Think Strategy Before Tactics

By Joan Nowak

As a business owner, do you feel like you are fighting an uphill battle and losing ground? Doing lots of stuff but getting nowhere fast? Then it's time to put the brakes on and start working smarter.

We're all familiar with the saying, "Can't see the forest for the trees" and this is true for many small business owners. Engrossed in the details and daily operations, owners often ignore (or don't see) the big picture. Whether you are solving problems or developing your business, think strategy before tactics.

What's the difference? In simplest terms, strategy is a broad plan to achieve desired goals or results; typically longer-term or bigger picture. Tactics are the means, tasks or actions, to carry them out; it's what you implement or do.

According to Sun Tzu, author of The Art of War, "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat". While true in military terms, it's equally true in business, especially when it comes to marketing. You have lots of 'tactical' choices but if they don't work together and support your strategy, you waste a lot of time and money.

So as you plan for next year, take the time to revisit your marketing strategy before you set up the tactics to get there. Don't get concerned, it's not complicated. A good marketing strategy simply requires two things - a narrow focus on your ideal customers and some way to differentiate your business. Here's how you can approach this.

Define YOUR Ideal Customers

You can't be all things to all people and most small businesses know this. They don't intend to try to serve everyone, but end up there over time. With a desire to grow, especially in tough economic times, it's easy to lose focus and view everyone as ideal. Unfortunately, more customers and sales does not guarantee more profit.

Even as they grow and evolve, most businesses have an ideal customer segment. To get a good sense of your ideal target, follow these steps:

1. Make a list (10-20) of your most profitable customers or clients. These may or may not be customers with the highest sales.
2. From that list, identify those who have referred business to you. You definitely want more of these!
3. From the smaller list, identify common demographic characteristics. If you lack this information, do a little research or ask the customer.
4. Next, take a look at their behaviors. How do they buy, what do they buy, why do they buy? What are the challenges they face? What's important to them? Not sure, ask.
5. Draw a detailed sketch of your ideal client - and use it in your marketing!

Differentiate YOUR Business

This is not a new concept but one that many small businesses don't do. Making claims for great service or quality doesn't differentiate you - unless you back it up with something specific.

Differentiation helps you stand out from competition but also reduces your need to compete on price. If 'how much' is the first question your prospects ask, then you likely have a vanilla brand. Here's some questions you can use to get to the specifics you need to set your business apart from others.

• What made you decide to hire us or choose us?
• What's one thing we do better than others like us?
• What's one thing we could do better?
• Would you or do you refer us to others? If yes, why or what would you say?

If at any time, the customer responds with something bland like 'you provide great service', dig a little deeper to get specifics. Here's a few questions that may help:

• What does good service look like?
• Tell me a story or a time when we provided good service.

I've done this exercise with a lot of clients. Create a simple survey and start asking your customers relevant questions. It's not only helpful, but can be eye-opening. More important, it will help you uncover some specifics you can use to stand out - and isn't that the key to attracting more profitable customers?

With a strong knowledge and understanding about your ideal customers and what sets you apart, you now have the foundation for your marketing strategy. Choosing the right tactics to reach your target and creating compelling messages for them is now easier. Most important, your marketing will deliver better results - the kind that make a difference on the bottom line!

Joan Nowak is a Small Business Profit Builder, seasoned Business Coach, and creator of the Hybrid Coaching System for small businesses. For additional resources and ideas to grow your small business, visit http://www.HybridBizAdvisors.com. While you are there, join her mailing list to get her monthly eNewsletter and receive a FREE copy of her eBook, Mastering the 7 Elements of Business Success.

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