Business Strategy
It can sound intimidating, especially if you’re just starting out as a new business. In the beginning, your focus might simply be on tangible goals, like creating a product. So, what does it actually mean to create a business strategy? And what do I mean by the top five mistakes to avoid when developing one? Let me explain.
First, let me clarify that creating a business strategy for a small business or a startup is quite different from doing so for a large, established company. Why? Because as a small business, you don’t have the same level of funds, personnel, or resources to develop and execute an extensive strategic plan.
Don’t get me wrong, a solid strategic plan is highly beneficial for building a successful business. But it can also become an overwhelming task that drains the entrepreneurial spark. That’s why my first (unsolicited) piece of advice is to just start. Play around with ideas because once it starts to feel like work, the fun gets cut in half.
Now, back to the essence of this blog: the mistakes you can avoid. Many sources mention common strategy mistakes, so I’ve compiled a clearer, more structured list for you:
Common Business Strategy Mistakes to Avoid
Based on insights from the big guys these are the top 20 mistakes you have to avoid.
- Confusing marketing with strategy
- Ignoring customer needs in your strategy
- Assuming your strengths automatically make you competitive
- Trying to be the biggest rather than the best
- Not having a clear action plan
- Mistaking a goal for a strategy
- Lack of a clear, specific strategy
- Misidentifying growth factors
- Thinking too small
- Including too much in your strategy
- An inflexible strategy
- Spending too much time analyzing company history
- Failing to connect insights with data
- Poor budget allocation overall
- Trying to do everything alone
- Excluding key people from planning
- Choosing the wrong team for execution
- Lack of transparency with the team
- Never actually implementing the strategy
- Not tracking implementation progress
Looking at this list, you might feel like there’s a mistake to be made at every turn. You can invite too few people to help or too many. You might include too much in your strategy or not enough. As an entrepreneur, you have to walk a fine line between both extremes. The goal is to get it just right, but let’s be honest, that’s tough.
A huge list of ‘everything you can do wrong’ probably won’t help you much. In fact, it might take away the magic of being an entrepreneur. But here’s a secret: you won’t find that fine line just by reading this blog. You’ll find it by falling off a few times. Just try to land on something soft.
As a consultant and entrepreneur myself, I love discovering where that fine line is and helping others avoid too many unnecessary falls. That’s why I’m taking the liberty of declaring myself an expert in ‘making these mistakes so you don’t have to’ and sharing my top five mistakes to avoid so you can find that fine line a little faster.
My Top 5 Business Strategy Mistakes to Avoid
1. Not Having a Strategy at All
I know this might sound cliché, but it’s essential. Some entrepreneurs hesitate to call themselves entrepreneurs or business owners for way too long, which prevents them from actually taking the steps they need to take. Without a strategy, it becomes extremely difficult to remember what your initial goal was. And even if you know what you want to do, you might forget some of the finer details.
The worst thing that can happen? You create a complete product line, marketing plan, and budget plan, only to realize they don’t align with your strategy at all. Don’t tell the experts this… but even if you just scribble your strategy on a napkin, that’s better than not thinking about it at all.
That said, I encourage you to experiment before going all in with a formal strategy. Diving into theory right away can feel like being back in school. It’s better to get a sense of direction first—through quick prototypes, mind maps, and hands-on exploration. This will even help refine your strategy. But… please don’t wait two years before creating one.
2. Writing a 200-Page Strategy
I love theoretical tools and analyses. They help answer questions you might not have thought about. But remember: tools should complement your business, you shouldn’t have to change your business just to fit a tool.
Why do I say this? Take a moment one day, while enjoying an amazing croissant and cappuccino, to look up some of the “best” business models and tools that were once praised but have since been torn apart by critics. We love a tool, until we don’t. Your business might outgrow a tool before the rest of the world catches on. So, find the ones that truly work for you.
Oh wait, that’s not even the mistake I wanted to highlight. Luckily, this one is its close cousin: writing long, professional business plans has been admired for years. But most of them just end up collecting dust on a shelf. Don’t let that happen to you. Your goal should be to explain your business plan to your little sister without her falling asleep. You won’t be able to do that with 200 pages. Keep it light. This will make implementation much easier.
3. Forgetting the “Why”
I know what you do. But do I know why you do it? Probably not.
Make sure you know your “why” and integrate it into your strategy. It might seem less important than the what and how, but trust me, it’s crucial. It helps connect all the other elements of your strategy and keeps everything aligned.
I literally ask myself, “Why am I doing this?” for every step I take. If I can’t give a satisfying answer, I already know that whatever I’m working on isn’t going to be successful. When every business decision ties back to your big why, you’re already five steps ahead, because you’ve built a strategy that contributes to the bigger picture.
4. Thinking Too Small
I know what I said: you can think too big or too small. It’s a fine line.
But when I tell you not to think too small, I mean something specific. Your strategic plan is not your to-do list. You don’t have to accomplish everything in it within a week. That means you don’t need to shrink your strategy down to something that’s instantly achievable.
Don’t limit yourself to ideas you already know how to execute. Do you want to create an app that works in 3D, with light effects, voiceovers, and actual magic? Make sure it fits into your strategy, even if you know it will take three years to figure out the magic part.
Don’t think too small just to make your plan doable. Instead, make sure you clearly separate “now” goals and “future” goals in your implementation plan.
5. Having Disconnected Plans
What if your business was a house? No, scratch that: a villa. A mansion! Wait… a castle!
A castle has a grand entrance, right? The moment you step in, the vibe, atmosphere, style, and purpose of the castle should be crystal clear.
Now imagine this: the outside of the castle is dark and dramatic: towering walls, overgrown vines, a mysterious aura. But the inside? Everything, and I mean everything, is pink and vegan. A bit strange, right?
I might be exaggerating, but think of your strategy as the castle’s exterior and your departments as the interior. Wouldn’t it make sense for your marketing plan to match your strategy? It sounds obvious, but trust me, many businesses get this wrong.
If your strategy is a big, scary house, make sure your marketing plan is just as bold. That said… a haunted house with a pink and vegan interior could be a niche. I should look into that.
Final Thoughts
Creating a strategy for your business won’t be the easiest task, but once you clarify what you want to do, and can explain it in a way your little sister understands, you’ll have built a solid foundation for growth. It’s all about balancing that fine line between ‘too much’ and ‘too little.’
You’ll find it. I’m sure of it.
