a given industry in the country.
To better work out the expansion and consolidation potentials of a business, there must be a vision statement that uses a mission statement as a basis for developing successful strategies. What this means is that the future objectives set for a business should stem from its current situation and position; or rather, the anticipatory positions to be fulfilled by a business in the future should determine how its present situation is consolidated.
In simple terms, a vision statement tells the future that a business is set out to achieve in short, plain words, while a mission statement reveals the current situation of a business and sums up the core beliefs of the business.
So strategies for business consolidation and expansion address the definite actions that must be taken for a business to succeed. It details out the steps that must be taken and the policies that must be executed for an enterprise to move forward and occupy frontier positions.
The steps or actions might be medium-term and they could be long-term – and they could involve sourcing for additional working capital, employing a few more hands, investing in technology, and penetrating a new market among others.
It is much easier to work out effective strategies for a business when events occurring in the business environment are predictable and stable.
This enables the business owner to develop a pattern of what works and what does not and even knows the best or worst things that could happen to his business. A great strategy for expansion and consolidation will use factors within the present situations of business to chart a future space that a business must occupy for success.