NFIB

Consider These Factors in a Business Strategy
11/ 01/ 2002

by Vicki Gerson

Before you go into business, it's important to set your business strategy. Here are a few places to start:

Narrow or broad products and services

Some business owners are always looking for another product to add to their line, seeing it as a way to grow their business. New products can yield increased revenue and renewed customer interest. However, some business owners prefer to keep their offerings simple and not take the financial risks involved in expansion.

Similarly, a business owner must decide how flexible to be with services the business will perform. For example, one computer consulting business does not want to be called for computer repairs and will recommend another company for those types of calls. But a different consulting business may take the repair work, especially if they are trying to increase their revenue and customer base.

Brand name or generic products

Some businesses only want to carry brand-name products because the manufacturer is spending money advertising these products. In addition, many times a brand-name manufacturer will offer co-op advertising for the businesses that carry their products. Small businesses may find savings by taking advantage of these opportunities.

However, some business owners like to give their customers the choice of buying generic products, which they can offer at a lower cost.

High or low service levels

While most businesses want to be thought of as having good customer service, some are willing to go farther to achieve it than others. Some make a point of going out of their way to solve a customer's problem, while others will tell the customer to contact the product manufacturer. The important thing is consistency. Decide what your level of service will be and adhere to your policy for all customers.

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