27. Why You Need a NorthStar – Part 2
1. BLUF
If you don’t know where you’re going any road will take you there.
Over 50% of businesses fail within the first five years.
Your NorthStar is your company’s compass to guide you from start to finish.
2. The Strategy Made Simple Method
This article is the 3rd in a series exploring the Strategy Made Simple Method through the lens of a lemonade stand. If you haven’t, check out the intro article.
Last week, Why You Need a NorthStar – Part 1, we talked about defining your telos, establishing a “firm foundation” – your Vision, Mission, and Values – and being clear on your near & long-term targets.
Today, we’ll finish breaking down the NorthStar.
©Maly Strategies 2023
Your NorthStar is the big picture. It’s your company’s compass to guide you from start to finish.
Whether you hand down your lemonade stand after twenty years to your daughter or sell it to the neighbor down the street next fall, it guides all your decisions while you own the business.
Your Go-to Market Plan
Your Go-to Market Plan identifies the problem you solve, your target market, ideal client, niche, core products and services, differentiators, and Strategic No.
The Problem You Solve
It’s great if you can stand on your head and do a backflip. But what problem do you solve?
Many times, companies tout their awesomeness without understanding if there is a market need for what they offer.
Our lemonade stand’s problem to solve?
Quenching thirst, building community.
Your Niche
A niche is a specialized segment of the target market for a particular product or service. What you have a passion for, can do very well, and what your business will and will not focus on are critical in defining your niche.
Think of your target market as the WHO and your niche as WHAT you offer this target market. It is easier to gain traction if you are known for something.
Does this mean it is all you can do? No, but having clarity will help you to focus on what matters most to attract your ideal clients.
Our lemonade stand’s niche?
Ice-cold lemonade for thirsty neighbors on a hot summer day.
Our lemonade stand’s ideal client?
A neighbor who just mowed the lawn or finished a run.
Differentiators
Why should someone engage your company? One exercise I do with clients is a First, Best, Unique, Only (FUBO) analysis.
What product or service are you the first to provide?
What sets you apart and makes you unique?
The best a providing?
What are you the only one to provide?
Brainstorm ideas and use affinity mapping to group ideas and determine themes around your differentiators.
My company is not the only strategy advisory out there. So, what sets me apart? I understand how to grow a profitable business, make strategy simple, and embed strategy into operations to drive results.
Just like owning a violin doesn't make you a violinist, having a strategy isn't enough. You must engage, practice, learn, and adjust over time.
Our lemonade stand’s differentiators?
Organic lemons – “The Freshest Lemonade in Town”
Local, convenient, & kind
Strategic No
Your Strategic No is what you choose not to do. Afterall, strategy is about making choices.
Our lemonade stand’s Strategic No?
No cookies. Just lemonade.
Off on Sundays. (Hey, it works for Chick-fil-A)
Near-Term Priorities
Recall, our lemonade stand’s near-term horizon – $500 at 30% profit in 2 years.
Your near-term priorities are what you need to accomplish to achieve this near-term horizon. There is more than one way to identify these priorities.
While not exhaustive, I find it helpful to group them as:
Products & Services - Standardized lemonade formula for consistency
Marketing & Comms - Established brand, marketing plan
Tech & Infrastructure - Accept online payments, virtual currency (?)
Workforce & Culture - Recruit friends to operate the stand
Business Development - Form partnership with local bakery
Finances - Mow lawns to increase savings, loan from parents (Angel investor)
Potential Obstacles
Potential obstacles seek to prevent you from achieving your priorities.
If your lemonade business relies on fresh lemons, where can you develop multiple supplier relationships?
How will you train your workforce and face prospective staffing challenges?
Is your arch enemy setting up her lemonade stand across the street?
Our lemonade stand’s potential obstacles?
Supply Chain – Lemon sourcing
Workforce – Staffing shortages
Competition – The lemonade stand across the street.
3. Why You Need a NorthStar - Part 2
My goal is to make strategy simple. I hope this was helpful and will see you next week for the lemonade stand’s Strategy.
4. Application
So, what does it look like for your business?
Have you defined your telos and built your business around it?
What is your company’s firm foundation?
What is one thing you can do today to drive greater clarity?
I help small technology and professional services businesses scale and grow.
If you want to break through to the next level in your business, drop me a message, and we'll arrange a 15-min call to see if I can help.
To your success,
~Susan
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