Business strategy for startups, strategy and tactics are two different things, when formulating a business strategy, you choose the tactics that will help in achieving your strategic goals, and strategy refers to the direction towards the goal as tactics are the measures taken to support that strategy as most companies deal with five Types of strategies and methods used to achieve strategic goals: product, pricing, marketing, operational and financial strategies, so in this article we will talk about business strategy for startups
Business strategy for startups
The industrial competition requires that your company continually introduce new and better products and services to keep pace with changes in consumer demand.
Microsoft and Apple, both creators of computer operating systems, have been fighting a tactical battle for consumer preferences since the two companies’ emergence.
Microsoft’s tactic was to be a software manufacturer and make its operating system available for PC manufacturers to use in their PC products, then sell PC software owners to run on that OS.
Apple’s tactic was to maintain ownership of its operating system and manufacture its own brand of computers.
Business strategy for startups (pricing strategy)
The pricing strategy does not always imply the use of low price tactics to gain dominance over the industry, but that is the obvious way.
Some companies keep high prices as a tactic, playing on our psychological tendencies to equate high quality with higher prices.
Other companies use low-priced tactics that offer discounts, private sales, and deep discounting.
Other techniques that lower the purchase price include inexpensive financing and late payment deadlines from 30 days to up to one year.
Marketing strategy seeks to target specifications
A consumers who have messages are more likely to catch their attention.
It includes seasonal advertising and special promotions as tactics to achieve market dominance.
Another tactic that affects the company’s position in the market is the acquisition of competing companies, becoming the exclusive distributor of popular brands and using pricing methods to attract customers.
Microsoft and Apple are, once again, examples of marketing strategy and tactics.
Microsoft dominated the market for word processing software, spreadsheets, databases, and email, making it more useful for business needs.
Apple also dominated the graphic design market, which also gave Apple products an excellent reputation among the people who designed and produced graphic media, providing Apple products with an excellent oral reputation.
The operational strategy to reduce costs to achieve greater profit includes reducing operational costs by installing the latest computer equipment and enterprise resource planning software, and hiring contracted personnel to avoid paying benefits.
Establishing many facilities near your target customers, investing in an improved plant and equipment, moving to less expensive locations and adjusting working hours to manufacture more or lowering the costs of keeping the company open.
In running your business, you can develop a strategy that requires investing money that you do not have.
This is when the financial strategy comes into play.
Tactics for achieving a sufficient money strategy to finance growth may include factoring or borrowing against your accounts receivable, obtaining payroll financing so you can pay your employees’ salaries at times when you have large cash flows, finding investors or putting your company out to the public.